PT Bank Tabungan Pensiunan Nasional Tbk and PT Bank Sumitomo Mitsui Indonesia obtained approval from Indonesia's Financial Services Authority, or OJK, for their proposed merger.

The Indonesia-based banks announced their plans to merge in early August. Once the merger closes, the combined bank will operate under the name of PT Bank BTPN Tbk. The Dec. 21 announcement came after the banks recently pushed back the merger's closing date to Feb. 1, 2019, from Jan. 1, 2019.

Japan's Sumitomo Mitsui Financial Group Inc. unit Sumitomo Mitsui Banking Corp. owns 40% of Bank Tabungan Pensiunan Nasional and 98.48% of Bank Sumitomo Mitsui Indonesia.