KUALA LUMPUR (March 3): Bank Negara Malaysia (BNM) has today issued an updated exposure draft on the licensing framework for digital banks that incorporates a simplified framework applicable during the foundational phase.
In a statement today, BNM said the simplifications aim to reduce regulatory burden for new entrants that have strong value propositions for the development of the Malaysian economy, while safeguarding the integrity and stability of the financial system.
"Digital banks will be required to comply with all equivalent regulatory requirements applicable to incumbent banks after the foundational phase."
Key features of the simplified regulatory framework include:
BNM is extending the consultation period for the exposure draft until April 30.
It said all feedback on the exposure draft are to be submitted to the central bank by then. "Applications for new licence(s) will be open upon issuance of the policy document."