BNM's Licensing Framework For Digital Banks

On 31 December 2020, Bank Negara Malaysia ('BNM') issued the Policy Document on Licensing Framework for Digital Banks ('Framework Document') and a set of Frequently Asked Questions ('FAQs'). The Framework Document came into effect on its date of issuance.

At the same time, BNM stated in a media release that it may issue up to five licences to qualified applicants to carry out digital banking business or Islamic digital banking business and that applications for such licences may be submitted to BNM until 30 June 2021. BNM also stated that notification of grant of licences will be made in the first quarter of 2022.

Overview

The Framework Document applies to -

1. an applicant for a licence under section 10 of the Financial Services Act 2013 ('FSA') or section 10 of the Islamic Financial Services Act 2013 ('IFSA') to carry on digital banking business or Islamic digital banking business (each a 'digital banking business') ('applicant');