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imageKUALA LUMPUR: Malaysia's central bank said on Tuesday that the country's pilgrimage fund, Lembaga Tabung Haji, has taken appropriate measures to strengthen its risk management practices.

The central bank statement comes after local media reported a leaked letter allegedly from the central bank warning the fund of its slipping reserves, and that it had insufficient reserve levels to pay its depositors dividends this year.

"The institution has proactively taken appropriate measures to further strengthen its risk management practices, both on its own initiative and in response to earlier engagements with the (Central) Bank," it said in a statement, referring to Lembaga Tabung Haji.

The statement added that the central bank will monitor significant non-bank financial institutions that are linked to the financial system.

Copyright Reuters, 2016

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