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China tightens online microlending rules; HDBank files for IPO

S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Rules tightening, fines in China

* Chinese regulators issued new rules to suspend license issuance to online microlenders and clean up existing business as part of an ongoing clampdown on microlenders.

* The China Banking Regulatory Commission proposed introducing three quantitative measures to manage commercial banks' liquidity risks. Separately, the banking regulator directed city commercial banks to allocate more of their lending to small business to support the private sector.

* Meanwhile, China's banking regulator is planning to introduce rules to clamp down on the use of shell companies and proxies to hide the true ownership of Chinese banks and other companies.

* China's foreign exchange regulator fined four lenders - China Minsheng Banking Corp. Ltd., Industrial Bank of Korea, Xiamen International Bank Co. Ltd. and Hong Kong-based OCBC Wing Hang Bank Ltd. - for violating rules on providing guarantees for loans issued by offshore banks.

* Separately, China's banking regulator fined the Beijing branch of China Minsheng Banking 27.5 million yuan for selling fake wealth management products.

Regulatory developments elsewhere

* Taiwan's Financial Supervisory Commission fined CTBC Financial Holding Co. Ltd. NT$10 million and suspended two senior executives for providing bail of up to NT$100 million to shareholder Jeffrey Koo Jr. and other employees charged with embezzlement in 2016.

* Japan's Financial Services Agency plans to implement more stringent anti-money laundering guidelines as early as January 2018.

* The Indian central bank allowed the overseas branches and subsidiaries of Indian banks to refinance the external commercial borrowings of corporates as a way to lower borrowing costs.

* Sonali Bank Ltd. requested the Bangladesh Bank to help it recover 8.95 billion Bangladeshi taka charged from its current account with the central bank to settle the acceptance bills relating to the Hallmark Group loan scam.

* The Reserve Bank of India kept its policy repo rate unchanged at 6.0% in a 5-1 vote, it said, adding that households' inflation expectations were rising.

M&A updates

* Japan's Mitsubishi UFJ Financial Group Inc., through unit Bank of Tokyo-Mitsubishi UFJ Ltd., is expected to start acquiring a stake in PT Bank Danamon Indonesia Tbk in early 2018.

* Shinhan Bank Vietnam Ltd. reportedly obtained final approval from the Vietnamese government to acquire Australia & New Zealand Banking Group Ltd.'s retail business in the country.

* Macquarie Group Ltd. is on the lookout for acquisition targets in Europe's asset management sector.

* IDBI Bank Ltd.'s board approved the sale of 2,799,999 shares of National Securities Depository Ltd., or a 7% stake, held by the bank.

* Punjab National Bank sold 9,815,860 equity shares of PNB Housing Finance Ltd. for 13.15 billion rupees. Meanwhile, U.S.-based General Atlantic LLC increased its stake in PNB Housing Finance to 8.36% from 6.86%.

* Life Insurance Corp. of India divested part of its stake in Bank of Baroda in an open market sale, reducing its stake in the lender to 5.194% from 7.249%.

In other news

* Banks will have to hold at least 72.5% of the capital against risky assets recommended by standard models, the Basel Committee on Banking Supervision said, announcing a major deal on how lenders calculate risk widely dubbed "Basel IV."

* Industrial & Commercial Bank of China Ltd. and Export-Import Bank of China reportedly plan to back China Development Bank's bankruptcy petition against India's Reliance Communications Ltd. in an effort to recover about US$2 billion in debt.

* Ho Chi Minh City Development JSCB, or HDBank, filed an application with the Ho Chi Minh City Stock Exchange for its proposed IPO.

* South Korea-based Woori Bank plans to increase the number of overseas branches to 500 from 281 currently through 2018, while scaling down its domestic branch network.

* CIMB Group Holdings Bhd. is looking to expand its digital banking presence in Southeast Asia with plans to launch its first fully digital bank in Vietnam in January 2018

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