Bank Mandiri shelves KL expansion plan?
KUALA LUMPUR: Indonesia's Bank Mandiri, which has secured a full banking licence to operate here, is believed to be having second thoughts about an expansion.
It is learnt that the bank has apparently shelved the plan altogether, 10 months after obtaining the licence from Bank Negara Malaysia.
Bank Mandiri currently operates in Malaysia under the licence of remittance office, which only allows banking transactions related to remittance business.
It is believed that the requirements imposed by Bank Negara on foreign banks such as the RM300 million paid-up capital could not be fulfilled by the state-owned bank, which considered it too high.
Based on earlier Indonesian news reports, Bank Mandiri was adamant that the amount be lowered to RM100 million.
The reports also stated that Bank Mandiri was not too happy with the other conditions set by Bank Negara, which included the number of branches and automated teller machines allowed to be opened by foreign banks.
Bank Negara declined to comment, while Bank Mandiri did not immediately reply to Business Times' query.
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