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 require a subscription.
Australian central bank cuts rate to record low
* The Reserve Bank of India cut the repo rate by 25 basis points to 5.15% from 5.40%.
* The Reserve Bank of Australia lowered the cash rate by 25 basis points to a new record low of 0.75% and signaled that rates could be cut further to drive inflation higher and support growth. The central bank is now left with only three or even fewer conventional cuts before it would have to resort to unconventional tools, such as negative rates, quantitative easing or bond yield targeting, said Robert Carnell, Asia-Pacific chief economist and head of research at ING.
* The Central Bank of Sri Lanka's directive for Sri Lankan banks to cut their lending rates is credit negative for banks, Moody's said, adding that the lower lending rates will compress banks' net interest margins and add to their existing profitability challenges.
Some LSE investors want HKEX to sweeten the bid
* Some investors of London Stock Exchange Group PLC have urged Hong Kong Exchanges & Clearing Ltd. to raise its £31.6 billion bid by up to 20% and offer more cash, Reuters reported, citing three shareholders and a banking source close to the deal. HKEX's current offer prices LSE's shares at around £83.61 apiece, and comprises 25% in cash.
* U.S.-based investment fund manager Apollo Global Management Inc. is in talks with Altico Capital India Ltd.'s to acquire a stake in the troubled real estate-focused lender for up to US$150 million, Mint reported, citing two people aware of the development.
* Reliance Capital Ltd. finalized the sale of its stake in its joint venture Reliance Nippon Life Asset Management Ltd. to Japan's Nippon Life Insurance Co. The Indian financial services company received about 55 billion Indian rupees through the sale to the Japanese life insurer and through offers for sale.
* The Financial Services Commission of South Korea approved Lotte Group's proposal to dispose of majority stakes in Lotte Insurance Co. Ltd. and Lotte Card Co. Ltd. Yonhap News Agency reported that JKL Partners Inc. is acquiring 53.49% of Lotte Insurance for 373.4 billion won, while MBK Partners and Woori Bank are acquiring 79.83% of Lotte Card for 1.38 trillion won.
Hong Kong Monetary Authority gives two new banking licences; SBI Securities gets sales license for Singapore
* Hong Kong Monetary Authority granted two new banking licences to Chinese commercial banks in the end of September. The licences were awarded Ping An Bank Co. Ltd. and Hua Xia Bank Co. Ltd.
* SBI Securities Co. Ltd. secured a license to sell securities to institutional investors in Singapore, The Nikkei reported.
* SBI Securities joined Nomura Securities Co. Ltd. and four other major Japanese brokerages to establish a self-regulatory organization for security token offerings, blockchain-based digital securities that will be a new way of raising funds. The other brokerages are Daiwa Securities Group Inc., kabu.com Securities Co. Ltd., Rakuten Securities Inc. and Monex Group Inc.
* The State Bank of Vietnam approved Shinhan Bank Vietnam Ltd.'s plan to implement Basel II rules, Money Today reported, citing South Korea's Shinhan Bank Co. Ltd.
Two Australian regulators investigate iSignthis over recent share price movements
* iSignthis Ltd. CEO John Karantzis said the Australian financial technology company is responding to separate inquiries from the Australian Securities and Investments Commission and the Australian Securities Exchange following recent share price movements in the company. Shares of the company were suspended amid the investigations, The Australian Financial Review reported.
* South Korea's Financial Supervisory Service claimed KEB Hana Bank and Woori Financial Group Inc. engaged in misselling derivative-linked fund options by skipping procedures to determine the risks of the products, The Korea Times reported, citing the regulator's senior deputy governor, Won Seung-yeon.
* Indian authorities will open separate probes into allegations of fraud and misappropriation against Indiabulls Housing Finance Ltd. and Lakshmi Vilas Bank Ltd., which are seeking approval to merge, Bloomberg News reported. The move comes after the Indian central bank began a prompt corrective action against Lakshmi Vilas Bank.
Westpac and Korea Development Bank to sell life insurance units
* Australia's Westpac Banking Corp. intends to sell its life insurance business, Reuters reported. Westpac would become the last among Australia's big four banks to exit the industry if the sale goes through.
* Korea Development Bank launched a bid to sell KDB Life Insurance Co. Ltd. KDB will accept letters of interest in early November and pick a preferred bidder by the end of December, with the sale expected to be completed by early 2020.
In other news
* Ares Management Corp. formed Ares Australia Management with Australia-based multi-boutique asset manager Fidante Partners Ltd. The newly formed entity will be the investment manager for new funds tailored for investors in Australia and New Zealand.
* EQT Holdings Ltd.' Equity Trustees Ltd. unit agreed to become trustee for A$10.50 billion worth of assets of Colonial Mutual Life Assurance Society Ltd. The company's Equity Trustees Superannuation Ltd. subsidiary signed a deal to become the Registrable Superannuation Entity Licensee for A$4.50 billion of superannuation funds.
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