TOP NEWS IN BANKING & FINANCIAL SERVICES
* The Financial Services Commission awarded Korea Deposit Insurance Corp.'s remaining 9.3% stake in Woori Financial Group Inc. to entities including Eugene Private Equity, KTB Asset Management Co. Ltd., Align Partners Consortium and Dunamu Inc. The sale, carried out via competitive bidding, completes the South Korean group's privatization.
* The Reserve Bank of India released a draft scheme for merging Punjab & Maharashtra Co-operative Bank Ltd., or PMC Bank, with Unity Small Finance Bank Ltd. The proposed amalgamation of the lenders is an alternative to the cancellation of the license and eventual liquidation of PMC Bank, which remains under the central bank's business restrictions.
➤ Japan's megabanks face higher credit risk after government subsidy ends
Japanese banks offered no-interest, no-warranty loans to companies struggling with the COVID-19 pandemic for up to five years under a government support plan that closed in March.
➤ Deal delays dampen US banks' M&A appetite
The current regulatory environment, in which a number of U.S. bank deals are facing delays as they await regulatory approval, is giving would-be buyers and sellers "some pause," one deal adviser said.
BANKING
* U.S. lender JPMorgan Chase & Co. would offer to reimburse its Hong Kong employees up to $5,000 to compensate a quarantine stay for overseas family visits, the South China Morning Post reported, citing an internal memo.
* Airstar Bank Ltd., a Hong Kong-based virtual bank backed by Xiaomi Corp., confirmedRonald Lu resigned as CEO, the Hong Kong Economic Journal reported. Lu's duties will be taken on by alternate CEO and CFO Charles Tse until further notice.
* Woori Bank, a unit of Woori Financial Group, said Cambodia-based unit WB Finance received a commercial banking license from the National Bank of Cambodia, ChosunBiz reported. Woori Bank plans to relaunch WB Finance as Woori Bank Cambodia in 2022.
* Lani Darmawan was nominated to lead Indonesia's PT Bank CIMB Niaga Tbk after Tigor Siahaan's resignation from the role of president director, Bisnis Indonesia reported.
* PT Bank Tabungan Negara (Persero) Tbk is planning to issue bonds to raise working capital in 2022, Bisnis Indonesia reported.
* State Bank of India listed $650 million of green bonds on the India International Exchange and the Luxembourg Stock Exchange. The dual listing is part of a memorandum of understanding for collaboration between the two exchanges, according to the Bombay Stock Exchange's international arm.
* ANZ Bank New Zealand Ltd. said it would temporarily stop receiving loan applications for the purchase of existing homes. The move follows the Reserve Bank of New Zealand's tightening of loan-to-value restrictions that took effect Nov. 1.
* Sydney-headquartered Commonwealth Bank of Australia obtained all necessary regulatory approvals for the roughly A$1.7 billion divestment of a 55% stake in Colonial First State to KKR & Co. Inc. The transaction would likely be completed by Dec. 1.
FINANCIAL SERVICES
* Bilibili Inc. obtained an online payment license through the 118 million Chinese yuan acquisition of a 65.5% stake in Zhejiang Yongyi Payment Co. Ltd., Caixin reported, citing the Ningbo Public Resources Trading Center.
* The Securities and Exchange Board of India approved the IPO applications of six companies, including the Warburg Pincus LLC-backed Fusion Micro Finance, Mint reported. The nonbank financial firm's planned IPO comprises a 6 billion rupee issuance and an offer for sale of up to 21,966,84 shares.
* Singapore's Broad Peak Investment Advisers Pte. Ltd. teamed up with Indian independent financial advisory firm Brescon & Allied to invest as much as $300 million for the acquisition of assets or companies with troubled debt facilities or in the midst of bankruptcy, The Economic Times reported.
* Beforepay filed a prospectus for its plan to list on the Australian Securities Exchange, The Australian reported. The buy-now, pay-later outfit is expected to raise A$35 million from the IPO and debut on the bourse Jan. 17.
* Pinnacle Investment Management Group Ltd. is making an initial A$65 million investment for a 25% stake in private equity firm Five V Capital. Pinnacle will acquire Five V Capital convertible redeemable preference shares as part of the deal and invest another A$10 million, subject to a second fundraising of the firm.
POLICY AND REGULATION
* Chinese financial regulators have told some banks to ease liquidity strains to the property industry, Reuters reported, citing two sources with direct knowledge of the issue. Lenders were also told to expedite the approval of loans to achieve positive growth of the loan balance by the end of November.
* The Bank of Thailand launched additional long-term measures for debt restructuring by refinancing and debt consolidation. Under the new measures, debts can be consolidated within a bank or transferred to another bank. Debts of two banks can also be transferred to a third bank.
* India's central bank warned cooperative societies against using the terms bank, banker and banking in their names, which is in violation of banking regulations. The Reserve Bank of India noted that cooperative societies do not have banking licenses and may not accept deposits or conduct any other banking business.
* The Reserve Bank of New Zealand is inviting public comments until Feb. 28. 2022, for potential debt serviceability restrictions on residential mortgage lending. Two options were put under consideration as part of the proposal — the first is a limitation on debt-to-income ratios and the second is a floor level to the test interest rates used by banks.
As of Nov. 22, US$1 was equivalent to 6.39 Chinese yuan and 74.36 Indian rupees.
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R Sio, Eden Estopace, Kanas Chan, Jonathan Cheah, James Lim and Santibhap Ussavasodhi contributed to this report.
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