Based on the report by the BNM, i've tried to look at the BNM Assets and Liabilities Statement as on July 31, 2007.
The Assets component value minus the reserves are around RM86billion. This is the amount of BNM Deposits with other financial institution and its loans and advances.
The liabilities component value minus reservers are around RM270billion. This is the amount of money deposited by other financial institutions and fed government.
Clearly, if we only depending on these assets and liabilities there is a huge negative balance. Obviously, liabilities comprise of 76% of this 'direct' cash flow account. This also indicates that, much of our liabilities are being 'compesated' by the BNM reserves (RM340billion).
The next question : Is it normal to have the 80% liabilities ? Comparing BNM, US Fed Res, Sweden, Ecuador, Turkey and Latvia. Insya Allah.
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