Note: The Daily Dose Asia-Pacific did not publish Wednesday, July 13, due to technical issues.
TOP NEWS IN BANKING & FINANCIAL SERVICES
* Japan's Mitsubishi UFJ Financial Group Inc., or MUFG, is working with a financial adviser to consider acquiring a stake in PT Bank Pan Indonesia Tbk, Bloomberg News reported, citing people familiar with the matter. The Japanese banking group could propose to merge the Indonesian lender with local unit PT Bank Danamon Indonesia Tbk, sources said.
* The Bank of Korea raised the base rate by 50 basis points to 2.25% from 1.75% as a preemptive policy response to control high inflation. The South Korean central bank's monetary policy board said it sees continued rate hikes as inflation is expected to run above the target level for a considerable time.
* The Reserve Bank of New Zealand said it increased the official cash rate to 2.50%. The central bank's monetary policy committee noted it remains appropriate to continue to tighten monetary conditions at a pace to maintain price stability and support maximum sustainable employment.
➤ More Asia-Pacific banks to shed insurance units to focus on their core
Lenders around the region have been selling their insurance businesses at a faster rate than acquiring them, S&P Global Market Intelligence data shows. In 2021, the region saw ten such transactions, up from seven in the prior year.
➤ US bank loan growth expected to slow after blistering Q2'22
Banks look set to post the hottest loan growth since the beginning of the pandemic, but a deteriorating economy is likely to hurt momentum. Deposit outflows also emerged in the second quarter.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
BANKING
* Hengfeng Bank Co. Ltd., a joint-stock commercial bank based in China's Shandong province, denied rumors it is going bankrupt, according to a company statement on Weibo.
* Zhou Qingyu, vice president of China Development Bank, was dismissed July 12, Caixin reported. The policy lender did not say why Zhou, who was originally set to retire in September, was dismissed.
* Standard Chartered Bank Korea Ltd. decided to discontinue its joint card issuance business with BCcard Co. Ltd. from November, The Korea Times reported, citing an official. The South Korean lender plans to launch card services with Hyundai Card Co. Ltd. in the second half.
* Alliance Bank Malaysia Bhd. appointed Kellee Kam Chee Khiong group CEO of the Malaysian lender, replacing Joel Kornreich, effective Sept. 1.
* The Philippines' Bank of Commerce said in a release it decided to shorten the offer period for its 3 billion peso bond issuance due to overwhelming demand from institutional and retail investors.
* Yes Bank Ltd. dismissed media reports that the central bank gave the lender in-principle approval for a 20% stake in an asset reconstruction company as "speculative". The Indian bank said it is still pursuing a process to find a partner selection for an asset reconstruction company.
* The Financial Services Institutions Bureau recommended former Union Bank of India managing director Rajkiran Rai for the position of managing director of the National Bank for Financing Infrastructure and Development, Business Standard reported.
* Union Bank of India and Canara Bank plan to raise a total of around 40 billion rupees through the issuance of additional Tier 1 bonds early next week, Business Standard reported, citing sources.
FINANCIAL SERVICES
* U.S.-based Morningstar Inc. is restructuring its operations in China to focus solely on the domestic market, Bloomberg News reported, citing a company representative. Several hundred people will be affected as the company relocates jobs from Shenzhen to other offices in different countries in the next 12 months.
* India's Housing Development Finance Corp. Ltd. issued a term sheet for the issuance of 25 billion rupees of secured redeemable nonconvertible debentures on a private placement basis. The debentures will have a coupon rate of 7.77% each year and a tenor of four years, 11 months and 10 days, according to a bourse filing.
POLICY AND REGULATION
* The China Securities Regulatory Commission suspended the review process for The Goldman Sachs Group Inc.'s application for onshore fund distribution after giving feedback twice, Bloomberg News reported, citing a notice on the regulator's website. A Goldman Sachs spokesperson based in Hong Kong declined to comment, while the regulator did not immediately respond to a request seeking comment, the publication said.
* South Korea's Financial Services Commission extended policy lenders' corporate bond and commercial paper purchasing program until March 2023. The pandemic credit market support program, introduced in April 2020 with participation from Korea Development Bank, Industrial Bank of Korea and Korea Credit Guarantee Fund, was set to expire in September.
Click here for a summary of indexes on the S&P Capital IQ Pro platform.
As of July 13, US$1 was equivalent to 56.32 Philippine pesos and 79.67 Indian rupees.
R Sio, Eden Estopace, Kanas Chan, Jonathan Cheah, James Lim and Santibhap Ussavasodhi contributed to this report.
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