Malaysian Central Bank has on Wednesday introduced a series of policy enhancements aimed at strengthening the governance, accountability and developmental impact of the country’s prescribed development financial institutions (DFIs).
Bank Negara Malaysia (BNM) said in a statement that the new frameworks cover corporate governance, performance measurement and corporate strategic planning, with the objective of enhancing the effectiveness of DFIs in delivering their developmental mandates and supporting broader socio-economic goals.
Under the revised Corporate Governance Policy Document, BNM introduced measures to strengthen board oversight of mandate delivery and developmental performance, while clarifying accountability across senior management.
The framework also institutionalizes the Performance Measurement Framework (PMF) across strategy, operations and performance management.
The PMF Policy Document establishes a structured framework for assessing DFI performance beyond financial metrics. It requires institutions to measure additionality, social impact and operational efficiency, while strengthening governance, talent development, data capabilities and service delivery.
BNM said the framework is intended to improve financial inclusion, support socio-economic development and enhance the effectiveness of financial intermediation.
Meanwhile, the revised Corporate Strategic Plan Policy Document places greater emphasis on developmental outcomes, including the measurement of socio-economic impact beyond financing activities.
The updated requirements also strengthen board and senior management responsibilities, enhance engagement with stakeholder ministries and introduce more rigorous strategic planning standards, including closer links between strategy execution, risk management and funding capacity.
The central bank said the enhancements are designed to foster a development-oriented culture, improve transparency and ensure stronger accountability in the delivery of public policy objectives by DFIs.
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