INDONESIA - FOREIGN - Affin up on Bank Muamalat Malaysia stake buy talks

www.btimes.com.my -KUALA LUMPUR: Affin Holdings Bhd, Malaysia’s smallest banking group by market value, rallied the most in a month after obtaining central bank approval to start talks to buy a stake in the country’s second-oldest Islamic bank.

The stock advanced as much as 2.3 per cent in Kuala Lumpur trading to RM3.56. It pared gains to RM3.54 at 11:50am, poised for its steepest increase since July 18. It was the second-biggest increase in the Bursa Malaysia Finance Index, which climbed 0.3 per cent.

Acquiring a stake in Bank Muamalat Malaysia Bhd may increase Affin’s scale and help strengthen its position in the Southeast Asian nation’s Islamic banking industry, according to a brokerage report by Alliance Financial Group Bhd today. Bank Muamalat was formed in 1999, the second full-fledged Islamic bank set up in the country after Bank Islam Malaysia Bhd.  (source)

INDONESIA - REGULATIONS - Indonesia's new bank rules may not hit Maybank, CIMB

www.btimes.com.my - KUALA LUMPUR:Indonesia's central bank has issued new rules limiting single ownership in domestic banks at 40 per cent but allows exemptions that could let Malaysia's top two lenders hold on to their controlling stakes in banks there. Bank Indonesia, in a statement on Wednesday, said public-listed financial institutions will be allowed to keep their current ownership structures in Indonesian banks, provided they maintain high levels of corporate governance and financial health, including a tier-1 capital ratio of over six per cent.

From December 2013, those that see their corporate governance and financial health ratings fall to unacceptable levels for three consecutive reporting periods will have to sell their stakes down to the new limit.  (source)

INDONESIA - REGULATIONS - Maybank, CIMB can breathe a sigh of relief

www.btimes.com.my - CLOSE CALL: Indonesia’s 40pc single ownership restriction to affect only new investors
IT looks like the country's top two banks, Malayan Banking Bhd (Maybank) and CIMB Group, can heave a sigh of relief as they won't be subject to Indonesia's proposed new rules on bank ownership.

Reuters reported late yesterday that the Indonesian central bank planned to limit single ownership in its banks to 40 per cent, but only for new investments.

"This new regulation will only hold for new initiatives, new investments... there will not be a retroactive regulation," Halim Alamsyah, the central bank deputy governor responsible for banking supervision, told analysts on a conference call, the news wire said. (source)

INDONESIA - BANKING - Affin interested in acquiring Bank Ina Perdana

www.btimes.com.my - Affin Holdings Bhd is still interested in acquiring at least 51 per cent or a majority stake in Indonesia's PT Bank Ina Perdana, says Chairman Tan Sri Mohd Zahidi Zainuddin.

"We are continuously looking to expand our operations there. "However, we want to get a clear indication from Indonesian regulators about foreign ownership for local banks," he told reporters after the company's annual general meeting here today.

Affin Bank previously revisited its plan to acquire 80 per cent stake in Bank Ina Perdana but put the plan on hold because of a report, which stated that the central bank of Indonesia was considering to cap foreign ownership in its banks to less than 50 per cent. (source)

INDONESIA - BANKING - Affin open to M&A if in driver's seat (Bank Ina Perdana)

www.thesundaily.com - KUALA LUMPUR (April 17, 2012): Affin Holdings Bhd, the country's smallest domestic bank, is open to mergers and acquisitions (M&As) but doesn't see itself being swallowed up by a bigger rival.
Due to its small size, the bank is constantly touted as a potential takeover target. But deputy chairman Tan Sri Lodin Wok Kamaruddin said the bank prefers to be the one calling the shots.
"Yes, we are open to M&As as long as we are in the driving seat,'' he told reporters after the group's AGM yesterday.
Following in the footsteps of bigger banks — Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Capital Bhd — Affin too is looking at Indonesia and other regional markets to fuel future growth.
"We are serious about Indonesia, and we are also looking at Myanmar,'' Lodin said.
But so far, the plan to acquire PT Bank Ina Perdana, first announced two years ago, is still stuck in second gear due to regulatory uncertainties.  (source)

INDONESIA - BANKING - Affin awaits Indonesian central bank nod

www.thestar.com,my  - KUALA LUMPUR: Affin Holdings Bhd will patiently continue to wait for Bank Sentral Republik Indonesia (BSRI), the Indonesian central bank’s formal agreement to allow Affin to hold at least a 51% stake in PT Bank Ina Perdana.

