Bank Negara Malaysia (the Bank) is a statutory body governed by the
Central Bank of Malaysia Act (CBA)2009. The CBA sets out the Bank's objectives
and specifies its powers and duties.
The Bank disseminates broad range of economic and financial data through
its publications and its official website.
The compilation of the data on the analytical accounts of the banking
sector is also governed by the terms and conditions of the Financial Services
Act 2013 and Islamic Financial Services Act 2013.
The collection and compilation of the external debt data is also
governed by Section 78(2) of the CBA 2009.
The Bank publishes data as a service to the public.
Central bank survey
The Central Bank of Malaysia Act (Section 47) provides that the central bank publish a return of its assets and liabilities twice a month - after the 15th day and after the last day of each month. With effect from March 1996, BNM has released the statement of assets and liabilities on a fortnight basis with a one week lag. However, there is no legal requirement for Bank Negara Malaysia to publish the analytical accounts of the central bank and these data are disseminated as a service to the public.
The Financial Services Act 2013 and Islamic Financial Services Act 2013 stipulates
that information submitted on an individual basis is confidential unless if it
falls under section 145 and 157 of the Financial Services Act 2013 and Islamic
Financial Services Act 2013.
The public may obtain copies of the CBA 2009, FSA 2013, IFSA 2013
and DFIA 2002 (incorporating latest amendment by Act A1502/2015 and amendments
to First Schedule [PU(A) 14/2016) from
Percetakan Nasional Malaysia Berhad (http://www.printnasional.com.my/). A summary of the acts
is also disseminated in Bahasa Malaysia and English on the Bank's website (http://www.bnm.gov.my/).
Analytical Framework: The analytical accounts of the banking sector are derived by consolidating the balance sheet of the Central Bank and banking institutions. Banking institutions comprise of commercial banks, Islamic banks, finance companies, investment banks and discount houses. From January 2006, all finance companies were absorbed by the commercial banks. With effect from December 2006, all discount houses have been rationalized and absorbed by the investment banks.
Definitions of monetary aggregates: In terms of components, monetary aggregates are divided into M1, M2 and M3.
M1 = Currency in Circulation + Demand Deposits
Currency in Circulation refers to the notes and coins issued by Bank Negara Malaysia (BNM or Central Bank) less the amount held by the commercial banks and Islamic banks.
Demand Deposits refers to the demand deposits (current accounts; include current accounts under Islamic Banking) of the non-bank private sector placed with the commercial banks and Islamic banks.
Narrow Quasi-Money refers to the sum of funds placed with commercial banks and Islamic banks in the form of deposits/interest-bearing instruments (including Islamic Banking deposits and instruments) by the non-bank private sector. Foreign currency deposits refer to the foreign currency deposit accounts of residents (non-bank and foreign entities) with the commercial banks and Islamic banks.
Deposits Placed with Other Banking Institutions, other than commercial banks and Islamic banks, refer to the sum of deposits/interest bearing instruments (including Islamic banking deposits and instruments) placed by the non-bank private sector with investment banks.
Factors Affecting M3 = Net Claims on Government + Claims on the Private Sector + Net External Operations + Other Influences.
Net Claims on the Government = Claims on Government - Government Deposits.
Lending to the Government refers to the holdings of Federal Government debt instruments (Malaysian Government Securities (MGS), Treasury Bills and Government Investment Issues (GII) ) and loans to the Federal and State Governments by BNM and banking institutions.
Government Deposits refer to the deposits placed by the Federal Government with BNM and the banking institutions. Also include State Government deposits with banking institutions.
Claims on the Private Sector~ = Loans + Securities.
Loans refer to the outstanding loans and advances (including loans sold to Cagamas Berhad, the housing mortgage corporation with recourse from December 1996 onwards) extended by BNM and the banking institutions.
Securities refer to the holdings of private debt securities (notes and bonds), Cagamas notes and bonds, stocks and shares, by the banking institutions.
Net External Operations~ = Net International Reserves of BNM + Net External Assets of the Banking Institutions.
Net international reserves of BNM consist of the holdings of gold and foreign exchange, reserve position with IMF and holdings of Special Drawing Rights, net of short term external liabilities. Short term external liabilities include deposits from other central banks and international agencies.
Net External Assets of the Banking Institutions refer to the external assets of the banking institutions net of their external liabilities. External assets comprise mostly foreign exchange interbank placements with foreign banking institutions. External liabilities consist of mostly external borrowings from foreign banking institutions and interbank placements by foreign banking institutions. Note that ringgit deposits of foreign customers are not included since they are classified under the various components of money supply such as demand deposits, fixed deposits and foreign currency deposits.
Other Influences~ refer to the net of all other assets and other liabilities of BNM and the banking institutions. It refers to the amount of all other items in the balance sheet of BNM and the banking institutions that cannot be classified in any of the aforementioned categories. Among the major asset items include paid-up capital and reserves and retained profits or losses of BNM and the banking institutions.
The data is compiled based on the Statement of Assets and Liabilities of the Central Bank of Malaysia. The Statement of Assets and Liabilities is a consolidated account of all the Central Bank's branches and the Headquarters accounts.
Accounting practices: Financial positions were stated at historical cost. However, provision for diminution in value (if any) is made at year-end.
Valuation of foreign-currency-denominated instruments: Prior to 1997, all assets and liabilities denominated in foreign currency were revalued once, at year-end using the exchange rates prevailing at year-end. In 1997, the valuation policy was changed whereby, from January 1, 1997 to September 14, 1998, all assets and liabilities were not revalued. Although the exchange gain from the revaluation of these assets and liabilities were not recognized in the Central Bank's books, full provisions were made for any losses. Effective September 15, 1998, following the fixing of the Ringgit/US Dollar exchange rate at RM3.80, all assets and liabilities in foreign currencies have been revalued into Ringgit at rates of exchange prevailing on the reporting date (i.e. fortnightly) and the exchange revaluation gain has been reflected in the Bank's records. With effect from January 1, 1999, foreign-currency denominated assets and liabilities are revalued on a quarterly basis. The compilation of reserve money followed the accounting valuation methods, i.e. for the external position, the valuation of foreign currency reserves of the Central Bank is conducted in the same accounting valuation methods as indicated above under accounting practices.
Statistical adjustments: Adjustments on published data are rarely made. Thus far, the only adjustments made are for the end-year numbers which are published before the balance sheet has been audited. Once the audited balance sheet is published, amendments are made accordingly. Usually the adjustments are negligible.
The "Monthly Statistical Bulletin" publishes detailed time series data (monthly and annual) on Bank Negara Malaysia's assets and liabilities, including data on : (1) reserve money, broken down by component (Table II.1); (2) Bank Negara Malaysia's assets, broken down by component (Table III.1); and (3) Bank Negara Malaysia's liabilities, broken down by component (Table III.2).
The Bank Negara Malaysia Internet website (http://www.bnm.gov.my) disseminates: (1) monthly time series data for the period since September 1996 for the data published in the press release "Bank Negara Malaysia: Statement of Assets and Liabilities"; and (2) selected time series tables published in the "Monthly Statistical Bulletin".
The data for all prescribed components are released simultaneously to all interested parties by publishing "Monthly Statistical Bulletin", and at the same time posting the data on the Bank Negara Malaysia Internet website (http://www.bnm.gov.my).
Brief explanatory notes are published in the 'Glossary' section of the "Monthly Statistical Bulletin".
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