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Nobu and MNC bank merger underway, OJK confirms
Two banks owned by homegrown conglomerates will be merged this year, according to the Financial Services Authority.
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A resident walks past the Papua office of the Financial Services Authority (OJK) in Jayapura on Oct. 27, 2021. The OJK has opened branch offices across the country. (Antara/Indrayadi TH)
Two banks owned by homegrown conglomerates will be merged this year, according to the Financial Services Authority (OJK).
The banks are PT Bank Nationalnobu (Nobu Bank) and PT Bank MNC Internasional. The former is owned by Lippo Group, founded by tycoon Moctar Riady, while the latter is owned by MNC Group, founded by tycoon Hary Tanoesoedibjo.
There had been rumors of an impending merger of the two lenders prior to the OJK’s announcement. Nobu Bank had Rp 21 trillion (US$1.38 billion) in assets as of January, while MNC Bank had Rp 16.98 trillion.
“I think this will be a good thing. Both banks have a strong ecosystem,” Dian Ediana Rae, the OJK’s head of banking supervision, told reporters during a press briefing on Monday
Dian went on to say that the OJK had received requests for the merger from both entities prior to the turn of the year, which marks a deadline for local banks to meet the minimum core capital requirement of Rp 3 trillion.
The merger was now underway and a team had been tasked with realizing the plan, he said, adding that both banks were committed to the corporate action and that he believed the process would be concluded soon.
