Securities Borrowing and Lending of RENTAS Securities

Securities Borrowing and Lending (SBL) involves a loan of securities from one party to another for a limited period of time, in exchange for a lending fee and collateral. The objective of SBL is to enhance the liquidity in the secondary bond market especially for benchmark or actively traded securities by providing mechanisms to increase market liquidity, market making activities and also to enhance the return on bond portfolio investment.

This policy document aims to provide the regulatory requirements to govern the conduct and obligations of market participants who enter into SBL transactions in respect of the RENTAS Securities. It aims to assist market participants in understanding and complying with the regulatory framework that governs the SBL market and stipulates the terms and conditions, procedures and practices which market participants in the SBL market must observe.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking