* The U.S. Federal Reserve raised interest rates for the third time in 2017 in a widely expected move. The benchmark federal funds rate was raised 25 basis points to a target range of between 1.25% and 1.50%, the Federal Open Market Committee said.
* Moody's said the Asia-Pacific banking systems show a stable outlook for 2018, but challenges are "apparent" when it comes to long-term risks related to the high level of private-sector leverage. The rating agency said solvency metrics will be stable in most of the banking systems, while bank funding and liquidity will remain strong.
* The central banks of China and Singapore, together with their counterparts in Mexico, the U.K., France, the Netherlands, Germany and Sweden, established the Central Banks and Supervisors Network for Greening the Financial System, a platform that aims to address climate change and sustainability. The platform will work to mobilize green and low-carbon investments for environmental stability.
GREATER CHINA
* The China Banking Regulatory Commission is awaiting approval from the State Council to raise foreign ownership limits in domestic financial companies, including banks and financial asset management companies, with the exception of Chinese private banks, Reuters reported. The regulator would also abolish a "waiting period" for foreign banks to start doing yuan business and would ease requirements for these banks to take yuan deposits from retail customers.
* Bank of China Ltd. signed an agreement to provide financing to companies setting up shop in a major Abu Dhabi industrial zone, as the bank seeks to get involved in China's Belt and Road Initiative, Reuters reported. Under a memorandum of understanding signed with the Khalifa Industrial Zone Abu Dhabi, or KIZAD, Bank of China's Abu Dhabi branch will provide services including loan, trade financing, trade settlement and UAE dirham clearing to Chinese, international and local companies investing in KIZAD.
* Huatai Insurance Group Co. Ltd. dismissed reports that China's insurance regulator had designated China Life Insurance (Group) Co. to take over Huatai Insurance, Netease Finance reported. The company said that the group's insurance businesses are doing well.
* HNA Group Co. Ltd. Co-Chairmen Chen Feng and Wang Jian, as well as other executives of the group, plan to acquire shares worth 87 million yuan in Bohai Capital Holdings after its stock dropped by more than 30% from its peak in 2017, Bloomberg News reported, citing statements filed to the Shenzhen stock exchange. The officials plan to acquire the shares through the market within three months.
JAPAN AND KOREA
* Japan's Mitsui Sumitomo Insurance Co. Ltd. and Canada's Fairfax Financial Holdings Ltd. have received all regulatory approvals to complete a purchase agreement under which Mitsui Sumitomo will acquire Fairfax's 97.7% interest in Singapore-based First Capital Insurance Ltd. This transaction, valued at about US$1.6 billion, is expected to close Dec. 28.
* Moody's said the outlook for Japan's financial institutions is stable for 2018, thanks to stronger-than-potential domestic economic growth and broad-based global economic growth, which helped to improve the operating environment. Moody's, however, warned that that ultralow interest rates in Japan will continue to pressure profitability and push Japanese financial companies to invest overseas.
* Japan's Finance Ministry is expected to reduce the issuance of government bonds in fiscal 2018 for the eighth straight year as it expects an increase in tax revenue, Tokyo's The Nikkei reported. The government will likely reduce JGB issuance by as much as hundreds of billions of yen in the fiscal year beginning April 2018. JGB issuance for fiscal 2017 is expected to total ?34.36 trillion.
* The Regional Banks Association of Japan is expected to appoint Takanari Shibato, the president of Bank of Fukuoka Ltd., as its next chairman, The Nikkei reported. The decision will be finalized at the board meeting in June 2018.
* South Korea said it may apply tax on capital gains from cryptocurrencies as it continues to grapple with the rising popularity of virtual currencies, Reuters reported. The government will also ban minors from opening accounts on digital currency exchanges and will maintain a current ban on all financial institutions dealing with such assets, the report added.
ASEAN
* TMB Bank PCL continues to expand its digital banking services with the aim of increasing the number of its mobile app users to 2 million from 1.2 million by the end of 2018, Post Today reported, citing Mingkwan Pattanawong, the bank's head for retail marketing. The number of transactions made through the bank's mobile banking platform totaled 8.4 million in October, 4x higher than in the same period in 2016.
* Asian Development Bank raised its forecasts for Thailand's GDP growth for both 2017 and 2018 to 3.8% on the back of improving exports and private investment, Manager Daily reported. Strong domestic demand is also a key driver for the expected growth, ADB said.
* Indonesian state lender PT Bank Mandiri (Persero) Tbk cooperated with 12 banks to issue electronic money, Bisnis Indonesia reported. The 12 banks include PT Bank CIMB Niaga Tbk, PT Bank Tabungan Negara (Persero) Tbk and PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk.
* Malaysia's AMMB Holdings Bhd. is considering selling its general insurance business, AmGeneral Insurance Bhd., to focus on its main banking operations, Reuters reported, citing "three people with knowledge of the development." Insurance Australia Group Ltd., which owns a 49% stake in the insurer, could also divest its stake in the business, which could be valued between US$400 million and US$500 million.
* Malayan Banking Bhd. said its wholly owned unit Maybank Asset Management Group Bhd is buying Permodalan Nasional Bhd's mutual fund business in Malaysia and Singapore for 51 million Malaysian ringgit, The Star reported. The bank will later sell back a 20% stake in its enlarged Maybank Asset unit to Permodalan Nasional for 50 million ringgit.
SOUTH ASIA
* India's central bank placed Corporation Bank under prompt corrective action, or PCA, due to high nonperforming assets and required the bank to increase capital.
* The Reserve Bank of India fined IndusInd Bank Ltd. 30 million rupees for violations in its assessment of its nonperforming assets. The move follows a central bank investigation into the bank's financial position as of March 31, 2016.
* Rural Electrification Corp. Ltd. said it issued US$400 million of unsecured notes due 2020. The notes carry an coupon rate of 3.068% and will be listed on the Singapore Exchange and the London Stock Exchange's International Securities Market.
* An investigation by Bangladesh Bank showed that Islami Bank Bangladesh Ltd. violated rules in its issuance of 3.15 billion taka worth of loans to Unilliance Textiles, The Daily Star reported. The lender was said to have extended undue benefits to the textile manufacturer and to have continued to lend to the company even after it defaulted on its loans.
AUSTRALIA AND NEW ZEALAND
* Blackstone Group LP is planning to launch a direct lending facility worth at least A$5 billion for property buyers, The Australian Financial Review's Street Talk blog reported, citing sources. The company intends to raise the lending pool to up to A$10 billion, including senior debt, the publication noted.
* Commonwealth Bank of Australia filed its response to the lawsuit filed by Australia's anti-money laundering regulator in August, admitting to some of the regulator's claims about rule violations while contesting others, including some relating to reporting of suspicious matters.
* The Australian Prudential Regulation Authority plans to raise regulatory standards for superannuation funds to ensure that members receive quality and value-for-money outcomes, The Sydney Morning Herald reported, citing APRA deputy chair Helen Rowell during the release of a consultation paper on the proposed changes. The regulator wants superannuation funds to be accountable for poor performance and to justify marketing and advertising expenses.
* National Australia Bank Ltd. will double the credit limit on its online platform for small businesses to up to A$100,000, as part of efforts to boost lending into the sector, The Sydney Morning Herald reported.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Mauritius gets new central bank chief; Moody's takes actions on Egyptian lenders
Europe: Full trade deal unlikely by Brexit date; EU moves to boost green investments
Latin America: Brazil banks, depositors reach compensation deal; Argentina holds key rate
North America: Court tosses suit over OCC fintech charter; Heartland in Iowa buying Texas bank
North America Insurance: NJ clears Prudential Financial in Wells scandal; $130B in insured cat losses
Janna Estares, Vladimir Mengullo, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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