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Australian banks to face probe; Canadian fund manager to buy stake in Edelweiss unit


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Commercial Banking: June 22nd Edition


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Commercial Banking Newsletter June Edition - 2022

Australian banks to face probe; Canadian fund manager to buy stake in Edelweiss unit

*The CEOs of Australia's four major banks are set to face a parliamentarycommittee probe in the week of Oct. 3 regarding practices, including poorfinancial advice to clients and failure to pass on the central bank's fullinterest rate cuts, Bloomberg News reported.The investigation will commence with Commonwealth Bank of Australia CEO Ian Narev.

*Canada's Caisse de dépôt etplacement du Québec, or CDPQ, has agreed to acquire a 20% stake inMumbai, India-based EdelweissFinancial Services Ltd. unit Edelweiss Asset Reconstruction Co.Ltd. Business Standard reported,citing the Indian firm. The Canadian fund manager is also investing about 50billion rupees in stressed assets and specialized corporate credit in Indiaover four years.

*The Shanghai Stock Exchange is seeking to buy up to a 40% stake in the PakistanStock Exchange, The Nikkei Asian Reviewreported, citingAyyaz Afzal, director at a unit of the Pakistani bourse.

*Henderson Group Plcand Janus Capital GroupInc. agreed to an all-stock merger of equals to form JanusHenderson Global Investors Plc. Following the merger, , Janus'largest shareholder, will hold about 9% of the combined group. Dai-ichi intendsto invest in the company to raise its ownership interest to at least 15%.

*Cardtronics plc'splanned acquisition of DirectCash Payments Inc. stands the Houston-based paymentprocessor its first foothold in the Asia-Pacific market.

*Gautam Saxena and Saikat Mukherjee, Singapore-based bankers at , left their roles,Bloomberg News reported, citing "people with knowledge of thematter." Saxena was Asia-Pacific head of telecom and media investmentbanking, while Mukherjee served as managing director.

*Mitsubishi UFJ Financial GroupInc. appointed Luis Marcelo Moro as an executive director in itsfinancial institutions group team for EMEA, IFR reported.Moro, who will be based in London, was head of financial institutions coverageat Royal Bank of Scotland GroupPlc for Spain and Portugal.


*The China Securities Regulatory Commission issued regulations for theChina-Hong Kong stock market exchange connect scheme, Caixin reported.The rules set the application scope in both the Shanghai-Hong Kong stockconnect and Shenzhen-Hong Kong stock connect programs, which signifies that thelatter will start soon. The regulator expects investors who buy stocks via thetwo programs through Hong Kong brokerages shall abide by relevant regulationsin Hong Kong rather than in China.

*China will allow investors under its Qualified Foreign Institutional Investorand Renminbi Qualified Foreign Institutional Investor programs to set their ownasset allocation limits, Reuters reported,citing Shanghai Securities News. TheChina Securities Regulatory Commission will scrap limits on asset allocationsunder the QFII and RQFII programs.

*Taiwan's Chung-Hua Institution for Economic Research said the island'spurchasing managers index for manufacturing rose to 56.5 in September, whichhas expanded for the seventh straight month, signaling sustained momentum inmanufacturing activity, the Liberty Timesreported.CIER President Wu Chung-shu expected Taiwan's economy to grow by more than 1%for 2016.

*Ding Kung-wha, chairman of Taiwan's Financial Supervisory Commission,resigned from hispost amid criticism of the regulator's handling of anti-money-laundering rulebreaches at Mega FinancialHoldings Co. Ltd., Reuters reported, citing a statement from theFSC. Ding submitted his resignation in the hope that the move would negatedamage to the FSC over the Mega Financial scandal. Mega Financial unitMega International CommercialBank Co. Ltd.'s New York branch was fined US$180 million by U.S.authorities for lapses and noncompliance with U.S. anti-money laundering laws.


*Mitsubishi UFJ Financial Group CEO Nobuyuki Hirano urged caution in the Bank ofJapan's monetary policy, citing adverse impacts on financial institutions andthe real economy, The Mainichi Shimbunreported. 

*Mitsubishi UFJ Financial Group and Mitsubishi UFJ Lease & Finance Co. Ltd. the acquisition of anaggregate 27.21% stake in HitachiCapital Corp. as part of the companies' capital alliance.Mitsubishi UFJ Financial acquired 26,884,484 Hitachi Capital shares, or a23.01% stake, while unit Mitsubishi UFJ Lease & Finance acquired 4,909,340shares, or a 4.20% stake in the company.

