MBSB toeing the line?

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There is a lot happening behind closed doors in development financial institutions (DFIs), non-banking financial institutions (NBFIs) and the cooperative movements - collectively known as the shadow banking system - with Bank Negara Malaysia cracking the whip, trying to put things in order.

For one, Malaysia Building Society Bhd (MBSB) is understood to be in talks with Bank Negara Malaysia to give up its building society licence and come under the Central Bank’s purview, thus operating with a banking licence instead, industry sources say.

Some say this could be a precursor to the much-talked about and much-awaited merger between RHB Capital Bhd, which wholly owns RHB Bank Bhd with MBSB.

azlan Murmurs of a merger are fuelled by both entities being controlled by the Employees Provident Fund (EPF), which has 68.87 percent in MBSB and 41.01 percent in RHB Cap.

However, the source who is familiar with the on-goings at the EPF begs to differ.

“Actually it is just one of the options... MBSB could operate on its own, as well as a separate banking entity from RHB. Things are very fluid,” the source said.

Talk of MBSB being privatised has been on-going for many years. Mid last year, it surfaced again but there has yet to be anything concrete.

What has been speculated more recently, however, is for the EPF to buy out the other shareholders of RHB Cap, and merge it with MBSB.

Go to KiniBiz for more .


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