Effects of bank mergers and acquisitions on comercial banks evidence from malaysia and lessons for vietnam,graduation thesis

STATE BANK OF VIETNAM BANKING ACADEMY Foreign Language Faculty GRADUATION THESIS EFFECTS OF BANK MERGERS AND ACQUISITIONS ON COMMERCIAL BANKS: EVIDENCE FROM MALAYSIA AND LESSONS FOR VIETNAM Student name : Dao Ngoc Minh Class : ATCA-K11 Lecturers : PhD Do Thi Kim Hao MA Bui Le Minh June, 6th 2012 i ACKNOWLEDGEMENTS All my praises and gratitude to my supervisors, the Dean of Faculty of Banking, PhD Do Thi Kim Hao from Banking Academy and MA Bui Le Minh from Hanoi University This study would not have been possible without their constructive comments, suggestion, kindness and encouragements I also would like to express my appreciation to my lecturers from Faculty of Foreign Languages of Banking Academy for their guidance and support throughout the completion of this research In addition, my deepest thanks to my parents and my friends for their continuous source of inspiration and encouragement Thanks for giving a great support throughout the duration of my studies and unceasing prayers for my success Thankyou Dao Ngoc Minh – ATCA K11 | ii ABSTRACT Merger and acquisition (M&A) in banks will be boosted in the next five years as part of efforts to overhaul the entire banking system and speed up the formation of one to two regional class commercial banks in Vietnam In order to give the reader a brief view of the necessity of banking consolidation, I have studied the experiences and organizational structure of other countries which have strong and efficient banking systems, particularly of neighboring countries in the ASEAN region To some extent, Malaysia’s banking system has been at the forefront in ASEAN This study investigates the extent of merger and acquisition activity affect Malaysian banks’ performance after the consolidation of banking sector in year 2000 which was expedited by the Asian Financial crisis By utilizing secondary data collected from several previous researches as well as the financial ratio analysis, it can be concluded that the merger program in Malaysia was relatively successful So as a matter of fact, the thesis seeks to build up a safe and efficient banking system in Vietnam by learning from Malaysia’s model and experience Dao Ngoc Minh – ATCA K11 | iii TABLE OF CONTENTS ACKOWLEDGEMENTS i ABSTRACT .ii TABLE OF CONTENTS iii LIST OF TABLES & FIGURES v LIST OF ABBREVIATIONS vi CHAPTER 1: INTRODUCTION 1.1 Current Problem Statement 1.2 Objective and research questions 1.2.1 Objective 1.2.2 Research questions 1.3 Scope and limitations 1.4 Research methodology CHAPTER 2: THEORETICAL FRAMEWORK 2.1 Mergers and Acquisitions definition 2.2 Factors contributing to the occurrence of Mergers and Acquisitions 2.3 Effects of Mergers and Acquisitions on commercial banks 2.3.1 Advantages Dao Ngoc Minh – ATCA K11 | iv 2.3.2 Disdvantages 2.4 Summary of theoretical framework 11 CHAPTER 3: EFFECTS OF BANK MERGERS AND ACQUISITIONS ON MALAYSIAN BANKING SYSTEM 13 3.1 Overview of Malaysian banking system 13 3.1.1 Financial Crisis in Malaysia 1997-1998 13 3.1.2 Mergers and Acquisitions in Malaysia 15 3.2 Effects of bank Mergers and Acquisitions on Malaysian banking system 16 3.2.1 Profitability ratio 17 3.2.2 Cost efficiency ratio 18 3.2.3 Liquidity ratio 20 3.2.4 Share performance ratio 22 3.2.5 Leverage ratio 24 3.3 Summary 26 3.4 Reasons for the success of merger program in Malaysian banking system 27 CHAPTER 4: CONCLUSION & LESSONS FOR VIETNAMESE BANKING SYSTEM 31 4.1 Overview of Vietnamese banking system 31 4.2 Conclusion and lessons for Vietnamese banking system … 36 REFERRENCE .vii APPENDIX ix Dao Ngoc Minh – ATCA K11 | v LIST OF TABLES & FIGURES List of tables Table 3.1: Growth Rate in Profitability Ratio 17 Table 3.2: Growth rate in cost efficiency ratio 19 Table 3.3: Growth rate in cost efficiency ratio 20 Table 3.4: Growth rate in share performance ratio 22 Table 3.5: Growth rate in leverage ratio 24 Table 4.1: Wholly foreign-owned and joint venture banks in Vietnam 35 List of figures Figure 4.1: Banking sector size of countries 33 Figure 4.2: Chartered capital of 11 largest banks 34 Dao Ngoc Minh – ATCA K11 | vi LIST OF ABBREVIATIONS M&A BNM SBV KLSE NPL FSMP ROA ROE TE/TR NIE/TA TL/TD TL/TA EPS DPS TD/CE TD/TC JSCBs SOCBs VBARD CTG VCB EIB BIDV ACB STB MB Merger and Acquisition Bank Negara Malaysia State Bank of