“The informal indications so far seems to be quite positive. If possible, we want it to be formalised,” Affin deputy chairman Tan Sri Lodin Wok Kamaruddin said at a press conference after the AGM yesterday.

Lodin said Affin would renegotiate the stake purchase price should the actual stake buy be less than the targeted 80% initially as “different stakes have different premiums”.  (source)

INDONESIA - BANKING - Affin Still Interested In Bank INA Perdana

www.bernama.com - KUALA LUMPUR, April 16 (Bernama) -- Affin Holdings Bhd is still interested in acquiring at least 51 per cent or a majority stake in Indonesia's PT Bank Ina Perdana, says Chairman Tan Sri Mohd Zahidi Zainuddin.

"We are continuously looking to expand our operations there.

"However, we want to get a clear indication from Indonesian regulators about foreign ownership for local banks," he told reporters after the company's annual general meeting here Monday.  (source)

INDONESIA - BANKING - Affin’s H2 China target - Indonesia still ON

biz.thestar.com.my - It aims to offer Islamic banking there with Hong Kong’s BEA
KUALA LUMPUR: Affin Holdings Bhd expects its plan to set up Islamic banking operations in China to materialise in the second half of this year.
Deputy chairman Tan Sri Lodin Wok Kamaruddin said Affin Holdings would collaborate with its shareholder, Hong Kong-based Bank of East Asia Ltd (BEA), to offer Islamic banking products in China.
BEA, which holds some 23% of Affin Holdings, is the biggest foreign bank in China. (source)

INDONESIA - BANKING - Indonesia’s withdrawal of ownership ruling to benefit M’sian banks

www.thestar.com.my - PETALING JAYA: The move by Indonesia to drop a controversial policy that would limit ownership of its banks is good news for Malaysian banking groups with a position there, but the market's reaction has been muted.

Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd, who stand to lose if Indonesia went ahead with the ruling, were unchanged at the close yesterday. (source)

INDONESIA - BANKING - Indonesia’s plan to cap ownership will affect Malaysian groups’ earnings

PETALING JAYA: Malaysian banking groups with exposure to Indonesian banks will see an earnings impact and possibly need to re-think their growth strategy should the Indonesian central bank impose a retroactive ruling that requires major shareholders to reduce their stakes in that country's banks.

However, it is premature to judge the financial impact on the groups' earnings as there is still much ambiguity surrounding the proposed changes to Indonesia's banking ownership rules. (source)

INDONESIA - OPINION - Bright prospect of Islamic banking

Currently, most of the giant international banks offer either an Islamic Commercial Bank (ICB) or an Islamic Business Unit (IBU). The question is, therefore, “How can national Islamic banking be developed?”

First of all, let us look at the infrastructure of Islamic banking during the last six years. A report titled “Islamic Banking Statistics April 2011”, which was issued by Bank Indonesia (BI) on June 15, 2011, found that ICB increased from only three banks with 304 offices in 2005 — when Islamic banking was born — to 11 banks with 1,215 offices by December 2010. (source)

INDONESIA - BANKING - Indonesia bars bank M&A, pending new ownership rules

JAKARTA, Aug 12 (Reuters) - Indonesia's central bank temporarily barred takeovers in the banking sector, citing upcoming ownership rules, sowing more uncertainty about the regulatory environment in Southeast Asia's biggest economy.

