Policy Document on Licensing Framework for Digital Banks Issued: Bank Negara Malaysia

Bank Negara Malaysia (BNM) issued a statement on the 31st of December 2020, stating the issuance of a policy document with the licensing framework for digital banks in Malaysia. BNM noted that the framework aims to encourage the innovative use of digital banking to improve the financial well-being of businesses and individuals. This includes promoting the use of and expanding access to suitable financial solutions, targeted at underserved and unserved segments of society.

The framework seeks to balance the admission of new digital banks with strong value propositions, whilst maintaining the integrity and stability of the current financial system. According to BNM, digital banks at the initial stage of operations will have to adhere to a simplified regulatory framework and will...