Central Bank of Malaysia Act 2009 · Updated to 1 Nov 2020 · Part XI · Other Powers of the Bank
75. General powers of the Bank
Feedback & supportThe Bank, where it is consistent with its objects, functions and other provisions in this Act, may—
Bank
“Bank” means Bank Negara Malaysia or in English, the “Central Bank of Malaysia”;
enter into contracts;
acquire, purchase, take, hold and enjoy movable or immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, lease, rent, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest vested in the Bank upon such terms as the Bank deems fit;
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purchase, sell, repurchase, lend or borrow currencies, securities, gold, other precious metals or other commodities or enter into derivatives;
exchange the currencies, securities, gold, other precious metals or other commodities or financial instruments referred to in paragraph (c) for other currencies, securities, gold, other precious metals or other commodities or financial instruments;
purchase, sell, discount and rediscount bills of exchange,
Treasury bills or promissory notes drawn in or outside
Malaysia and maturing within one year from the date of acquisition or such other period as may be approved by the
Minister;
Minister
“Minister” means the Minister charged with the responsibility for finance;
purchase, sell or repurchase any certificate of deposit issued by any financial institution;
financial institution
“financial institution” means a person carrying on a financial business regulated under the laws enforced by the Bank and in addition includes any— (a) person who operates any payment system or issues any payment instrument; and (b) person carrying on any other financial business as the Minister may prescribe;
act as agent, correspondent or banker for, or open and maintain accounts for, or accept deposits of gold, other precious metals or money in any currency from, any central bank, monetary authority, international financial institution, international monetary authority or other financial institutions outside Malaysia;
international financial institution
“international financial institution” means any institution which is established in or outside Malaysia by more than one country, central bank or monetary authority in relation to financial or monetary matters and includes the Asian Development Bank, the Bank for International Settlements, the International Bank for Reconstruction and Development, the International Monetary Fund, the Islamic Development Bank and the Islamic Financial Services Board;
open accounts for, and accept deposits of gold, other precious metals or money in any currency from—
the Government, any State Government, public authority or financial institution; or
any other person in Malaysia with the prior approval of the Minister;
open and maintain accounts, place deposits of gold, other precious metals or money in any currency with any financial institution in or outside Malaysia, central bank, monetary authority, international financial institution or international monetary authority;
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undertake on behalf of customers and correspondents the purchase, sale, collection and payment of securities, currencies and credit instruments in and outside Malaysia, and the purchase or sale of gold and other precious metals;
accept from customers for custody securities and other articles of value;
accept assets, including book entry securities, as collateral;
borrow money, establish credits and provide guarantees and indemnities in any currencies, in or outside Malaysia;
issue demand drafts and other kinds of remittances made payable at its own offices and branches or at the offices of agents or correspondents;
invest in securities on behalf of staff and pension funds and other internal funds of the Bank; and
do generally all such things as may be commonly done by bankers.