Published on 11/09/2024 at 03:23 GMT+7 Reading time
The Financial Services Authority (OJK) may impose a forced merger between PT Bank MNC Internasional (BABP) and PT Bank Nationalnobu (NOBU) if the two banks fail to execute their planned merger.
Dian Ediana Rae, Chief Executive of Banking Supervision at OJK, said on Tuesday, September 10, 2029, that both banks are currently given the opportunity to negotiate to ensure a fair merger outcome for both parties.
Dian expressed optimism that the merger between Bank MNC and Bank Nobu would lead to positive results. However, if obstacles arise, OJK may step in to enforce a merger.
"If at a certain point, issues arise, we will use forced merger measures. It’s inevitable," Dian said during a hearing at the House of Representatives in Jakarta on Tuesday.
Bank MNC President Director, Rita Montagna, affirmed that the bank will comply with OJK's direction, though details regarding potential changes in board positions post-merger remain unclear.
The merger was initially targeted for completion by August 2023.
However, despite both banks’ relatively stable financial performance and adequate capitalization, the process has been delayed, with OJK citing the need for caution due to the different business models and cultures of the two banks.
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