Vietnam Kuala Lumpur Stock Exchange Non-performing loan Financial Sector Master Plan Return on Asset Return on Equity Total Expenses to Total Revenues Non- Interest Expenses to Total Assets Total Loan to Total Deposit Total Loan to Total Asset Earnings per share Dividends per share Total Debt to Common Equity Total Debt to Total Capital Joint Stock Commercial Banks State-owned Commercial Banks Agribank Vietinbank Vietcombank Eximbank Bank for Investment and Development of Vietnam Asian Commercial Bank Sacombank Military Bank Dao Ngoc Minh – ATCA K11 | -1- CHAPTER INTRODUCTION 1.1 Current problem statement The global economic crisis during the period of 2008 and 2009 left negative impacts on many different economies and Vietnam is not an exception Although the country still keeps its medium economic growth, there are several difficulties and challenges it has to cope with One of those is the consolidation of banking sector Banks as financial intermediaries play a significant role in economic growth, provide funds for investments, and keep the cost of capital low The failure of a bank will not only bring financial difficulties to its depositors and owners, but will certainly be harmful to public confidence in the banking system During the last few decades, structure of banking sector has turned from a controlled system into liberalized one The efficiency of banks, which reflects the ability of banks in transforming its resources to output by making its best allocation, is essential for the growth of an economy The competition among banks at domestic and global level has increased and it has compelled the banking industry to improve their efficiency and productivity Moreover, the government and policy makers have considered carefully various policies and measures out of which consolidation of banks emerged as one of the most preferable strategy There are diverse ways to consolidate the banking industry and the most commonly adopted by local Vietnamese banks is mergers and acquisitions (M&A) However, skepticism also arises due to the suspicion on postmerger performance and the risk of too big too fails Size may itself become a Dao Ngoc Minh – ATCA K11 | -2- constraint, and dis-economies of scale may set in Lower competition may also lead to a relatively more relaxed management, thereby leading to productivity losses Therefore, another issue related to M&A is the concern on whether the merger of bank has strengthened the financial condition and effectiveness management to increase bank’s efficiency Meanwhile, Malaysia’s banking system is at the forefront in the ASEAN region and also plays the leading role in the regional banking industry Majority consolidation activity in Malaysian banking industry was executed in mid of year 2000 when it was proposed and imposed by the Bank Negara Malaysia (BNM) Troubles in the banking system are specific to a country and so are the solutions However, the learning experience and systemic structure of a well-managed, safe and efficient banking system such as that of Malaysia will assist banking merger in Vietnam by giving some valuable lessons to be learned 1.2 Objective and research question 1.2.1 Objective The main objectives of this study is to measure the state of efficiency of Malaysian banks pre- and post merger and to investigate whether the M&A activity in the past time has enabled banks to take advantage of economies of scale and enjoy greater financial performance and improve bank’s efficiency By the lessons to be learned from Malaysian commercial banks, the thesis hopefully can give some recommendations to Vietnamese government during the restructuring of banking industry Dao Ngoc Minh – ATCA K11 | -3- 1.2.2 Research questions The thesis should be able to answer three of the following questions:  Has the merger resulted in better efficiency of Malaysian banks?  Should the State Bank of Vietnam (SVB) encourage the mergers and acquisitions between local banks?  What are the lessons that Vietnam could learn from Malaysia’s experiences? 