Bank Negara Malaysia the Bank through the Monetary Policy Committee announces its monetary policy stance through the level and adjustments of the overnight policy rate OPR. In this context the implementation of monetary policy aims for the overnight interbank rate to move within a corridor around the OPR. Interbank institutions conduct transactions among themselves within this corridor to manage their overnight liquidity needs before accessing the Banks standing facilities. The corridor is made transparent to interbank institutions and is revised in line with any changes to the OPR.
The Bank introduced standing facilities to ensure that overnight interbank rates remain within the corridor around the OPR by offering a lending or funding facility and a deposit or acceptance facility at the upper ceiling rate and lower floor rate of the corridor respectively.
This policy document outlines the operational procedures relating to eligible collateral to support the effective functioning of standing facilities operations.
