KUALA LUMPUR, July 23: Malaysia will not push the country's nine banks to merge after a prominent banker suggested consolidation would make the sector more competitive, a top minister said on Monday.

“Whether nine is the right number or whether it should be lower than that, it is basically for the market to decide,” Second Finance Minister Nor Mohamed Yakcop told reporters.

“And as far as the government is concerned, if the market wants to merge and carry on merging, it is okay with us,” he added.

Nor Mohamed's comments came after a top banker, CIMB group chief executive Nazir Razak said last week that Malaysia should have five to six banks in the future as the sector needed further consolidation amid intense globalisation.

A few years ago, Malaysia's 54 banks and finance houses were merged into 10 banking groups. —APP