1.3 Scope and limitations The research solely focuses on identifying whether merger program in Malaysian banking system was successful or not through the collected data of financial ratio preand post-merger of nine Malaysian commercial banks Also, the study points out the reasons for the success of merger program in Malaysia by reviewing the past era researches related to the topic so that it could hopefully give some highlights that SBV should pay attention to when implementing M&A in Vietnam However, the research does not give a comparison of the performance between the two banking systems, since there are some differences between the two (Vietnam and Malaysia) e.g economic and political conditions, development history, and legal framework 1.4 Research methodology The study uses the secondary data collected from several previous researches and from the respective banks’ annual reports and DataStream for the selected periods Then comparison and analysis of ratios are used to compare the performance of Malaysian local banks during the pre-merger period (1999-2001) and post-merger period (2002- Dao Ngoc Minh – ATCA K11 | - 30 - size, reputation and earnings of the acquirers and their merging partners caused the announcement to be poorly received by a majority of the bank’s shareholders (Ahmad & Ling, 2000) So as a matter of fact, the financial ratio analyzed above proved the success of revised merger program during 20002001 thanks to the great contribution of the adjustment on directions of merger program from involuntary to voluntary merger  Public disclosures: During merger process, Malaysian public were well informed about the merger program and its benefits which lowered the confusions and anxiety of customers or shareholders In fact, since banking consolidation was an important economic agenda, especially during the recuperating period of the financial crisis, it would be expected that many announcements, news and information would be available in the market In Malaysia, there were two main sources of market information for new announcements that affected greatly on market reaction towards bank merger program, a widely circulated daily newspaper, The New Straits Times, was one while other was the Central Bank website According to Mansor (2004), as more information was made available to the market, it appeared to react appropriately as these uncertainties were eventually resolved by the series of announcements mostly made by BNM This research also stated that BNM did excellently in enhancing the public confidence about the merger program of the government which played a major role in the success of restructuring banking systems Dao Ngoc Minh – ATCA K11 | - 31 - CHAPTER CONCLUSION & LESSONS FOR VIETNAMESE BANKING SYSTEM 4.1 Overview of Vietnamese banking system Vietnam’s banking sector has expanded substantially in recent years Total domestic assets in the system more than doubled between 2007 and 2010, growing from VND 1,097 trillion (USD 52.4 billion) to VND 2,690 trillion (USD 128.7 billion).This figure is expected to grow to VND 3,667 (USD 175.4 billion) by the end of 2012 The banking sector in Vietnam is divided into four primary types of institutions These include six state-owned commercial banks (SOCBs), 37 joint stock commercial banks (JSCBs), five joint venture banks, and five wholly foreign-owned banks Vietnam’s banking sector is expected to have one of the highest growth rates in Asia during the next few years due to the country’s continued economic expansion, rising household incomes, and relatively low penetration of existing banking services However, the global economic crisis during the period of 2008 and 2009 left negative impacts on many different economies and Vietnam is not an exception Although the country still keeps its medium economic growth, there are several difficulties and challenges it has to cope with It is believed that restructuring of the banking system is one of three most significant reforms of Vietnamese economy in the next years This is not the first time the bank restructuring is mentioned but it seems to be the first time this policy will be realized At the end of 2008, many people were of the opinion that Vietnamese banking system was consist of too many inefficient institutions So at a matter of fact, the ending period of 2008 and 2010 were considered the most Dao Ngoc Minh – ATCA K11 | - 32 - favorable time for restructuring through mergers and acquisitions These opportunities of M&As, eventually, were ignored which leaded to the result that Vietnam “passed” the global economic crisis without the bankruptcy, merger, acquisition or dissolution of any banks However, authorities, specialists and bankers share the same point of view that the banking system is now performing