MARC noted that the M&A scene has been rather quiet this year, with the last consolidation exercise being the one between Malaysia Building Society Bhd and Asian Finance Bank creating MBSB Bank Bhd in February 2018.
PETALING JAYA: Besides charting out internal growth strategies, banks will also be carrying out rationalisation and consolidation activities that will increase their scale and potentially reduce overall cost in the long run, according to a rating house.
In its Banking Sector Insights report released yesterday, Malaysian Rating Corp Bhd (MARC) said although consolidation was not an immediate necessity, given Malaysian banks’ resilient performance last year and up to the first half of this year, mergers would enhance the scale of a bank’s operations that may provide better synergies in operations and cost efficiencies.
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