Preceded by Zeti Akhtar Aziz Religion Islam | Nationality Malaysia Website Bank Negara Malaysia | |
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Alma mater IIUM
University of Malaya
HKS, Harvard University
HBS, Harvard University | ||
The Governor of The Central Bank of Malaysia (Malay: Bank Negara Malaysia) is the highest ranked position in the financial and economics sector in Malaysia. The Governor is the head of all the financial institutions in Malaysia. He does the bank affairs based on the regulations given by the BNM BNM Board of Directors.
Contents
- History
- Powers of the bank
- Central Bank of Malaysia Act 2009
- Financial Services Act 2013
- Islamic Financial Services Act 2013
- Money Services Business Act 2011
- References
Section 15 (1) of the Central Bank of Malaysia Act 2009 stated that the Governor is elected by Yang di-Pertuan Agong, the Supreme Head of Malaysia whilst the Deputy Governor is elected by a Minister (that is from Financial Department).
Until now, the number of the Governors of BNM is 8 (data collected from 1 May 2016). The current Governor is Muhammad bin Ibrahim.
History
The First Governor of BNM, W. H. Wilcock is an Australian citizen. In September 1956, a legislative proposals and policy for the establishment of a Central Bank in Malaya was issued in "Caine Watson Reports".
At that time, W. H. Wilcock served as Deputy Governor Commonwealth Bank of Australia ( now the Reserve Bank of Australia). In 1958, he came to Malaya as the Financial Advisor to the Government of the Federation of Malaya.
In 1959, W. H. Wilcock was appointed by Yang di-Pertuan Agong as a Governor First and Chairman of the Board of the Central Bank of Malaya ( back then it was known as Bank Negara Tanah Melayu ) for 2 years. The Federation of Malaya Government renew his contract for another 6 months.
He retired from the post of Governor BNM in 1962 and returned to Australia to fill the position as General Manager at the Notes Printing Division on Reserve Bank of Australia and oversaw the introduction of the decimal currency Australia.
After that, the second Governor, Ismail Mohd Ali came in place followed by Abdul Aziz Taha as third, Jaffar Hussein as fourth, Ahmad Mohd. Don as fifth, Ali Abul Hassan Sulaiman as sixth, Zeti Akhtar Aziz as seven and the first woman Governor as Muhammad Ibrahim as eight and the current Governor of BNM.
Powers of the bank
The bank is endowed with certain powers through establishment of legal Acts by the Parliament of Malaysia to help fulfill its objectives. New legislation are created and current legislation is amended to reflect the needs of the time and future.
Central Bank of Malaysia Act 2009
Provides the establishment, administration and powers of the bank. This act repealed the Central Bank of Malaysia Act 1958.
Financial Services Act 2013
Consolidates the regulatory and supervisory framework for Malaysia’s banking industry, insurance industry, payment systems and foreign exchange administration matters. This act repealed Banking and Financial Institutions Act 1989, Insurance Act 1996 (though sections 144, 147(4), 147(5), 150, 151 and 224 of the Insurance Act 1996 continue to remain in full force and effect by virtue of section 275 of FSA 2013), Payment Systems Act 2003 and Exchange Control Act
Islamic Financial Services Act 2013
Sets out the regulatory framework for Malaysia’s Islamic financial sector with the principal regulatory objectives of promoting financial stability and compliance with Shariah. This act repealed Islamic Banking Act 1983 and Takaful Act 1984.
Money Services Business Act 2011
Gives the bank the power to license and regulate money changing business in Malaysia.