Bank Negara Malaysia announces assistant governor portfolios

Source: Bank Negara Malaysia.
Adnan.

Bank Negara Malaysia has announced more appointments to fill positions made vacant in recent months. Adnan Zaylani Mohamad Zahid is Assistant Governor effective 1 August 2016. As Assistant Governor, Adnan will be responsible for the Investment Operations and Financial Markets, Foreign Exchange Administration, Legal and Currency Management and Operations departments. He assumes the portfolio from Assistant Governor Norzila Abdul Aziz. He will also continue as the Director of Investment Operations and Financial Markets Department.

Adnan joined the Bank in 1994 and has 22 years of work experience in the areas of investment operations and financial markets. He holds a Master of Science in Global Market Economics and Bachelor of Science in Economics from the London School of Economics and Political Science, UK.

Source: Bank Negara Malaysia.
Norzila.

Effective 1 August 2016, Assistant Governor Norzila will be responsible for the Economics, Monetary Policy, International and Statistical Services departments.

In early July, the bank announced that Shaik Abdul Rasheed bin Abdul Ghaffour had been named Deputy Governor for a three-year term effective 16 July 2016.

As Deputy Governor, Abdul Rasheed will be responsible for the financial sector regulation and development including payment systems as well as the international reserve management and money market operations and foreign exchange administration.

Source: Bank Negara Malaysia.
Abdul Rasheed.

He was Assistant Governor responsible for the Monetary Policy and Economics sector, which consists of the Monetary Policy, Economics, International and Statistical Services departments of the Bank. Abdul Rasheed is a member of the Bank's Management Committee as well as several policy committees namely the Monetary Policy Committee, Reserve Management Committee and Risk Management Committee.

Abdul Rasheed has served at the International Monetary Fund (IMF), Washington DC in the US as the Alternate Executive Director of the South East Asia Voting Group on the IMF Executive Board. He had a key role in the development and successful implementation of the Financial Sector Masterplan (2001 to 2010) and formulation of the Financial Sector Blueprint (2011 to 2020). He was also involved in the regional co-operation initiatives during Malaysia's Chairmanship of ASEAN including the endorsement of the Summary of Achievements of ASEAN Financial Integration and the development of the ASEAN Financial Integration Plan-Post 2015.

Abdul Rasheed joined the Bank in 1988 and holds a Bachelor Degree in Economics from University of Malaya.

With the appointment, Bank Negara Malaysia now has three Deputy Governors, as provided for by the Central Bank of Malaysia Act, 2009.

In April, Bank Negara Malaysia promoted former Deputy Governor Datuk Muhammad Ibrahim as the Governor of Bank Negara Malaysia for a term of five years, starting on 1 May 2016.

Datuk Muhammad Ibrahim named as new Governor for Bank Negara Malaysia

The Yang di-Pertuan Agong of Malaysia, advised by the Prime Minister Najib Razak, has appointed Datuk Muhammad Ibrahim as the Governor of Bank Negara Malaysia for a term of five years, starting on 1 May 2016.

Source: BNM. Datuk Muhammad.

"I'm confident that under his leadership, Bank Negara Malaysia will continue assisting the government with advice to further strengthen Malaysia's economy, as well as managing monetary policy, and regulating and developing the financial services industry," said the Prime Minister.

"On behalf of the government of Malaysia, I would like to thank Tan Seri Dato' Seri Dr Zeti Akhtar Aziz for her excellent contributions during her tenure as the 7th Governor of Bank Negara Malaysia."

"The appointment of Datuk Muhammad Ibrahim as Governor is definitely positive for the country. Being part of our policy team at the bank will provide continuity and the much needed certainty in this prevailing period of great uncertainty. I have great confidence in his ability to lead the Bank going forward into the future," added Dr Zeti.

Datuk Muhammad called his appointment "an opportunity and call to serve the nation". "I will strive to carry out the duties of Governor of Bank Negara Malaysia to the best of my ability," he said. "It is important for the central bank to maintain monetary and financial stability, remain focused on its strategic agenda and work towards contributing to a better future for all Malaysians.

"I would like to also thank Tan Sri Dr Zeti Akhtar Aziz for her exemplary leadership and enormous contributions to the Bank and to the nation."

Datuk Muhammad has been Deputy Governor of Bank Negara Malaysia since 2010. As Deputy Governor he sits on Bank Negara Malaysia's Monetary Policy and Financial Stability Committees and is responsible for the development of the financial markets and  treasury operations including foreign exchange and reserve management of the Central Bank. His other responsibilities including oversseing the development of the banking including Islamic finance and insurance sector. 

