GREATER CHINA
* China Construction Bank Corp. CFO Xu Yiming said 56% of its new loans referenced the loan prime rate, and that the bank would meet the 30% regulatory target by the end of September, Reuters reported. Xu noted that while it is unlikely for the People's Bank of China to cut the benchmark rate, it may act on the medium-term lending facility instead.
* China's Dajia Insurance Group Co. Ltd., which has taken over Anbang Insurance Group Co. Ltd., said it would soon establish four new companies under the group — Dajia Property Insurance Co. Ltd., Dajia Life Insurance Co. Ltd., Dajia Pension Co. Ltd. and Dajia Asset Management Co. Ltd., Caixin reported.
* Chinese financial regulators have asked some third-party payment companies to be more prudent in providing services to peer-to-peer lending platforms, and in some cases to stop offering their settlement and payment services entirely, Caixin reported. Financial institutions were also urged to exercise proper judgment in offering clearing services to online firms engaged in P2P lending.
* The Financial Supervisory Commission imposed fines of NT$4 million on Union Bank of Taiwan Ltd. and NT$2 million on Taiwan Shin Kong Commercial Bank Co. Ltd. for the lack of anti-money laundering systems in their processes, the United Daily reported.
JAPAN AND KOREA
* Japan Bank for International Cooperation and Development Bank of Southern Africa formed a business tie-up to provide assistance to businesses in Japan and Africa, The Nikkan Kogyo Shimbun reported. Under the partnership, the two companies will exchange information on potential projects as well as on political and economic conditions.
* Tsurugi Shinkin Bank and Hokuriku Shinkin Bank will introduce unsecured, non-guaranteed loans to fund business capital and operational costs, Tokyo's The Nikkei reported. The loans will be backed by Japan Finance Corp. and institutional investors through credit default swaps.
* Shinhan Financial Group Co. Ltd.'s real estate investment trust management unit has completed the acquisition of a South Korean business hotel from Nomura Holdings Inc.'s RIFA Asset Management Co. Ltd. subsidiary, The Chosun Ilbo reported, citing industry sources from the local investment banking scene.
ASEAN
* Ronadol Numnonda, deputy governor of the Bank of Thailand, dismissed speculations that the central bank plans to impose a debt service ratio limit in 2019 amid concerns over domestic household debt, Post Today reported. The regulator, however, pledged to monitor the country's household debt levels closely and said it would implement regulatory measures if necessary.
* CIMB Group Holdings Bhd.'s second-quarter profit attributable to owners of the parent dropped 23.8% to 1.51 billion Malaysian ringgit from 1.98 billion ringgit in the year-ago period, as gains from asset sales plunged year over year. Basic EPS declined to 15.60 sen from 21.29 sen in the year-ago quarter.
* Krungthai Card PCL is collaborating with Mastercard Inc. to roll out a digital payment tokenization solution using the latter's Mastercard Digital Enablement Services to facilitate e-commerce transactions, Daily News reported.
* The Monetary Authority of Singapore is now accepting applications for new digital bank licenses and issued detailed guidelines for applicants. Interested parties have until Dec. 31 to submit their applications.
* PT Bank Tabungan Negara (Persero) Tbk appointed Marwanto Haryowiryono its new commissioner, replacing Sumiyati in the role, Infobank reported. Further, the bank hired Elisabeth Novie director of collections and asset management.
SOUTH ASIA
* State Bank of India unit SBI Cards and Payment Services Private Ltd. is looking to raise 80 billion rupees by selling about 8% of its shares via an IPO later this year, Reuters reported, citing a bank executive involved in the process. The public offer is expected to take place in the fourth quarter, and could value the business at about 1 trillion rupees.
* United Bank of India, Bank of Baroda, Axis Bank Ltd. and Indian Overseas Bank are among the lenders looking to sell nonperforming loans worth a combined 80 billion rupees in the next few days, The Economic Times reported, citing three people familiar with the matter. United Bank of India is offering 21.82 billion rupees in bad debt to bidders, while the other banks are offering 5 billion rupees to 15 billion rupees each.
* Analysts expect India's economic growth to have slowed to 5.7% in the April-to-June quarter, its slowest since the 5.3% growth reported in the January-to-March quarter in 2014, Reuters reported, citing a poll. The Reserve Bank of India signaled more rate cuts to help spur economic growth, but analysts noted that further monetary easing may not be enough given that banks are hesitant to pass on lower rates to customers.
AUSTRALIA AND NEW ZEALAND
* Australia's banks could see more frequent stress test exercises from the Australian Prudential Regulation Authority as the regulator becomes wary of a deteriorating domestic and global outlook, The Australian reported. The publication said APRA would likely require an annual stress test on banks instead of once every three years.
* In its corporate plan for fiscal years 2019 to 2023, APRA Chairman Wayne Byres said the regulator would "place greater emphasis on the supervision of 'nonfinancial risks' such as culture and accountability." It also identified cybersecurity across the financial system as a key focus in the coming years.
* Prospa Group Ltd. said it is on track to meet its loan originations and revenue targets of A$559 million and A$156 million, respectively, for the 2019 calendar year, The Australian reported. The online small business lender reported a 36.6% year-over-year increase in loan originations for the fiscal year ended June to A$501.7 million. Total revenue for the year rose 31.2% to A$136.4 million.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Tadawul's full inclusion on MSCI emerging markets index; Israel holds rate
Europe: Johnson to suspend UK Parliament; UBS reshuffles; Italian parties strike deal
Latin America: Argentina seeks debt extensions; Mexico central bank cuts growth forecast
North America: Moody's cuts i-banks' 2019 outlook; Kentucky banks in deal
Global Insurance: Dorian could threaten Florida; reinsurance discipline; silent cyber exposure
R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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