Staff Reporter
,
Malaysia
Reuters reports Malaysia's top two banks, Maybank and CIMB Group, are beginning rival talks to buy RHB Capital, which could lead to creating Southeast Asia's largest banking group.
Analysts said Maybank and CIMB's move on RHB, which has a market value of about $6.7 billion, marks the start of a "race for banking consolidation" in Malaysia, where stiff competition continues to shrink net interest margins -- or what a bank makes on loans and pays out on deposits.
"To both of them, RHB capital is the way forward," said Danny Wong, a fund manager with Acera Capital that owns shares in all three banks.
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