Southeast Asia's largest bank DBS announced late on Wednesday that it would walk away from a $7.2 billion deal to acquire Indonesia's Bank Danamon.
The takeover of Danamon, agreed in April 2012, was aimed at giving Singapore-based DBS a bigger slice of the fast-growing Indonesian market.
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The agreement, however, ran into regulatory hurdles in Indonesia after the country's central bank announced a cap of 40 percent on foreign ownership in Indonesian banks.