*Sumitomo Mitsui Trust BankLtd. signed an investment trust custodial service agreement withDaiwa SB InvestmentsLtd., Tokyo's The Nikkei reported.

*SBI Sumishin Net BankLtd. will introduce a new lending program that extends fast-tracksmall loans based on credit card transaction data, The Nikkei reported.

*Reliance Nippon Life InsuranceCo. Ltd. named Ashish Vohra as CEO of the company.

*The South Korean government is seeking to convert more than 2 trillion won ofdebt that Export-Import Bank ofKorea holds in Daewoo Shipbuilding & Marine Engineering Co.Ltd. into equity ownership, the MaeilBusiness Newspaper reported.

*According to the Financial Supervisory Service, the combined headcount at SouthKorean banks stood at 132,170 at the end of June, the lowest since 2007, the Maeil Business Newspaper reported.The popularity of online banking is cited as a factor driving a reduction inthe number of bank employees.

*The FSS said that South Korean banks' bad debt exposure to South Koreanconglomerates totaled 19 trillion won in the first half, an increase of 1.3trillion won from the end of 2015, the MaeilBusiness Newspaper reported. 

*Dongbu Life Insurance Co.Ltd. decided to pay out 14 billion won in overdue death benefitsrelated to contested suicide cases, MoneyToday reported.


*Bank Indonesia said its tax amnesty program has recovered 97.2 trillion rupiahfrom the repatriation of 3,621 trillion rupiah, making it the most successfultax amnesty program in the world, BisnisIndonesia reported.

* Indonesia'sInfobank reported thatthe Financial Services Authority has urged PT Bank Maybank Syariah Indonesia to find entities tomerge or consolidate after its gross nonperforming loans doubled to 29.31% from15.15% in the prior-year period.

*PT Bank CIMB NiagaTbk intends to issue bonds worth 2.5 trillion rupiah to support itsloan expansion plans, The Jakarta Globereported.

*Deputy Prime Minister for Economic Affairs Somkid Jatusripitak tasked theSecurities and Exchange Commission of Thailand with three missions that must beclearly laid out within three months, Thailand's Krungthep Turakij reported. One suchmission includes studying ways to support startup businesses in theirfund-gathering process.

*Thai Finance Minister Apisak Tantivorawong affirmed that the PromptPay servicewould be ready to operate Oct. 31 while the Bank of Thailand has beensupervising the operation, Manager Dailyreported.

*TMB Analytics expected that the Thai economy in 2016 should grow by 3.3%, upfrom an earlier projection of 2.8% due to improved private consumption andpublic investment, Krungthep Turakij reported.

*KASIKORN Business-Technology Group will introduce two new applications within2016 for payment and mobile banking services for people with physicaldisabilities, Krungthep Turakij reported.

*The Bangko Sentral ng Pilipinas said the number of banks operating in thePhilippines decreased to 618 in the first half from 638 in the prior-year periodamid continued consolidation of banks, ThePhilippine Star reported.


*The Reserve Bank of India urgedall banks to make sure their new card acceptance infrastructure would be ableto process payment transactions using Aadhaar-based biometric authentication.The new acceptance infrastructure will be deployed Jan. 1, 2017.

*RBL Bank Ltd.acquired a 9.99%stake in Utkarsh Micro Finance Ltd. and agreed to extend its product portfolioto Utkarsh Micro Finance customers.

*State Bank of Indiaopened its 54th offshore branch in Yangon, Myanmar, Indo-Asian News Service reported.SBI resumed banking operations in Myanmar after a 53-year absence.


*Australian Treasurer Scott Morrison said new regulations to make anymanipulation of financial benchmarks by banks or major investors a criminaloffense will "better protect Australians from ... possible abuse," The Australian reported.

*Heartland Bank Ltd.appointed VanessaStoddart as an independent director. Stoddart serves on the boards of NewZealand Refining Co. Ltd., Warehouse Group Ltd., Alliance Group Ltd., the TertiaryEducation Commission and the Financial Markets Authority.


Middle East & Africa: KCB in search for fintech partners; Moza Banco put underadministration

Europe: Maysets Article 50 date; ING downsizes; no Deutsche US deal yet

Latin America: Colombians reject FARC peace deal; MAPFRE Chile gets new CEO

North America: Janus,Henderson to merge; Illinois ready to suspend business with Wells

North America Insurance: Wisconsin health co-op gets capital infusion; health insurers preferHMO over PPO plans

Sally Wang, Jonathan Cheah,Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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