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BNM to exit full deposit guarantee

Is this a signal that economy is getting more better soon?

Bank Negara, two others plan to exit full deposit guarantee

PETALING JAYA: The Hong Kong Monetary Authority, Bank Negara and the Monetary Authority of Singapore have established a tripartite working group to exit the full deposit guarantee by end-2010.

In a coordinated effort to contain the effects of the global financial crisis, Malaysia and Singapore provided a blanket guarantee on all bank deposits in their respective banking systems in October last year.

All ringgit and foreign currency deposits placed with financial institutions regulated by Bank Negara were fully guaranteed by the Government.

The move has helped to reassure depositors and preserve confidence in the financial systems, as some of the biggest and respected international financial institutions were wracked by huge losses globally.

Source: The Star

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