Bnm To Merge Sme Bank Bank Pembangunan Exim Bank And Danajamin Into One Enlarged Entity

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© Provided by Media Prima
KUALA LUMPUR: Malaysia’s development financial institutions (DFI) namely SME Bank, Bank Pembangunan Malaysia Bhd, Exim Bank Malaysia and Danajamin Nasional Bhd will be merged into a new financial institution
The enlarged entity would be created in two phases, Finance Minister Lim Guan Eng said when tabling the 2020 Budget here today
DFIs, Lim said play an important role as public institutions that support the nation’s development goals and serve the needs and requirements of the new economy
“To strengthen the development finance ecosystem, Bank Negara Malaysia is proposing a two-phase restructuring plan for our DFIs to form a new financial institution through the merger of DFIs,” he said in his speech when presenting the 2020 Budget
While there were no details on the proposed merger, economists said this would be a positive move as it creates a more productive and efficient platform to support economic development in the country
“This is very creative. It will create more than efficiency in the ecosystem,” economist Dr Hoo Ke Ping said
He, however, said there must be an execution and enforcement by the government to turn it into a reality
“It is difficult to determine the impact without further detail of the implementation. The intention to meet the needs of the new economy is good though,” another economist said
DFIs are under the regulatory purview of Bank Negara, which monitors the activities and financial performance of these institutions
According to Bank Negara’s website, DFIs, as specialised institutions, provide a range of specialised financial products and services to suit the specific needs of the targeted strategic sectors
Ancillary services in the form of consultation and advisory services are also provided by DFIs to nurture and develop the identified sectors, it said
DFIs therefore complement the banking institutions and act as a strategic conduit to bridge the gaps in the supply of financial products and services to the identified strategic areas for the purpose of long-term economic development. - nst

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