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CBA faces new class action; Bank of China to open India branch

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 may require a subscription.

Legal troubles, fines

* Commonwealth Bank of Australia is facing a second class-action lawsuit for allegedly failing to properly disclose matters relating to violations of anti-money laundering rules in 2017. The bank said it intends to vigorously defend the new claim.

* Taiwan's financial regulator fined Chang Hwa Commercial Bank Ltd. NT$3 million after finding that bank employees at a branch in China received kickbacks from an appraisal company.

* National Australia Bank Ltd. agreed to update its remediation program to address inadequacies in its foreign exchange business as part of an amended enforceable undertaking entered into with Australia's securities regulator.

* Bangladesh's central bank alleged that 18 banks in the country charged excessive interest rates on credit cards.

* Pakistan's central bank disposed of objections raised by shareholders of the now-defunct KASB Bank regarding the bank's valuation in its merger into BankIslami Pakistan Ltd.

Deal buzz

* South Korea's KB Kookmin Bank received approval from the Financial Services Authority of Indonesia to acquire up to a 22% stake in PT Bank Bukopin Tbk.

* Commonwealth Bank of Australia placed its South Africa banking business under review as it moves to focus on its core Australian and New Zealand banking business.

* The Philippine government plans to partially privatize Overseas Filipino Bank in 2019 by selling its stake. The government is yet to determine the amount of shareholding it would divest.

* India's Dena Bank is seeking to sell an aggregate 6.05 million shares in three entities as part of the bank's aim to sell noncore assets.

* Federal Bank Ltd. is reportedly looking to acquire Madura Microfinance for about 7.20 billion rupees to 7.50 billion rupees.

* Taiwan-based King's Town Commercial Bank Co. Ltd. is reportedly mulling over an acquisition of domestic peer EnTie Commercial Bank Co. Ltd.

Regulatory developments in Australia, New Zealand

* The Reserve Bank of New Zealand will tighten its capital requirements for banks as part of its review of capital adequacy in the country's banking system.

* The Australian Securities and Investments Commission is proposing tighter guidelines on credit card lending, with a focus on consumers' repayment ability, as the country continues cleaning up the credit card market.

* New Zealand required banks to provide police with client details on all cash transactions of more than NZ$10,000 and all international wire transfers from New Zealand of NZ$1,000, effective July 1.

* The Reserve Bank of Australia left its cash rate unchanged at 1.50%.

Overseas expansion, new units

* Bank of China Ltd. obtained a license from the Reserve Bank of India to begin operations in the South Asian country.

* Chang Hwa Commercial Bank Ltd. opened a new branch in Manila, as the Taiwan state-run lender seeks to expand its footprint in Southeast Asia.

* Taiwan's First Commercial Bank Co. Ltd. obtained approval from the island's Financial Supervisory Commission to set up a representative office in Jakarta.

* China Minsheng Banking Corp. Ltd. said it will set up an asset management unit, subject to regulatory approval.

* India's Yes Bank Ltd. received final regulatory approval to establish a mutual fund business, YES Asset Management (India) Ltd.

In other news

* PT Bank Muamalat Indonesia Tbk plans to launch an IPO on the Indonesia Stock Exchange within three to five years.

* India's Punjab National Bank is reportedly downsizing its operations in the Brady House branch in Mumbai as it seeks to tighten controls and restore its reputation following a US$2 billion fraud.

* Separately, Punjab National Bank said it is designating 60 systemically important branches, or SIBs, to manage all lending operations above 500 million Indian rupees.

* The China Foreign Exchange Trade System granted Mizuho Bank (China) Ltd. a market maker license for the bond connect scheme between Hong Kong and China.

* Chinese conglomerate Macrolink Group plans to sell down its stakes in Bank of Ningxia Co. Ltd. and Daxinganling Rural Commercial Bank Co. Ltd. for a total of 1.80 billion yuan to comply with a regulatory requirement on a single investor's stakes in banks.

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