Malaysia to issue up to five digital banking licences by Q1 next year

The Malaysian central bank may issue up to five licences for digital banks by the first quarter of 2022.

Bank Negara Malaysia (BNM) said it will adopt a proportionate regulatory framework as well as ask digital banks to observe limits on aggregate asset exposures during the initial years of their operations. These measures are intended to reduce barriers to entry while allowing the bank to observe attendant risks, the central bank said in its annual report 2020 published on Wednesday.