India unveils framework for nonbank firms; Afterpay sale gets shareholder nod

TOP NEWS IN BANKING & FINANCIAL SERVICES

* India's central bank released the prompt corrective action framework for nonbank financial companies, or NBFCs, in recognition of their growing number and the need for strengthened supervision of the sector. Depending on the financial position of NBFCs on March 31, 2022, the new framework could take effect from Oct. 1 and allow supervisory intervention in NBFCs with ailing financial health.

* Afterpay Ltd. shareholders approved the Australian buy-now, pay-later firm's sale to U.S. firm Block Inc. Completion of the scheme, which has an implied value of roughly $29 billion, is subject to the Bank of Spain's approval, pending the satisfaction of certain conditions.

➤ Digital bank WeLab seeks further Southeast Asia expansion after Indonesia deal

The Hong Kong-headquartered financial technology company plans to further expand into Southeast Asian markets with large, tech-savvy populations after its proposed bank deal in Indonesia, WeLab Group CEO Simon Loong said.

➤ Number of US bank buyback announcements slows in November

In total, 13 banks announced new programs in November, down from 23 in October but up slightly from 12 in September, according to an S&P Global Market Intelligence analysis.

BANKING

* CTBC Bank Co. Ltd. President James Chen confirmed the lender made a "reasonable" offer to purchase the retail banking business of Citibank Taiwan Ltd., Taipei Times reported.

* The Philippines' central bank established a task force that will investigate fraudulent transactions that affected close to 700 BDO Unibank Inc. clients, The Philippine Daily Inquirer reported, citing Bangko Sentral ng Pilipinas Governor Benjamin Diokno. The central bank chief gave the team 30 days to probe the cyber attack and submit a report with recommendations to prevent reoccurrence.

* State Bank of India said it allocated 39.74 billion rupees of Basel III-compliant nonconvertible debt instruments to subscribers on Dec. 14. The 3,974 subordinated, unsecured and fully paid debentures bearing a coupon rate of 7.55% qualify as additional Tier 1 capital of the bank.

* Axis Bank Ltd. Deputy Managing Director Rajiv Anand refuted rumors that the bank is interested in purchasing microlender Spandana Sphoorty Financial Ltd., Press Trust of India reported. Anand said the bank will not join calls for the central bank to extend the deadline for restructuring corporate loans.

FINANCIAL SERVICES

* JD Technology, the financial technology arm of JD.com Inc., hiked for the second time in four months the registered capital of its online microlending business, Jingdong Shengji Microlending Co. Ltd., to 5 billion yuan from 3 billion yuan, Caixin reported. The move complies with interim measures for the administration of the online microlending business, which is being introduced by 2021-end to allay concerns the sector could pose a risk to financial stability.

* Financial technology firm FOMO Pay joined DBS Digital Exchange after obtaining a license in Singapore to facilitate transactions with digital payment tokens, including cryptocurrency, Business Times reported. The company intends to capitalize on the exchange's ecosystem to enable its merchants to accept cryptocurrency payments.

* HDFC Asset Management Co. Ltd. is planning to establish an investment management subsidiary in the Gujarat International Finance Tec-City of the Indian state of Gujarat. The proposed unit, subject to regulatory approvals, will serve as the investment manager of schemes to be launched under an alternative investment fund and will provide other investment advisory services.

* MA Financial Group Ltd. announced the acquisition of BNK Banking Corporation Ltd.'s Finsure Holding Pty. Ltd. subsidiary and its related units for A$145 million. Regulatory approval and completion of the transaction are expected in the first quarter of fiscal year 2022.

* Challenger Ltd. appointed Nick Hamilton as managing director and CEO. Hamilton succeeds Richard Howes, whose retirement was announced in August. He will assume the new role on Jan. 1, 2022.

POLICY AND REGULATION

* Hong Kong's central bank warned the public of fraudulent online activities after receiving a report from China CITIC Bank Corp. Ltd. of a suspicious website at cncbonline.com. The Hong Kong Monetary Authority reiterated that banks will not ask for sensitive personal information via phone, email or SMS from customers.

* Pakistan's central bank lifted the country's policy rate by 100 basis points to 9.75% to sustain growth and counter the impact of counter inflationary pressures.

INDUSTRY NEWS

* The Central Committee for Discipline Inspection of the Communist Party of China said Liu Chunsheng, former director of China Development Bank's Hainan branch, is under investigation for suspected serious violations of disciplines and laws. Liu worked for the bank from 2000 to 2013.

As of Dec. 14, US$1 was equivalent to 6.37 Chinese yuan and 76.06 Indian rupees.

Click here for a summary of indexes on the S&P Capital IQ Pro platform.

Eden Estopace, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

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