* The AsianDevelopment Bank will lend Bangladesh US$8 billion over the next five yearsfor infrastructure and skill building as part of efforts to strengthen thecountry's economy.
* The U.S. Federal Reserve a cease and desist order toAgricultural Bank of ChinaLtd. and its New York branch related to weaknesses in the lender's BankSecrecy Act and Anti-Money Laundering compliance program. Under the terms ofthe consent order, Agricultural Bank of China must submit a written action plandescribing the actions to be taken to improve the branch's BSA/AML complianceprogram.
* PacificInvestment Management Co. LLC is working to create an presence in China by2018, Bloomberg News reported. Eric Mogelof, head of Asia Pacific at PIMCO,reportedly said recent regulatory changes have prompted the move.
* Canada's Fairfax Financial Holdings Ltd. is seeking to US$500 million to fundpotential acquisitions in India, including a stake in Catholic Syrian Bank Ltd., Business Standard reported, citing "bankers close to thedevelopment."
* Thai Asset Bright Co. is collaborating with Chinesee-commerce firm Tencent Group to offer the latter's WeChat Pay facility inThailand, The Nation reported.The firms expect Chinese tourists to Thailand to benefit from the partnership.
* YuantaCommercial Bank Co. Ltd. said its first overseas subsidiary, TongYang Savings Bank, will be renamed Yuanta Savings Bank Philippines Inc., the Liberty Times reported.The bank's subsidiary in South Korea will also be renamed soon.
* Chinese enterprises have raised US$109.9 billion in the globalequity capital market since January, down 4.6% year over year, Reuters reported. Of that total, Chinese enterprises raisedUS$28.8 billion in overseas IPOs, down 31.6% year over year.
* Zhang Xiaoai, vice chairman of the Asset ManagementAssociation of China, said that qualified foreign-invested and joint ventureprivate equity funds are welcome to register with the association and startsecurities and fund operations in China, Caixinreported.
* A total of 7.83 billion yuan worth of Hong Kong funds weresold in China, while 81.76 million yuan of Chinese funds were sold in Hong Kongas of Aug. 31, Caixin reported. Sally Wong, CEO of the Hong Kong InvestmentFunds Association, said that Chinese investors were seeking global allocationsof their assets with their increasing fortunes and expectations of the yuan'sdepreciation.
* Wei Benhua, former deputy administrator of China's StateAdministration of Foreign Exchange, said the country might consider furtherexpanding the yuan's fluctuation range and gradually adding other currenciesclosely related to China's trade to the China Foreign Exchange Trade System'scurrency basket, Reuters reported.Wei suggested adding the South Korean won, South African rand, Indian rupee andBrazilian real to the basket, which currently includes 13 currencies.
* China's State Administration of Foreign Exchange deniedreports that Deutsche Bank repatriated the proceeds from its sale of a stake inHuaxia Bank, China Business News reported.SAFE said that foreign institutions transferring shares in domesticinstitutions could apply for foreign currency transactions directly from banks,which can process such transactions following authentication and complianceaudits without the need to request approval from the regulator.
* The Li Ka Shing Foundation disclosed that Hong Kong tycoonLi Ka Shing, three of Li's foundations and his son Victor Li Tzar-kuoi own11.62% of Postal Savings Bank ofChina Co. Ltd.'s H shares, equivalent to 2.8% of the bank's totaloutstanding shares, Caixin reported. Li issaid to have absolute confidence in the postal bank, and is investing in it asa personal long-term investment.
* Perng Fai-nan, Taiwan's central bank governor, said hewould retire once his term expires in February 2018, after 20 years at the helmof the institution, the Liberty Timesreported.
JAPAN AND KOREA
* Japan's Financial Services Agency approved the of andJoyo Bank Ltd.,Tokyo's The Nikkei reported.The two companies will set up a new entity called Mebuki Financial Group byOct. 1 as part of the merger. The combined assets of the new entity areexpected to reach ¥15 trillion, which will make it the third-largest regionalbanking group by assets.
* The Financial Services Agency will investigate companiesthat do not procure venture funds from traditional banks to discover potentialneeds that have not surfaced, The Nikkeireported.
