Banking, Finance & Takaful

Malaysia: AIBIM welcomes creation of mega Islamic bank

Flag of MalaysiaThe creation of a mega Islamic bank will make Islamic banking internationally more acceptable and a become household name, says the Association Of Islamic Banking in Malaysia (AIBIM).

“We’ll see a bigger bank that would be regionally relevant across international market. The formation of mega Islamic bank is very much welcomed,” said its president Datuk Mohd Redza Shah.

Speaking to reporters after the signing of memorandum of understanding (MoU) between AIBIM and Islamic Banker Asia, he said this development would also spur the other banks to go into mega mergers.

CIMB Group Holdings Bhd, Malaysian Building Society Bhd and RHB Capital Bhd received the approval from Bank Negara Malaysia on July 10, 2014 to commence discussions to merge and create a mega Islamic bank.

The banking group will be the largest in Malaysia, with a combined asset size of RM613.7 billion.

“We have seen a lot of conventional banks which are big and internationally relevant. We hope the creation of this mega Islamic bank will do the same,” Mohd Redza said.

The MOU outlines their plans to work together to explore ways to accelerate the growth of the industry and tackle global challenges to achieve a competitive edge via knowledge sharing and information bridging.

Islamic Banker Asia is a monthly magazine which features developments of Islamic banking and finance-related issues in Asia.

Source: Bernama

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