Muhammad is responsible for promoting Malaysia's agenda of migration to e-payments,  aimed to generate cost and operational efficiency for businesses. He is additionally involved in collaborative efforts with the regional central banks to develop a multicurrency payment settlement platform aimed to enhance linkages in cross border transactions in trade and investment. He further serves as Chairman of the Finance Accreditation Agency; Board member of the Retirement Fund; member of the Malaysian Institute of Accountants; panel member of the National Trust Fund; and Senate Chair of the International Centre for Education in Islamic Finance.;

He holds a bachelor's degree in accounting from the University of Malaya and Master’s Degree from Harvard University. He also holds a post-graduate diploma from International Islamic University of Malaysia.

BNM governor lays out success factors for investment accounts

The Islamic Financial Services Board (IFSB) has built a solid global reputation as a prudential standard-setting body for Islamic finance, said Bank Negara Malaysia Governor Tan Sri Dato' Sri Dr Zeti Akhtar Aziz in opening remarks at the IFSB's Meet the Members & Industry Engagement Session in Kuala Lumpur in late January. "The initiatives and milestones achieved by the IFSB have indeed paved the way for jurisdictions across the globe to build a solid foundation for the progressive growth of Islamic finance that is underpinned with stability," she said.

Dr Zeti also observed that the IFSB has made significant advancements in taking forward the recommendations made in the Islamic Finance and Global Financial Stability Report 2010 towards achieving financial stability in the national and the international Islamic financial system. "The effective implementation of the standards issued by the IFSB is key towards promoting the soundness and stability of Islamic financial institution. To enhance this prospect, the IFSB has strengthened its role in facilitating greater jurisdictional preparedness in the adoption of these standards through the provision of technical assistance to its members," she said.

"Malaysia is one of the jurisdictions that has adopted and operationalised the prudential standards and the guiding principles that have been issued for the industry. The implementation of these standards and guiding principles support the regulatory framework that we now have in place in our Islamic financial system."

Dr Zeti said that Islamic banks in Malaysia now have the potential to be better able to pursue their role as investment intermediaries through the offering of investment accounts in addition to the entrenched deposit products. The legal recognition of investment accounts in the Islamic Financial Services Act 2013 (IFSA) differentiates between deposit accounts and investment accounts while offering a new investment avenue, one that is being channelled to finance entrepreneurship, she pointed out.

Dr Zeti highlighted the Investment Account Platform (IAP) that is currently being developed for its growing popularity. The IAP will provide a centralised multi-bank platform as a new financing option for entrepreneurs with viable projects as well as an opportunity for the investing public to finance these projects, she noted.

"It is encouraging that to date, eight Islamic banks are offering investment accounts to their customers. More are expected to follow when the value proposition of such investment accounts, with its unique features and the different target market become better understood. The industry-led communication by the Association of Islamic Banking Institutions Malaysia will contribute towards increasing the awareness of customers on the concept and on the key features of investment account. The latest establishment of a consortium developed by four Islamic banks to develop and operate the IAP which is to be launched next month is also another initiative to advance this new offering," she revealed.

Dr Zeti also listed some of the prerequisites for a successful introduction to the investment account. "In the development of the investment account, it will be essential for Islamic banks, investors and entrepreneurs to embrace the different approaches in the management of the risk and return relationships that are embedded in the variations of the shari'ah contracts used in such investment accounts. These relationships need to be well understood by the parties involved and which are aligned with clear contractual and operational requirements.

"The IFSB has an important role in not only providing guidance but also in initiating the convergence of the different practices between IFSB members with regard to the treatment of the investment account - also referred to as profit sharing investment account (PSIA) - in the IFSB standards. More in-depth work can also be explored by the IFSB on the prudential requirements for the investment account to further ensure a conducive environment for such risk-sharing offerings," she said.

The global Islamic financial system is now operating at a time when the international economic and financial environment has become immensely more challenging. New risks that are more complex, with more profound systemic implications are emanating with the increasing forces of financial liberalisation, globalisation, technological advancement, intensified competition, financial innovation and the internationalisation of Islamic finance. Cumulatively, these developments necessitate greater prudential regulation and supervisory oversight to ensure a resilient and sustainable financial system.

Dr Zeti said the role of the IFSB remains instrumental to the industry, especially internationally, and called for members to continue their support for the IFSB. "Greater concerted efforts by members to consistently adopt and implement the prudential standards issued by the IFSB will not only contribute towards preserving financial stability but it will also enhance regulatory harmonisation across jurisdictions," she said.

"Malaysia, as the host of the IFSB will continue to be committed to support its development and its potential as a prudential standard-setting body in the international financial system."

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Read the full speech

Bank Negara Malaysia makes it easy to contact Islamic finance companies

Bank Negara Malaysia has introduced a mobile app that connects consumers and financial service providers in Malaysia.

BNM MyLINK provides a directory of conventional and Islamic banking, insurance and takaful companies as well as SMEs which allow users to make enquiries, obtain advice and address their complaints.

Interested?

The app is available in both Bahasa Malaysia and English, and can be downloaded for free from the Apple App Store and the Google Play Store.