Bank Negara Malaysia (BNM) was established in 1959, under the Central Bank of Malaysia Act 1958 (new legislation enacted in 2009). The central bank is entrusted to uphold monetary and financial stability and maintain oversight over the payments system in the country. By maintaining monetary stability through prudent conduct of monetary policy, BNM has kept the average inflation low and preserved the purchasing power of the ringgit, thus securing the prospects for sustainable economic growth and development. Over the years, BNM has significantly contributed to the development of a comprehensive, efficient and resilient financial sector that has been able to meet the increasingly sophisticated needs of consumers and businesses. Malaysia’s financial sector now distinctively encompasses both the conventional and Islamic financial services. Focusing in Islamic finance, Malaysia has a well developed comprehensive Islamic financial system which is becoming increasingly internationalised.

Within this financial system,BNM approves licences for the establishment of International Islamic Banks and International Takaful Operators as well as focusing on institutional building, including the establishment of the International Centre for Education in Islamic Finance (INCEIF) and the International Shari’ah Research Academy for Islamic Finance (ISRA) in promoting training, education and research to advance the talent development for the Islamic financial services industry. Meanwhile, the BNM Shariah Advisory Council ascertains applications of Shariah principles on Islamic financial services by providers under the purview of BNM and acts as an advisor to BNM on Shariah matters on such services.

For more information on BNM, please log on to www.bnm.gov.my