Siti Aqilah Binti Md.

Ishak 08DPM10F1079 -Banking in Malaysia -

TREASURY BILLS. Treasury bills are issued through a competitive bidding process at a discount from par, which means that rather than paying fixed interest payments like conventional bonds, the appreciation of the bond provides the return to the holder. GOVERNMENT SECURITIES. 1. Malaysian Government securities are marketable debt instruments issued by the Government of Malaysia to raise funds from the domestic capital market to finance the Government's development expenditure and working capital. 2. The central bank, Bank Negara Malaysia in its role as banker and adviser to the Government, advises on the details of Government securities issuance and facilitates such issuance through various market infrastructures that it owns and operates. Currently, the various forms of Government securities in Malaysia are : Malaysian Government Securities (MGS) - long-term interest-bearing bonds issued by the Government of Malaysia to raise funds from the domestic capital market for development expenditure. Malaysian Treasury Bills (MTB) - short-term securities issued by the Government of Malaysia for working capital. Government Investment Issues (GII) and Malaysian Islamic Treasury Bills (MITB) - long-term and short-term non interest-bearing Government securities, which are issued based on Islamic principles by the Government of Malaysia.

GOVERNMENT BOND. 1. A government bond is a bond issued by a national government denominated in the country's own currency. 2. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country. 3. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.

BANKERS ACCEPTANCE. 1. A banker's acceptance, or BA, is a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit at the bank. The banker's acceptance specifies the amount of money, the date, and the person to which the payment is due. After acceptance, the draft becomes an unconditional liability of the bank. But the holder of the draft can sell (exchange) it for cash at a discount to a buyer who is willing to wait until the maturity date for the funds in the deposit. 2. Acceptances are traded at a discount from face value on the secondary market. Banker's acceptances are very similar to T-bills and are often used in money market funds. 3. Banker's acceptances make a transaction between two parties who do not know each other more safe because they allow the parties to substitute the bank's credit worthiness for that who owes the payment. They are used widely in international trade for payments that are due for a future shipment of goods and services.

CAGAMAS BOND. 1. Cagamas funds it purchases of loan and debts primarily through the issuances of cagamas debt securities. 2. The five type of debt securities issued by cagamas to funds its portfolio of loan and debts purchased under the facilities for housing loan, industrial property loans, hire purchase and leasing debts.

NEGOTIABLE INSTRUMENTS OF DEPOSITS. 1. normal deposits that usually bank received from individual depositors can not be traded. 2. Which means that the normal deposit certificates can not be changed ownership and can not be traded. 3. In 1979 (after introduction of the Bank): Bank Negara has given permission to commercial bank to introduce a new deposit (NCD) The certificate unquoted depositor name Maturity period 3 months to 1 years BNM that will fix minimum amount per deposit and conditions acceptance deposit .