RHB Capital Bhd, the country's fourth largest
lender, expects its acquisition of a 40 percent stake in
Indonesia's PT Bank Mestika Dharma to conclude by the third
quarter of this year, said RHB Bank Bhd managing
director Johari Abdul Muid.
"It (acquisition process) is going on well. The new rules
(on bank ownership limits) have been proposed by Indonesia's
central bank so we're progressing in terms of the purchase of
our stake in Bank Mestika. We're almost there," he told
reporters after the RHB "Win a Volkswagen Beetle" contest
prize-giving ceremony in Kuala Lumpur on Thursday.
RHB Capital first proposed to buy an 80 percent stake in
Bank Mestika in 2009 but faced hiccups following Bank
Indonesia's ruling that limits foreign financial institutions'
holdings of local banks to 40 percent.
Last year, RHB Capital had aimed to complete its acquisition
of the Indonesian bank by June 2013. -The Sun
Foreign holding of gov't securities a good sign but risks
The significant increase in foreign shareholding in
Malaysian government securities (MGS) since the global financial
crisis is generally a good thing. But it could still be a cause
for concern and remains a risk, according to Ravi Balakrishnan,
Singapore-based resident representative of the International
Speaking on Thursday at a seminar on Bank Negara Malaysia's
governor's address on the Malaysian economy, Ravi said the
foreign holdings of MGS, currently at about 25 percent are a
statement to the stability of the Malaysian market. Foreign
holdings of Bank Negara bills tend to fluctuate, but have
previously reached close to 75 percent.
"One risk which people focus on is the risk related to
capital flow. It's a good thing because it shows that foreigners
are interested in Malaysia, but further inflows can cause asset
price imbalances and we could also see a significant amount of
"To be fair, we have seen quite a lot of these periods over
the last couple of years and it hasn't really affected
Malaysia's domestic credit provision, so Malaysia has managed
well so far, but it still remains a risk given the level of
exposure that foreigners now have to Malaysia, and the potential
shocks out there," he said. -The Edge
NOTE: Reuters has not verified these stories and does not
vouch for their accuracy.