Progress Made in Merger of Malaysia Building Society Berhad and Malaysian Industrial Development Finance 

Malaysia Building Society Berhad (MBSB) and Malaysian Industrial Development Finance Berhad (MIDF) are expected to submit a comprehensive merger proposal to the Central Bank of Malaysia, Bank Negara Malaysia (Bank Negara) in September 2022, paving the way for the nation's first merger of domestic financial institutions since November 2021.

Why it Matters?

The merger, if completed, will make MBSB the nation's second-largest standalone Islamic bank by assets behind Bank Islam Malaysia Berhad (Bank Islam). The parties were given permission to begin merger talks by Bank Negara earlier in April 2022, with a six-month deadline of the 5th of October 2022 to do so. The entities entered into an exclusivity agreement to negotiate the structure, cost, and parame...