poorly and even engendering adverse impacts on the economy if no proper reshuffling is made One of the most serious problems is high NPL ratio Actually, rising bad debts remain the biggest challenge for the entire banking industry, said Vo Tri Thanh, Deputy Head of Central Institute for Economic Management Bad debts currently represent 3.6% of total outstanding loans, versus 3.2% at the beginning of the year, said Governor of the State Bank of Vietnam (SBV) at a press conference held in Hanoi on Apr 11, 2012 However, international organizations warned that the actual figure may climb up to 1213% Worryingly, if this ratio is compared with the adjusted owner’s equity in accordance with the current regulations plus credit risk provision funds, it will exceed 50 percent - an alarming level Rising NPL places more pressure on liquidity and system liquidity remains potentially vulnerable if bad debt problems are not solved soon enough The recapping of deposit interest rates in September 2011 has pushed the banking system into a higher risk when liquidity strain has not been resolved And, the unsettlement will certainly continue when the root of the problem, the low quality of bank assets, is potentially exacerbated For weak banks, as bad debt burdens weigh up, liquidity becomes more oppressive when they face more difficulty in mobilizing capital because of interest rate cap Furthermore, Vietnamese banks’ capital size was still modest compared to regional peers According to Bloomberg, the average asset and equity of eight listed Vietnamese banks was VND166,844 billion and VND 12,574 billion respectively, lower than those of Malaysia, India and Thailand (See on Figure 4.1) Stronger capital Dao Ngoc Minh – ATCA K11 | - 33 - is a key component of reform efforts to improve the competitiveness of Vietnam’s domestic banks as foreign presence increases The SBV employs two tools for measuring banks’ capital adequacy The first is a minimum nominal amount of capital that banks must hold This amount varies depending on the type of bank, but it does not automatically adjust upward as banks grow their assets and assume more risk The SBV also requires banks to meet a minimum capital adequacy ratio, which measures total capital as a percentage of risk weighted assets The government’s November 2006 Decree 141 increased Figure 4.1: Banking sector size of countries (Source: Bloomberg) Therefore, Vietnamese banks are under great pressure to maintain and improve their capital adequacy The government’s November 2006 Decree 141 increased the minimum notional capital levels required of all credit institutions Specifically, the decree required all commercial banks to hold at least VND trillion (USD 143 million) Dao Ngoc Minh – ATCA K11 | - 34 - in capital, up from the prior minimum of VND 70 billion (USD 3.3 million) (The minimum capital requirement for foreign bank branches was left unchanged at USD 15 million.) To monitor compliance with the decree, the SBV required all banks to submit recapitalization plans for approval Banks that did not yet meet the requirements were required to submit monthly progress reports The decree stated that any commercial bank that could not meet the requirement by December 31, 2010, would be forced to merge, have its scope of operations reduced, or have its banking license revoked Twenty commercial banks, including the major banks, were able to meet the new requirement by the deadline; however, other commercial banks were unable to so As a result, in January 2011, the government extended the deadline through December 31, 2011.Even with an additional twelve months to meet the capital requirement, it will be challenging for many smaller banks Figure 4.2: Chartered capital of 11 largest banks 25.000 21.042 20.000 15.172 15.000 14.600 13.224 10.560 10.000 9.377 9.179 7.300 5.000 VBARD CTG BIDV VCB EIB ACB STB MB (Source: SBV) Another issue is the increased presence of foreign banks A foreign bank’s access was initially limited to taking a minority share in joint venture banks and establishing Dao Ngoc Minh – ATCA K11 | - 35 - branches and representative offices until 2004, when the government amended the 1998 Law on Credit Institutions to comply with the terms of the U.S.-Vietnam BTA This amendment required Vietnam to allow 100% U.S.