It was not an extraordinarily difficult merger. Swoboda believes the merger with Samba will substantially strengthen banking in Saudi Arabia. If I had a strong bank in the market place, I would be looking across the border and saying 'where can I look to do business'. They wouldn't start out with retail, but commercial banking. You need larger organisations to amortise costs.
Smaller organisations can no longer afford all the costs of technology and risk.
That dictum is having particular effect in the Islamic banking sector. Rumours abound in the banking industry of further mergers. These include possible moves by Al Tafiq Islamic Bank of the Al Baraka group to merge with an as yet unidentified Islamic bank, and for a further merger of the new improved IICG with Faisal Bank. It depends on whether Islamic banks can diversify their investment base. All these markets are having problems, and again, most of these banks are looking at the Gulf for investment.