Cathay Financial expands into Indonesia

Cathay Financial Holding has agreed to buy a 40% stake in Indonesia's Bank Mayapada for IDR3.52 trillion $278 million, the Taiwanese banking group said on Monday, furthering its expansion across the Asean bloc.

The deal is part of a growing trend as Taiwanese banks spread their wings to China, Japan, Southeast Asia and even Australia after a long period of steady but paltry domestic growth.

It also dovetails with a growing reform effort in Indonesia, where regulators are pressuring bank-owning families to pare their holdings, to make the country's banking system more resilient in times of stress and to improve corporate governance.

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