Malaysia legislation
Section 32
Section 32
(a)
provide liquidity assistance to any financial institution;
(b)
enter into arrangements with other central banks to provide liquidity assistance to subsidiaries or branches outside Malaysia of any financial institution established in
Malaysia; or
(c)
in the case of any financial institution which has ceased to be viable or which the Bank considers likely to become non-viable—
(i)
purchase or subscribe to the shares or other capital instruments issued by such financial institution;
(ii)
provide financing to any other financial institution or a body corporate established by the Bank under paragraph 48(1)(d) to purchase the whole or part of the business, assets, liabilities, shares or other capital instruments of such financial institution; or
(iii)
subject to subsection 38(2), by order published in the Gazette, vest in the Bank, a body corporate established by the Bank under paragraph 48(1)(d), another financial institution or any other person the whole or part of the business, assets or liabilities of, or all or any of the shares or other capital instruments issued by, such financial institution.
(1A)
The enforcement by the parties of their rights under a qualified financial agreement shall not be affected by the making of an order for the vesting of, the whole or part of the business, assets or liabilities of, or all or any of the shares or other capital instruments issued by, a financial institution pursuant to subparagraph (1)(c)(iii).
Central Bank of Malaysia 41
(2)
Notwithstanding the definition of “financial institution” in subsection 2(1), the financial institution for purposes of paragraph 1(a)
shall include any financial institution which is under the supervision or oversight of any other supervisory authority or is not under the supervision or oversight of the Bank or any other supervisory authority.
Due diligence