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Philippine central bank cuts rates again; China drafts new loan provision rules

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Philippine central bank cuts rates again; China drafts new loan provision rules

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 require a subscription.

New Zealand and Thailand central banks hold key rates; Philippines cuts rates again

* The Reserve Bank of New Zealand kept the official cash rate at 1.0%, and added that there is scope for more fiscal and monetary stimulus to support the economy. The central bank may lower rates to 0.75% by early 2020 due to sluggish economic activity.

* The Bank of Thailand held its key interest rate unchanged at 1.50%. The central bank downgraded its growth forecasts due to a slowdown in exports amid trade tensions.

* The Philippine central bank cut its key interest rates for the third time this year amid a "benign" inflation outlook. Bangko Sentral ng Pilipinas lowered the interest rate on its overnight reverse repurchase facility by 25 basis point to 4.0%. The interest rates on the overnight deposit and lending facilities were reduced accordingly to 3.5% and 4.5%, respectively.

China proposes rules on loan provision; India formulates new bailout framework

* China's Ministry of Finance proposed banks with provision coverage ratios exceeding 300% to distribute reserves beyond that amount as dividends. Banks are required to hold a minimum provision coverage ratio of 150%, according to the ministry.

* India's regulators are set to announce a new framework that will lay out a standard line of action for government agencies to rescue stressed financial firms, Business Standard reported, citing unnamed sources.

M&A corner

* IOOF Holdings Ltd. completed the sale of its 70% stake in Ord Minnett Holdings Pty. Ltd. A consortium of private investors led by the private wealth manager's management bought the stake for a total consideration of A$115 million.

* Japan Exchange Group Inc. completed its acquisition of Tokyo Commodity Exchange Inc., with the commodity exchange set to become a consolidated subsidiary of Japan Exchange Group on Oct. 1.

* Alibaba Group Holding Ltd. finalized the acquisition of a 33% stake in Ant Financial Services Group. Ant Financial operates Alipay payments services platform.

* Yes Bank Ltd. founder Rana Kapoor plans to sell his stake in the India-based lender to Canada's Brookfield Asset Management Inc., Financial Express reported, citing persons familiar with the development. The move comes as the Kapoor family looks to protect other unlisted entities such as the Delhi Dabang Kabaddi Club, Awfis Solutions and Art Housing Finance.

In other news

* Australia's Latitude Financial Services Ltd. is looking to raise up to A$1.40 billion in its proposed IPO on the country's stock exchange. The nonbank lender will offer approximately 622.4 million shares at a price range of A$2.00 to A$2.25 each.

* The Reserve Bank of India denied media reports that it will close certain commercial banks, Press Trust of India reported. Various social media platforms had speculated that the central bank will permanently close down nine banks and that the public should withdraw their money from those banks.

* Investment Corp. of Bangladesh plans to resume full operation of the country's largest-ever unit fund, while also opening it up to all investors, The Financial Express reported, citing Md. Abul Hossain, managing director of the government's investment arm. The sale of units in the roughly 50 billion taka fund had stopped due to a condition of a development agreement with Asian Development Bank.

* Korea Development Bank issued US$1 billion of global bonds on Sept. 23, The Digital Times reported.

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