ID :
201777
Wed, 08/17/2011 - 05:11
Auther :
Shortlink :
https://oananews.org//node/201777
The shortlink copeid
US & EUROPE FINANCIAL MELTDOWN WILL NOT MELT LOCAL BANKS, SAYS MAYBANK CEO
KUALA LUMPUR, Aug 17 (Bernama) -- The Malaysian banking sector is and will not be affected by the on-going financial and debt crisis in the United States and Europe, says President and Chief Executive Officer of Malayan Banking Bhd (Maybank), Abdul Wahid Omar.
He said the sector was very resilient, adding that the crisis might affect other sectors a little, but not the banking segment.
Abdul Wahid said there had been no indication of any disruptions in
Maybank's domestic and international operations.
"Most of the exposure of Malaysian banks are domestic and in the Asean region, thus making the exposure towards the Europe and US very minimum," he told Bernama after handing over Maybank's scholarship to some 25 students who would be furthering their studies overseas and at local higher education institutions.
He said 90 per cent of Maybank's exposure was through its activities in Malaysia, Singapore and Indonesia.
On Maybank's operations in New York, Abdul Wahid said the branch had so far responded with a positive level of liquidity.
"Given that we manage our assets and liabilities very carefully, Maybank and all local banks, at large, will have very minimum exposure to the US Treasury," he added.
Meanwhile, Abdul Wahid declined to comment on the million dollar question -- the latest development in negotiations between Maybank and RHB Capital Bhd on a possible merger between the two banking institutions.
On May 31, Bank Negara Malaysia (Malaysia's Central Bank) )granted approval to Maybank and CIMB Group Holdings Bhd to commence negotiations, valid for three months from the date.
After the preliminary stage of negotiations, both Maybank and CIMB were reported to have dropped the idea in June, saying they were not able to arrive at a value creating merger based on various discussions and assessment of the expectations of key stakeholders.
However, there have been reports lately that Maybank has resumed
negotiations with RHB. It the deal comes through, it would create the
largest financial institution in South-East Asia.
Maybank is the country's largest bank in terms of assets.
He said the sector was very resilient, adding that the crisis might affect other sectors a little, but not the banking segment.
Abdul Wahid said there had been no indication of any disruptions in
Maybank's domestic and international operations.
"Most of the exposure of Malaysian banks are domestic and in the Asean region, thus making the exposure towards the Europe and US very minimum," he told Bernama after handing over Maybank's scholarship to some 25 students who would be furthering their studies overseas and at local higher education institutions.
He said 90 per cent of Maybank's exposure was through its activities in Malaysia, Singapore and Indonesia.
On Maybank's operations in New York, Abdul Wahid said the branch had so far responded with a positive level of liquidity.
"Given that we manage our assets and liabilities very carefully, Maybank and all local banks, at large, will have very minimum exposure to the US Treasury," he added.
Meanwhile, Abdul Wahid declined to comment on the million dollar question -- the latest development in negotiations between Maybank and RHB Capital Bhd on a possible merger between the two banking institutions.
On May 31, Bank Negara Malaysia (Malaysia's Central Bank) )granted approval to Maybank and CIMB Group Holdings Bhd to commence negotiations, valid for three months from the date.
After the preliminary stage of negotiations, both Maybank and CIMB were reported to have dropped the idea in June, saying they were not able to arrive at a value creating merger based on various discussions and assessment of the expectations of key stakeholders.
However, there have been reports lately that Maybank has resumed
negotiations with RHB. It the deal comes through, it would create the
largest financial institution in South-East Asia.
Maybank is the country's largest bank in terms of assets.