-owned subsidiary banks by 2010 The amendments to the law set the stage for the establishment of wholly foreignowned banks by investors from any country, which would eventually be required under Vietnam’s WTO accession in 2007 Vietnam further leveled the playing field for foreign banks on January 1, 2011, by granting foreign branches equal treatment as domestic banks, complying with its WTO commitments The foreign banks’ strength of capital, technology; services and global operational scale provide them with potential advantages Meanwhile, only 11 out of 43 domestic banks (25.6%) have chartered capital of VND5,000 billion and above According to World Bank (WB), with this composition, small banks account for a large proportion in in the banking sector currently These small banks expose lack of competitiveness with foreign banks and competition will probably become much stronger when foreign banks expand their scale and scope of operations in the Vietnamese market So as a matter of fact, Vietnamese banks came to realize that they have to reform or lose more business to foreign banks and financial institutions Table 4.1: Wholly foreign-owned and joint venture banks in Vietnam Wholly Foreign-Owned Banks HSBC Standard Chartered Bank ANZ Bank Shinhan Bank Hong Leong Bank Dao Ngoc Minh – ATCA K11 | - 36 - Joint Venture Banks (JV Bank Name) (Vietnamese and Foreign JV Bank Partners) Indovina Bank Vietinbank & Cathay United Bank (Taiwan) VinaSiam Bank Agribank & Siam Commercial Bank (Thailand) Shinhanvina Bank Vietcombank & First Bank Korea (Korea) VID Public Bank BIDV & Public Bank (Hong Kong) Vietnam-Russia JV BIDV & VTB Bank (Russia) (Source: www.frbsf.org) All things considered, although M&A trend in Vietnam is still incipient, many experts have said it is time for mergers and acquisitions to be stepped up for the good of the nation's financial security 4.2 Conclusion and lessons for Vietnamese banking system Comparison and analysis of ratios are used to compare the performance of Malaysian local banks during the pre-merger period (1999-2001) and post-merger period (20022010) The findings of this study suggest that there is significant improvement in return on equity, expenses to income, earning per share and dividend per share after the bank merger It can be stated that the merger created more spaces for the banks to better utilize the resources and enhance their capacity It is claimed that before the merger Dao Ngoc Minh – ATCA K11 | - 37 - Malaysia had many small banks relative to her economy As a result of the merger, the local banks have been restructured Bank branches are relocated so that any potential markets were well-captured So as a matter of fact, the merger program in Malaysia during the period of 1999-2001 is relatively successful With the success of not only Malaysia, but also other Asian countries in the same period due to financial crisis in 1997-1998 namely Thailand, Indonesia, South Korea…, it is obvious that the State Bank of Vietnam should encourage banks to perform M&As In fact, prior to the global economic downturn, Vietnam’s banking system was considered ‘incompetent’ Now, almost all countries in the world have restructured their banking systems in order to strengthen their financial capacity If Vietnam doesn’t follow suit, it will be left behind The SBV seemingly has realized this fact when an upswing in mergers and acquisitions in the banking system expect to occur in 2012, bringing the number of banks in Vietnam to below 30 Economist Nguyen Tri Hieu said there will be a strong M&A wave in the sector as many lenders are looking for the right partner for mergers which makes the number of banks be cut by one third Governor Nguyen Van Binh said the goal of banking reforms is to have 10 to 15 strong banks that can support the whole system However, it is difficult to restructure any institution but it’s even more difficult to restructure a financial institution due to the aforementioned complications and sensitivity involved It should be underlined that restructuring cannot be carried out hastily, but it needs a suitable roadmap and a long term plan in order to meet international norms If not, the restructuring could prove infeasible It is undeniably true that the banking merger in Malaysia provides valuable lessons for Vietnam Nevertheless, Vietnam today is not in a position to imitate the other economy mainly because the economic environment now is totally different from 1990s Vietnam’s Dao Ngoc Minh – ATCA K11 | - 38 - internal