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A Delima

In: Business and Management

Submitted By Nick41
Words 11026
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The Malaysian Financial System

CCP-FSPC

1-1

Chapter 1 – The Malaysian Financial System
Content Outline
1.

The Banking System ............................................................................. 1-2

2.

The Functions and Responsibilities of Monetary and Non-Monetary
Institutions ............................................................................................. 1-6

3.

The Functions and Responsibilities of Non-Bank Financial
Intermediaries...................................................................................... 1-16

4.

Other Institutions / Bodies.................................................................. 1-30

5.

Summary and Conclusion .................................................................. 1-34

Practice Questions ...................................................................................... 1-35

Learning Objectives
What you should achieve after completing this chapter:


Understand the importance of the Malaysian financial system;



Be able to apply the relevant statutory and regulatory provisions governing the
Malaysian banking system;



Appreciate the functions and responsibilities of monetary and non-monetary institutions, together with non-bank financial intermediaries;



Gain knowledge of the role of Bank Negara Malaysia; and



Understand the scope of the regulatory framework within the Malaysian financial system. © Institut Bank-Bank Malaysia

1-2

CCP-FSPC

The Malaysian Financial System

1.
1.1

The Banking System

Brief history of the Malaysian financial system
1.1.1 Evolution
Trade has been central to the evolution of the financial system.
Therefore, it is good to examine when trade began.
Initially, man undertook all functions by himself as a generalist.
There was no trade. As time evolved, the advantage of specialisation was realised. As a result, the barter trade system...

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