KUALA LUMPUR: Malaysia's central bank is considering allowing a more flexible cap on foreign shareholdings in banks, The Edge weekly newspaper reported.
The report quoted an unnamed source saying that Bank Negara Malaysia has been in talks with the country's financial services industry.
"One of the things understood to have been discussed was the further liberalisation of the banking sector, which would involve changes to the various acts, including the Banking and Financial Institutions Act," the source said.
The talks between the central bank and the financial services industry is to provide feedback for the government in drawing up its second 10-year Financial Sector Master Plan blueprint expected to be unveiled by the end of the year, the source said.
Bank Negara Malaysia officials were not immediately available for comment.
Bank Negara Malaysia in April 2009 eased foreign ownership limits for investment banks, Islamic banks and takaful operations to 70 percent from 49 percent. Commercial banks presently have a 30 percent cap on foreign ownership.
Prime Minister Najib Razak said in March this year that the government was ready to further ease bank ownership rules and spur more foreign investment.
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