Banking - The plan to spin off two Islamic banks cannot compete with BSI's dominance

Banking - The plan to spin off two Islamic banks cannot compete with BSI's dominance The plan to spin off two Islamic banks cannot compete with the dominance of BSI. The map of separating Islamic business units (UUS) in the Islamic banking industry is becoming clearer. The map of the separation of Islamic business units (UUS) in the Islamic banking industry is becoming clearer. Two banks that are required to spin off have chosen different approaches. Recently, Bank CIMB Niaga (BNGA) chose to create a new bank that will later become the Sharia Commercial Bank (BUS) CIMB Niaga Syariah. Previously, Bank Tabungan Negara (BBTN) chose to acquire Bank Victoria Syariah (BVS) as the shell for BTN Syariah later on. As is known, currently, the national sharia banking industry is dominated by Bank Syariah Indonesia (BRIS).As of February 2025, the bank's assets had reached IDR397.3 tn. For comparison, the total assets of CIMB Niaga Syariah were valued at IDR67.5 tn in December 2024. Meanwhile, BTN Syariah in March 2025 had assets of only around IDR61.2 tn. The OJK has repeatedly stated that the purpose of this spin-off obligation is to create new competitors for BSI. (Source : Kontan).