What does BNM mean in BANKING

Role of Bank Negara Malaysia

BNM plays a vital role in managing all financial transactions within Malaysia, as well as providing support for both public and private organisations. As an independent central bank, it oversees all activities related to money supply, foreign exchange control and credit allocations. BNM works to ensure that Malaysia's economy is stable, efficient and productive by maintaining the nation's macroeconomic environment. The central bank operates four main departments — Monetary Policy Department, Financial Markets Department, Central Banking Department and Financial Institutions Supervision Department — each responsible for ensuring that their respective operations are conducted in accordance with relevant laws and regulations. In terms of its supervisory roles over the banking sector, BNM also provides oversight over banks' regulatory compliance records such as their ability to comply with anti-money laundering procedures. In addition, it monitors the soundness and adequacy of capital adequacy ratios across all banking institutions within the country. This ensures that all banks remain able to withstand market volatility without adversely affecting their activities or those of other related stakeholders such as depositors or investors.