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BOC applies for Chilean branch license; Citi to merge EMEA, Asia consumer banking ops

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BOC applies for Chilean branch license; Citi to merge EMEA, Asia consumer banking ops

*Chilean banking regulator SBIF is considering an application by to open abranch in thecountry, the regulator said. The application was sent June 29.

*Citigroup Inc. isconsolidating itsconsumer banking units in Europe, the Middle East and Africa with its Asianunit, Reuters reported, citing an internal memo.

*Paul Thompson, former head of money market and derivatives for northeast Asiaat Rabobank, willplead guilty to conspiring to manipulate LIBOR, The Australian reported,citing his lawyer. Thompson, who was extradited to the U.S., is the firstAustralian charged in the investigation.

*QBE Insurance GroupLtd. has signed a deal with Armour Group Holdings Ltd to bring its legacy U.K.employers' liability book to finality, TheInsurance Insider reported. The agreement is understood to be structuredas a reinsurance transaction, with use of a fronting reinsurer closing offQBE's counterparty credit risk.

GREATER CHINA

*Huang Yiping, monetary policy committee member of the People's Bank of China,said that the country must face rising financial instability and financialrisks, Reuters reported.Huang estimated that nonfinancial businesses' enterprise debt might account forat least 160% of the country's GDP.

*China's foreign exchange reserves increased by US$13.5 billion to US$3.21trillion in June from the end of May, Wallstreetcn.com reported.

*McKinsey & Co. said the profit of China's financial sector took up morethan 80% of the country's total economic profit, possibly the highest in theworld, Caixin reported, citingJonathan Woetzel, director of McKinsey Global Institute.

*Forty-nine senior management officials resigned from banks to work in theInternet finance industry in 2016, including 12 who went to Internet banks, 12who served at comprehensive financial platforms, 23 who went to peer-to-peerplatforms and two who worked at Internet financial companies, the Securities Daily reported.

*The China Insurance Regulatory Commission approved the setup application of twomore insurance asset management companies, bringing the number of comprehensiveinsurance asset management companies in the country to 26, Caixin reported.

* YuXuejun, chairman of the Board of Supervisors for major state-owned financialinstitutions under the China Banking Regulatory Commission, said thatoutstanding nonperforming loans had exceeded 2 trillion yuan as of the end ofMay, up by 280 billion yuan from the start of 2016, Shanghai Securities News reported.Yu noted that the risk of more NPLs would keep rising.

*Analysts said that Taiwanese banks' earnings might increase by NT$40 billiondue to a windfall as regulators consider lowering the mortgage provision rateto stimulate the slowing housing market, the Taipei Times reported.Analysts said that the move might also lead to loan growth, as banks would havemore room to underwrite more mortgages. The Financial Supervisory Commission isreportedly also considering lowering the risk weight of mortgage loans andraising the upper limit of property-related loans vis-a-vis the total depositratio.

JAPAN AND KOREA

*Bank of Tokyo-Mitsubishi UFJLtd. will form a capital alliance with U.S.-based Coinbase toco-develop a low-cost foreign remittance system, Tokyo's The Nikkei reported.

*More Japanese companies are raising funds through corporate bonds, The Nikkei reported.The amount of issuance in the first half increased by 7% year over year to ¥3.9trillion, where long-term bonds with maturities of 10 years or longer totaled¥505 billion, the highest in 18 years.

*Korea DevelopmentBank said that the bank is authorized to sell securities in Chinaafter it acquired a Qualified Foreign Institutional Investor certificate,becoming the first South Korean bank to do so, the Korea Economic Daily reported.

*South Korea's NH Investment & Securities has bought the buildingheadquarters of the Australian Red Cross for 100 billion won using real estatefunds that the company collected, Yonhap News Agency reported.

*Following the merger between KBKookmin Bank and Hyundai Securities Co. Ltd., co-developed products andplans for cross-transactional sales are being developed and will be introducedsoon, the Korea Economic Daily reported,citing a statement from KBFinancial Group Inc.

