Select a page

Banking News

Malaysian Building Society seeks Shariah transition

Malaysian Building Society seeks Shariah transition

(1 April 2016 – Malaysia) Following two attempts to merge with Islamic banks that were unsuccessful, Malaysia Building Society Bhd. (MBSB) is seeking to transition into a Shariah lender.

The building society’s chief, Ahmad Zaini said MBSB has ceased offering conventional loans and sees more room for growth in Islamic services.

In the last year, MBSB, whose net income dropped 75 percent, has had failed talks with Bank Muamalat in February and a proposal to merge with CIMB Group and RHB Capital was called off in early 2015.

Zaini said that approximately 85 per cent of the banks outstanding loans are already Shariah-compliant and credit growth this year should be around 6 percent to 8 per cent, in line with the industry.

"Sustaining asset growth, while maintaining low operational costs and product innovation shall be our medium-term plan," he said.

East & Partners's avatar

Comment on this article


Your comments will not be published. Required fields are marked *


Please enter the word you see in the image below:


Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.