Malaysia
– Banking
Overview :-
The Malaysian commercial
banking sector has remained resilient, backed by strong capital and stable
funding levels. The sector’s Basel III liquidity coverage ratio (LCR) stood at
125% as at end-January 2016 – higher than the final requirement of 100%.
Meanwhile, the industry’s ample liquidity and capital buffers are reflected by
the common-equity tier- 1 capital ratio, tier-1 capital ratio and total capital
ratio which stood at 13.0%, 13.9% and 16.6% respectively. The level of net
impaired loans also remained low at 1.1% during the same period.
As the financial technology
(FinTech) driven movement gains momentum, commercial banks are monitoring the
evolution of this emerging ecosystem closely and are actively pursuing opportunities
to play an integral part in it. Banks recognise that they have much to gain
from FinTech’s innovations. Soon, many FinTech driven offerings may become
pivotal elements in banks’ operating models, enabling banks to reduce costs,
reach underserved markets and open up new products and revenue streams. To
achieve this, a FinTech ecosystem needs to be embedded into the banks’
transformation strategies to drive change across the organisation – people,
processes and technologies.
Over the past year, more local
banks are expanding their operations into China and other ASEAN markets as
greater intra-ASEAN trade and investment have encouraged more banks to create a
bigger presence regionally to better serve their clients. As ASEAN economies
mature, this will result in higher demand for more sophisticated financial
products, thus providing ample opportunities and incentive for banks.
Types Of Banking In Malaysia
The following types of banking institutions are
prevalent in Malaysia:
A) Conventional Banking
Conventional
banking is the conduct of banking as per the laws and regulations that govern
banking in a country. In Malaysia, conventional banking is supervised by the
Central Bank of Malaysia, Bank Negara Malaysia by the powers vested in it
through the Central Bank of Malaysia Act 2009.
Conventional
banks in Malaysia are required to comply with the provisions under the
Financial Services Act, 2013. Currently there are 27 commercial banks in
Malaysia who offer retail banking services.
List of Malaysian Commercial banks
·
Affin Bank Berhad
·
Alliance Bank Malaysia Berhad
·
AmBank (M) Berhad
·
CIMB Bank Berhad
·
Hong Leong Bank
Berhad
·
Malayan Banking Berhad
·
Public Bank Berhad
·
RHB Bank Berhad
List of Foreign Commercial Banks
·
BNP Paribas Malaysia
Berhad
·
Bangkok Bank Berhad
·
Bank of America
Malaysia Berhad
·
Bank of China
(Malaysia) Berhad
·
Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad
·
China Construction Bank
·
Citibank Berhad
·
Deutsche Bank
(Malaysia) Berhad
·
HSBC Bank Malaysia Berhad
·
India International Bank (Malaysia) Berhad
·
Industrial and Commercial Bank of China (Malaysia)
Berhad
·
J.P. Morgan Chase Bank Berhad
·
Mizuho Bank
(Malaysia) Berhad
·
National Bank of Abu Dhabi Malaysia Berhad
·
OCBC Bank (Malaysia)
Berhad
·
Standard Chartered Bank Malaysia Berhad
·
Sumitomo Mitsui Banking Corporation Malaysia Berhad
·
The Bank of Nova Scotia Berhad
·
The Royal Bank of Scotland Berhad
B) Islamic Banking
Islamic
banking refers to a system of banking that complies with Islamic law also known
as Shariah law. In Malaysia, Islamic banks are supervised by Bank Negara
Malaysia and have to comply with the provisions given in the Islamic Financial
Services Act, 2013. Currently, in Malaysia, there are 18 Islamic and 5
international Islamic banks. And, a number of other banks operate through
Islamic banking “windows”.
