Malaysia's central bank said on Wednesday it had provided a liquidity facility to insurance and takaful (Islamic insurance) firms in a pre-emptive move to ensure the stability of the country's financial system.
Bank Negara said after meeting top insurance executives that the firms would implement a risk-based capital framework from January 1 to ensure a strong capital buffer and strengthen their risk management capabilities. "In this challenging environment, the insurers and takaful industries have continued to reinforce their institutional capacity and preserve their financial soundness," the bank said in a statement.