The merger of Islamic banking units in Malaysia is crucial as the market is becoming overcrowded with the players hungry for growth, outgoing BIMB Holdings Bhd Group Chief Executive Officer Datuk Seri Zukri Samat proposed.
He said the creation of a couple of mega Islamic banks could rival not only other Islamic banks in the country, but also the ''big boys'' from the conventional side such as Maybank and CIMB.
On a larger scale, mega Islamic banks will have huge potential to spread their wings off the Malaysian shores into Indonesia, Cambodia and Singapore to become a regional champion, he said.
"All together, we have 16 banks offering Islamic financial products. For a small country like Malaysia, it''s a bit overcrowded. So long as we are small and fragmented, it is difficult to grow.
"Probably there could be some form of merger among Islamic banks, just like the conventional banks did during the 1997 financial crisis. The time is right for a merger," he told Bernama.
In the aftermath of the 1997-1998 Asian financial crisis, Bank Negara Malaysia took stronger measures by calling a massive consolidation of 58 financial institutions, comprising 21 domestic commercial banks, 25 finance companies and 12 merchant banks, into 10 anchor banking groups.
The anchor banks comprised Malayan Banking Bhd, Bumiputra-Commerce Bank Bhd, RHB Bank Bhd, Public Bank Bhd, Arab-Malaysian Bank Bhd, Hong Leong Bank Bhd, Perwira Affin Bank Bhd, Multi-Purpose Bank Bhd, Southern Bank Bhd and EON Bank Bhd.
The intervention, which concluded by end of 2000, helped improve Malaysia''s banking sector in terms of market position, efficiency and capital.
Similarly, Zukri believes that the consolidation of Islamic banks through a merger exercise could boost industry growth and help achieve the country''s aspiration to become a global hub for Islamic banking.
Zukri said the intense competition has slowed the average growth rate of Islamic banks in Malaysia from 15 to 20 per cent about 10 to 15 years ago to only five per cent in the past five years.
Even foreign Islamic banks such as Kuwait Finance House, Asian Finance Bank and Al Rajhi Bank Malaysia are feeling the pinch from the stiff market.
"If you look at the numbers today and 10 years ago, they have not moved very much. They are merely inching their way," he explained.
In 2014, three of Malaysia''s largest financial institutions -- CIMB Group, RHB Capital and Malaysia Building Society Bhd-- were in talks to combine their business and create a mega Islamic bank, that could potentially be one of Southeast Asia''s biggest lenders by assets.
The three-way merger will not only leapfrog Maybank, the country''s largest bank by assets, but is large enough to compete with global giant financial instutions such as HSBC and Standard Chartered.
However, the plan was scrapped and abandoned amid tumbling oil prices in 2015.
Efforts to create a mega Islamic bank in the region in Malaysia faltered. Likewise, Indonesia was also considering forming a mega Islamic bank in 2015.
Nevertheless, the plan to create a US$8 billion worth giant entity involving Shariah-compliant units -- Bank Negara Indonesia, Bank Mandiri, Bank Tabungan Negara and Bank Rakyat Indonesia -- was put on hold due to legal and regulatory issues pertinent to capital requirements.
Zukri said the aspirations to create a mega Islamic bank would not become a reality if market players were to remain silent, with no effort put it.
"It should be market driven, rather than forced by the authority," he pointed out.
As at end of 2016, Islamic banking assets accounted for 27 per cent of Malaysia''s total banking system worth of RM2.44 trillion.
The government has called for 40 per cent of all banking assets nationwide to be Shariah-compliant by 2020. - BERNAMA
Bernama
Sun May 28 2017
![It's time for Islamic banks to consider mergers, says banker It's time for Islamic banks to consider mergers, says banker](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-05/81495952822_DSZukriSamat.jpg)
the creation of a couple of mega Islamic banks could rival not only other Islamic banks in the country, but also the ''big boys'' from the conventional side such as Maybank and CIMB. - Filepic
![Ringgit dibuka tinggi berbanding dolar AS Ringgit dibuka tinggi berbanding dolar AS](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-11/71699450877_wang.jpg)
Ringgit dibuka tinggi berbanding dolar AS
Pada jam 8 pagi, ringgit meningkat kepada 4.6695/6735 berbanding dolar US daripada 4.6725/6745 semalam.
