TOP NEWS IN BANKING & FINANCIAL SERVICES
* 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.
➤ 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.
BANKING
* China Minsheng Banking Corp. Ltd. received approval from the China Banking and Insurance Regulatory Commission to set up a wealth management business. The Beijing-based company will have a registered capital of 5 billion yuan and will be engaged in issuing wealth management products, asset management and other related businesses, according to a stock exchange filing.
* South Korea's Financial Services Commission said in a release Korea Post signed an agreement with the Korea Financial Telecommunications & Clearings Institute and four banks — KB Kookmin Bank, Shinhan Bank Co. Ltd., Woori Bank and KEB Hana Bank — to allow 2,482 post offices across the country that handle financial services to provide banking services, such as deposits and withdrawals, by the end of 2022.
* ING Bank NV appointed Anand Sachdev manager of ING Bank NV Singapore Branch, effective June 21, replacing Erwin Maspolim, who will take on the role of head of representative offices in Southeast Asia, The Business Times reported, citing a news release.
* Pakistan's Samba Bank Ltd. said its president and CEO, Shahid Sattar, will retire July 31 upon the completion of his term. The lender's board named Ahmad Tariq Azam acting president and CEO, effective Aug. 1.
* JPMorgan Chase & Co.'s Australia business hired Andrew Crowther as head of hedge fund sales to succeed Justin Lindquist, who joined Barrenjoey Markets Pty. Ltd. in May, The Australian Financial Review's Street Talk blog reported, citing a staff announcement.
FINANCIAL SERVICES
* Guotai Junan Securities Co. Ltd. said in a bourse filing it received approval from the China Securities Regulatory Commission to issue up to 10 billion yuan of perpetual subordinated corporate bonds, which are valid for 24 months and can be issued in tranches.
* Shiozawa Shinkumi, a credit union based in Japan's Niigata Prefecture, will change its name to Yukiguni Shinkumi, effective Sept. 19, 2023, Tokyo's The Nikkei reported.
* South Korea's Kakao Pay Corp. and KB Kookmin Card Co. Ltd. signed an agreement to jointly explore market opportunities in Southeast Asia and other parts of the world. The two companies are eyeing potential cooperation in new projects, personnel and technology sharing, and joint investments.
* Woori Private Equity Asset Management Co. Ltd. will raise 50 billion won by selling new shares to its parent, Woori Financial Group Inc., The Chosun Ilbo reported.
POLICY AND REGULATION
* Fu Fei, former director of the risk disposal and legal affairs department of China Insurance Security Fund Co. Ltd., is suspected of serious violations of discipline and law. Fu is undergoing a disciplinary review by the Central Commission for Discipline Inspection and the China Banking and Insurance Regulatory Commission, according to a news release.
* Hong Kong's Securities and Futures Commission fined China Everbright Securities (HK) Ltd. HK$3.8 million for breaches to anti-money laundering regulations.
* Switzerland-headquartered Bank for International Settlements Innovation Hub, the Bank of Israel and the Hong Kong Monetary Authority are collaborating to test the feasibility of a two-tier retail central bank digital currency in the third quarter, according to a release.
* Taiwan's central bank raised the discount rate to 1.5%, the rate on refinancing of secured loans to 1.875% and the rate on temporary accommodations to 3.75%, effective June 17. It also raised the reserve requirement ratios on Taiwanese dollar demand deposits and time deposits by 25 basis points each, effective July 1.
* South Korea's Financial Services Commission said authorities will implement income-based loan restraints from July to prevent excessive debt and loosen household loan regulations for first-time home buyers, The Korea Times reported, citing an announcement from the regulator.
* Malaysia's Securities Commission said it charged Charles Chua Yi Fuan, a former vice president of debt markets at Hong Leong Investment Bank Bhd., for deceiving four investors who incurred losses amounting to 76,000 ringgit between February 2018 and April 2018.
* Bangko Sentral ng Pilipinas Governor Benjamin Diokno swore in Bernadette Romulo-Puyat as a deputy governor of the Philippines' central bank, according to a release.
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As of June 16, US$1 was equivalent to 6.70 Chinese yuan, 1,293.44 South Korean won and 4.40 Malaysian ringgit.
R Sio, Eden Estopace, Kanas Chan, Jonathan Cheah, James Lim and Santibhap Ussavasodhi contributed to this report.
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