Maybank Syariah Indonesia may launch operations next year

Lender’s conversion to sharia of commercial bank still needs endorsement by BII shareholders to materialize.

Bank Indonesia (BI) has approved the Malayan Banking Bhd (Maybank) Indocorp plan to convert its commercial bank status to a sharia bank, named Maybank Syariah Indonesia, BI official said Friday.

“We have granted the permit, so maybe next year [the bank will be operational],” BI director for sharia banking Mulya Siregar said.

The establishment of the new sharia bank will need further approval from Bank Internasional Indonesia (BII) shareholders, because Maybank Indocorp aimed to merge the new sharia bank with BII’s sharia unit, Mulya added.

Maybank, a top lender in Malaysia, owns a controlling stake in BII, according to a report in the Jakarta Post.