Banking and Financial Institutions Act 1989 · s 38

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38. (1) The Bank may specify that a licensed institution shall hold such minimum, or minimum average, amount of liquid assets in Malaysia at all times or over such period of time as may be set out in the specification.
(2) The minimum, or minimum average, amount of liquid assets specified under subsection (1) shall be expressed as a percentage of all or such of its liabilities incurred by its offices in Malaysia as may be set out in the specification.
(3) In a specification under subsection (1), the Bank may specify—
(a) different minimum, or different minimum average, amounts of liquid assets for different classes or categories of licensed institutions;
(b) different types of assets to be classified as liquid assets for different classes or categories of licensed institutions; or
(c) different types of liabilities as mentioned in subsection (2) to be classified as liabilities for different classes or categories of licensed institutions.
(4) In a specification under subsection (1) the Bank shall specify the period, being in any case not less than seven days, within which a licensed institution shall comply with the specification, and it may specify different periods for different classes or categories of licensed institutions:

Provided that such period is a uniform period for all licensed institutions in the class or category concerned.
(5) A licensed institution shall not, during any period in which it has failed to comply with any requirement of a specification under this section, give any credit facilities to any person without the prior written approval of the Bank.

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s 38

(1)

The Bank may specify that a licensed institution shall hold such minimum, or minimum average, amount of liquid assets in Malaysia at all times or over such period of time as may be set out in the specification.

(2)

The minimum, or minimum average, amount of liquid assets specified under subsection (1) shall be expressed as a percentage of all or such of its liabilities incurred by its offices in Malaysia as may be set out in the specification.

(3)

In a specification under subsection (1), the Bank may specify—

(a)

different minimum, or different minimum average, amounts of liquid assets for different classes or categories of licensed institutions;

(b)

different types of assets to be classified as liquid assets for different classes or categories of licensed institutions; or

(c)

different types of liabilities as mentioned in subsection (2) to be classified as liabilities for different classes or categories of licensed institutions.

(4)

In a specification under subsection (1) the Bank shall specify the period, being in any case not less than seven days, within which a licensed institution shall comply with the specification, and it may specify different periods for different classes or categories of licensed institutions:

Provided that such period is a uniform period for all licensed institutions in the class or category concerned.

(5)

A licensed institution shall not, during any period in which it has failed to comply with any requirement of a specification under this section, give any credit facilities to any person without the prior written approval of the Bank.