* Japan PostBank Co. Ltd. initiated discussions on increasing the deposit limitagain for two years, beginning April 2017, TheNikkei reported.The deposit limit was raised to ¥13 million in April from ¥10 million.
* According to the Bank of Korea, the interest rate of the country'smortgaged-backed loans increased to 2.7% as of Aug. 31, up 40 basis points fromthe previous month, the Dong-a Ilbo reported.
* South Korea's Credit Financing Research Institute saidthat the total transaction amount of credit card payments in August was 61.7trillion won, 14.9% higher than the prior-year period, the Asia Business Newspaper reported.The research institute cited the Rio Olympics as a contributing factor forincreased spending.
* Post Today reported that theBank of Thailand willoffer 50 billion baht of loans with a 14-day maturity in a bid to absorb excessliquidity.
* The Export-Import Bank of Thailand said it will be able toachieve a full-year lending target of 18 billion baht in 2016, Krungthep Turakij reported. As ofAug. 31, the bank had approved new loans totaling 16 billion baht.
* The board of Thailand's National Savings Fund intends toimprove investment returns for fund members by building a higher riskportfolio, Krungthep Turakij reported, citingSecretary-General Somporn Chitphentom. In 2017, the fund's new portfolio willhave 10% invested in debentures and equity instruments.
* Thailand's Fiscal Policy Office expects the Thai economyto have grown 3.5% in the third quarter, helped by expanding exports, publicinvestment and tourism, Krungthep Turakijreported. Theoffice forecasts full-year GDP growth of 3.3%.
* The Indonesian government booked a record high in bondissuances in 2016 of more than 600 trillion rupiah, Kompas reported,citing Loto Srianita Ginting, debt director at the Finance Ministry.
* Bank Indonesia Governor Agus Martowardojo said he expectsa US$38 billion increase in foreign exchange reserves by the end of 2017,partly due to the government's tax amnesty program, The Jakarta Globe reported,citing Reuters. Indonesia's forex reserves stood at $113.5 billion as of August.
* Vietnam enjoyed an economic growth rate of 6.4% during thethird quarter as both the agricultural and industrial sectors performed well,Bloomberg News reported.
* Several commercial banks in Vietnam are consideringcutting their lending rates by 0.3% to 0.5% following recent cuts in dongdeposit rates, Vietnam News reported.The central bank has asked the banks to lower lending rates to help boostbusiness activity.
* ReligareFinvest Ltd. intends to raise 6.5 billion Indian rupees through arights issue, Mint reported,citing two people close to the development. The company, which recently wroteoff a 1.8 billion rupee debt to ABG Shipyard Ltd., is looking to boost itscapital adequacy ratio to 15%.
* Utkarsh Micro Finance Pvt. Ltd. will reduce foreignholdings in the company as it raised 3.95 billion rupees from domesticinstitutional investors, Mint reported.Utkarsh is one of the ten nonbanking finance companies to receive a small-banklicense from the Reserve Bank of India.
* India's central bank wants commercial lenders to ease andexpedite the process of loan disbursement to farmers, Business Standard reported.
AUSTRALIA AND NEWZEALAND
* The Australian Prudential Regulation Authority madechanges to rules regarding net stable funding ratio requirements, which theregulator will implement in January 2018, TheAustralian reported.The revised requirements are expected to alleviate the risk of competingdeposit rates among lenders.
* The Australian Securities and Investments Commissionpermanently banned a former DeutscheBank AG foreign exchange trader for making false trade entries tooffset his trade losses, The Australianreported,citing the American Association of Publishers. The entries inflated the bank'srevenue by 28 million euros.
IN OTHER PARTS OF THEWORLD
Middle East & Africa: Saudi Arabia's bond issue; Ghana's e-fraud worries
Europe: Phoenix buys Abbey Life; Barclays, Credit Suisse in US MBStalks
Latin America: Generali selling Guatemalan business; no agreement in Brazilianbanking labor strike
North America: Senators not done with Stumpf; Scottrade Financial said to be forsale
North America Insurance: Assured Guaranty to acquire MBIA UK Insurance; Justice Departmentamends lawsuit to block Anthem/Cigna deal
Sally Wang, SarunSaelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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