Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part IV · Obligations and Sourcing of Funds
37. Maintenance of liquid assets
Feedback & supportThe Bank may specify that a prescribed institution shall hold such minimum, or minimum average, amount of liquid assets in
Bank
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
Malaysia as may be set out in the specification at all times or for such period, and in such ratio or formula.
(Deleted by Act A1502).
For the purpose of subsection (1), the minimum, or minimum average, amount of liquid assets 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;
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For the purpose of subsection (1), the Bank shall specify a period of not less than seven days within which a prescribed institution shall comply with the specification.
specify
“specify” means specify in writing by way of standards or any other forms;
(Deleted by Act A1502).
The Bank may prohibit any prescribed institution from giving any financing facilities to any person during the period in which the prescribed institution has failed to comply with any requirement of a specification under this section.
prescribed institution
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);