Financial Services Act/Islamic Financial Services Act (FSA/IFSA)

Commercial banks (conventional and Islamic) and investment banks are governed by the Financial Services Act/Islamic Financial Services Act (FSA/IFSA) under the purview and supervision of Bank Negara (BNM).

Development Finance Institutions (DFI) such as Bank Pembangunan, SME Bank, EXIM Bank, Agrobank, BSN are governed by the Development Financial Institutions Act. Under the Act, selected DFIs have been placed under the purview of BNM. Besides BNM, the DFIs are also supervised by the Ministry of Finance and their respective ministries , e.g. Agrobank under the Ministry of Agriculture and Agro-based Industries.

Capital market activities (related to financial instruments e.g. shares, ICULS, warrants that are offered to the public, bonds and sukuk) are governed by the Capital Markets and Services Act (CMSA). The regulatory body is the Securities Commission. If the instruments are listed, the issuing entities must also adhere to Bursa Malaysia’s guidelines.

There are also many other non-bank financial intermediaries in the financial system such as insurance and takaful companies, pension & provident funds (EPF, KWAP, LTAT, LTH), CGC, Cagamas, credit companies, factoring and leasing companies and money changers.