Chapter 5
Financial System of Malaysia
5.1
Financial System Structure in Malaysia
The Malaysian financial system is structured into two major categories, Financial Institutions
and Financial Market. The Financial Institutions comprise
Banking System and Non-bank
Financial Intermediaries. The Financial Market in Malaysia comprises four major markets
namely: Money & Foreign Exchange Market, Capital Market,
Derivatives Market, and Offshore
Market.
Chart 1: The Financial System Structure in Malaysia
Financial Institutions
Financial Market
Financial System
Banking System
1. Bank Negara Malaysia
2.
Banking Institutions
• Commercial Banks
• Finance Companies
• Merchant Banks
•
Islamic Banks
3. Others
• Discount Houses
• Representative
Offices of Foreign
Banks
Non-Bank Financial
Intermediaries
1.
Provident and Pension
Funds
2. Insurance Companies
(including Takaful)
3. Development Finance
Institutions
4. Savings Institutions
• National Savings Bank
•
Co-operative Societies
5. Others
• Unit Trusts
• Pilgrims Fund Board
• Housing Credit
Institutions
•
Cagamas Berhad
• Credit Guarantee
Corporation
• Leasing Companies
• Factoring Companies
•
Venture Capital
Companies
Capital Market
1. Equity Market
2. Bond Market
• Public Debt Securities
• Private Debt Securities
Money & Foreign
Exchange Market
1. Money Market
2. Foreign Exchange Market
Derivatives Market
1.
Commodity
Futures
2.
KLSE CI Futures
3. KLIBOR
Futures
