Friday, October 17, 2008

Bank deposits are being guarantee

In a coordinated effort to contain the effect of the global financial crisis, Malaysia and Singapore have agreed to provide a blanket guarantee on all bank deposits in their respective banking systems.

All ringgit and foreign currency deposits placed with financial institutions regulated by Bank Negara will be fully guaranteed by the Government with immediate effect, the central bank said in a joint statement with the Ministry of Finance posted on its website.

The statement on Thursday also said that access to Bank Negara’s liquidity facility would also be extended to insurance companies and takaful operators.

The deposits are fully guaranteed through Perbadanan Insurans Deposit Malaysia (PIDM) until December 2010.

Click here to view Bank Negara full statement.

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