Islamic banks in the past have often been reluctant to merge, in part due to resistance from powerful shareholders who fear a loss of control while strains in global financial markets discourage risk-taking.
“Costs have risen easily by 20 to 30% mainly due to the shortage of human capital and increased regulatory costs. Margins are falling and the only way to counteract this is to become bigger and more efficient,” he added.
BMMB is now the target of a potential acquisition by financial group Affin Holdings.
source: Gulf Times