CEO: MBSB not in hurry to get banking licence

  • Business
  • Thursday, 20 Jun 2013

KUALA LUMPUR: The Malaysia Building Society Bhd (MBSB), a non-bank financial provider, is not in a hurry to get a banking licence from Bank Negara Malaysia, president and chief executive officer Datuk Ahmad Zaini Othman said.

He said MBSB must first practise and perform like a bank before its application was approved by the central bank. “Licence is something that can come later but we must get ready to operate and move into the banking environment first to train ourselves to be ready,” he told a press conference after launching MBSB’s coffee table book.

MBSB offers a wide spectrum of innovative financial products and services for individuals and corporate bodies nationwide.

Zaini said MBSB’s shareholders also played an important role on how they wanted to move the company’s direction and to put it on the next level.

He said shareholders have many issues that they were looking at currently and the banking licence was not an immediate issue to be settled. “MBSB is an investing company of the Employeees Provident Fund and it is an important company. I am sure the shareholders will think to count on the issues in terms of timing and so on,” he said.

Currently, MBSB is understood to be in talks with Bank Negara to give up its building society licence and come under the central bank’s purview, thus operating with a banking licence instead.

Based on previous news reports, MBSB is keen to become one of the biggest banks and therefore has to transform itself into a full-fledged bank. — Bernama

Commenting on the merger between MBSB and RHB Capital Bhd (RHBCap), Ahmad Zaini said he would let the shareholders to decide on the matter.

He said MBSB would always search for the possibility to work with friendly and strong parties.       “On MBSB’s perspectives, we’ve a lot of directions. We can do it by our own or by whatever form of exercises. So, it depends on the shareholders to move the company,” he said.

The proposed MBSB and RHBCap merger took an interesting twist when MBSB’s top official management suggested that the non-bank lender take over RHB Islamic Bank Bhd.

MBSB Chairman Tan Sri Abdul Halim Ali had said the board of directors was unaware of any merger plans and was not in talks with any party and has not received any proposal from the shareholders to merge with RHBCap.


FAU FAU TOM 19/06/2013 19-09ST

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