Latest news with #LCTF
The Sun
6 days ago
- Business
- The Sun
Malaysia, Indonesia, Thailand expand local currency transaction framework
KUALA LUMPUR: Bank Negara Malaysia (BNM), Bank Indonesia (BI), and the Bank of Thailand (BOT) have expanded the Local Currency Transaction Framework (LCTF) by appointing additional qualified commercial banks. These banks, known as Appointed Cross-Currency Dealers (ACCDs), will support cross-border trade and investment settlements. The move follows enhancements announced earlier this year. 'This expanded ACCD network will strengthen customer outreach, enhance market access to local currency liquidity, and provide businesses with better cross-border transaction options,' BNM stated. Under the Malaysia-Indonesia LCTF, five Malaysian banks and four Indonesian banks have been appointed. The Malaysian banks include AmBank (M) Bhd, Bank of China (Malaysia) Bhd, OCBC Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, and Sumitomo Mitsui Banking Corporation Malaysia Bhd. The Indonesian banks are PT Bank Danamon Indonesia Tbk, PT Bank OCBC NISP Tbk, PT Bank Pembangunan Daerah Jawa Timur Tbk, and Bank of China (Hong Kong) Ltd (Jakarta Branch). For the Malaysia-Thailand LCTF, five Malaysian banks and one Thai bank were selected. The Thai participant is Bank of China (Thai) Public Company Ltd. Meanwhile, PT Bank OCBC NISP Tbk and Bank of China (Hong Kong) Ltd (Jakarta Branch) represent Indonesia in the Indonesia-Thailand LCTF, alongside Thailand's Bank of China (Thai) Public Company Ltd. BNM, BI, and BOT reaffirmed their commitment to fostering trade and investment growth through financial collaboration. The full list of appointed banks is available on BNM's website. - Bernama
The Star
6 days ago
- Business
- The Star
Bank Negara, BI and BOT widen local currency transaction framework
KUALA LUMPUR: Bank Negara Malaysia, Bank Indonesia (BI) and the Bank of Thailand (BOT) have appointed additional qualified commercial banks as Appointed Cross-Currency Dealers (ACCDs) under the Local Currency Transaction Framework (LCTF). In a statement, Bank Negara said these banks will facilitate cross-border trade and investment settlements in local currencies between the respective countries. The central bank added that this initiative follows a series of enhancements to the LCTF announced on Feb 17, 2025. 'The expanded ACCD network will strengthen customer outreach, enhance market access to local currency liquidity, and provide businesses with more options for cross-border transactions between Malaysia, Indonesia and Thailand,' it said. 'Bank Negara, BI and BOT remain committed to supporting trade and investment growth through closer financial collaboration under the LCTF.' Among the newly appointed banks are AmBank (M) Bhd, Bank of China (Malaysia) Bhd, OCBC Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd and Sumitomo Mitsui Banking Corporation Malaysia Bhd. The expanded list of ACCDs covers local currency pairings between the Malaysian ringgit (MYR), Indonesian rupiah (IDR) and Thai baht (THB). The newly appointed banks are listed below: CLICK TO ENLARGE
New Straits Times
6 days ago
- Business
- New Straits Times
Bank Negara widens local currency banking network
KUALA LUMPUR: Bank Negara Malaysia (Bank Negara), Bank Indonesia (BI), and the Bank of Thailand (BOT) have jointly announced the appointment of additional qualified commercial banks to operationalise the Local Currency Transaction Framework (LCTF). In a statement today, Bank Negara said these qualified banks, known as appointed cross-currency dealers (ACCDs), will facilitate cross-border settlement of trade and investment between the respective countries. The initiative follows several enhancements to the LCTF announced on Feb 17, 2025. "The expanded ACCD network will strengthen customer outreach, enhance market access to local currency liquidity, and provide businesses with enhanced options for cross-border transactions between Malaysia, Indonesia and Thailand. "Bank Negara, BI, and BOT continue to support trade and investment growth through closer financial collaboration under the LCTF," it added. For the Malaysia–Indonesia corridor (MYR-IDR), the appointed Malaysian banks are AmBank (M) Bhd, Bank of China (Malaysia) Bhd, OCBC Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, and Sumitomo Mitsui Banking Corporation Malaysia Bhd. On the Indonesian side, the appointed banks are PT Bank Danamon Indonesia Tbk, PT Bank OCBC NISP Tbk, PT Bank Pembangunan Daerah Jawa Timur Tbk, and Bank of China (Hong Kong) Ltd Jakarta Branch. For the Malaysia–Thailand corridor (MYR-THB), the Malaysian banks appointed are AmBank (M) Bhd, Bank of China (Malaysia) Bhd, Hong Leong Bank Bhd, OCBC Bank Malaysia Bhd, and Sumitomo Mitsui Banking Corporation Malaysia Bhd. The Thai counterpart is Bank of China (Thai) Public Company Ltd. For the Indonesia–Thailand corridor (IDR-THB), the Indonesian banks appointed are PT Bank OCBC NISP Tbk and Bank of China (Hong Kong) Ltd Jakarta Branch, while the Thai bank appointed is Bank of China (Thai) Public Company Ltd.
