Financial Stability Executive Committee
The Financial Stability Executive Committee (FSEC) was established in 2010 pursuant to Section 37 of the Central Bank of Malaysia Act 2009. The FSEC supports the Bank＊s statutory mandate of preserving financial stability through its powers to decide on specific policy measures that may be taken by the Bank to avert or reduce risks to financial stability.
In carrying out this mandate, the FSEC reviews, assesses and decides on proposals tabled by the Bank to:
- Issue orders to a person or financial institution that is not regulated nor supervised by the Bank to undertake specific measures in the interest of financial stability;
- Extend liquidity assistance to a financial institution that is not regulated nor supervised by the Bank, or to the overseas operations of a licensed financial institution in Malaysia; and
- Provide capital support to a licensed financial institution in Malaysia that has ceased to be viable or is likely to become non-viable.
This serves to ensure continuous and effective financial intermediation, including the orderly functioning of the money market and foreign exchange market, and preserve public confidence in the financial system.
The FSEC consists of seven members, a majority of whom are non-executive members who are independent of the Bank＊s Management. Members are subject to the FSEC＊s Code of Ethics and Conflict of Interest, which serves to preserve the integrity of the FSEC＊s decisions.
