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Regulators will allow Malaysian banks to decide on lead in mergers
Kuala Lumpur, Oct 12: Malaysian banks will be allowed to decide among themselves on the lead banks in the country's government-initiated merger program, prime minister Mahathir Mohamad said Tuesday, the national news agency reported. While Mahathir said over the weekend that the government wouldn't be rigid in the number of anchor banks, and that the central bank must consider government views, this was the first time he has said that banks themselves are to choose lead banks of the merged groups."We are not in a hurry although unsolicited foreign advisers have urged us to do it quickly," Mahathir was quoted as saying. This is the first time the government has hinted that foreign experts are pressuring it to hasten the completion of the banking mergers. In a surprise move in late July, Malaysia's central bank ordered all 58 domestic financial institutions to merge into just six banking groups which were preselected. Local banks were directed to sign memorandums of understanding by August 30, and were given a tight deadline of April 1, 2000 to complete their mergers. The Wall Street Journal Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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