Bank Negara Malaysia publishes exposure draft on Islamic Banking Window

25 April 2024

On 7 February 2024, Bank Negara Malaysia ("BNM") published an exposure draft which sets out the proposed enhancements to the Guidelines on Skim Perbankan Islam. The exposure draft outlined authorisation, governance, prudential and operational regulatory requirements applicable to Islamic Banking Window (“IBW”).

The enhancements seek to ensure that the requirements cover all IBW players, including prescribed institutions under the Development Financial Institutions Act 2002 and overseas branches of licensed persons.

BNM invited written feedback on the proposed regulatory requirements, including suggestions on specific issues or areas requiring further clarification or elaboration. The consultation closed on 31 March 2024.