MUCH INTEREST IN MALAYSIA'S FINANCIAL SECTOR LIBERALISATION

KUALA LUMPUR, May 6 (Bernama) -- There has been much interest in the
financial sector liberalisation announced recently, said Malaysia's Central Bank
Governor Dr Zeti Akhtar Aziz here, Wednesday.

"There have been a lot enquiries in all the areas announced under the
liberalisation, such as new licences and an increased foreign stake in domestic
financial institutions," she said, when asked about the response to the
liberalisation.

"Some institutions are already in preliminary discussions," Zeti said, after
the opening of the Asia Regional Forum on Policy and Regulation of Financial
Inclusion here Wednesday.

Last week, Prime Minister Najib Tun Razak announced a significant
package of measures to liberalise the financial sector.

It included raising the equity in investment and Islamic banks as well as
insurance and Takaful companies to 70 percent from 49 percent while issuing nine
new licenses for foreign participation in both conventional and Islamic banking.

Also, with immediate effect, existing domestic Islamic banks that wish
to scale up their operations and expand into global markets, are given greater
flexibility to enter into strategic partnerships with foreign players
through an increased foreign equity limit of up to 70 percent.

These banks would be required to maintain a paid-up capital of at least US$1
billion.

-- BERNAMA