Following the footsteps of Hong Kong, Australia, Ireland, Germany, Denmark and Greece to fully guarantee bank deposits, Malaysia Government likewise has announced that they will fully guarantee, with immediate effect, all ringgit and foreign currency deposits with commercial, Islamic and investment banks regulated by Bank Negara.
The Central Bank and the Ministry of Finance said in a joint statement the guarantee also extended to deposit-taking development financial institutions regulated by the central bank.
The deposits would be fully guaranteed by the government through Perbadanan Insurans Deposit Malaysia (PIDM) until December 2010.
The guarantee extends to all domestic and locally incorporated foreign banking institutions; and access to Bank Negara’s liquidity facility will be extended to insurance companies and takaful operators regulated and supervised by the Central Bank.
The above move will indeed shore up the country's banking sector in terms of consumer and business confidence. At the same time, this should prevent potential outflow of funds from the country to other countries (particularly Singapore) that offer the full guarantee.
In the same accord, the Singapore Government has also announced full deposit guarantee.
Related Story: How Safe Is Your Money In the Bank?
Thursday, October 16, 2008
Measure To Boosting Banking Sector and Confidence
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4 comments:
its good to know about it? where did you get that information?
A highly Socialist way to go, but more and more countries around the globe are doing this, including the U.S.
Thanks for the heads up
In my opinion, whether capitalist or socialist...it can be quite subjective and neither right or wrong. The main objective is really to retain confidence and prevent the situation of unnecessary panic and outflow of funds.
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