Malaysia's Maybank Islamic and Indonesia's Bank Syariah Mandiri will establish cross border collaboration in all Islamic treasury and trade finance matters.
An MoU has been signed by the parties.
Maybank said the collaboration would set the terms of cooperation between the two institutions in relation to enhancing cross-border liquidity flows and, as well as, increasing and diversifying the application of Islamic financial solutions.
"There are huge synergies to be gained from the cooperation in the areas of banking transaction structured, offered and undertaken in compliance with Islamic Syariah principles," said Maybank Islamic CEO Muzaffar Hisham.
"We see the collaboration with BSM alongside our existing Maybank Group entities, Bank Internasional Indonesia and Maybank Syariah Indonesia, as a conduit to spearhead efforts to further develop the Islamic banking industry in Indonesia," Muzaffar added.
The collaboration will also enable both banks to jointly work on regulatory facilitation efforts and pave the way for a truly global integration of Islamic banking in the region.
Maybank Islamic also intends to explore similar collaborations with other banks in countries such as Brunei, Middle East, Hong Kong and China.
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