A bank in Singapore has been sold to a Malaysian private equity group for $11.8bn and a US bank is being acquired for $5.4bn.
The transactions mark the biggest acquisition of commercial banks in the country and represent a major step forward for the banking industry in Singapore.
Singapore’s commercial banks are among the most profitable in Asia, having posted net profits of $8.6bn last year.
But the country’s banking industry has struggled in recent years as the country has grappled with a housing crisis, a slowdown in the global economy and a series of financial crises.
A deal with Malaysia’s Bank Negara Malaysia, which includes Singapore’s commercial banking unit, is expected to close by the end of the year.
Its Singapore unit had been under investigation by regulators in Singapore since at least 2010 for allegedly colluding with foreign banks to help prop up the country in times of financial crisis.
Singulah Commercial Bank’s shares rose 2.9 per cent to $1,247.25 on the Singapore Stock Exchange on Tuesday.