TOP NEWS IN BANKING & FINANCIAL SERVICES
* Japan's central bank said it completed the first phase of its proof of concept experiments to test the feasibility and core functions of a central bank digital currency. The test will proceed to the second phase in April, Bank of Japan said in a news release.
* The China Securities Regulatory Commission said it will introduce policies and measures to further expand bond financing channels for private enterprises, including corporate bonds for technology innovation. The regulator also plans to include more qualified private firms in the list of seasoned issuers to enhance financing efficiency.
➤ Asian banks' bond sales fall to lowest in a year in February
Chinese banks may regain some momentum in issuing debt in the second quarter, said Bruce Pang, Hong Kong-based head of macro strategy research for China Renaissance Securities.
➤ US banks see 188 net branch closings in February
U.S. banks and thrifts opened 72 branches and permanently closed 260 branches in February, leaving the total number of active branches at 80,481, according to S&P Global Market Intelligence data.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
BANKING
* Three Japanese banks — MUFG Bank Ltd., Sumitomo Mitsui Banking Corp. and Mizuho Bank Ltd. — stopped U.S. dollar-denominated transactions with Sberbank of Russia March 26, following U.S. financial sanctions on Russia over its invasion of Ukraine, Kyodo News reported.
* A system glitch hit eight Japanese regional banks March 26, affecting ATMs and online banking services, Jiji Press reported. The lenders, which include units of Yamaguchi Financial Group Inc., use a common system. The system was restored March 27, the banks said.
* Mizuho Bank, Sumitomo Mitsui and MUFG Bank, along with HSBC Holdings PLC and JPMorgan Chase & Co., will provide a US$1 billion loan to Kuwait Petroleum Corp. to help boost Kuwait's oil output, Nikkei Asia reported.
* Bang Moon-kyu, CEO of The Export-Import Bank of Korea, signed a US$100 million relending agreement with Colombia-based Banco de Occidente, the Maeil Business Newspaper reported. The lender also signed a US$100 million deal with the Dominican Republic's Banco Nacional de las Exportaciones to finance South Korean companies in the information and communications technology, renewable energy and infrastructure sectors.
* Mizuho Financial Group Inc. is aiming to grow its wealth management unit's client base to 1,000 families from 600 families by this time in 2023, Bloomberg News reported, citing Masayuki Sakai, general manager of the bank's wealth management strategic project team. The targeted growth is expected to come from startup company owners whose equity holdings have grown sharply in value following IPOs, while cash income remains modest.
* Thailand's Bank for Agriculture and Agricultural Cooperatives earmarked 10 billion baht for its lending program to help farmers affected by the COVID-19 pandemic, Krungthep Turakij reported. The lender is offering three-year clean loans with a fixed interest rate of 0.35% per month and a six-month grace period.
* Indonesian lender PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk signed a cooperation agreement with the Indonesian Export Financing Agency (LPEI) to finance debtors involved in export activities in West Java, Bisnis Indonesia reported.
* Askari Bank Ltd. said it will grow its shareholding in Foundation Securities Pvt. Ltd. to 51% as part of the latter's planned merger with its unit, Askari Securities Ltd. The lender will acquire the additional shares from Fauji Foundation for a total consideration of 32.0 million Pakistani rupees, according to a stock exchange filing.
FINANCIAL SERVICES
* Pakorn Peetathawatchai, president of The Stock Exchange of Thailand, said the bourse is looking to launch the Thai Digital Assets Exchange in the third quarter and to develop more functionalities for its Settrade Streaming app to support all types of investments, including digital tokens, Manager Daily reported.
* India's Poonawalla Fincorp Ltd.'s shareholding in insurance joint venture Magma HDI General Insurance Co. Ltd. will drop to 21.52% from 29.32% following the latter's 4.50 billion rupee capital raise, according to a filing.
* Manappuram Finance Ltd.'s board approved the company's plan to issue up to 78.00 billion Indian rupees of redeemable, nonconvertible debentures via a private placement as part of its capital raising program for financial year 2022-2023.
POLICY AND REGULATION
* The China Banking and Insurance Regulatory Commission said it will push for the creation of a financial stability guarantee fund to safeguard the country against systemic risks as more factors affect economic and financial development.
* Malaysia's central bank launched the Malaysia Islamic Overnight Rate to boost the development of more innovative Shariah-compliant financial products and deepen the country's Islamic finance market. The new benchmark rate, which is said to be the first transaction-based Islamic benchmark rate in the world, will replace the Kuala Lumpur Islamic Reference Rate, which will be discontinued immediately, according to a news release.
* India's central bank released a framework for geotagging payment system touchpoints, which is expected to enable proper monitoring of the availability of payment acceptance infrastructures such as point-of-sale terminals and quick response codes, according to a press release.
INDUSTRY NEWS
* The Philippines' Securities and Exchange Commission plans to establish a division that will regulate and monitor lending companies amid growing consumer complaints against such businesses, The Philippine Star reported, citing Chairperson Emilio Aquino.
* Members of the Indian All India Bank Employees Association, Bank Employees Federation of India and All India Bank Officers' Association will commence a two-day strike March 28 to protest the government's planned privatization of public sector banks and the Banking Laws Amendment Bill 2021, The Economic Times reported.
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As of March 25, US$1 was equivalent to 76.27 Indian rupees, 181.98 Pakistani rupees and 33.59 Thai baht.
Eden Estopace, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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