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Bangladesh, NY Fed talks postponed; Credit Suisse appoints execs in China


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Bangladesh, NY Fed talks postponed; Credit Suisse appoints execs in China

* Ameeting between representatives of Bangladesh Bank and the todiscuss matters related to the US$81 million cyber heist has been postponed, Reuters reported, citingofficials from the Bangladesh central bank. The meeting was originally set forJuly 15.

*Credit Suisse GroupAG addedthree officials to its investment banking and capital markets team in China,including two managing directors for Beijing and Shanghai and a director foronshore coverage.

*Temasek Holdings (Pvt.)Ltd. may invest in distressed assets in Indian banks directly orthrough a reconstruction firm, Mint reported,citing a senior executive.


*China's local government bonds are expected to reach 3.5 trillion yuan in thefirst half, close to 3.8 trillion yuan issued in the whole of 2015, the 21st Century Business Herald reported. Therewill be at least 2 trillion yuan of local government debt to be issued in thesecond half, the news outlet added.

*China's Ministry of Commerce said that the country's foreign direct investmentjumped 9.7% to 98.2 billion yuan in June from a year earlier, Xinhua NewsAgency reported.FDI rose 5.1% year over year to 441.76 billion yuan in the first half.

*China's stock regulator is strengthening checking companies seeking backdoorlisting, which may cut the source of a profitable business for China's bankingindustry, Reuters reported.At least 40 overseas-listed Chinese companies had announced plans to delistsince 2015 and are eyeing Chinese bourses through backdoor listings, whichinvolve taking a majority stake in a listed shell company in China.

*Many institutions estimate that China's economic growth likely cooled to 6.6%in the second quarter, down from 6.7% in the first quarter, the Securities Daily reported.Analysts said the slow economic growth might prompt the government to roll outmore support measures and expansive fiscal policies that surpass marketexpectations, including two reserve requirement ratio cuts.

*Taiwan's Financial Supervisory Commission approved toacquire a 100% stake in AIG Taiwan Insurance Co Ltd. for US$158 million, theisland's Central News Agency reported. Theequity delivery date is set for Sept. 1. The commission also approved AIGTaiwan Insurance Co. Ltd. to transfer its commercial insurance business exceptSME insurance to the Taiwan branch of Singapore-based AIG Asia Pacific InsurancePte. Ltd.

*Taiwan's Financial Supervisory Commission said that willhave to bear full responsibility for the NT$70 million that was stolen from thebank's ATMs from July 9 to July 10. NT$70 million was stolen from 34 First BankATMs at 20 branches, Liberty Times reported.


*Michinoku Bank Ltd.will launch a business partnership with SeABank, a unit of Vietnam's BRG Group,to help Japanese companies expanding operations to Vietnam, Tokyo's The Nikkei reported.

*Development Bank of JapanInc. launched a ¥35 billion fund with Japan Wind Development Co.Ltd., the biggest wind power generation company in Japan, to invest in the windpower industry, The Nikkei reported.

*Hwang Young-key, chairman of the Korea Financial Investment Association, calledfor deregulation to allow securities companies to offer bill payment servicesto corporate customers, The Chosun Ilboreported.Currently, bill payments through brokerage accounts are only offered to retailcustomers.

*DGB Financial Group Co.LTD. will buy LS Asset Co. from LS Group, The Chosun Ilbo reported.LS Asset had 6.6 trillion won of AUM at March-end.

*The Korea Life Insurance Association and the General Insurance Association ofKorea are also preparing deregulation recommendations for the FinancialServices Commission, seeking expanded scope of businesses that insurancecompanies can go into through subsidiaries, Edailyreported.


*The Bank of Thailandsaid that more 8.7 million people have already registered themselves in thePromptPay system since registration was opened July 1, Thailand's Krungthep Turakij reported.

*Commercial banks in Thailand have revised their business plans to cut costs andkeep up with digital banking trends, DailyNews reported,citing sources from the banks. As part of the revised plans, lenders will notopen new branches, gradually shutter existing branches and allocate more resourcesfor digital banking development.

