BNP Paribas sets sights on ABN Amro; Santander picks insider as new CEO

TOP NEWS IN GLOBAL FINANCIALS

* BNP Paribas SA recently contacted the Dutch government to discuss potentially buying state-controlled ABN Amro Bank NV, sources told Bloomberg News. The French bank is reportedly interested in ABN Amro's retail and corporate franchise, plus the chance to expand in northern Europe. The Dutch government is not seriously considering the proposal for now, according to Bloomberg. A spokesperson for ABN Amro, the shares of which spiked following the report, did not comment on the potential sale, according to Reuters.

* Spain-based Banco Santander SA nominated Héctor Grisi as its next CEO, replacing José Antonio Álvarez from Jan. 1, 2023. Grisi currently serves as CEO of Banco Santander México SA and head of North America. Álvarez will remain on the board as nonexecutive vice chair.

➤ Fed move to bring near-term benefits, long-term headaches to US banks – analysts

The Federal Reserve's 75-basis-point rate hike will bring near-term benefits to U.S. banks, but the long-term impact remains uncertain, according to D.A. Davidson analysts.

➤ Chinese banks weigh asset quality risks as regulator urges cut in loan buffers

China's banking and insurance regulator is encouraging lenders to cut their provision coverage ratio and free up more liquidity for lending as part of efforts to kickstart the economy after a wave of COVID-19 infections.

➤ UBS, Credit Suisse face wealth management headwinds in Asia-Pacific

The challenging environment that put a drag on the Swiss banks' performance in the first quarter is likely to also impact second-quarter results.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

US & CANADA

* Alabama, Kentucky, New Jersey, Texas and Washington securities regulators are probing cryptocurrency lender Celsius Network Ltd.'s suspension of customer redemptions, citing concerns that investors' inability to access their assets when they need to "may result in significant financial consequences," Reuters reported, quoting Joseph Rotunda, enforcement director at the Texas State Securities Board.

* The U.S. Securities and Exchange Commission is studying and seeking public comment on whether to classify providers of financial information such as indexes, model portfolios and pricing services as investment advisers and apply to these entities the agency's registration and regulation framework for investment advisers.

Click here for more of the day's essential bank and financial services news in the U.S. and Canada.

LATIN AMERICA

* Argentina's central bank raised the rate on 28-day Leliq notes by 300 basis points, to 52%, citing elevated concerns regarding financial risk. It acknowledged inflation in Argentina has continued a decline seen in April this year, and is expected to keep going down.

* Bank of America Securities expects that the Mexican central bank will make at least two rate hikes, in light of the U.S. Federal Reserve's recent decision to raise rates, El Economista reported. The Mexican central bank is scheduled to meet next week.

* Colombia's Superfinanciera regulator has authorized Rappipay Compañia de Financiamiento SA to operate as a financing company, La República reported. RappiPay Colombia CEO Gabriel Migowski said the company is looking to hire 400 new workers.

EUROPE

* Credit Suisse Group AG is reportedly under suspicion by Geneva's top financial-crime prosecutor of having engaged in money laundering by failing to prevent certain illegal transactions between 2008 and 2014, sources told Bloomberg News. The alleged cases are reportedly linked to convicted fraudster Patrice Lescaudron. A spokesman for the Geneva prosecutor's press office declined to comment to Bloomberg as the investigation is still ongoing, while the Swiss bank said in a statement this week that Lescaudron acted alone and was not convicted of money-laundering.

* Klarna Bank AB (publ) is in discussions with investors about a fresh funding round that could value Sweden-based buy now, pay later firm at about $15 billion, insiders told The Wall Street Journal. One of the sources said the current deal could yield at least $500 million. The $15 billion valuation is far lower than the $45.6-billion valuation achieved in June 2021.

Click here for more of the day's essential financial news in Europe.

MIDDLE EAST & AFRICA

* KCB Group PLC acquired a 77% stake in BPR Rwanda from institutional investors Arise B.V. and Atlas Mara Ltd., Business Daily Africa reported, citing the group's latest annual report. BPR Rwanda is the combined entity arising from the recent merger of the Kenyan banking group's KCB Bank Rwanda Ltd. and Banque Populaire du Rwanda SA units.

* Oman-based Sohar International Bank SAOG is in talks over a potential merger with HSBC Bank Oman S.A.O.G., which would involve offering cash and shares to HSBC's shareholders. Meanwhile, Sohar said its discussions for a proposed merger with local peer Bank Nizwa SAOG were in progress.

* CoinMENA BSC said it obtained a provisional virtual assets license from Dubai's Virtual Assets Regulatory Authority, Reuters reported. This would allow the Bahrain-based digital asset exchange company to continue its operations while applying for a full license.

ASIA-PACIFIC

* The Reserve Bank of India said it lifted the restrictions on onboarding new domestic customers imposed earlier on Mastercard Asia/Pacific Pte. Ltd., with immediate effect, after the firm demonstrated compliance with the central bank's circular on the storage of payment system data.

* The Hong Kong Monetary Authority said in a release it raised the base rate to 2% after the U.S. Federal Reserve raised key rates by 75 basis points. The Monetary Authority of Macao said in a separate release it also raised its main reference interest rate by 75 bps, citing the linkage of the pataca to the Hong Kong dollar.

* Hong Kong's Securities and Futures Commission fined China Everbright Securities (HK) Ltd HK$3.8 million for breaches against anti-money laundering regulations.

Click here for more of the day's essential financial news in Asia-Pacific.

Erin Tanchico and Ryan Jeffrey Sy contributed to this report.

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