Malaysia targets to have 4 co-op banks

The government is targeting to have four cooperative banks which are on par with Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) by 2020.

Deputy Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Rohani Abdul Karim, said one of them, Bank Persatuan Malaysia Bhd (BPMB), was now in operation and had been recommended to follow the Bank Rakyat model.

"The process to establish a second cooperative bank is being worked out with Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) and has been approved by the Malaysian Cooperatives Commission.

"It is just that Bank Negara Malaysia has yet to give its approval to operate as a cooperative bank. So, for the time being, it will operate as a Syariah financing cooperative, he told reporters after opening the BPMB Cooperative annual general meeting in Kepala Batas today.

He said with BPMB being accorded a cooperative bank status last year, it would provide a positive competition for Bank Rakyat. -- Bernama