GREATER CHINA
* Chinese policymakers are looking at increasing the yearly quota of special bonds issued by provincial governments — currently set at 2.15 trillion yuan — to encourage investments in infrastructure projects in a bid to stimulate a slowing economy, Bloomberg News reported, citing sources familiar with the matter.
* HSBC Holdings PLC was absent from a list of 18 banks that will take part in pricing for a new loan prime rate that China's central bank will begin issuing Aug. 20, Bloomberg News reported. The banks included Standard Chartered PLC and Citigroup Inc., which have smaller China businesses than HSBC.
* Taiwan's life insurance sector held NT$675.7 billion worth of domestic exchange-traded funds as of end-May, accounting for 93.4% of the island's total ETFs, Liberty Times reported. The island's Financial Supervisory Commission said investors should diversify their investments to contain risks and asked them to bring down the concentration level.
JAPAN AND KOREA
* South Korea's Financial Supervisory Service has decided to inspect the sale of derivatives-linked products by banks and securities firms this month, The Korea Herald reported. The regulator's move came after the publication reported that Woori Financial Group Inc. and KEB Hana Bank were facing the possibility of a regulatory inspection into the alleged misselling of derivatives-linked funds.
* Industry observers said the rapid growth of consumer debt in South Korea amid an economic slowdown in the second quarter could restrain corporate investment and private spending and may lead to delays in the country's economic recovery, The Korea Times reported, citing industry observers. The balance of household debt rose to 1,467.3 trillion won from 1,451.9 trillion in the previous quarter, according to the Bank of Korea.
* The sales of foreign currency-denominated life insurance products are slowing down globally on the back of declining interest rates, The Nikkei reported. The industrial total of foreign-currency-denominated life insurance sales is estimated to have decreased 10% year over year to ¥800 billion during the April-June period.
ASEAN
* Indonesian state lender PT Bank Tabungan Negara (Persero) Tbk will issue 7.5 trillion rupiah of sub-debt in the fourth quarter to beef up capital ahead of new accounting rules in 2020, Bisnis Indonesia reported, citing director Nixon Napitupulu. After the issuance, the bank's capital adequacy ratio is estimated to clock in at around 19%.
* Thailand's National Economic and Social Development Board said the country's economy grew 2.3% in the second quarter, the lowest level in nearly five years, citing a decline in exports as a result of the global trade war between the U.S. and China, a drought in the country, weak buying power and slow tourism, Manager Daily reported.
SOUTH ASIA
* Lenders to India-based Dewan Housing Finance Corp. Ltd. agreed on a three-level resolution plan that involves converting a portion of the company's approximately 800 billion rupees debt into equity and issuing nonconvertible debentures, The Economic Times reported, citing two people aware of the matter. Separately, the troubled company disclosed in a bourse filing that it defaulted on the resettlement of the principal and interest on nonconvertible debentures and commercial papers worth a total of 15.71 billion rupees.
* Indian auto loan provider Cholomandalam Investment & Finance Co. is looking to establish a housing finance subsidiary in a bid to boost its loan book, Bloomberg News reported, citing Executive Director Arun Alagappan. The firm plans to transfer its housing loan portfolio, worth 26 billion rupees, into the mortgage unit once it receives a license to operate.
* The Reserve Bank of India wants the country's banks to link new loans with the key policy rate and pass on interest rate cuts to borrowers in a bid to revive domestic economic activity, Reuters reported, citing Governor Shaktikanta Das. The regulator has lowered rates this year to boost growth, but commercial banks have passed on only a portion of the eased rates to their customers.
* Wadhawan Global Capital Pvt. Ltd., the parent of Dewan Housing Finance, will sell its loan distribution business Andromeda Sales and Distribution Pvt. Ltd. to London-based Metdist Enterprises Ltd. for nearly 1.5 billion rupees, Mint reported, citing two people aware of the development.
AUSTRALIA AND NEW ZEALAND
* Around 30,000 of Westpac Banking Corp.'s credit card customers will receive refunds totaling A$1.8 million from the bank after they were incorrectly charged yearly fees, News.com.au reported. The report came less than a month after the bank said it would refund NZ$7 million to 93,000 customers who were overcharged for banking packages.
* Moula Money Pty Ltd, a Melbourne-based small business digital lender, is seeking to raise A$20 million of growth capital in its fourth private financing round, The Australian Financial Review's Street Talk blog reported, citing investor sources.
* Financial advisers in Australia are likely to see a 30% decline in their annual income following the government's plans to do away with grandfathered commissions, The Australian Financial Review reported, citing industry observers.
* Moody's said asset quality and capital will remain strong for New Zealand banks over the next 12 to 18 months but slow credit growth, low interest rates and rising operating costs will weigh on the banks' profitability. The rating agency said its outlook for New Zealand banks remains stable.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Bahrain's Al Salam Bank denies merger rumors; Africa growth risks increasing
Europe: Leaked Brexit crisis plan; ECB clears Carige rescue; NatWest data breach
Latin America: Treasury minister's resignation, sovereign rating cuts hit Argentina
North America: SEC fines 2 brokers over ADRs; Texas banks in deal; ND bank files for IPO
Global Insurance: Centerbridge eyes insurtech company; healthcare reinsurance; Luxembourg tornado
Zia Ullah Khan, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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