![Kim Pan-gon letak jawatan? Kim Pan-gon letak jawatan?](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/61718169354_TBKimPanGon.jpg)
Kim Pan-gon letak jawatan?
Kim Pan-gon dipercayai akan mengadakan sidang akhbar hari ini untuk mengumumkan peletakan jawatannya.
AWANI Ringkas: Syor ambil guru Bahasa Inggeris dari Singapura jadi tumpuan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
![Suspek kes kematian Nur Farah Kartini direman tujuh hari Suspek kes kematian Nur Farah Kartini direman tujuh hari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721098519_suspekbunuhNurFar.jpg)
Suspek kes kematian Nur Farah Kartini direman tujuh hari
Perintah reman terhadap suspek lelaki berusia 26 tahun itu dikeluarkan Hakim Nurul Mardhiah Mohammed Redza.
KPM teliti cadangan sukarelawan Guru Bahasa Inggeris dari Singapura
Sukarelawan berbentuk hubungan diplomasi yang dibiayai kerajaan Singapura bagi bantu tingkatkan penguasaan bahasa Inggeris murid di kawasan miskin bandar dan luar bandar, kata Menteri Pendidikan.
#AWANInews #SisiTVParlimen
#AWANInews #SisiTVParlimen
Niaga AWANI: [Pasca IPO] Apa hala tuju Johor Plantations Group?
Johor Plantations Group (JPG) memperoleh RM735 juta daripada penyenaraiannya di pasaran utama Bursa Malaysia sejak 9 Julai lalu. Bagaimanakah pelan JPG untuk terus berdaya saing pada masa hadapan?
Impact of cloud complexity on cybersecurity risk and AI's role in this mix
Organizations who are adopting multi-cloud or hybrid cloud environments are having to navigate new complexities that emerge as they expand on cloud. As these cloud environments lead to the expansion of attack surfaces, a global survey conducted by Gigamon found that 93% of IT and security leaders predict cloud security attacks will increase this year.
[Data & Statistik] Prestasi Bursa Malaysia setakat 16 Julai 2024
Jumlah dagangan meningkat kepada 5.36 bilion unit bernilai RM3.95 bilion daripada 4.58 bilion unit bernilai RM3.72 bilion pada Jumaat.
[Data & Statistik] Kedudukan MYR berbanding SGD setakat 16 Julai 2024
Niaga AWANI bawakan prestasi terkini prestasi MYR berbanding SGD.
[Data & Statistik] Prestasi ringgit setakat 16 Julai 2024
Ketua Ahli Ekonomi Bank Muamalat Malaysia Bhd Dr Mohd Afzanizam Abdul Rashid berkata walaupun ringgit merosot, kontrak niaga hadapan Dana Fed menunjukkan bahawa penurunan kadar faedah mungkin akan berlaku pada September depan.
![Pembaharuan ekonomi, potensi penurunan kadar AS bantu ringgit catat prestasi memberangsangkan Pembaharuan ekonomi, potensi penurunan kadar AS bantu ringgit catat prestasi memberangsangkan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-12/81670502976_TBRINGGITMALAYSIA.jpg)
Pembaharuan ekonomi, potensi penurunan kadar AS bantu ringgit catat prestasi memberangsangkan
Komitmen kerajaan terhadap pembaharuan ekonomi membantu ringgit mencatatkan prestasi yang memberangsangkan, kata seorang penganalisis.
![Ringgit kekal ditutup tinggi berbanding dolar AS Ringgit kekal ditutup tinggi berbanding dolar AS](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/41713876066_TBringgitmalaysia.jpg)
Ringgit kekal ditutup tinggi berbanding dolar AS
Ringgit kekal ditutup tinggi berbanding dolar Amerika Syarikat (AS) pada Khamis dalam keadaan peningkatan prospek pengurangan kadar faedah AS, kata penganalisis.
