GREATER CHINA
* China's financial regulators are set to broaden capital tools for commercial lenders to replenish their capital in a bid to bolster their support for the real economy, Xinhua News Agency reported, citing a joint statement by the China Banking Regulatory Commission and four other regulators. The authorities will enhance rules to allow lenders to raise funds through channels including convertible bonds and other loss-absorbing debt instruments.
* Agricultural Bank of China Ltd. said it plans to raise up to 100 billion yuan from a private placement of 27,472,527,469 yuan-denominated A-shares, in a bid to replenish its common equity Tier 1 capital. In a separate filing, the lender said its preliminary net profit attributable to equity holders for full-year 2017 rose to 192.96 billion yuan from 183.94 billion yuan in the year-ago period.
* Germany's Federal Financial Supervisory Authority found that Chinese conglomerate HNA Group Co. Ltd. did not violate German stock market disclosure rules when it built its stake in Deutsche Bank AG in 2017, Reuters reported, citing "a person close to the matter." HNA has since cut its shareholding in the bank as it divests investments to address a liquidity crunch.
* Hong Kong-based Hang Seng Bank Ltd. appointed Ryan Yue Sheng Song as vice chairman and CEO of Hang Seng Bank (China) Ltd., subject to regulatory approval. Song will assume the roles May 1 from Gordon Lam, who is set to become an adviser to the parent bank.
JAPAN AND KOREA
* Japan's Tomoni Holdings said Shikoku-based affiliate Tokushima Bank Ltd. and Osaka-based Taisho Bank Ltd. will merge by the second half of 2019, The Nikkei reported. Another affiliate, Kagawa Bank Ltd., will not join the deal.
* Japan Bank for International Cooperation and Export Credit Bank of Turkey AS signed a cooperation agreement for supporting Japan- and Turkey-based businesses that undertake overseas projects in other countries, The Nikkei reported.
* Choe Heung-sik, head of South Korea's Financial Supervisory Service, stepped down amid allegations that he was involved in irregular hiring practices while he was president of Hana Financial Group Inc., The Korea Herald reported, citing the regulator. Choe's term was terminated the same day, with Yoo Kwang-yeol taking over as acting governor.
* South Korea's Financial Supervisory Service said it would establish a team to monitor the activities of internet lenders KakaoBank of Korea Corp. and K bank, The Korea Times reported, citing a source from the authority. The move is aimed at preventing clients from being exposed to risks associated with online banking.
ASEAN
* U.S.-based private equity firm Warburg Pincus LLC will invest more than US$370 million in Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, subject to relevant regulatory approvals. Warburg Pincus did not disclose the size of its shareholding in the bank following the transaction, but Reuters cited "a source familiar with the matter" as saying that the company would own less than 10% and become one of the lender's largest shareholders.
* South Korea's Lotte Card Co., Ltd. received final approval from the State Bank of Vietnam to acquire an entire stake in TechcomFinance, a subsidiary of Techcombank, Pulse reported. Lotte Card is looking to expand its business in Vietnam by developing finance business models based on a network created by other Lotte Group units with a presence in the local market.
* The recovery in Indonesian banks' asset quality is set to continue in 2018, as lenders have been more cautious in providing loans to companies in the riskier segments, mainly those related to commodities, S&P Global Ratings said. However, the recovery could be hindered as nonperforming loans in the mining sector remain elevated.
* Singapore Exchange Ltd. intends to ease some of the recommended restrictions it planned to impose on dual-class listings, with proposals expected to be released as a public consultation in March, Bloomberg News reported, citing "people with knowledge of the deliberations." The proposals may include dropping an earlier recommendation that dual-share listings have a market value of at least S$500 million and that companies have to be traded on the main venue.
* HSBC Holdings PLC unit HSBC Insurance (Singapore) Pte. Ltd. named Carlos Vazquez as its new CEO, effective March 12. Vazquez replaces Ian Martin, who will be taking on a new global role in London-based HSBC Group Insurance.
SOUTH ASIA
* A South African court dismissed a bid by Gupta-owned companies to stop India's Bank of Baroda from closing its South African operations, Reuters reported. The lender in February decided to exit its local operations following a probe by regulators into its dealings with the politically connected Gupta family.
* India-based PNB Housing Finance Ltd. said its board will consider raising up to 80 billion rupees through an issuance of nonconvertible debentures in one or multiple tranches.
* Federal Bank Ltd. signed a strategic partnership with Celebrus Capital and Fortune Wealth Management to provide portfolio investment services to nonresident Indians, The Hindu Business Line reported.
* The Nepal Bankers' Association, a network of commercial banks, decided to halt interbank transactions with NIC Asia Bank Ltd. after the lender raised deposit rates above the threshold created by members, The Kathmandu Post reported. Meanwhile, the Nepal Rastra Bank remained mum as the association began functioning as the banking sector regulator, directing financial institutions to fix deposit rates according to its prescription.
AUSTRALIA AND NEW ZEALAND
* Industry sources said National Australia Bank Ltd. and Commonwealth Bank of Australia will tell the country's banking royal commission that they did not find systemic evidence of malpractice by their mortgage networks, The Australian Financial Review reported. The commission is expected to use recent high-profile cases of fraud and brokers' malfeasance in considering, among other things, the brokers' commission remuneration.
* Australia's big banks may face a class action over the sale of millions of dollars of "worthless" credit card insurance, Australian Associated Press reported. Commonwealth Bank of Australia admitted selling insurance to customers who may not have been eligible to make claims and said it would refund A$16 million to an estimated 140,000 clients.
* New Zealand-based Momentum Life received a life insurance license, making it the underwriter of its future products, Scoop Media reported, citing a company press release. Established in April 2016, the insurer accounted for more than 60% of the total new guaranteed acceptance life insurance business issued in the country in 2017.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Emirates NBD eyes $2B capital hike; Tanzania saying no to bank rescues
Europe: Deutsche Bank sets price range for DWS IPO; Barclays gets ring-fencing nod
Latin America: Te Creemos to buy smaller rival; Moody's downgrades Venezuela
North America: Civista Bancshares buying Indiana's United Community Bancorp for $114.4M
North America Insurance: Insurers trick Medicare to boost revenue; Willis platform issues $52.6M cat bond
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
The Daily Dose has an editorial deadline of 6:30 a.m. Hong Kong time. Some external links may require a subscription.
