RHB takeover

Size matters to Malaysian banks

As Maybank and CIMB prepare to fight for RHB Capital, investors ask whether the resulting new banking group will be made of muscle or fat.
<div style="text-align: left;">
Size matters in Kuala Lumpur (AFP)
</div>
<div style="text-align: left;"> Size matters in Kuala Lumpur (AFP) </div>

Malaysia’s two largest banks are getting ready for one of the country’s biggest ever corporate battles. Malayan Banking Maybank and CIMB, number one and two respectively, were given regulatory approval late on Tuesday to bid for RHB Capital, ranked number five. Size still seems to matter to bankers.

Size is also important for Bank Negara, the central bank, which is keen for a second round of consolidation in the industry as it allows more participation by foreign lenders in its domestic market. An earlier spate of government-led bank mergers in 1998 reduced the number of lenders from 54 to 10.

Bank Negara wants national champions,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222