BNM has published a draft that sets out the revised expectations of licensed banks and licensed investment banks entering into repo transactions. This policy document applies to repo transactions on repo and non-ringgit repurchase agreements and reverse tracking transactions, including the direct sale or purchase of repo securities for the purpose of redeeming or reselling them at a later date. The response deadline for the consultation expires on 13 September 2019. On 12 November 2019, Bank Negara Malaysia (“BNM”) published a policy document entitled “Repo Transactions”. It was on that day that it came into force. KUALA LUMPUR, 12 years old. November (Reuters) – Malaysia`s central bank on Tuesday extended the maximum duration of retreat or repo operations to five years to increase liquidity and avoid a downgrade by global index provider FTSE Russell. The Directive document applies to all market participants that are licensed banks and licensed investment banks and does not apply to repo transactions concluded by foreign branches of licensed banks and licensed investment banks, nor to repo transactions concluded with BNM. It applies to repo transactions in variable-flow and non-ringgit securities and reverse repurchase transactions, including the direct sale or purchase of repo securities with the aim of redeeming or reselling them at a later date. Repo Securities refers to the underlying securities of the repo transaction. The content of a transaction takes precedence over its form in determining whether a transaction is covered by this policy document. The maximum duration of the retreats was 365 days. This document replaces the guidance document on repo transactions published on July 31, 2015 (BNM/RH/PD 032-3).

The revised strategy paper enters into force on the date of publication of the final directive. This policy document should be read together with other BNM policy documents and guidelines, in particular the capital framework published on 3 May 2019 (Basel II – risk-weighted assets); the requirements for the single counterparty ceiling adopted on 9 July 2014; exchange management rules; the Code of Conduct for Malaysian Wholesale Financial Markets, published on 13 April 2017; which, the 31 requirements relating to the stability of the net coverage ratio adopted on 1 July 2019; and STATsmart reporting requirements. (Redesign of title and lead, adds details and background) According to the Central Bank, its recent measures have ensured sufficient liquidity in the line and bond market, including reverse-repo operations, adjustments to the statutory reserve requirement (CSR), facilities for major traders and the purchase of government bonds. The recent recovery of interbank-repo activities has also enabled banks to better manage liquidity. The Central Bank said traders will also have access to a wider range of securities allowed as part of repo operations and will be less exposed to bureaucracy in executing cross-currency repo operations on Ringgit securities. The basic document on repo operations aims to determine the volume of repo operations that can be carried out by licensed banks and licensed investment banks, to define regulatory requirements and expectations regarding repo operations concluded by licensed banks and licensed investment banks, and sound risk management practices of licensed banks and licensed investment banks for the implementation of repo-tra 1999, 1995, 1995, 1 Revisions to the policy document include in the first place: Negara Malaysia Bank announced the change in a statement in this document and issued a policy document that sets out the Bank`s revised requirements and expectations of stakeholders of the contract which conclude repo transactions on repo and non-ringgit repo transactions. . . .