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Jakarta Post

State-owned banks form biggest sharia bank through merger

  • Riska Rahman


Jakarta   /   Thu, October 15 2020   /  01:00 am
A bank officer talks to a customer at a Bank Syariah Mandiri outlet in Central Jakarta recently. The Financial Services Authority is preparing for a merger of state-owned sharia lenders Bank Syariah Mandiri, Bank BNI Syariah, Bank BRI Syariah and BTN Syariah.(The Jakarta Post/Jerry Adiguna)

The government has started the process of merging three state-owned banks’ sharia subsidiaries, creating the country’s biggest sharia bank and one of the top-10 largest banks in the country by early next year. The three state-owned banks, Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI), along with their sharia subsidiaries, Bank Syariah Mandiri (BSM), BNI Syariah and publicly listed BRI Syariah signed a conditional merger agreement (CMA) on Monday. BRI Syariah will be the surviving entity as its publicly listed status will simplify the merger. The company's stocks, traded on the Indonesia Stock Exchange (IDX) under the code BRIS, soared almost 25 percent as of 11:56 a.m. Jakarta time on Wednesday. The stocks have gained 616.84 percent so far this year. “This CMA signing is the start of the merger. We will continue our preparat...