Roles and Functions of Bank Negara Malaysia (BNM)

Roles and Functions of Bank Negara Malaysia (BNM)
The roles of the Bank are supported by 39 departments/units in the Bank covering seven functional areas as follows:

1. Economics & Monetary Policy
Primarily provides good technical and research support on growth-related issues to enhance formulation of monetary and credit policies in promoting monetary stability and ensuring the availability of adequate credit to finance economic growth.

2. Investment and Operations
Manage domestic liquidity and exchange rates to ensure that monetary policy targets are achieved as well as managing external reserves to safeguard its value and optimise its returns. It also has the responsibility of providing advice and assistance to the Government in the area of debt and fund management and contributing to domestic financial market development.

3. Regulation
Promote financial sector stability through the progressive development of sustainable, robust and sound financial institutions and financial infrastructure, thus enabling a competitive local financial industry to be resilient against the changing future environment as well as leads initiatives to enhance access to financing. It also formulates and implements policies and strategies towards building and positioning Malaysia as a premier integrated Islamic Financial Centre and enhance the financial capability of consumers.

4. Payment Systems
Develop policies and strategies to promote reliable, secure and efficient clearing, settlement and payment systems in the country.

5. Supervision
Develop, enhance and implement an effective surveillance framework to ensure safety and soundness of financial institutions and to enforce sound practices in them.

6. Organisational Development
Spearhead the Bank's strategic management, organisational-performance management and programme management functions to drive its performance-improvement processes and strengthening the capacity building of the Bank. It also leads and drives human resources initiatives and other strategic activities to ensure that the overall Human Capital Management framework is implemented effectively.

7. Communications
The communications function has assumed increasing importance in response to the heightened demands of the various stakeholders, seeking greater transparency and disclosure.

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Source: http://www.bnm.gov.my/