conditions also differ substantially from the others But Vietnam can learn valuable lessons for its own economic development strategy The present crisis also provides an opportunity to lay the foundation for a new system of improved corporate governance There are several factors that should be taken into consideration to succeed in M&As The first important thing is the need of legal framework According to experts, the current legal system is not coherent enough for M&A deals in such a sensitive industry M&A deals require a good supportive legal system to troubleshoot any problems that may inhibit related parties to flinch How will banks be categorized to single out small, weak ones? How will restructuring go? Luckily, On November 2, 2011, SBV Governor Nguyen Van Binh presented the draft Law on Deposit Insurance This is one of important legal frameworks to be prepared for the restructuring process The SBV asserted that the legal system for M&A and consolidation is now relatively uniform and complete with the enactment of Enterprise Law, Investment Law, Competition Law, Securities Law, State Bank Law, and Credit Institutions Law Secondly, for weak, small or medium banks, it is best for them to have merger with larger banks In other words, the inefficient banks should be encouraged to merge with more efficient ones Obviously, due to the poor performance of the stock market and the increase in bank share issuance as many institutions sought to raise capital simultaneously, it is hard for banks to raise capital especially the weaker and smaller ones In addition, banks should be encouraged to perform M&As instead of being forced to so The voluntary bank merger refers to the process by which two or more banks merged and become one new entity The merger takes place without any objection from the shareholders and the board of both banks The purchase is considered done once the acquirer purchased the shares of the target bank On the other hand, Dao Ngoc Minh – ATCA K11 | - 39 - involuntary merger refers to the merger of a firm that is insolvent or in danger of insolvency and it is initiated by the government or the authority Last but not least, the SBV should promote the dissemination and transparency of information about M&As for banks as well as the public in order to help them understand the benefits of banking mergers The misunderstandings about banking mergers may leave negative impacts on merger process For instance, the merger between Vietnam Postal Savings Service Company (VPSC) and LienVietBank actually caused a stir among their customers, many of whom rushed to withdraw their money, believing that the bank was going to be dissolved Dr Nguyen Duc Huong, Vice Chairman of LienViet Post Bank (LPB)’s Board of Directors said this incident should be a lesson for institutions who wish to merge in the future He said that communications between banks and their clients should be very clear in order to avoid such situations Given the time constraint, this research may not achieve its ambition to draw out a model or to provide a general solution for Vietnam’s banking system But it does provide a clear view of the issues that should be considered to succeed in M&A A successful banking M&A relies on a series of effective arrangements in order to reallocate resources to banks for investment All these measures should aim to promote a sound, competitive and efficient banking system which is capable of withstanding external shocks and responding in a timelier manner to developmental challenges Without the reforms through M&A for instance, the Vietnamese banking industry will certainly be disadvantaged and unable to compete The new banking system, led by the state bank of Vietnam, will become a very important sector of the country’s economy The timing of reform is also important in view of the rapid changes taking place in banking as competition intensifies Only those well prepared to face the new challenges Dao Ngoc Minh – ATCA K11 | - 40 - will be able to grow By reforming, banks will be better prepared for dealing with the challenges In face of new challenges and opportunities, both external and internal, it is important that domestic banks in Vietnam undergo M&A Establishing M&A in the banking system is crucial to enable domestic banks to respond to challenges and opportunities in the new banking environment Dao Ngoc Minh – ATCA K11 | REFERENCES