Bank Negara Malaysia announces the successful applicants for five digital bank licences
29 April 2022
Bank Negara Malaysia (‘BNM’) issued a press release
today announcing the five successful applicants for digital bank licences approved by the Minister of Finance.
The three consortiums that will be issued digital bank licences under the Financial Services Act 2013 are:
- a consortium of Boost Holdings Sdn. Bhd. and RHB Bank Berhad;
- a consortium led by GXS Bank Pte. Ltd. and Kuok Brothers Sdn. Bhd; and
- a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd.
The two consortiums that will be issued digital bank licences under the Islamic Financial Services Act 2013 are:
- a consortium of AEON Financial Service Co., Ltd., AEON Credit Service (M) Berhad and MoneyLion Inc.; and
- a consortium led by KAF Investment Bank Sdn. Bhd.
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According to BNM, three of the consortiums are majority-owned by Malaysians, namely Boost Holdings and RHB Bank Berhad, Sea Limited and YTL Digital Capital Sdn. Bhd. and KAF Investment Bank Sdn. Bhd.
Under the Licensing Framework for Digital Banks issued by BNM on 31 December 2020
, a digital bank licensee will be required to maintain a minimum amount of RM100 million in capital funds unimpaired by losses during the foundational phase of three years from commencement of operations and to increase the minimum amount of capital funds unimpaired by losses to RM300 million by the fifth year after commencement of operations.
According to the press release, BNM will require between 12 to 24 months to validate the operational readiness of the successful applicants before they can commence operations.
Our write-up on the Licensing Framework for Digital Banks can be accessed here
Alert prepared by Lee Ai Hsian (Partner) of the Banking and Finance Practice and Fintech Practice of Skrine.