Role Of Bank Negara Malaysia

A central bank is an organisation entrusted by the government that conducts monetary policy, regulates banks and provide financial services including economic research. It is owned by the nation, but it is not a government agency. In this era, most countries have some form of Central Bank serving as the principle authority for the nation's financial matters. The main objective for a Central Bank include implement a monetary policy that provides consistent growth and employment. Promote the stability of the country's financial system. Manage the production and distribution of the nation's currency. Inform the public of the overall state of the economy by publishing economic statistics

Fiscal policy refers to the economic direction a government

As the financial sector has a central role in promoting economic growth, it is important that the financial system is strong, resilient and efficient in mobilising savings and undertaking lending activities. It is vital that this intermediation process continues uninterrupted even in periods of economic difficulties. As the nation's regulatory authority, one of the fundamental roles of Bank Negara Malaysia is to develop a sound banking system that responds to the changing needs of the economy and society, a system that is made up of strong and resilient financial players and well-functioning financial markets. In the context of preserving financial stability, Bank Negara Malaysia is also entrusted to regulate and develop the insurance sector to be an effective mobiliser of the long term savings and provide wide range of insurance products while protecting the interest of policy owners. The overall objective of financial stability has been achieved not only through the formulation of strong legal and regulatory and supervisory framework, but as well as through the development and also the strengthening of new institutions and system

As the economic and financial adviser to the Government, Bank Negara Malaysia analyses and assesses the developments in the international and domestic economy and highlights the areas that needed to be addressed. Bank Negara Malaysia undertakes economic intelligence and surveillance and carries out forecasts on the economic condition of the nation. Based on these assessments, Bank Negara Malaysia presents policy recommendations at regular briefings to the Minister of Finance as well as at various economic policy making forums at the national level. As the financial adviser of the Government, Bank Negara Malaysia gives advice regularly to the Government on the management of its domestic and external debts and the terms and timing of Government loan programmes. Apart from that, Bank Negara Malaysia also acts as the agent for the government in the negotiations and concluding of loan agreements. Bank Negara Malaysia is also responsible for registering, trading, settlement and the redemption of Government securities through its computerised systems such as RENTAS, FAST and