The Central Bank of Malaysia releases an updated virtual banking framework

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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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