Islamic banks
·
Affin
Islamic Bank Berhad
·
Al Rajhi Bank
·
Alkhair
International Islamic Bank Malaysia Berhad
·
Alliance
Islamic Bank Berhad
·
AmIslamic
Bank Berhad
·
Asian
Finance Bank (M) Berhad
·
Asia
Offshore Finance Agency
·
Bank Islam Malaysia
·
Bank Muamalat Malaysia
·
CIMB
Islamic Bank Berhad
·
Hong
Leong Islamic Banking Berhad
·
HSBC
Amanah Malaysia Berhad
·
Kuwait
Finance House (Malaysia) Berhad
·
Maybank
Islamic Berhad
·
OCBC
Al-Amin Bank Berhad
·
Public
Islamic Bank Berhad
·
RHB
Islamic Bank Berhad
·
Standard
Chartered Saadiq Berhad
C) Investment Banking
Unlike
commercial banks which focus on providing retail credit and loan facilities,
investment or merchant banks provide more sophisticated and complex banking
facilities like raising capital by way of syndication, corporate financial
advisory services, management of investment portfolios, listing of public
companies, underwriting of new issues of shares, mergers and acquisitions and
the restructuring of companies, especially those under Section 176 of the
Companies Act, 1965.
14
investment banks currently operate in Malaysia. Investment banks are supervised
both by Bank Negara and the Securities Commission.
Investment Banks
·
Affin Hwang Capital (Following merger between Affin Investment
Bank and Hwang-DBS Investment Bank)
·
Alliance
Investment Bank Berhad
·
AmInvestment
Bank Berhad
·
CIMB
Investment Bank Berhad (Partnered with BDO Uni-bank as Authorized Agent Bank
For International Tax Collection)
·
Hong
Leong Investment Bank Berhad
·
Public
Investment Bank Berhad
·
RHB
Investment Bank Berhad
·
KAF
Investment Bank Berhad
·
Kenanga Investment
Bank Berhad
·
Maybank
Investment Bank
·
MIDF
Investment Bank Berhad
·
MIMB
Investment Bank Berhad (merged with Hong Leong Investment Bank)
·
OSK
Investment Bank Berhad (merged with RHB Investment Bank Berhad)
·
ECM Libra
Investment Bank Berhad (bought over by Kenanga Investment Bank
·
Offshore Banking
Malaysia
also offers offshore / international investment, banking and financial services
through the offshore financial hub, the Labuan International Business and Finance
Centre (IBFC) which comes under the purview and supervision of the Labuan
Financial Services Authority (Labuan FSA; formerly known as Labuan Offshore
Financial Services Authority — LOFSA).
Top largest banks in
Malaysia by terms of Total assets
Rank
|
Banks
|
Total Assets (RM, bn)
|
1
|
Maybank
|
640.300
|
2
|
CIMB Group Holdings
|
414.156
|
3
|
Public Bank
|
345.722
|
4
|
RHB Capital
|
219.354
|
5
|
Hong Leong Financial Group
|
194.874
|
6
|
AMMB Holdings
|
130.202
|
7
|
United Overseas Bank (Malaysia)
|
93.177
|
8
|
Bank Rakyat
|
89.305
|
9
|
OCBC Bank (Malaysia)
|
89.176
|
10
|
HSBC Bank Malaysia
|
82.997
|
11
|
Affin holdings
|
66.670
|
12
|
Standard Chartered Bank Malaysia
|
51.360
|
13
|
Alliance Finance Group
|
51.237
|
14
|
Bank Islam Malaysia
|
42.879
|
15
|
Citibank Berhad
|
37.592
|
16
|
Bank Simpanan Nasional
|
31.688
|
17
|
Bank Penbangunan Malaysia
|
29.246
|
18
|
Bank Muamalat Berhad
|
22.214
|
19
|
Bank of Tokyu – Mistubishi UFJ Malaysia
|
15.322
|
20
|
Bank of China (Malaysia)
|
10.451
|
21
|
Deutsche Bank (Malaysia)
|
8.794
|
22
|
Al Rajhi (Malaysia)
|
6.803
|
23
|
Sumitomo Mitsui Banking Corp Malaysia
|
6.799
|
24
|
J.P Morgan Chase Bank Berhad
|
6.591
|
25
|
Bank of Nova Scotia Berhad
|
4.538
|
26
|
Bangkok Bank Berhad
|
4.292
|
27
|
ICBC Malaysia
|
4.219
|
28
|
BNP Paribas Malaysia
|
3.367
|
29
|
Royal Bank of Scotland Berhad
|
2.946
|
30
|
Mizuho Bank (Malaysia)
|
2.921
|
31
|
Bank Of America Malaysia
|
2.314
|
32
|
National Bank of Abu Dhabi Malaysia
|
1.296
|