But as the government forces mergers that will create just six Malaysian bank groups out of 59 financial institutions by April next year, Bank Bumiputra and Commerce Asset are the first to wed. The government's ambitious timetable calls for all the merging banks to get approvals from regulatory authorities firmed up by the end of February next year and start functioning in their new incarnations by April 1. While many are unlikely to meet the deadlines, Bumiputra Commerce is ahead of schedule. Commerce Asset signed a share exchange agreement with the government in February this year. Its shareholders, which include the Renong Group and the New Straits Times Press, voted for the merger last month.
Analysts are cautiously optimistic.
But the new bank is off to a shaky start. SG Securities regional economist Neil Saker has another worry. The concern is that the banks' boards will focus on managing this process rather than banking activities, such as lending to finance the real sector recovery. In other words, don't let the wedding spoil the marriage. All Rights Reserved.