The advent of Savings bank service in Malaysia dated back to the late 19th century. The first banks, namely the Perak and the Selangor Savings Bank were started in 1888 and 1893 respectively and were administered by the respective State Treasuries until they were taken over by the Postal Department. In 1907 the Perak and Selangor Savings Banks were dissolved and brought under the Federated Malay States Post Office Savings Banks which also provided services in the states of Negeri Sembilan and Pahang. It had then 3,320 depositors with just over RM340,000 standing to their credit. Separate Savings Bank services under the Straits Settlement Post Office Savings Bank were in existence in Penang, Malacca and Singapore as early as 1902 while the Unfederated Malay States had their own Post Office Savings Banks in the years prior to the Second World War. Since 1949 savings with the Post Office Savings Bank have grown steadily. In 1949 it had 229,652 depositors with a credit balance of RM47.2 million. At the time of the launching of Bank Simpanan Nasional, Malaysia on 1st December 1974, it had more than 2.5 million depositors. The accumulated assets of the bank were over RM537 million, out of which over RM526 million were in government securities. The amount standing to the credit of depositors was over RM511 million. At the end of 1981, the Bank had more than 4.3 million depositors with accumulated assets of more than RM1.2 billion. With the establishment of Bank Simpanan Nasional, a new chapter is opened in the history of public saving institutions in the country. Bank Simpanan Nasional Act, 1974 provides for the transfer of the powers of management from the Postal Services Department to the Board of Directors which will assume functions and undertake responsibilities in accordance with the objectives of the Act.

Code of Ethics

As business partners working together successfully and to ensure the highest level of principles, values and standards between both parties are met, we at Bank Simpanan Nasional (BSN), recognise that at times, misconduct may arise which may put our company's reputation at risk. Here at BSN, we practise "zero tolerance" for any misconduct and we also endeavour not to put our business partners' reputation at risk.

BSN’s Code of Ethics, which is valid nationwide, emphasises on a number of business situations where we have precise expectations on how our employees will behave towards you and how potential conflict of interest situations will be managed. A better understanding on your part of these expectations would improve our mutual understanding and business relationship.

We therefore outline below a number of these situations:

1. Gifts 

It is essential that we recognise the importance of maintaining harmonious relationship with our business partners. Thus, there are situations, as we deem fit and proper, to give small gifts to our esteemed business partners as tokens of appreciation. However, our Code of Conduct which is to be read together with Section 118 of the Development Financial Institutions Act 2002 prohibits our employees directly or indirectly, asking for, receiving, consenting or agreeing to receive any gift, commission, emolument, gratuity, money, property, token or thing of value exceeding RM100 in association with any transaction or business that relates to BSN. In any such event, the said employees are to declare the gift received to the Legal and Compliance Department of BSN. 

2. Entertainment

We believe that unofficial contact with business partners is significant to build, inculcate and prosper business relationships. However we do not view attendance at high profile events of entertainment as necessary for nurturing successful, healthy and mutually beneficial business relationships. If you wish to invite a BSN representative to an entertainment event, please ensure there is a justifiable business reason and also please send the invitation to our Chief Executive's Office or its executive team who will ensure that the appropriate BSN's representative attends.

3. Membership on governing boards

There are strict requirements regarding our employees' membership on governing boards organised for profit. This is to safeguard our organisation and our employees from potential conflicts of interest and to ensure that our impartiality is not compromised. 

4. Invitations to 'educational trips' abroad

Any invitation for such trips shall be referred to the Chief Executive's Office for further approval. The employees are abstained from making actual or apparent commitments formally or informally on behalf of the Bank without proper authorisation in accordance with approved procedures and documentation.

5. Other benefits in kind

Any benefits received other than those mentioned in items 1- 4 will be referred to the Chief Executive's Office for further review and approval.