Indonesia's expected imposition of bank ownership limits, including those on foreign investors, have already scuttled some cross-border deals. If the limits are imposed retroactively, as some expect, then several offshore investors and banks will have to cut their stakes in local lenders.(source)

INDONESIA - BANKING - Bank Affin Malaysia Cancels Plan to Acquire Bank Ina Perdana

INDONESIA FINANCE TODAY  - JAKARTA (IFT) - Affin Holdings Bhd cancelled plan to acquire PT Bank Ina Perdana due to the single presence policy. In a statement to the Malaysian Stock Exchange, Affin disclosed that it would be in the best interest of all parties to discontinue the share purchase plan. (*)  (source)

INDONESIA - BANKING - Conversion of Islamic Banking Bank Ina Being Threatened Clear

REPUBLIKA.CO.ID, JAKARTA - PT Bank Ina conversion into Islamic bank threatened Prime void. Affin Holdings reason, cancel the acquisition of banks with assets of the medium.

According to reports on Bursa Malaysia, plans of Bank Indonesia (BI) that would apply the rule of majority ownership restrictions in banking a cause. "All parties berenegosiasi be reopened if the policy has been issued," the company said it via press release on Thursday (4 / 8). (source)

INDONESIA - BANKING - BI has not received reports acquisition of Bank Ina

JAKARTA: Bank Indonesia said had not received official notification of Affin Holdings Bhd, a Malaysian bank, who canceled a planned acquisition of PT Bank Ina Perdana.

"There has been no formal notification," said Joni Swastanto, Director of Licensing and Banking Information relating Business BI when confirmed cancellation information acquisition, today. (source)

INDONESIA - BANKING - Limbo in Indonesia (Affin breaking up Ina Perdana deal)

KUALA LUMPUR: The brewing uncertainty over changes to the rules governing Indonesia’s bank ownership limits has claimed its first casualty. Affin Holdings Bhd announced yesterday it has shelved plans to acquire a controlling stake in one of Indonesia’s smallest banks, PT Bank Ina Perdana (Bank Ina). (source)

INDONESIA - BANKING - Affin scraps plan to buy Indonesian bank

Kuala Lumpur: Affin Holdings Bhd has become the first casualty of a possible foreign ownership cap rule for Indonesian banks when it calls off plans to buy PT Bank Ina Perdana.

 

"In view of the study (by Bank Indonesia to cap foreign ownership) ... Affin and the (selling) parties are of the view that it would be in the best interest of all parties to discontinue with the existing agreements," Affin said in a statement to Bursa Malaysia yesterday. (source)

INDONESIA - BANKING - Jakarta stake cap will affect Malaysian banks

KUALA LUMPUR: A possible move by the Indonesian central bank to cap foreign ownership in banks would affect CIMB Group Holdings Bhd more than Malayan Banking Bhd (Maybank), says an ECM Libra Investment Research analyst yesterday.

 

Current rules in Indonesia make it possible for foreigners to hold up to a 99.9 per cent stake in banks. Those rules, however, are being reviewed. (source)

BANKING - Affin Islamic Expects To Disburse RM50 Million Under New Financing Products - Bank Ina Perdana

KUALA LUMPUR, May 6 (Bernama) -- Affin Islamic Bank Bhd today launched Affin Home Invest-i and Affin Business Premises Invest-i, and expects to disburse RM50 million under the new financing products this year.

Its chief executive officer, Kamarul Arrifin Mohd Jamil, said that since the soft launch in February, the bank had approved approved applications for up to RM30 million. (full story)

BANKING - Affin (Malaysia) to convert Indonesia's Bank Ina into Islamic lender

KUALA LUMPUR: Indonesia's conventional bank PT Bank Ina Perdana, which is being acquired by Affin Holdings Bhd , will be converted into an Islamic bank - a process that will likely take two years.

Affin Islamic Bank chief executive officer (CEO) Kamarul Ariffin said the conversion of all 25 branches of the medium-sized Indonesian bank will be done "slowly". (full story)