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The Central Bank of Malaysia releases an updated virtual banking framework

The Central Bank of Malaysia has released an updated draft to the exposure draft to the virtual banking framework.

The key changes on the updated draft are as follows:

  • Capital adequacy requirements. The Basel II capital framework has been further simplified on calculation of risk categories for risk-weighted assets.
  • Liquidity requirements. 25% of the digital bank’s on-balance sheet liabilities must be held in high-quality liquid assets.

A full copy of the updated draft may be obtained from the Central Bank’s official website.

The feedback for the draft has been extended to April 2020.

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Izwan Zakaria

Izwan likes to write about startups. He enjoys working and mentoring entrepreneurs and founders. He is also a startup lawyer at Izwan & Partners.

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