Malaysia's MBSB gets nod to merge with Islamic bank
Malaysia Building Society Bhd has received Bank Negara’s (BNM) approval to begin talks on a proposed merger with Asian Finance Bank Bhd (AFB).
MBSB aims to become an Islamic bank through a merger by 2020. It will now enter into negotiations with the shareholders of AFB, namely Qatar Islamic Bank, RUSB Investment Bank, Tadhamon International Islamic Bank and Financial Assets Bahrain.
Bank Negara Malaysia has stipulated that the negotiations must be completed within six months, according to a bourse filing.
This is MBSB’s latest attempt to merge with an Islamic bank after talks with Bank Muamalat were halted in 2016. A proposal for a three-way merger with CIMB Group Holdings and RHB Capital also fell through in 2015.