KUALA LUMPUR: National deposit insurer Perbadanan Insurans Deposit Malaysia (PIDM) has announced its terms and conditions for member banks.
The regulations were set following extensive consultation with Bank Negara, the banking industry and other interested parties.
One of the key requirements of the regulations is that member banks must maintain an adequate level of capital and liquid assets in accordance with the requirements of Bank Negara.
They must also have in place appropriate, effective and prudent risk management policies, procedures and controls, PIDM said in a statement yesterday.
”The regulations are also intended to promote the exchange of information, including communication of timely and relevant information on the condition of banks, as well as certain activities that could affect the depositing public,” said PIDM chief executive officer Jean Pierre Sabourin.
For instance, one condition calls for a member bank to inform PIDM within seven days of any event that is considered unusual in the course of its business.
In addition, the regulations set out a requirement for member banks to maintain appropriate records.
Member banks are required to prepare and maintain accurate records that correctly describe and disclose all their assets and liabilities including deposits.
All deposit records are to be retained in Malaysia. — Bernama
Currently, PIDM has 36 member banks, comprising 22 commercial banks and 14 Islamic banks.
http://biz.thestar.com.my/news/story.asp?file=/2008/9/16/business/2033180&sec=business
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