The Finance Ministry and Bank Negara said all ringgit and foreign currency deposits with commercial, Islamic and investment banks and deposit-taking development financial institutions regulated by Bank Negara will be fully guaranteed by the government through Perbadanan Insurans Deposit Malaysia (PIDM) until December 2010.

The guarantee extends to all domestic and locally-incorporated foreign banks, the statement said.

Access to Bank Negaras liquidity facility will also be extended to insurance companies and takaful operators regulated and supervised by the central bank.

Malaysia follows Hong Kong, Indonesia, Australia and New Zealand in extending safeguards on deposits amid widening bank losses. Singapore also said today it will protect bank deposits.

These measures are pre-emptive and precautionary since Malaysian financial institutions are well-capitalised with ample liquidity and depositors' confidence remained intact, said the joint statement. -- BERNAMA, REUTERS

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