Force local banks to merge, allow new foreign banks to set up shop
Now it's getting clear. The enforced merger of healthy but smaller local banking groups since 1999 were done for a purpose that is now painfully obvious - the opening up of foreign Islamic banks in this country.With three major foreign Islamic banks already on our shores, we can see why Bank Negara had to remove profitable and innovative local banks like PhileoAllied and Southern Bank from the scene. Otherwise, the retail landscape might not have looked appealing enough for these foreign Islamic banks.
Saudi-based Al Rajhi, Kuwait Finance House and Qatar's Asia Finance Bank, have now set up shop in this country. At this juncture, it is not clear how warmly Malaysians have taken to these banks with their halal financial packages, but with branches in Chinese-majority areas like Cheras & Puchong, it leaves little doubt that they are after a less than halal market.
Technorati: Malaysia, Islamic banks
posted by hew @ 11:55 am
1 Comments:
A good point raised. However, I beg to differ on your assumption that with the just concluded M&A exercised- Southern Bank becoming a part of a bigger bank, was done to allow new foreign banks to set up shop. Look around you and travel down southward to our neighbouring country and you will know what's in store. We are talking about a market driven industry, flushed with petro dollars and waiting to invest in a country offering the highest rate of return. Islamic banking and finance is the order of the day. If you are not convinced, surf the Google website and click on to Islamic banking and finance and you will be amazed that Britian has just amended or passed a legislation to allow Islamic banks to be set up in the country. A non Muslim Banks - Lloyds has set up shop for the same reason (market driven). Sometimes, I do admit reality at times stinks(pardon my expression) but like it or not with the Malaysian government initiative to be the centre of Islamic finance, you be hearing more of the M&A exercise and for all you know a foreign Islamic bank will be set up at your doorstep
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