Comparative Analysis of Mechanisms for Financial Stability and Development in Policies of the Central Bank of Malaysia and the Central Bank of Islamic Republic of Iran

A country’s economic growth is a function of several factors, such as population growth, inflation rate, government expenditures, investment in public and private sector, etc. This paper investigates the policies adopted by the Central Bank of Malaysia and the Central Bank of Islamic Republic of Iran in order to achieve financial stability and development. Among the most important parameters for financial stability are: Increasing stability and development in bank sector, public training for utilization of fiscal services, training managers and employees of financial institutes, development and support of small and medium sized industries, development of micro-finance, Anti Money-Laundering measures, development of insurance industry, and improving pay systems. In this paper some of these variables in Iran and Malaysia are compared and studied with a qualitative method.It seems that policies adopted by Malaysia´s BNM for achieving financial stability has a key role in the substantial increase of Malaysia’s per capita income by almost thirty times during the past four decades.