KL may revise merger plan

KL may revise merger plan

KUALA LUMPUR (AFP): Malaysia may revise its program of forced bank mergers following difficulties in uniting banks and finance companies into six large groups, Prime Minister Mahathir Mohamad said Wednesday.

"The government is not going to force this down their throats," he told a news conference on his return from visits to the United States, Britain and Zimbabwe.

Mahathir had suggested earlier in London that the program, which has drawn protests from banks and unions fearing mass layoffs, could be revised.

The central bank announced on September 30 that all 58 domestic banking and finance institutions had signed in-principle agreements on integrating under six core banks.

The signing is the first step in the central bank's consolidation plan which is expected to be completed by March 2000.