Banking and Financial Institutions Act 1989 · As enacted · Part VII · Financial Requirements and Duties of Licensed Institutions
Section 38
Official textFrom Laws of Malaysia Online, unchanged
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.
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.
liabilities
"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
In a specification under subsection (1), the Bank may specify—
specify
"specify", where no mode is mentioned, means specify from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons;
different minimum, or different minimum average, amounts of liquid assets for different classes or categories of licensed institutions;
different types of assets to be classified as liquid assets for different classes or categories of licensed institutions; or
different types of liabilities as mentioned in subsection (2) to be classified as liabilities for different classes or categories of licensed institutions.
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:
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
Provided that such period is a uniform period for all licensed institutions in the class or category concerned.
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.
person
"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
Terms defined in s 2
liabilities
Defined · s 2"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
person
Defined · s 2"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
specify
Defined · s 2"specify", where no mode is mentioned, means specify from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons;
Part VIII
Ownership, Control and Management of Licensed Institutions
Part IX
Restrictions on Business of Licensed Institutions
Part X
Powers of Supervision and Control Over Licensed Institutions
Part XI
Investigation, Search and Seizure
Part XII
Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance
Part XIII
Information and Secrecy
Part XIV
Offences
Part XV