Indonesia: Indonesia-Malaysia banking deal

Indonesia: Indonesia-Malaysia banking deal

Wednesday, 3 August 2016 – Indonesia and Malaysia have agreed to give their banks greater access to each other?s markets, part of wider integration efforts among South-East Asian economies.

The move would link the two largest Islamic banking sectors in the region, and give Malaysian banks a potential lead in accessing the world?s biggest Muslim-majority country which remains restrictive to foreign lenders.

The heads of Indonesia?s financial regulator and Bank Negara signed the pact at the state palace in Jakarta, the Indonesia Financial Services Authority (OJK) said in a statement late on Monday.

?The agreement is aimed at reducing an imbalance in the market access and banking activities of both countries through the presence of banks that fulfill certain conditions in each jurisdiction, based on the principle of reciprocity,? the statement said. Read More?