BNM issues policy document on recovery planning
15 October 2021
On 28 July 2021, Bank Negara Malaysia (“BNM”), in collaboration with Perbadanan Insurans Deposit Malaysia (“PIDM”), released a policy document setting out BNM’s expectations and policy requirements on the development and maintenance of recovery plans for financial institutions in Malaysia. As part of recovery planning, financial institutions are to identify and plan for the execution of a suite of recovery options to restore long-term viability under a range of idiosyncratic and system-wide stress events.
The information and assessment contained in recovery plans will also serve as an important starting point for PIDM, as the resolution authority for its member institutions, to improve the resolvability of member institutions and operationalise feasible and credible resolution plans.