OSK Investment Bank Berhad (OSKIB), the parent company of OSK Indochina Bank Limited (OSKIBL), has become a wholly owned subsidiary of the Malaysia-based financial services group RHB Capital Berhad (RHB Capital), effective from November 9.
The merger will change the ownership of OSKIBL from OSKIB to RHB Capital, giving OSKIBL access to larger financial resources and serve a wider network.
“We are now in a stronger banking group. Therefore, we will be able to receive stronger financial support from our parent company, which is now the RHB Capital group,” OSKIBL country head Lim Loong Seng said.
“We are also able to do bigger loans, serving a wider segment of the Cambodian market. After the merger RHB will have a presence in nine ASEAN countries. That means we will have a much wider network and much wider service coverage.
“We’ll be able to serve the people in Cambodia, but Cambodians are also interested in expanding overseas.
“This merger will transform OSKIBL into a more diversified financial institution, and customers of OSKIBL will be able to enjoy a wider range of innovative products and services that are currently offered in other markets within the RHB Banking Group.”
In July, the Post reported that RHB Capital had announced it would acquire OSKIBL via the transfer of 100 per cent of OSKIB shares from parent OSK Holdings, giving OSK Holdings a 10 per cent stake in RHB Capital Group.
Lim Loong Seng said the first stage of the merger had been successfully completed after gaining the necessary regulatory approvals.
Nguon Sokha, director-general of the National Bank of Cambodia (NBC), said the NBC supported mergers like this if they strengthened the banking sector and provided better services at an affordable cost.
“In principle, the policy of the NBC is to strengthen the banking system in Cambodia,” she said.
“As long as the bank can strengthen with the transformation and the new structure [and] can provide better-quality services to the customer, we’ll support the transformation.”
To contact the reporter on this story: Anne Renzenbrink at [email protected]