KUALA LUMPUR -- Malaysia Building Society (MBSB) is a step closer to becoming a full-fledged Islamic bank after the proposed acquisition of Asian Finance Bank.
The move would allow MBSB a cheaper funding source and offer more fee-based products by inheriting AFB's banking license. The entry of MBSB as the second-largest stand-alone Islamic bank by assets could spur competition for low-cost deposits in an already matured market but would probably not spark broader sector consolidation unless bigger banking groups in the country make their moves, according to analysts.
