SINGAPORE - Three Malaysian banks said on Thursday that they are in merger talks, which, if successful, will create the country's biggest lender and the fourth-largest by assets in South-east Asia.
The complicated three-way marriage of CIMB Group, the country's No. 2 bank, with smaller rivals RHB Capital and Malaysia Building Society Bhd, will also lead to the formation of an Islamic mega bank that will strengthen Malaysia's lead in Islamic finance in Asia.
The move comes as members of the Association of Southeast Asian Nations work on plans to partially integrate their economies and financial systems, with member countries keen to build national banking champions.
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How the banks compare
| Bank | Market Cap (S$b) | Total Assets (S$b) | |
|---|---|---|---|
| 1 | DBS | 45.45 | 417.27 |
| 2 | OCBC | 38.67 | 348.41 |
| 3 | UOB | 36.01 | 296.98 |
| 4 | CIMB/RHB/MBSB | 33.93* | 244.35 |
| 5 | Maybank | 35.18 | 226.86 |
*For comparison purposes only
SOURCE: BLOOMBERG
STRAITS TIMES GRAPHIC
