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Nikkei Markets

Competition For Deposits Likely To Intensify Among Malaysia's Smaller Islamic Banks-Moody's

By Kuala Lumpur Newsroom
Nikkei Markets
KUALA LUMPUR (Jul 11) -- The proposed merger between Malaysia Building Society Bhd and Asian Finance Bhd is likely to intensify competition for deposits among smaller Islamic banks, Moody's Investors Service said today.

"MBSB's credit profile would be enhanced because the acquisition of AFB and its Islamic banking license would give MBSB access to cheaper funding and broaden its revenue stream," Simon Chen, a Moody's vice president and senior analyst said. "The entry of MBSB into the current and savings account deposit market would further intensify competition for low-cost deposits among institutions that are not part of big integrated banking groups."

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