IslamicFinance.de

Indonesia's planned merger of three state-owned Islamic banks will create an entity with scale comparable with the biggest local lenders. The proposed merger between Bank BRIsyariah, Bank Syariah Mandiri and Bank BNI Syariah will create an entity with between 220 trillion rupiah and 225 trillion rupiah in assets. Bank BRIsyariah will be the final entity after the merger, expected to be completed by February 2021. It will be Indonesia's seventh or eighth biggest bank by assets. Analysts expect more M&A activity within the Indonesian banking space, mainly for smaller banks to remain competitive. Currently, the nation's biggest banks are Bank Central Asia, Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia.