IslamicFinance.de

Weak economic conditions scuppered plans for a tie-up of Malaysia’s CIMB Group Holdings Bhd with RHB Capital Bhd and Malaysia Building Society Bhd (MBSB). It would have created Southeast Asia’s fourth-largest bank with assets of US$190 billion (RM692.63 billion). MBSB, a non-bank lender and the smallest of the three firms, is now studying a plan to convert itself into a full-fledged Islamic lender. It said last week it would convert existing conventional financial products into Islamic ones while introducing new ones to close the gap with competitors. Meanwhile, both CIMB and RHB Capital have established, domestically focused, Islamic units.