MNC Bank and Bank Nobu Face Capital Challenge After Merger Cancellation

Regulatory Shift Drives Capital Needs

The recent cancellation of the planned merger between PT Bank Nationalnobu Tbk (NOBU) and PT Bank MNC Internasional Tbk (BABP) by the Financial Services Authority (OJK) has created significant challenges for both banks in strengthening their core capital. The OJK's decision to discontinue the merger process, which had been ongoing since early 2023, means that both banks must now independently meet the upcoming regulatory capital requirements.

Capital Requirements Post-Merger Cancellation

The OJK's planned removal of the Kelompok Bank Bermodal Inti (KBMI) 1 classification has substantially increased the capital needs of both banks. To move to KBMI 2 classification, banks are required to maintain a minimum core capital of Rp 6 trillion. As of September 2025, MNC Bank's core capital stood at Rp 3.27 trillion, representing only 54.5% of the required amount. The bank recorded a mere 0.49% year-to-date growth in its core capital, indicating the significant challenge ahead.

Implications for Banks' Future Plans

The merger cancellation has eliminated the potential for the combined entity to immediately meet the higher capital requirements. Both banks must now develop independent strategies to raise their core capital substantially. This development is likely to impact their growth plans and potentially their market positioning in Indonesia's competitive banking sector.

Market Context and Future Outlook

The Indonesian banking sector is experiencing increased regulatory pressure to consolidate and strengthen capital bases. The OJK's decision reflects a broader trend towards enhancing financial stability through stricter capital requirements. Both MNC Bank and Bank Nobu will need to navigate these regulatory changes while competing with larger, better-capitalized peers.