Fitch: Mega bank merger will spur more banking deals in Malaysia

The combination of MBSB, CIMB Islamic and RHB Islamic could enable the new bank to expand its Islamic banking busi ness across borders, and help attract foreign strategic investors.

PETALING JAYA: Fitch Ratings believes that the mega bank merger between CIMB Group Holdings Bhd, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) will spur further consolidation in the Malaysian banking sector.

While no other proposed deals have been suggested as yet, Fitch said additional tie-ups would be in line with Bank Negara’s Financial Sector Blueprint to build larger and more efficient Malaysian financial institutions that are better capable of competing in the wider region.