trending Market Intelligence /marketintelligence/en/news-insights/trending/el365okr-vvl3uoobabyyw2 content esgSubNav
In This List

Indian central bank fines 2 lenders; Mega Financial posts FY'17 net income

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Indian central bank fines 2 lenders; Mega Financial posts FY'17 net income

GREATER CHINA

* Chinese Premier Li Keqiang said China will improve supervision over shadow banking, internet finance and financial holding companies, and step up risk controls at financial institutions, Beijing's Caixin reported. Li noted in his government work report that while China's economic and financial risks are generally under control, authorities will work to prevent financial risks in 2018.

* China's central bank said the number of mobile payment transactions in the country surged 46.06% year over year to 37.55 billion in 2017, the Securities Times reported. The transactions' value increased 28.8% to 202.93 trillion yuan over the same period.

* Taiwan-based Bank SinoPac Co. Ltd.'s credit guarantee financing fund for overseas enterprises grew more than 105% in 2017, the island's Liberty Times reported. The fund helped fuel Taiwanese entrepreneurs' expansion into countries such as Vietnam and Thailand.

* Taiwanese bank Mega Financial Holdings Co. Ltd. reported a net income of NT$25.74 billion for 2017, despite a US$29 million fine imposed by U.S. financial regulators on unit Mega International Commercial Bank Co. Ltd. for violating U.S. anti-money laundering and bank secrecy laws, the Taipei Times reported, citing Mega Financial Chairman Michael Chang. The company also noted it made significant improvements in its anti-money laundering system following the fine.

* Hong Kong insurance policyholders could receive protection coverage of up to HK$1 million if their insurance company collapses, thanks to a proposed law submitted for discussion during the 2018-2019 legislative session, the South China Morning Post reported. The maximum cover of HK$1 million per policy will be available for life insurance or general insurance policyholders, individuals and small and medium-sized businesses.

JAPAN AND KOREA

* The Bank of Japan's two nominees for the positions of deputy governors backed the central bank's monetary easing policy but offered different views on whether the bank should exit the policy, Tokyo's The Nikkei and Bloomberg News separately reported. Economist Masazumi Wakatabe supported further easing to achieve a 2% inflation target, saying the bank should use "every means at its disposal" to reach the goal. Central bank Executive Director Masayoshi Amamiya noted that the bank has tools to exit monetary easing without disrupting markets.

* Japanese lender Taisho Bank Ltd. entered into an investment trust business with Tokai Tokyo Financial Holdings Inc. subsidiary Takagi Securities Co. Ltd., The Nikkei reported. Taisho Bank will make mutual fund products available through Takagi Securities' channel.

* South Korean conglomerate SK Holdings Co. Ltd. will sell a 10% stake in brokerage SK Securities Co. Ltd. to private equity fund J&W Partners for 51.5 billion won, Seoul-based Yonhap News Agency reported. The board approved the decision March 5.

ASEAN

* CIMB Thai Bank PCL plans to convert its business into a digital operation to enhance digital services and promote the development of a cashless society, The Nation reported. The bank will provide new services, including QR code payments and e-loan services, in the third quarter as part of the plan.

* Indonesian lender PT Bank Victoria International Tbk plans to issue 500 billion rupiah of bonds in 2018 to support business growth, Bisnis Indonesia reported.

* Philippine lender Rizal Commercial Banking Corp. expanded its medium-term note program to US$2 billion from US$1 billion to raise more capital, Manila-based BusinessWorld reported.

SOUTH ASIA

* The Reserve Bank of India will infuse an additional 1 trillion rupees of capital into banks via longer tenor instruments to provide liquidity in the market, India's Mint reported. The central bank plans to conduct four variable rate term repo auctions of 250 billion rupees each in March to provide liquidity support.

* S&P Global Ratings said India's public sector banks are in "urgent need for reforms" following the discovery of an alleged US$2 billion fraud at Punjab National Bank. The rating agency said the alleged fraud revealed an inherent weakness in the governance and transparency standards in the Indian banking system, and comes amid soaring nonperforming assets in the sector.

* India's central bank imposed a fine of 30 million rupees on Axis Bank Ltd. and a fine of 20 million rupees on Indian Overseas Bank for violating rules, The Hindu reported. Axis Bank violated classification rules for nonperforming assets, while Indian Overseas Bank breached know-your-customer norms.

* Allahabad Bank said Bijaya Kumar Sahoo, Sarath Sura and Praveen Kumar Chhokra stepped down as directors following the completion of their term. The changes are effective March 4.

AUSTRALIA AND NEW ZEALAND

* National Australia Bank Ltd. initiated disciplinary investigations into its mortgage introducer program which rewards businesses for lending referrals to the bank, The Australian reported. The program will also be examined by the financial services royal commission after it was reported that some 2,300 home loans may have been submitted through the program without proper documentation or accurate customer information.

* Kris Faafoi, New Zealand's commerce and consumer affairs minister, unveiled the terms of reference to evaluate the country's insurance contract law, New Zealand-based Scoop Media reported. He said the review will look into whether there is a need for greater regulation and supervision of insurers' conduct.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Angola hikes capital requirements for banks; Netanyahu opposes early elections

Europe: Axa agrees to buy XL Group for $15.3B; Germany's Merkel secures 4th term

Latin America: Santander Brasil-HDI JV approved; Mexico gives nod to Swiss Re local ops

North America Insurance: Senate to vote this week on bipartisan bill to ease Dodd-Frank rules on banks

North America Insurance: XL Group to be acquired by Axa; AIG to sell travel insurance on Expedia site

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Janna Estares, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

The Daily Dose has an editorial deadline of 6:30 a.m. Hong Kong time. Some external links may require a subscription.