BSI, a merger of three banks formed in February 2021, is struggling to achieve economies of scale (farzand01/Shutterstock).

Islamic Finance

Newly merged Indonesian Islamic bank has potential for the world’s largest Muslim market


Aims for Bank Syariah Indonesia (BSI) to be among the world’s top Islamic banks within three years.

 

Jakarta: Despite its promising outlook and early results, Bank Syariah Indonesia (BSI), Indonesia’s largest Islamic bank, has its work cut out to achieve the economies of scale demanded to compete nationally and globally where the knowledge of Sharia-compliance banking systems remains poor.

BSI was formed in February 2021 following the merger between the Islamic banking units of Indonesian state-owned banks Bank Syariah Mandiri, BRI Syariah and BNI Syariah, producing the country’s seventh largest bank with a 2.5% share of industry assets. Medium-term plans are to be among the top 10 Islamic banks globally by 2025.

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tags:

Microfinance
Islamic Banks
Merger
Indonesia
Indonesia digital economy
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Ahmad Pathoni