Association of Islamic Banking in Malaysia (AIBIM) has voiced support for the creation of a mega Islamic bank in the country in a bid to make Islamic banking more acceptable globally.
Speaking at the signing of memorandum of understanding (MOU) between AIBIM and Islamic Banker Asia, AIBIM Malaysia president Datuk Mohd Redza Shah said: "We’ll see a bigger bank that would be regionally relevant across international market," as cited in Bernama.
He further told the publication this development would also encourage other banks to go into mega mergers.
On 10 July 2014, CIMB Group Holdings, Malaysian Building Society and RHB Capital received the approval from Bank Negara Malaysia to start discussions to merge and establish a mega Islamic bank.
If the proposed mega bank comes into existence, the banking group would be the largest in Malaysia, with a combined asset size of MYR613.7bn ($144.38bn).
All the three parties have agreed to act together to discover new channels to expedite the growth of the industry, while dealing with the global challenges to achieve a competitive edge leveraging knowledge sharing.