![Bursa Malaysia ditutup tinggi bagi hari ketiga berturut-turut Bursa Malaysia ditutup tinggi bagi hari ketiga berturut-turut](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/61714480297_tbbursamalaysialog.jpg)
Bursa Malaysia ditutup tinggi bagi hari ketiga berturut-turut
Pada 5 petang, FTSE Bursa Malaysia KLCI (FBM KLCI) melonjak 4.74 mata atau 0.29 peratus kepada 1,623.12 daripada paras penutup 1,618.38 pada Rabu.
![Bank Negara Malaysia kekal OPR pada 3.00 peratus Bank Negara Malaysia kekal OPR pada 3.00 peratus](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-02/81708244607_BankNegaraMalaysia.jpg)
Bank Negara Malaysia kekal OPR pada 3.00 peratus
Jawatankuasa Dasar Monetari Bank Negara membuat keputusan untuk mengekalkan Kadar Dasar Semalaman (OPR) pada 3.00 peratus dalam mesyuarat hari ini.
![Ringgit mengukuh berbanding dolar AS pada sesi awal Ringgit mengukuh berbanding dolar AS pada sesi awal](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/41703646010_duitringgit.jpg)
Ringgit mengukuh berbanding dolar AS pada sesi awal
Pada 9 pagi ini, nilai ringgit meningkat kepada 4.6900/6970 berbanding dolar AS daripada paras 4.6985/7010 yang dicatatkan pada akhir urus niaga semalam.
![Ringgit meningkat berbanding dolar AS dalam dagangan awal Ringgit meningkat berbanding dolar AS dalam dagangan awal](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/41713876066_TBringgitmalaysia.jpg)
Ringgit meningkat berbanding dolar AS dalam dagangan awal
Pada 9 pagi, ringgit berada pada 4.7050/7110 berbanding dolar US daripada 4.7055/7105 semalam.
![Kerajaan kekal komited laksanakan dasar pembaharuan struktur pengukuhan fiskal – Kementerian Kewangan Kerajaan kekal komited laksanakan dasar pembaharuan struktur pengukuhan fiskal – Kementerian Kewangan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/41716542201_MalaysiaEkonomi.jpg)
Kerajaan kekal komited laksanakan dasar pembaharuan struktur pengukuhan fiskal – Kementerian Kewangan
Bank Negara Malaysia akan terus mengambil langkah sewajarnya untuk memastikan kestabilan mata wang dan pasaran pertukaran asing domestik.
![Bursa Malaysia dijangka meningkat semula minggu depan Bursa Malaysia dijangka meningkat semula minggu depan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/81715601099_BURSAMALAYSIA.jpg)
Bursa Malaysia dijangka meningkat semula minggu depan
Ketua Penyelidikan Apex Securities Bhd Kenneth Leong menjangka paras 1,600 akan menjadi tumpuan berikutan indeks utama dilihat akan mempertahankan paras tersebut.
![BNM keluarkan dua syiling khas sempena ulang tahun JPN ke-75 BNM keluarkan dua syiling khas sempena ulang tahun JPN ke-75](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61719815672_BankNegaraMalaysia.jpg)
BNM keluarkan dua syiling khas sempena ulang tahun JPN ke-75
Duit syiling peringatan berkenaan akan dikeluarkan dalam dua denominasi iaitu duit syiling peringatan perak sterling berwarna (pruf) dan emas Nordic Brilliant Uncirculated (BU).
![Aset rizab rasmi Malaysia US$113.59 bilion pada akhir Mei 2024 - BNM Aset rizab rasmi Malaysia US$113.59 bilion pada akhir Mei 2024 - BNM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71716610812_BNM.jpg)
Aset rizab rasmi Malaysia US$113.59 bilion pada akhir Mei 2024 - BNM
Kedudukan jualan hadapan bersih adalah sebanyak US$26.89 bilion pada akhir Mei 2024, mencerminkan pengurusan mudah tunai ringgit dalam pasaran wang.