Central Bank of Malaysia Act 2009 · Updated to 1 Nov 2020 · Part III · Financial Provisions
7. General Reserve Fund
Feedback & supportThere shall be a General Reserve Fund which shall include the amount standing to the credit of the General Reserve Fund established under section 7 of the repealed Act immediately before the coming into operation of this Act and such other amounts as are placed to the credit of the General Reserve Fund under this Act.
At the end of each financial year, the net profit of the Bank for that year shall be determined after allowing for the expenses of operations in giving effect to its objects, carrying out its functions and conducting its business or affairs, including contributions to staff welfare, provident and pension funds, grants or other contributions to such persons as may be provided by this Act or other written law and after provision has been made for bad and doubtful debts, diminution in value of assets and other contingencies as are usually provided for by banks.
Bank
“Bank” means Bank Negara Malaysia or in English, the “Central Bank of Malaysia”;
The Bank may transfer any amount from the net profit to any contingency reserve, fluctuation reserve or such other reserve as the
Board deems prudent or necessary.
Central Bank of Malaysia 21
The net profit of the Bank less any unrealized gains and after the transfers under subsection (3) shall be dealt with as follows:
such amount as the Minister, on the recommendation of the Board, so determines shall be placed to the credit of the General Reserve Fund; and
the remainder shall be paid to the Government:
Provided that—
in the case of any year at the end of which the General
Reserve Fund is less than the capital of the Bank, the whole of the net profit shall be credited to the General
Reserve Fund; and
in the case of any year at the end of which the General
Reserve Fund is not less than the capital of the Bank, but less than twice the capital of the Bank, not less than thirty per centum of the net profit shall be credited to the General
Reserve Fund.
Nothing in this section shall prevent the Bank from transferring such amounts from the General Reserve Fund to any contingency reserve, fluctuation reserve or such other reserve as the Board deems prudent or necessary.