Conventional Products
Capital Management Solution (CMS)
What is Capital Management Solution (CMS)?
- Capital Management Solution is designed to provide capital support to Financial Institutions and Development Financial Institutions under the purview of the Financial Services Act 2013 and the Development Financial Institutions Act 2002 respectively (FIs/DFIs).
Product Features
- Within Cagamas’ approved parameters, Cagamas will subscribe for debt securities issued by FIs/DFIs which comply with Bank Negara Malaysia’s Capital Adequacy Framework.
- Pricing will depend on market demand and prevailing yield curves.
- Cagamas may consider funding the purchase of debt securities issued by FIs/DFIs via issuance of bonds or other funding avenues.
Benefits of CMS
- Competitive pricing to FIs/DFIs
- Improves Risk-Weighted Capital Ratio (RWCR) of FIs/DFIs