Maybank launches syariah bank in Indonesia

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KUCHING: PT Bank Maybank Indocorp (BMI) was officially renamed yesterday as Maybank Syariah Indonesia (MSI), since its conversion into a full-fledged Islamic bank in Indonesia in October this year.

BMI had received approval from the Central Bank of Indonesia on September 23 to convert its operations into an Islamic bank. Engaging mainly in wholesale banking services including corporate banking, trade finance and treasury services to a wide range of corporate client, the bank also offers niche retail banking services through its office in Jakarta.

The launch of the new bank was officiated by Maybank Bhd’s (Maybank) chairman Tan Sri Megat Zaharuddin Megat Mohd Nor as well as its president and chief executive officer Datuk Seri Abdul Wahid Omar at a reception held in Jakarta.

Speaking to the media in conjunction with the launch, Wahid said that the move to convert BMI into a syariah bank was in line with Maybank’s strategic objectives to expand its Islamic banking operations regionally.

“Our aspiration is to become the number one Islamic bank in Asean by 2015 in terms of reach and this cannot be achieved without a presence in Indonesia, the largest market in the region,” he outlined. “Given its large Muslim population, Indonesia is a critical market that we must be present in, if we are to achieve our aspiration in Islamic banking leadership.”

He added that given the relatively untapped Islamic banking sector in Indonesia, Maybank believed that there will be strong demand for such services in the republic not only in the consumer market but also in the corporate and investment banking sector.

“The syariah banking industry in Indonesia constitutes merely three per cent of the total banking industry, with about 11 institutions holding full-fledged syariah banking licenses. We believe we can expedite the growth of the industry by bringing to market our range of Islamic based products and services.”

Following the conversion, MSI would operate with a paid up capital of 819.307 billion rupiah (approximately RM284.53 million).