The Star
19-06-2025
- Business
- The Star
Bank Islam unveils IFiRST for SMEs and mid-tier companies
(From left): Mohd Muazzam, Nor Azmie and Bank Islam Group chief business officer (institutional banking) Sharifah Sarah Syed Mohamed Tahir at the Bank Islam's inaugural Sustainability Conference 2025 in Kuala Lumpur today. KUALA LUMPUR:: Bank Islam Malaysia Bhd marked a significant stride in its sustainable journey with the launch of IHSAN Financing for Business Resilience, Sustainability and Green Transition (IFiRST), unveiled at the inaugural Bank Islam Sustainability Conference 2025. Bank Islam Group chief executive officer Datuk Mohd Muazzam Mohamed said that IFiRST is a tailored financing solution designed to empower businesses, particularly small and medium enterprises (SMEs) and mid-tier companies, in adopting more sustainable and resilient practices. It provided equitable and accessible support, enabling businesses to actively participate in the transition to a low-carbon economy. 'This new financing solution reflects our bank's commitment to a fair and inclusive transition across all segments of the economy. 'By enabling greener practices throughout the entire value chain, we are supporting not just large companies but also the smaller businesses and ecosystem partners that play a vital role in reducing carbon emissions. 'IFiRST strategically focuses on carbon-intensive sectors, incorporating access to facilities, such as Bank Negara Malaysia's Low Carbon Transition Facility (LCTF). This integrated approach helps businesses overcome financial and operational barriers in their sustainability journey, ensuring that no stakeholder is left behind,' he said. The launch of IFiRST further strengthens the bank's leadership as a purpose-driven Islamic financial institution dedicated to embedding environmental, social and governance (ESG) principle into its core offerings. Aligned with Shariah values and the bank's long-term strategy, IFiRST creates shared value for customers, stakeholders and the environment, while enhancing risk management and unlocking new avenues for sustainable and responsible asset growth. As of December 2024, Bank Islam has achieved 93% of its revised FY2025 target of RM28bil in sustainable finance and assets, demonstrating strong momentum and growing market confidence. This progress is driven by impactful offerings, such as the Ihsan Sustainability Investment Account (ISIA), SME SMART Eco Financing Programme-i (ECO) and access to the LCTF. Mohd Muazzam further added, 'Bank Islam strives to be a strategic partner in assisting our customers to future-proof their businesses through advisory services, sustainable financing solutions and knowledge-sharing platforms. 'As industries accelerate their shift towards a low carbon future, Bank Islam plays a vital role in mobilising capital to empower corporates and businesses in adopting green technologies or solutions. These efforts will enhance economic resilience and support Malaysia in achieving its climate goals on schedule. Looking ahead, the bank is set to implement its Climate Transition Plan, a strategic roadmap that will steer the bank towards achieving net zero emissions by 2050. The plan will accelerate efforts to expand green and transition financing, while fostering partnerships with clients in high-impact sectors to drive the adoption of sustainable, low-carbon business models. The Bank Islam Sustainability Conference 2025, themed 'Accelerating Just Transition Towards a Nature-Positive Economy', serves as a platform to reaffirm the bank's commitment to advancing Malaysia's low-carbon transition and ESG aspirations. Economy Ministry secretary-general Datuk Nor Azmie Diron graced the conference. Also in attendance are industry leaders, policymakers and representatives from the financial sectors. On the sidelines of the conference, Bank Islam also exchanged documents with Thoughts in Gear and Mastercard to strengthen its sustainability commitment and accelerate meaningful progress in the transition towards a low-carbon economy. Bank Islam has entered a strategic collaboration with Elopura Power Sdn Bhd, a subsidiary of Sabah Electricity Sdn Bhd.
New Straits Times
19-06-2025
- Business
- New Straits Times
Bank Islam launches IFiRST to support low-carbon transition
KUALA LUMPUR: Bank Islam Malaysia Bhd has launched the IHSAN Financing for Business Resilience, Sustainability and Green Transition (IFiRST) to support small and medium enterprises (SMEs) and mid-tier companies in adopting sustainable practices. Group chief executive officer Datuk Mohd Muazzam Mohamed said the financing solution provides equitable and accessible support for businesses transitioning to a low-carbon economy. "This new financing solution reflects Bank Islam's commitment to a fair and inclusive transition across all segments of the economy," he said in a statement today. "By enabling greener practices throughout the entire value chain, we are supporting not just large companies but also the smaller businesses and ecosystem partners that play a vital role in reducing carbon emissions." He said IFiRST targets carbon-intensive sectors and provides access to facilities such as Bank Negara Malaysia's Low Carbon Transition Facility (LCTF). "This integrated approach helps businesses overcome financial and operational barriers in their sustainability journey, ensuring that no stakeholder is left behind," he added. As of December 2024, Bank Islam had achieved 93 per cent of its revised FY25 target of RM28 billion in sustainable finance and assets. This includes initiatives such as the Ihsan Sustainability Investment Account, SME SMART Eco Financing Programme-i, and access to the LCTF. "Bank Islam strives to be a strategic partner in assisting our customers to future-proof their businesses through advisory services, sustainable financing solutions, and knowledge-sharing platforms," said Mohd Muazzam. "Bank Islam plays a vital role in mobilising capital to empower corporates and businesses in adopting green technologies or solutions. These efforts will enhance economic resilience and support Malaysia in achieving its climate goals on schedule," he added. The bank plans to roll out its Climate Transition Plan, aiming for net-zero emissions by 2050.