ASEAN

*Krung Thai Bank PCLsaid its lending is likely to fall short of the full-year growth target of 3%,following a 2.4% contraction in the first five months, Manager Daily reported.The bank expects its nonperforming loans to rise between 18 billion baht and 20billion baht in 2016.

*CIMB Thai Bank PCL iskeen on using financial technology to support small and medium-sized businessesthat are tapping into Southeast Asian markets, Krungthep Turakij reported, citingPhisit Sucharitsopit, head of the company's transaction banking group. CIMB aimsto become a fintech bank in the next three years.

* Post Today reported that, atthe end of May, life insurance premiums totaled 226 billion baht, up 5.52% yearover year, according to the Thai Life Assurance Association. Top five insurersthat generated the highest premiums were American International Assurance Co. Ltd. - Thailand,Muang Thai Life Assurance PCL,Thai Life InsurancePCL, Krungthai-AXALife Insurance PCL and SCB Life Assurance PCL.

*Indonesian state lender PT BankMandiri (Persero) Tbk is hesitant to set a challenging lendinggrowth target for 2016 despite seeing an increase in June, Infobank reported,citing CEO Kartika Wirjoatmodjo. Mandiri aims for a lending growth of 9% to 10%for 2016.

*Bank Indonesia aims to issue seven regulations until the end of 2016, includingrules covering money market, negotiable certificates of deposit, structuredproduct and hedging funds, Infobank reported,citing Nanang Hendarsah, head of financial market deepening development.

*Indonesian Deposit Insurance Agency, or LPS, said it is preparing a new premiumrate for big banks based on risk levels, as opposed to the current flat levelof premium for all banks, The JakartaPost reported,citing Halim Alamsyah, commissioner board head of LPS. Higher premiums mayapply for domestic systemically important banks, he said.

SOUTH ASIA

*The Securities and Exchange Board of India plans to make credit rating agenciesaccountable for their rating actions on certain debt instruments, Mint reported,citing an interview with Rajeev Kumar Agarwal, a member of SEBI.

*Bank of India intendsto raise 15 billion Indian rupees through Tier 2 bonds under Basel III, the Business Standard reported.CRISIL has assigned an AA+ rating to the bonds.

*Yeldi Softcom said it received a license granted by the Reserve Bank of Indiafor a semi-closed wallet, the BusinessStandard reported.The company said the move would allow it to cater to a larger audience.

AUSTRALIA AND NEW ZEALAND

*The Australian Securities and Investments Commission expects the country's bigfour banks to settle interest rate rigging cases as islikely to face legal action soon from the watchdog, The Australian reported.The allegations date back to between 2010 and 2013. Banks have denied chargesand vowed to fight their cases in federal court.

*S&P Global Ratings Services lowered its outlook on Australia's four major banks andtheir strategically important subsidiaries to negative after also the outlook on thecountry's sovereign ratings to negative.

*Former home loans broker Madhvan Nair admitted to submitting 18 applicationswith false information and may face jail time, The Australian Financial Review reported.Nair submitted these applications to Westpac, National Australia Bank and ANZBanking Group.

IN OTHER PARTS OF THE WORLD

MiddleEast & Africa: NewPalestinian Islamic bank; Fairfax in Africa push

LatinAmerica: BM&FBOVESPA acquiresalmost 10% stake in Colombian stock exchange

NorthAmerica: Citi may sell YieldBook; Avant cuts more than expected

NorthAmerica Insurance: JusticeDepartment skeptical about Anthem/Cigna deal; 2 Berkshire Hathaway unitsreceive cease-and-desist order

CRISIL Ltd., S&P GlobalRatings and S&P Global Market Intelligence are owned by S&P Global Inc.

Sally Wang, Sarun Saelee,Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

The Daily Dose has aneditorial deadline of 6:30 a.m. Hong Kong time. Some external links may requirea subscription.