Comparison of Regulatory Requirements for Digital Banks

On 27 Dec 2019, Bank Negara Malaysia (BNM) issued the highly anticipated Licensing Framework for Digital Banking Exposure Draft, one of the many initiatives undertaken by the Bank to enable innovative application of technology in the financial sector.

The proposed framework sets out the requirements on applications for the establishment of a digital bank, including the eligibility requirement and application procedures that must be complied with by an applicant intending to carry on digital banking business, the business limitations and regulatory framework applicable to a licensed digital bank during the foundational phase, and the business activities that must be undertaken and the physical access points that may be established by the licensed digital bank.

In this paper, we compared the regulatory requirements set out in the framework against the requirements in other jurisdictions in Asia Pacific, namely Singapore, Hong Kong and Taiwan, as well as discuss the 5 critical success factors for a digital banking license application.

Comparison of Regulatory Requirements for Digital Banks
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