TOP NEWS IN BANKING & FINANCIAL SERVICES
* The People's Bank of China is encouraging financial institutions to fund M&A in the real estate sector to help trim the assets and liabilities of highly indebted firms, Caixin reported, citing Zou Lan, head of the central bank's financial market department.
* Telenor ASA agreed to sell a 51% stake in Myanmar's Wave Money, a mobile payment services firm, to its main partner in the venture Yoma Strategic Holdings Ltd. for $53 million in cash, which will increase Yoma Strategic's stake to 75%, Nikkei Asia reported. The remaining 25% stake will be held by private investors in the Yoma-led consortium, including a Taiwanese financial group.
➤ Japan's transition bond issuance may gain momentum after slow start
The annual issuance of transition bonds in Japan could reach ¥1 trillion "in several years" after a slow start, according to the lead manager of the nation's first bond for emissions-reduction projects that do not meet green definitions.
➤ More downside expected for steel as Evergrande liquidity crisis impact persists
The impact of China Evergrande's liquidity crisis is just one of various factors that bode ill for steel markets in 2022, according to analysts from across Asia and Australia, the world's biggest iron ore producer.
BANKING
* The Japan Center for Economic Research estimates regional banks could eliminate about 3,000 branches nationwide, equivalent to about 30% of the total, Tokyo's The Nikkei reported, citing analysis based on Japanese banks' location strategies. If the strategies are achieved, the regional banks could cut over ￥500 billion in operating cost in about seven years at the current pace, the research institute estimates.
* Philippines-based Rizal Commercial Banking Corp. is looking to issue at least 3 billion pesos of fixed rate bonds to support asset growth and refinance maturing liabilities, as well as to supplement other general funding purposes.
* Asheesh Pandey, the chief general manager and COO of Union Bank of India, joined Bank of Maharashtra as an executive director. Hemant Kumar Tamta, who was appointed an executive director of the bank by India's central government, ceased to be the bank's director.
* Punjab National Bank said Atul Kumar Goel assumed office as officer on special duty of the bank on Jan. 1. The lender also said Goel will assume office as managing director and CEO from Feb. 1, on the superannuation of Ch. S. S. Mallikarjuna Rao.
* Axis Bank Ltd. will increase the proportion of unsecured loans to between 22% and 24% as it increases its focus on credit cards, personal loans and small business loans, The Economic Times reported, citing the bank's retail lending head, Sumit Bali.
FINANCIAL SERVICES
* China Evergrande Group's Evergrande Wealth Management said it would pay principal first on its overdue products, with all investors likely to get 8,000 yuan per month until February while all interest payments will be paused, the South China Morning Post reported. The Chinese firm will reveal a new arrangement for future payments in the second half of March.
* Cryptocurrency exchange Gemini's ex-Asia Pacific head, Jeremy Ng, and former head of business development for the region, Eugene Ng, have left the U.S. firm to launch their own cryptocurrency venture that will be based in Singapore, The Business Times reported.
* India's Shriram Transport Finance Co. Ltd. passed a resolution to increase the size of its global medium-term note program to $3.5 billion from $3 billion for the issuance of bonds and notes in international markets. It has received necessary in-principle approval from Singapore Exchange Securities Trading Ltd.
POLICY AND REGULATION
* The People's Bank of China said it is adopting inclusive tools to provide support for loans and loan extensions for small and micro-sized enterprises starting Jan. 1.
* Bank of Korea Governor Lee Ju-yeol said the South Korean central bank would keep a close watch on the country's economic growth and inflation before changing its monetary policy, Yonhap News Agency reported.
* The Australian Prudential Regulation Authority warned Westpac Banking Corp. and seven other firms that more than half of their so-called multi-asset choice retirement savings plans are delivering significantly poor returns, The Australian Financial Review reported.
Click here for a summary of indexes on the S&P Capital IQ Pro platform.
As of Dec. 31, 2021, US$1 was equivalent to 51.49 Philippine pesos, ¥115.14 and 6.35 Chinese yuan.
R Sio, Eden Estopace, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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