About Bank Negara Malaysia
Bank Negara Malaysia, or the Central bank of Malaysia, was established on 26th January 1959 under the Central Bank of Malaysia Act 1958 (CBA 1958). A statutory body wholly owned by the Government of Malaysia, the Bank reports to the Malaysian Minister of Finance, with key responsibilities that encompass policing the prudent conduct of monetary policy, maintaining the stability of the financial system and fostering a sound and progressive financial sector. It also plays a crucial developmental role, including in the establishing of financial system infrastructure focusing on building the nation’s efficient and secure payment systems. Its effort towards building a comprehensive, robust and resilient financial system also encompasses developing the necessary institutions to realise this, such as the Securities Commission, Bursa Malaysia and the Credit Guarantee Corporation. The Bank’s other important roles include being the banker and adviser to the Government, and is the sole authority in issuing currency as well as managing the country’s international reserves.
Meanwhile, as the financial system becomes increasingly sophisticated, the Bank has taken measures to raise the level of financial literacy among consumers. Its many efforts include embarking on a wide-reaching Consumer Education Programme, establishing the bankinginfo and insuranceinfo initiatives, running an outreach programme to enhance financial education for targeted school children, and organising financial education roadshows to engage with the public, including those in rural areas. These efforts, combined with the growing prominence of Islamic Finance in the global market and Malaysia’s move towards becoming a hub for this niche financial sector, were prime motivations for the Bank to establish the International Centre for Education in Islamic Finance (INCEIF) in March 2006.
Bank Negara Malaysia and INCEIF
One of the major focuses of the Central Bank is the development of skilled human capital to shape the improvements to the financial services industry, where knowledge, skill, competencies and capabilities have become key drivers for competitiveness and growth. The establishment of INCEIF is in line with this goal, allowing the Bank to spearhead the development of Islamic Finance professionals that will help the country achieve its goal of becoming a leading hub for Islamic financial services.
As the world’s first and only international university specialising in Islamic Finance, INCEIF was established to develop professionals and specialists in the field to sustain market competitiveness and take on the future challenges in the industry. The Central Bank has established an endowment fund of RM500 million to support this initiative, and put in considerable efforts to attract top-tier talent including renowned thought leaders, academicians as well as educationists in the field. To ensure close ties and collaboration between the Bank and INCEIF, Central Bank Governor Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz was installed as the first Chancellor for INCEIF.
For further information: www.bnm.gov.my