Types of Financial Institutions

Banking System
1. Bank Negara Malaysia

Non-Bank Financial Intermediaries

1. Provident and Pension Funds

2.
-

2. Insurance Companies

Banking Institutions
Commercial Banks
Finance Companies
Merchant Banks
Islamic Banks

3. Others
- Discount Houses
- Representative Offices of Foreign
Banks

3. Development Finance Institutions

4. Savings Institutions
- National Savings Bank
- Co-operative Societies
5. Others
- Unit Trusts
- Pilgrims Fund Board
- Housing Credit Institutions
- Cagamas Berhad
- Credit Guarantee Corporation
- Leasing Companies
- Factoring Companies
- Venture Capital Companies

Financial Institutions and its services

Financial Institution
Bank Negara Malaysia (BNM)

Commercial Banks

Finance companies

Services
Issue currency and keep reserves
to safeguard the value of the
currency
Act as a banker and financial
adiser to the Government
Promote monetary stability
Influence Malaysias credit
situation
Provide retail banking services
auch as acceptance of deposit,
Grant loads and advances,
Trade financing facilities
Treasury services
Cross border payment services
Custody services such as safe
deposits and share custody
Deal in foreign exchange
Provide current account facilities
Receiving deposits on deposit
account, saving account or other
similar account
Lend money to business or
individual
Leasing business or the business
of hire purchase

Merchant Bank (Investment Banks)

Any other such business as BNM

with approval of the Minister

Play a role in short-term money

market and capital raising
activities including financing
Specializing in syndication,
corporate finance and
management advisory services,
Arranging for the issue and listing
of shares
Investment portfolio management
Banking activities based on
Syariah principles (the Islamic
principles)
Specialize in short term money
market operations and mobilize
deposits from the financial
institutions and corporations in
the form of money at call,
overnight money and short term
deposits
Funds mobilized are invested in
Malaysian treasury bills, Malaysian
government securities, banker
acceptances, negotiable CDs etc
Provide active secondary market
for these activities
Liaison office and dos not offer
banking products directly to the
Malaysian market.

Islamic Banking

Discount houses

Representatives Offices of Foreign Banks in

Msia

Non Bank Financial Intermediaries

Provident and Pension Funds (PPFs)

Development financial institutions

Services
Provide members and their
dependents with a measure of
social security in the form of
retirement, medical, death or
disability benefits
The funds serve as important
mobilisers of long term savings in
ithe economy for rechanneling
into both the public and private
sectors to finance long term
investments
Promote the development of
certain identified priority sectors
and sub-sectors of the economy
Specialize in provision of medium
and long term financing of

Insurance companies

projects that may carry higher

credit or market risk.
Provides life insurance
Provides general insurance that
covers motor, marine, aviation &
transit insurance, fire insurance
and misc
Insurance broker and insurance
adjusters licensed to operate in
the insurance market