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Japanese banks to impose charges due to negative rates; Barclays Japan CEO to quit

* A numberof Japanese banks will start imposing charges on money they hold for clients tocurb costs incurred from the Bank of Japan's negative interest rate policy, London'sFinancial Times reported.Takeshi Kunibe, who is set to become chairman of the Japanese Bankers' Association,said there will likely be a spike in overseas acquisitions by Japanese companiesdue to the country's negative interest rate policy, the publication reportedseparately. Kunibe is president of SumitomoMitsui Banking Corp.

* EijiNakai, Barclays Plc CEOfor Japan, is due to leave the firm June 30, Bloomberg News reported,citing internal memos. Nakai will also relinquish the role of co-CEO for Asia Pacific,leaving Andrew Jones as the sole CEO.

* appointed Li-Gang Liuas managing director and chief economist for China, Reuters reported, citing an internal memo. Liu, whose appointmentis effective immediately, was previously chief economist for Greater China at

GREATER CHINA

* China'sState Administration of Foreign Exchange said the Chinese banking industry's externalfinancial assets stood at US$721.6 billion at the end of December 2015, while itsexternal liabilities were recorded at US$943.7 billion, Caixin reported.

* SAFEalso said China's external financial assets were at US$6.22 trillion as of the endof 2015 while external liabilities were worth US$4.62 trillion, the China Securities Journal reported.

* Thenonperforming loan provisioning coverage ratio of China Construction Bank Corp. dropped 71.34 percentage pointsto 150.99% at the end of 2015 from the previous year due to asset quality deterioration,the Securities Daily reported. Meanwhile,the pretax annual salary of Chairman Wang Hongzhang dropped to 598,800 yuan in 2015from 1.15 million yuan in 2014.

* Standard& Poor's Ratings Services saidit lowered its outlooks on China and Hong Kong to negative from stable. The ratingagency said it lowered the outlook on China's long-term rating to negative, as thecountry's economic rebalancing is likely to proceed more slowly than previouslyexpected and fail to curb the risks of credit-fueled growth.

* TaiwaneseDeputy Minister of Finance Wu Tang-chieh, who is in charge of the island's NationalSecurity Fund, said the government will decide whether to keep or give up the fundApril 12, the Liberty Times reported. Thefund invested more than NT$19 billion into Taiwan's stock market between Aug. 25,2015, and Jan. 17 and had losses of about NT$400 million.

* Taiwan'sFinancial Supervisory Commission said the legality of peer-to-peer lending is stillunclear, the Taipei Times reported.The commission warned of the possibility of breaching laws prohibiting unauthorizedfundraising and receiving of deposits as well as the service's potential risks.

JAPAN AND KOREA

* DaiwaAsset Management Co. Ltd. began unwinding money market fund holdings, starting withits withdrawal from the Japanese money market by October in response to the Bankof Japan's negative interest rate policy, TheSankei Shimbun reported.

* Japan'sFinancial Services Agency approved the establishmentof Concordia Financial Group, a joint holding firm based on Bank of Yokohama Ltd.'s merger with Higashi-NipponBank Ltd., The Nikkei reported.

* TheU.S. dollar accounted for 66.6% of the Bank of Korea's foreign currency assets bythe end of 2015, the highest since 2007, the Maeil Business Newspaper reported.

* TheBank of Korea said households' financial assets increased by 278.5 trillion wonto 3,176.1 trillion won at the end of 2015 from the prior-year period, Money Today reported.  

* TheKorean central bank and the Financial Supervisory Service will look into the booksof NongHyup Bank in lightof a surge in nonperforming loans at the bank in 2015, Edaily reported.

* Anamendment of the Financial Investment Services and Capital Markets Act will requireinstitutional investors to disclose short positions in excess of 0.5% of outstandingshares, The Chosun Ilbo reported.

ASEAN

* Indonesia'sFinancial Services Authority has signed a letter of intent with the Bank of Thailandon the implementation of a banking integration framework between Indonesia and Thailand,Kompas reported.

* TheIndonesian Financial Services Authority also said Indonesian banks should take advantageof bilateral agreements with regulators in Thailand, East Timor, South Korea, Malaysiaand Myanmar, Kompas reported.

* RAMRatings is projecting moderate growth for Malaysia's insurance and takaful sectorsin 2016, amid financial market uncertainties expected to persist throughout theyear, Bernama reported.

* SaudiArabia accounted for 33% of global Islamic banking assets, while Malaysia is thesecond largest with a share of 15.5%, UtusanMalaysia reported.

* JaturongJantarangs, the Bank of Thailand's assistant governor for monetary policy, saidthat while its monetary policy committee has kept policy interest rates unchanged,the panel is ready to implement monetary policy moves or lower the policy interestrate if external risk factors will cause an impact to the Thai economy, Thailand'sPost Today reported.

* RoongMallikamas, the Bank of Thailand's senior director for the Macroeconomic and MonetaryPolicy Department, said the Thai economy in February was supported by growth inthe tourism industry, which could also help boost the country's economic revival,Post Today reported.

* TheState Bank of Vietnam will tighten lending in foreign currencies in some cases,effective March 31, in line with its push for anti-dollarization, Viet Nam News reported.

* BangkoSentral ng Pilipinas said loans extended by Philippine banks went up to 5.11 trillionpesos by the end of February from 4.37 trillion pesos in the previous year due tostrong demand from both corporate and retail borrowers, The Philippine Star reported.

SOUTH ASIA

* TheReserve Bank of India said it decided to increase the limit of foreign investmentin the insurance sector to 49% from 26% under the automatic route, the Press Trustof India reported.

* saidit raised 5.15 billion Indian rupees by issuing Basel III-compliant Tier 2 bonds.The coupon rate on the bonds is fixed at 8.45%, with a 10-year tenor.

* saidit obtained approval from the High Court of Delhi for arranging the merger of IndiabullsFinance Co. Pvt. Ltd. and Indiabulls Commercial Credit Ltd., the Press Trust ofIndia reported.

AUSTRALIA AND NEW ZEALAND

* TheAustralian Prudential Regulation Authority released for consultation a discussionpaper on Net Stable Funding Ratio requirements that will require Australia's majorbanks to raise billions in funding, The Australianreported.

* Chi-XAustralia CEO John Fildes said the company was working on using what it called "transferablecustody receipts" to represent stocks from the NYSE and NASDAQ on Chi-X, The Sydney Morning Herald reported.The move is aimed at helping diversify the investments of Australian funds not allowedto invest directly offshore, Fildes said.

IN OTHER PARTS OF THE WORLD

* Russiahas made an initial move to recapitalize Vnesheconombank,the state development bank. Premier Dmitry Medvedev told VEB's supervisory board,which he heads, that the government would inject 150 billion Russian rubles in freshcapital, Reuters said.

* TheItalian government is considering asking banks to help compensate 12,500 saverswho incurred losses from its rescue of four small lenders in 2015, Reuters , citing a government source.

* Chile'scentral bank, Banco Central de Chile,lowered its economic growth estimate for 2016 to between 1.25% and 2.25% as a partialwithdrawal of economic stimulus funds could be further observed, Reuters .

* Randal Zanetti as its CEO, industrywebsite Segs reported. Zanetti served as interim CEO after the company's previousleader, Marco Antonio Rossi, was killed in November 2015 in an airplane crash.

S&P Ratings and S&PGlobal Market Intelligence are owned by McGraw Hill Financial Inc.

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

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