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.
* 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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