KUALA LUMPUR: Bank Negara Malaysia (BNM) is in the final stage of assessing applications for up to nine new banking and insurance licences, and expects to conclude the process by April.“Sometime in May or early June, the announcement would be made,” Governor Tan Sri Dr Zeti Akhtar Aziz told a press conference in conjunction with the release of the BNM Annual Report 2009 and the Financial Stability and Payment Systems Report 2009 here yesterday.
She said the applicants were institutions from Europe, the Middle East and Asia.
On the insurance sector, she said, it should consolidate in order to have a more significant role in the local financial system and economy.
She said the sector plays an important role in the financial system especially when the country becomes more advanced and developed.
“Right now, our assessment is that insurance is very much untapped and has significant potential to increase penetration rates to advance forward in several areas for the industry,” she said.
Asked whether it was better for the government to issue a conventional global bond or a global sukuk, Zeti said: “At this point in time, we have of course encouraged the issuance of sukuk out of our market.”
She added that Malaysia had carried out two very successful foreign currency issuance before.
“This (global bond) of course would be an important issuance if the government does so as it would form a benchmark for future private sector issuance out of our market,” she said.
On the dispute between China and the United States over the value of yuan, Zeti said every country should be given the option to decide on the management of its exchange rate and currency.
However, she said, there should be an orderly adjustment in order to avoid destabilisation which could affect the region.
“Hopefully they would come to an arrangement or discussion that would be positive for the global financial system and in particular for the Asian financial region.
“We do not want to see destabilising implications take place, whether it is initiated by the United States or any country, as it would not be in the interest of the global financial system,” said Zeti. — Bernama