|Type||Reply to query|
|Reply to Bursa Malaysia's Query Letter - Reference ID||MM-140423-37347|
|Subject||REPLY TO QUERY|
|Description||REF: ARTICLE ENTITLED: “MBSB SAYS IT IS ON RIGHT TRACK TO BECOME A FULL FLEDGED BANK”.|
|Query Letter Contents||We refer to the above Article appearing in THE EDGE FINANCIAL DAILY, Page 6 on
Wednesday, 23 April 2014.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follow:-
"MBSB says it is on right track to be a full-fledged bank."
"...MBSB is capable of being a standalone bank without any mergers and
"...MBSB can be a stand alone full-fledged bank as it is already quite "clean
and lean", noting that a banking licence is needed if the company wants to
operate as a full-fledged bank."
In accordance with Bursa Securities' Corporate Disclosure Policy, kindly
furnish Bursa Securities with an announcement for public release confirming or
denying the above reported article in particular the underlined sentences after
due and diligent enquiry with all the directors, major shareholders and all
such other persons reasonably familiar with the matters about which the
disclosure is to be made in this respect. In the event you deny the above
reported sentences or any other part of the article, you are required to set
forth facts sufficient to clarify any misleading aspects of the same. In the
event you confirm the above reported sentences or any other part of the
article, you are required to set forth facts sufficient to support the same.
Please furnish Bursa Securities with your reply today.
KHOO KAY KWAN
Vice President, Issuers
c.c:- General Manager and Head, Market Surveillance, Securities Commission
We refer to letter from Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 23 April 2014 (Reference number: MM-140423-37347) on the following highlighted statements mentioned in the the abovementioned article which was published on the Edge Financial Daily Page 6 on Wednesday, 23 April 2014:-
“MBSB says it is on right track to be a full-fledged bank.”
“… MBSB is capable of being a standalone bank without any mergers and acquisition…”
“… MBSB can be a stand alone full-fledged bank as it is already quite “clean and lean”, noting that a banking license is needed if the company wants to operate as a full-fledged bank.”
We do not deny the abovesaid statements mentioned in the article. The statements should be read together with the rest of the article which states that any move towards becoming a bank will require approval from the shareholders and the authorities.
We wish to inform that MBSB has been continuously raising its operational standards to close the gap between itself and that of a licensed financial institution. In this context, MBSB has already completed 80% of best industry practices and Bank Negara Malaysia (BNM) guidelines and will expect the balance 20% to be completed within the next 2 years.
As of todate, MBSB has yet to make an application to the authorities for a banking license.
This announcement is dated 23 April 2014.
|Company Name||MALAYSIA BUILDING SOCIETY BERHAD|
|Date Announced||23 Apr 2014|