*Kobsidthi Silpachai, a director at KASIKORN Research, said the Thai economyshould grow by 3% in the third quarter, adding that domestic politics willbecome a risk factor for the economy in August, particularly during aconstitutional referendum, Thailand's ManagerDaily reported.He also expects the central bank to keep the policy interest rate unchanged at1.5% until the end of 2016.

*CIMB Thai Bank PCL istargeting a 12% credit growth and is trying to keep its nonperforming loans tonot exceed 4%, Manager Daily reported.

*Krung Thai Bank PCLPresident Vorapak Tanyawong declined a rumor that he will be appointed aspresident of CIMB Thai Bank PCL after his term at Krung Thai Bank expires, Manager Daily reported.He said CIMB Thai Bank has not approached him with such a proposal.

*Finance Minister Bambang Brodjonegoro said the Indonesian government hasappointed nine banks to act as trustees for the tax amnesty program, The Jakarta Post reported.The lenders include state-owned banks PT Bank Negara Indonesia (Persero) Tbk, , PT Bank TabunganNegara (Persero) Tbk and PT Bank Mandiri (Persero) Tbk, as well as private banksPT Bank Central AsiaTbk, PT Bank TabunganPensiunan Nasional Tbk and PT Bank Danamon Indonesia Tbk.

*Bank Indonesia Governor Agus Martowardojo said that credit growth could reachdouble-digit figures by the end of 2016, although the current credit growth wasstill weak at 8%, Bisnis Indonesia reported.

*Indonesia's Financial Services Authority said that tax amnesty funds couldboost loan growth in the second half, Kompasreported.

*The Financial Services Authority said it has suggested to the Ministry ofFinance that incentives, including tax breaks, could be given to merging banks,Bisnis Indonesia reported.

*Life insurance industry investments in Indonesia jumped to 40.78% in May,valued at 9.65 trillion rupiah, compared with 6.85 trillion rupiah in May 2015,Bisnis Indonesia reported.

*Indonesia's FSA said that nonperforming loans stood at 2.9%, which is amanageable level, Kompas reported.

*Indonesia's government and Bank Indonesia have relaxed macro prudential policyto forestall further economic slowdown, Indonesia's Antara News Agency reported.


*Life Insurance Corp. ofIndia may acquire up to half of the total equity assets held bySpecified Undertaking of the Unit Trust of India, Mint reported,citing two persons with direct knowledge of the plan. The deal would costaround 250 billion rupees to 300 billion rupees if LIC's plan goes through.

*IDFC Bank Ltd. signeda purchase agreementfor a 100% stake in Grama Vidiyal Micro Finance Ltd. Once the acquisition hasbeen completed, the microfinance bank will become a wholly owned subsidiary ofIDFC.

*IndusInd Bank Ltd.opened its firstinternational financial services center banking unit in Gujarat InternationalFinance Tec-City, giving the bank access to the international markets.

*The Reserve Bank of India slapped Prathamik Shikshak Sahakari Bank Ltd. with apenalty of 1 million rupees for declaring dividend payments in 2013 and 2014without notifying the central bank.


*Several insurers, including Commonwealth Bank of Australia's CommInsure division,hired a psychologist to assess insurance claims and falsely claimed he was amedical physician, The Australian reported.The regulator is reviewing the matter after a police officer filed chargesagainst the psychologist in October 2015.

*The Australian Bankers' Association appointed former Australian Public ServiceCommissioner Stephen Sedgwick for an industry-funded review into payments madeto employees and third-party sources, TheAustralian Financial Review reported.Local banks have been rocked by several scandals recently, including thoserelated to commissions.

*The profitability of the insurance industry in Australia is likely to remainlow amid record low government bond yields and emphasis on alternative assets, The Australian reported,citing a Credit Suisse analyst.


MiddleEast & Africa: Israeli courtstays pay cap proposal; Angola lowers growth forecast

Europe:May to become UK PM; CreditSuisse closes Russia private bank; DNB, Tryg report Q2 results

LatinAmerica: Banco do Brasil looks toend partnership with Brazil's postal service

NorthAmerica: DOJ reportedly rushedHSBC deal; Venezuela's president rants against Citi

NorthAmerica Insurance: Obama callsfor ACA public plan option; H1 natural catastrophe losses hit $70B

Sally Wang, Jonathan Cheah,Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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