Requirements have been relaxed for Indonesia's state-run Bank Mandiri to operate in Malaysia by the end of next year.
Mandiri is eyeing the growing number of Indoensians in Malaysia, thus has secured a license to operate.
However, it found problems in meeting three requirements: Minimum initial capital, branch limitations and automated teller machine installment restrictions.
Bank Negara Malaysia governor Zeti Akhtar Aziz said that two of the three problems had been overcome.
The Malaysian central bank set a limit of branches to 12 — two in city center, four in sub-urban areas, six in rural areas — and does not allow Mandiri to install automated teller machines in public areas outside of Mandiri branches.
“With the new license, there’s no need for all that,” Zeti told The Jakarta Post in an interview. “We welcome their participation. [Mandiri] will contribute significantly to our financial system.”
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