Two conventional financial institutions, Bank Negara Indonesia and Bank IFI, have set up Islamic branches.

CNN: Islamic Finance 101

Last week, Bank Negara Gov. Ahmad Don reiterated the central bank's position on mergers.

CNN: TOUGH CHALLENGE

Bank Negara is intensifying its drive for banks to merge (see story page 48).

CNN: TOUGH CHALLENGE

His government has ordered Bank Negara to redefine non-performing loans to get many of them off the books.

CNN: ASIANOW - TIME Asia

All of this is a blow to Bank Negara's efforts to persuade investors that Malaysia's banks are sound.

ECONOMIST: Malaysian banks

Bank Negara has yet to grant MBf Finance Tier-One status, a requirement to be chosen as an anchor firm.

CNN: TOUGH CHALLENGE

The group had wanted to buy Suria Capital, which owns Sabah Bank, but Bank Negara turned down its application last June for undisclosed reasons.

CNN: TOUGH CHALLENGE

But Mahathir (who also serves as Finance Minister) let Bank Negara's governor leave in August and then forced the central bank to take steps to increase lending.

CNN: ASIANOW - TIME Asia

Currently, PT Bank Negara Indonesia is the only Indonesian bank that has a full banking license in Singapore, which allows it to provide personal banking, trade finance and business loans.

WSJ: DBS Group Extends Deadline on Takeover of Bank Danamon

Located in the heart of the Lake Gardens, Carcosa Seri Negara is a slice of KL history - it was once the residence of British government representative Sir Frank Swettenham.

BBC: Mini guide to Kuala Lumpur

But of those that chose the state banks, most went either to Bank Negara Indonesia or to Bank Rakyat Indonesia: the four banks that now comprise Bank Mandiri received few of the new customers.

ECONOMIST: Indonesian banking