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China explains Baoshang Bank takeover; Mitsubishi UFJ cuts London workforce

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China explains Baoshang Bank takeover; Mitsubishi UFJ cuts London workforce

GREATER CHINA

* The People's Bank of China said it has no plans to take over other banks following its decision to take control of Baoshang Bank Co. Ltd. The central bank said the move was triggered by misappropriation of fund by the bank's largest shareholder, Tomorrow Group, which poised serious credit risks.

* Meanwhile, Baoshang Bank said holders of the bank's acceptance bills worth under 50 million yuan will be guaranteed full payment and those who hold more than 50 million yuan worth of acceptance bills will be guaranteed at least 80% of the full payment.

* Baoshang Bank also plans to issue 1 billion yuan worth of negotiable certificates of deposit on June 3, with a term of six months and an estimated interest rate of 3.25%, Caixin reported.

* Hua Xia Bank Co. Ltd. received approval from the China Banking and Insurance Regulatory Commission approved to issue no more than 40 billion yuan worth of perpetual capital bonds.

JAPAN AND KOREA

* Japanese financial services giant Mitsubishi UFJ Financial Group Inc. is cutting its workforce in London through a voluntary redundancy program, a spokeswoman told S&P Global Market Intelligence, after earlier reports said roughly 500 senior staff could be affected.

* Mizuho Bank Ltd. local subsidiary has signed a memorandum of understanding with the Department of Commerce of the Jiangsu province in China to collaborate on promoting investments into the local market, among others, The Nikkan Kogyo Shimbun reported.

* South Korea's Financial Supervisory Service has launched a comprehensive audit on KB Financial Group Inc. and its subsidiaries as part of a revived annual audit program on financial institutions, The Korea Times reported. The regulator expects to complete the audit in the first half, and has lined up Hanwha Life Insurance Co. Ltd. and Meritz Fire & Marine Insurance Co. Ltd. for its next inspection.

ASEAN

* PT Bank Danamon Indonesia Tbk Tbk offered 2 trillion Indonesian rupiah in subordinated bonds as part of a 5-trillion-rupiah offering, Bisnis Indonesia reported. Proceeds from the issuance will be used for loan disbursement and the boost the company's liquidity.

* The Bangko Sentral ng Pilipinas has shut down the operations of East Coast Rural Bank of Hagonoy Inc. and placed it under the supervision of the state-run Philippine Deposit Insurance Corp., The Philippine Star reported. The central bank has so far closed down seven banks in 2019.

* Manila-based East West Banking Corp. is looking to raise up to 10 billion Philippine pesos through the issuance of bonds in one or more tranches, The Philippine Star reported, citing a disclosure filed with the bourse.

* Fitch Ratings affirmed the Philippines' long-term foreign-currency issuer default rating of BBB, which reflects prospects of strong sustainable growth and high levels of foreign-exchange reserves against relatively low per-capita income, governance indicators and government revenue.

* S&P Global Ratings raised Indonesia's long-term sovereign credit rating to BBB from BBB-, with a stable outlook, citing the country's strong economic growth prospects and supportive policy dynamics.

SOUTH ASIA

* India's Bank of Baroda is looking to raise 119 billion rupees through the issuance of shares in the fiscal year ending March 2020, the Press Trust of India reported. The bank plans to use the fund to expand its business.

* The Reserve Bank of India could cut interest rates for the third time in a row when it meets on June 6, as borrowing costs are not going down fast enough, analysts told Bloomberg News in a survey.

* Alipay, a Chinese mobile payment platform operated by Ant Financial Services Group, is set to launch its digital payment service in Nepal, The Himalayan Times reported.

* Mercantile Bank Ltd. is set to establish a subsidiary company to operate its mobile financial services, subject to regulatory approvals, The Daily Star reported.

AUSTRALIA AND NEW ZEALAND

* Australian fintech Judo Bank is all set to extend loans up to A$10 billion after raising A$340 million fresh equity from new and existing investors, The Australian Financial Review reported, citing co-founder David Hornery. The bank is expected to close the capital raising at A$400 million in the coming weeks.

* Bank of Queensland Ltd. is said to have held meetings with investment banks to hire an adviser, fueling speculations of a potential merger with a local bank, The Australian reported.

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

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This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings