S&PGlobal Market Intelligence's most read financial stories in the Asia-Pacificregion include a story on how China's bad debt figures may be understatingbanking system risks, while editors' picks feature Singapore's latest actionsregarding its probe into 1MDB-related fund flows.
1. DataDispatch Asia-Pacific: China's fast-rising bad debt numbers may vastlyunderstate banking system risks
While official bad debt numbers in China are risingfast as its economy weakens, risks in the country's banking system probablyremain greatly understated. China's rising problem loan ratio is still low byglobal standards, but questions about whether data from lenders and thegovernment reliably illustrate how well equipped the nation's banking system isto face any bad debt crisis are beginning to arise.
2. Conduct cost for top banks declines for 1st time since 2011
The cost of conduct incurred by 20 top global banks between2011 and 2015 was more than £252 billion, including provisions, according to areport from the London-based Conduct Costs Project Research Foundation. Theamount represents an increase of about 27.6% compared with the 2008-2012period, the first measured by the project, for the same 20 banks.
3. TokioMarine names Delphi Financial president as executive officer
TokioMarine Holdings Inc.'s board approved the appointment of President and COO Donald Sherman as an executive officer of the Japanesecompany. Delphi Financial is a unit of Tokio Marine.
4. TOWERCFO resigns
Brett Wilson resigned as CFO of The company has begun asearch to replace Wilson.
5. Indiato inject 229.15B rupees in 13 public sector banks
The Indian government will inject 229.15 billionrupees in 13 public sector banks to help them meet capital needs. , andCentral Bank of Indiaare among the banks that will receive additional capital.
1. Banking on Asia: Chinese banks may be facing tougher economicchallenges than GDP data shows
It is questionable whether China's economy is asrobust as official GDP figures suggest, considering the pace of bad loanformation, with companies' ability to pay back debt deteriorating, according toindustry veteran Daniel Tabbush. If one looks beyond growth data, though, thereare ways to paint a clearer picture of the Chinese economy and stress in it —and ultimately, of what banks there are up against, he said.
2. DataDispatch Asia-Pacific: Bruising quarters ahead for Indian state-run banks amidbad debt reclassification
Indian public sector banks will have to experience afew more quarters of pain before they could recover from a mountain of bad debtstemming from the Reserve Bank of India's measures to strengthen the bankingsystem. In the fiscal year ended March 31, India's five largest public sectorbanks saw a decline in profitability after the central bank urged them to cleanup their balance sheets.
3. KBFinancial to boost stakes in nonbank units, seek more deals in diversificationpush
KBFinancial Group Inc. plans to raise its stakes in three acquirednonbank units to boost gains from the holdings, while looking for more dealopportunities to accelerate a shift away from the lending business and weathera prolonged period of low interest rates. The three units are , andKB Capital Co. Ltd.
4. Singapore to take action against banks as authorities seize assetstied to 1MDB
Singaporean authorities seized approximately S$240million worth of assets as part of their probe into fund flows related to stateinvestment fund 1Malaysia Development Bhd., or 1MDB. The alsofound lapses in specific processes and delays in detecting and reportingsuspicious transactions in DBSGroup Holdings Ltd. and the Singapore branches of and . The regulatorvowed to take action against the three firms.
5. DataDispatch Asia-Pacific: Chinese banks lead Asia-Pacific equity offerings in H1,raising US$12.92B
China led the Asia-Pacific region in capital offeringsin the first half, raising a total of US$12.92 billion, but was second in termsof number of offerings, at six. Indian banks were the busiest during the half,with 19 common equity offerings, though the country came in a distant second inamount raised at US$1.10 billion.