Islamic banks need mergers to fill Western funding hole

It seems that small and medium-sized Islamic banks may need to merge if they want to evolve into bigger regional players capable of filling the funding hole left by shrinking Western banks. This statement came from Salah Jaidah, the head of Islamic finance at Deutsche Bank.
He added that whilst Islamic banks might not immediately be able to face the challenge, within time they will be able to reposition themselves.
The Gulf Co-operation Council area has over 100 Islamic banks, aligned from Al Rajhi Bank of Saudi Arabia with a $25 billion market cap to small unlisted lenders.
The idea of a so-called Islamic "mega-bank" has already been promoted in the region by Bahrain-based Al Baraka banking group.