Malaysia Relaxes Requirements For Bank Mandiri
Malaysia’s central bank has relaxes requirements for staterun Bank Mandiri, Indonesia’s largest bank by assets, to operate there by the end of next year at the latest to tap the growing number of Indonesians in the neighboring country. Mandiri has secured a license to operate in Malaysia, but found problems in meeting three requirements: Minimum initial capital, branch limitations and automated teller machine (ATM) installment restrictions. Bank Negara Malaysia governor Zeti Akhtar Aziz said on Friday that two of the three problems had been overcome. The Malaysian central bank set a limit of branches to 12 – two in city centre, four in sub-urban areas, six in rural areas – and does not allow Mandiri to install automated teller machines of Mandiri branches.
Mandiri’s director for micro and retail banking Budi Gunadi Sadikin said after negotiations, that Malaysia’s central bank had agreed to 100 million ringgit of initial capital, but on the condition that the capital be increased to 300 million ringgit within five years of operation.
“We will discuss Bank Negara Malaysia’s alternative in a board of commissioners’ meeting. But we have to told them that the 100 million ringgit initial capital would be followed by an international standard of capital adequacy ratio [CAR] of at least 8 percent,” he told the Post on Sunday.
The Jakarta Post