Bank

CONTENTS

1. Introduction

2. Banking Sistem In Malaysia

3. Conclusion

INTRODUCTION

The banking system, comprising commercial banks, investment banks, and Islamic banks, is the primary mobilize of funds and the main source of financing to support economic activities in Malaysia. The non-bank financial intermediaries, comprising development financial institutions, provident and pension funds insurance companies, and takaful operators, complement the banking institutions in mobilizing savings and meeting the financial needs of the economy. Given that the banking industry is, to a large extent, shaped by the country’s overall economic health, solid fundamentals will undoubtedly have a favorable effect on this sector.

Malaysia’s banking sector remains strong and well capitalized despite the turmoil in the global financial markets said by the Association of Banks in Malaysia (ABM) which is located in 34th Floor, UBN Tower, 10, Jalan P. Ramlee, 50250 Kuala Lumpur, in the statement issued on 23 October 2008

BANKING SISTEM IN MALAYSIA

In this recent decade we have seen a period of profound modernization of the Malaysian banking sector. Today, the banking sector has evolved from facilitating and supporting the economic growth process to becoming a significant source of growth. Innovation and product pioneering has proliferated the diversity of products and services offered. The adoption of best business practices, the use of new technologies, systematic cross selling and the new means of interface with consumers have become more pervasive. The banking system is also significantly stronger, reinforced by strengthened institutional structures, enhanced financial safety nets and developed financial markets that include one of the most developed bond markets in this region. Progressive deregulation and liberalization have increased the flexibilities for banking institutions to capitalize on new business opportunities, both onshore and overseas. The...