Akhavein, Berger, Humphrey (1997) The Effects of Megamergers on Efficiency And Prices: Evidence From A Bank Profit Function, Review of Industrial Organization, Vol 12 Altunbas, Y., & Marques, D (2008) Mergers and Acquisitions and Bank Performance in Europe: The Role Of Strategic Similarities Journal of Economics & Business, 60, 204-222 Amel, D., Barnes, C., Panetta, F., & Salleo, C (2004) Consolidation and Efficiency in The Financial Sector: A Review Of The International Evidence Journal of Banking & Finance, 28, 2493-2519 Anne Ho and R Ashle Baxter (2011) Banking Reform in Vietnam Journal of Federal Reserve Bank of Sanfrancisco, 1-7 Arthur D Little (2008) M&A Expertise Key to Banks’ Survival through Credit Crunch, The Earth Times, 26 Nov Bala Shanmugam (2003) Mergers and Acquisitions Of Banks In Malaysia Managerial Finance, 30(4), 1-18 Bendeck, Y M., & Waller, E R (2007) Bank Acquisition Announcements and IntraIndustry Effects Journal of Business & Economics Research, 5(7), 15-22 Linh Thuy Quach (2011) Vietnam Banking Sector Report Research and analysis department, 3-10 Mumhamad H (2007), The effects of merger on the efficiency of commercial banks: evidence from Malaysia Utara Malaysia University Master of science thesis Dao Ngoc Minh – ATCA K11 | Rubi Ahmad (2007) A Note on the 1999-2002 Malaysian Banking Consolidation IBBM Banker’s Journal Malaysia, 131, 4-8 Shih, M S H (2003) An investigation into the use of mergers as a solution for the Asian banking sector crisis The Quarterly Review of Economics and Finance, 43, 3149 Sufian, F (2004) The efficiency effects of bank mergers and acquisitions in a developing economy: Evidence from Malaysia International Journal of Applied Econometrics and Quantitative Studies, 1-4, 53 -74 Dao Ngoc Minh – ATCA K11 | APPENDIX Appendix A: Merger Programme for Malaysian domestic Banks Original Anchor Banking Group Affin Bank Berhad Group Perwira Affin Bank Berhad Asia Commercial Finance Berhad Pewira Affin Merchant Bank Berhad Alliance Bank Berhad Group Multi-purpose Bank Berhad Merged with BSN Commercial Bank (M) Berhad BSN Finance Berhad BSN Merchant Bankers Berhad International Bank Berhad Sabah Bank Berhad Sabah Finance Berhad Bolton Finance Berhad Amanah Merchant Bank Berhad Bumiputra Merchant Bankers Berhad Resultant Entity after merger Affin Bank Berhad AFFIN ACF Finance Berhad Affin Merchant Bank Berhad Alliance Bank Berhad Alliance Finance Berhad Alliance Merchant bank Berhad Arab-Malaysian (AM) Bank MB Finance Berhad Berhad Group Arab-Malaysian Bank Berhad Arab-Malaysian Finance Berhad Arab-Malaysian Merchant Bank Berhad Bumiputra Commerce Bank (Cimb) Berhad Group Bumiputra Commerce Bank Berhad Bumiputra Commerce Finance Berhad Commerce International Merchant bankers berhad EON Bank Berhad Group EON Bank Berhad EON Finance Berhad Arab-Malaysian Bank Berhad Arab-Malaysian Finance Berhad Arab-Malaysian Merchant Bank Berhad Bumiputra Commerce Bank Berhad Bumiputra Commerce Finance Berhad Commerce International Merchant bankers berhad Oriental Bank Berhad City Finance Berhad Perkasa Finance Berhad Malaysian International Merchant Bankers Berhad Eon Bank Berhad EON Finance Berhad Malaysian International Merchant Bankers Berhad Dao Ngoc Minh – ATCA K11 | Hong Leong Bank Berhad Hong Leong Bank Berhad Wah Tat Bank Berhad Credit Corporation Hong Leong Finance Berhad Group Hong Leong Bank Berhad (Malaysia) Berhad Hong Leong Finance Berhad Malayan Banking Berhad Malayan Finance Berhad Aseambankers Malaysia Berhad RHB Bank Berhad Group The Pacific Bank Berhad PhileoAllied Bank (M) Berhad Sime Finance Berhad Kewangan Bersatu Berhad Hock Hua Bank Berhad Advance Finance Berhad Sime Merchant Bankers Berhad Bankers Berhad RHB Bank Berhad Delta Finance Berhad RHB Delta Finance Berhad RHB Sakura Merchant Interfinance Berhad RHB Malayan Banking (Maybank) Berhad Group Malayan Banking Berhad Mayban Finance Berhad Aseambankers Malaysia Berhad Public Bank Berhad Group Public Bank Berhad Public Finance Berhad Public Bank Berhad Public Finance Berhad Public Merchant Bank Berhad RHB Bank Berhad Sakura Merchant Bankers Berhad 10 Southern Bank Berhad Ban Hin Lee Bank Southern Bank Berhad Group Berhard Southern Finance Berhad Southern Bank Berhad United Merchant Finance Southern Investment Bank Berhad Berhad Perdana Finance Berhad Cempaka Finance Berhad Perdana Merchant Bankers Berhad (Source: www.mida.gov.my) Dao Ngoc Minh – ATCA K11 |