Working Towards ASEAN Banking System

The banking sector in Malaysia is on a clear growth path, extending beyond the boundaries of the nation

The Malaysian banking sector is known for its robustness and liquidity. The banks in the country offer a wide range of banking products and financial services. Some of the largest banks in the ASEAN region are located here, the top ones being Maybank and CIMB. Maybank has assets worth $150 billion and has over 2000 branches and offices in some 20 countries. Established in 1960, it today offers several niche banking products and services, including Islamic banking, and boasts of a customer base of 20 million. The bank has the largest market cap and is also the largest listed company on the Malaysian Stock Exchange. On the other hand, CIMB, which too is one of the largest entities in ASEAN with total assets of $109 billion, is one of the largest Islamic banks in the world. The bank has its network across 16 countries in Asia and beyond. It has over 1000 branches. The other top banks are Public Bank and RHB Bank.

CONSOLIDATION

The consolidation of the banking sector in the country goes back to the days of the financial crisis in 1997. At that time, the central bank, Bank Negara Malaysia, took initiative to merge all the local banking institutions into10 anchor banks. The process came to be completed in 2002. Subsequently, the central bank took steps to bring in competitiveness in the sector and make the banks at par with international banks. This led to further consolidation. Today, apart from the top 4, the other leading banks are Bumiputra Commerce Group, Arab Malaysian Bank, Hong Leong Bank, Perwira Affin Bank, Multipurpose Bank, Southern Bank and EON Bank.

FINTECH