Bank Negara Malaysia has issued the following policy documents today:

1. Capital Adequacy Framework (Operational Risk) (15 December 2023)
2. Capital Adequacy Framework (Exposures to Central Counterparties) (15 December 2023)
3. Revised Capital Adequacy Framework (Capital Components) (15 December 2023)
4. Revised Capital Adequacy Framework for Islamic Banks (Capital Components) (15 December 2023)

These policy documents set out the standards and guidance for financial institutions to calculate the capital required for operational risk and exposures to central counterparties in line with Basel III. These policy documents will come into effect on 1 January 2025.

Concurrently, the policy documents Capital Adequacy Framework (Capital Components) and Capital Adequacy Framework for Islamic Banks (Capital Components) have also been reissued to specify the timelines and transitional arrangements for when these new Basel III capital requirements take effect, as well as to reflect other minor consequential amendments. 

Click here to view the policy documents.