GREATER CHINA
* The People's Bank of China said the country will ramp up its crackdown on irregularities on internet finance, underground lenders as well as foreign exchange trading platforms, Reuters reported, citing an online statement. The central bank made the comments after it met with the country's Ministry of Public Security to boost cooperation in safeguarding order in the financial market.
* The China Banking Regulatory Committee's Chongqing office has barred local lenders from providing funds for loan extensions to institutions that do not meet qualifications for giving out loans, china.com.cn reported. Banks are also forbidden to co-grant loans with institutions that are not qualified to extend loans.
* Moody's changed its outlook on Chinese life insurers to stable from negative, mirroring the rating agency's expectation that the current moderate economywide buildup in leverage, a shift to a more sustainable product mix and a drop in investment allocation to high-risk assets will prevent the creditworthiness of local life insurers from further deteriorating in the next 12 to 18 months.
* Taiwan-based Mega Financial Holding Co. Ltd. held a 7.2% stake in Taiwan Business Bank Co. Ltd. at the end of April, down from 12.01% at the end of 2017, the island's Central News Agency reported. Mega Financial will likely continue adjusting its holding of Taiwan Business Bank's equities, the news agency noted.
JAPAN AND KOREA
* Japan-based Daido Life Insurance Co. has agreed to acquire a 14.9% stake in Australian life insurer Integrity Group for about ¥100 million, Tokyo's The Nikkei reported. Other Japanese life insurers including Nippon Life Insurance Co. and Dai-ichi Life Holdings Inc. are also looking to expand in Australia.
* Japanese regional banks Chiba Bank Ltd., Gunma Bank Ltd., Senshu Ikeda Holdings Inc. and Kiraboshi Bank Ltd. are looking to invest about ¥9 million each to Mutual Fund & Insurance Research Institution, a Sumitomo Mitsui Trust Holdings Inc. subsidiary, The Nikkei reported.
* U.S.-based digital currency exchange firm Coinbase Inc. will apply to register with Japan's Financial Services Agency? as early as this year, The Nikkei reported. Coinbase is looking to enter the Japanese market with the support of Mitsubishi UFJ Financial Group Inc., which infused more than ¥1 billion into the company in 2016.
* South Korea's Financial Supervisory Service said it has begun a two-week inspection of the Seoul branch of U.S.-based investment bank Goldman Sachs Group Inc. after it failed to settle short selling transactions, Yonhap News Agency reported. The branch was found to have made a short selling transaction May 30 but failed to settle about 1.3 million shares worth around 6 billion won for two days.
ASEAN
* Thailand-based Siam Commercial Bank PCL denied media reports that the Bank of Thailand has nominated Boontuck Wungcharoen a member of the company's board of directors to audit its loans. The lender said the central bank is considering Boontuck's qualifications for a nomination.
* The Bangko Sentral ng Pilipinas said the six-month observation period for the net stable funding ratio, which requires banks to keep up a liquid position that is sustainable for one year, will begin July 1. During this period, covered companies in the Philippines that do not meet the prescribed minimum ratio will have to present a funding plan to enhance their funding profile and comply with the requirement.
* Malayan Banking Bhd. named Michael Foong Seong Yew CEO of the lender's international business, effective June 1. He succeeds Pollie Sim, who retired.
* The Indonesian Commodity Futures Exchange Supervisory Body approved cryptocurrencies as a tradable commodity in Indonesia's futures exchange, Kontan reported. Dharma Yoga, head of market development and supervision bureau, said the body will collaborate with Bank Indonesia and the Financial Services Authority to further issue regulations.
* Indonesian state lender PT Bank Mandiri (Persero) Tbk plans to shift its loan portfolio toward the corporate segment to boost loan growth expected at 11% to 13% in 2018, Bisnis Indonesia reported, citing CEO Kartika Wirjoatmodjo. He said loan growth in the middle segment remains sluggish.
SOUTH ASIA
* Fitch Ratings downgraded the viability rating of India-based Punjab National Bank to "b" from "bb-," reflecting the significant deterioration in its stand-alone credit profile mainly caused by a decline in its core capital ratio. The rating agency added that the deterioration in the bank's core capitalization was due to a surge in its nonperforming loans, including US$2.2 billion in fraudulent transactions uncovered in February. Fitch maintained the rating on Rating Watch Negative.
* The Indian government appointed IDBI Bank Ltd. Managing Director and CEO Mahesh Kumar Jain deputy governor of the Reserve Bank of India, according to a tweet from Rajeev Kumar, secretary of the country's Department of Financial Services. Jain will serve the role for a three-year term.
* India-based ICICI Bank Ltd. has begun the process of searching for a new nonexecutive chairman as M. K. Sharma's term ends June 30, Press Trust of India reported, citing sources close to the development. M. D. Mallya, former Bank of Baroda chairman and managing director and ICICI Bank's current independent director, is leading the race to succeed Sharma, according to sources.
* Twelve Bangladeshi banks including Sonali Bank Ltd., Agrani Bank Ltd. and Rupali Bank Ltd. saw a provisioning deficit of 105.96 billion taka in the three months ended March 31, a development that may push lenders to raise their interest rates on lending, The Daily Star reported, citing data from the Bangladesh Bank.
AUSTRALIA AND NEW ZEALAND
* Australia & New Zealand Banking Group Ltd., Citigroup Inc. and Deutsche Bank AG will appear at a Sydney court July 3, after Australia's Commonwealth Director of Public Prosecutions said it will begin criminal proceedings against the companies over alleged cartel conduct related to a share placement in 2015, The Sydney Morning Herald reported. The charges have been formally filed against the banks, but documents have not yet been served on the individual bankers involved.
* Australian boutique equities investor Arnhem Investment Management is preparing to close its doors to new investors after looking at strategic options, The Australian Financial Review's Street Talk blog reported. Managing partners, including George Clapham, Mark Nathan and Neil Boyd-Clark, reportedly decided to wind down "existing capabilities" and will stay with the company during the move. Meanwhile, French lender BNP Paribas SA is expected to keep its minority shareholding.
* Australian financial services company FlexiGroup Ltd. and Oxipay, a payment service run by FlexiGroup New Zealand, signed a strategic trans-Tasman partnership with Australasian payment processor Payment Express, Scoop Media reported, citing a press release. Under the tie-up, the two firms will roll out Oxipay as a digital wallet payment platform across online and in-store retailers in Australia and New Zealand.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Israel eases process for prospective new banks; Nigeria Re said to eye 2018 IPO
Europe: UniCredit eyes merger with SocGen; CYBG ups Virgin Money offer; Spain has new PM
Latin America: BBVA Francés Q1 profit up 178%; Barbados seeks debt restructuring
North America: JPMorgan gets immunity on alleged cartel conduct; Wells mulls 2 post-Brexit hubs
North America Insurance: Icahn looks to establish fair AmTrust price; Manulife raising $2B for fund
R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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