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Malaysia – Banking

Overview :-

The structure of the Malaysian financial system has evolved to become less fragmented through consolidation and rationalization. Bank Negara Malaysia (BNM), the country’s central bank, directed the merger of Malaysia’s local banking institutions into ten anchor banks, which was completed in 2002. The government encouraged further mergers among the local banking institutions to ensure competitiveness with international banks. As of 2020, there are eight local banks in the country. BNM licenses and regulates businesses such as commercial banking, investment banking, Islamic banking, and money brokering.

Over the past year, more local banks are expanding their operations into China and other ASEAN markets as greater intra-ASEAN trade and investment have encouraged more banks to create a bigger presence regionally to better serve their clients. As ASEAN economies mature, this will result in higher demand for more sophisticated financial products, thus providing ample opportunities and incentive for banks.

The Top Banks in Malaysia Include:

 Malayan Banking Berhad – Maybank

Maybank is the largest bank in the country in terms of total assets and market capitalization. It is also one of the largest banks in Southeast Asia. It provides a wide range of banking products and services through its extensive network of 2,626 offices, spanning 10 ASEAN countries and global financial centers.

In 2020, Maybank was ranked 106th in The Banker’s Top 1000 World Banks. Maybank Islamic, the bank’s Islamic banking arm, is the top Islamic bank in the Asia-Pacific region. It is also the world’s fifth-largest Islamic bank by assets. Maybank was founded in 1960, with headquarters in Kuala Lumpur.

Net income: MYR 6.48 billion (2020)

Total assets: MYR 877.52 billion (3/2021)

 CIMB Bank

CIMB Bank is the consumer banking unit of the CIMB Group. The universal bank provides banking services, including consumer and wholesale banking, strategic investments, and treasury and markets through a network of 1,080 branches.

Aside from Malaysia, the bank’s core markets include Singapore, Thailand, and Indonesia. Established in 1972, CIMB Bank is based in Kuala Lumpur, serving more than 13.5 million customers across the country.

Net income: MYR 988.29 million (2020)

Total assets: MYR 519.15 billion (2020)

 Public Bank Berhad

Founded in 1966, Public Bank Berhad is one of the largest banks in Malaysia, as well as in Southeast Asia. It is the country’s largest bank in terms of shareholders’ funds and the second-largest in market capitalization.

Headquartered in Kuala Lumpur, the bank offers a range of products and services such as personal and commercial banking, investment banking, Islamic banking, sale and management of unit trust funds, share brokerage, and insurance.

Net income: MYR 4.87 billion (2020)

Total assets: MYR 455.06 billion (3/2021)

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