GREATER CHINA
* Standard Chartered PLC plans to operate a virtual bank in Hong Kong, making it the first global bank to seek a license with the city's regulators, Financial Times reported, citing Samir Subberwal, the bank's regional head of retail banking for Greater China and North Asia. The Hong Kong Monetary Authority had announced in May that it is accepting applications for online-only banking licenses.
* The stock prices of China's 16 listed banks went below their net asset values at the closing on June 8, the Securities Daily in China reported. Wind Information indicated that altogether 710 funds cut the holdings of the 16 banks' stocks in the first quarter, with a combined decreased market value of 21.83 billion yuan.
* The China Banking & Insurance Regulatory Commission said that insurance companies' average comprehensive solvency ratio was 248% at the end of the first quarter, down 3 percentage points from the previous quarter, China's Caijing reported.
* Taiwan's Financial Supervisory Commission plans to ease M&A rules among private sector financial holding companies to promote consolidation in the sector, the Taipei Times reported, citing FSC Chairman Wellington Koo. Under the proposed changes, a buyer will only have to commit to purchasing a 10% stake in the target company to initiate a tender offer, down from 25% currently. The new rule will apply to buyers that plan to operate the acquired financial institution as a wholly owned subsidiary.
JAPAN AND KOREA
* Japan's Sompo Holdings Inc. will launch a new unit handling big data-related business ventures with startup partners, Tokyo's The Nikkei reported. The new unit will be launched June 13.
* Bank of Yokohama Ltd. will start providing real estate valuation services for its retail and corporate clients in partnership with Daiwa Real Estate Appraisal Co. Ltd., The Nikkei reported.
* South Korea's Daishin Securities Co. Ltd. will establish a U.S. unit in New York by acquiring a 100% stake in Daishin America LLC for 47.3 billion won, Yonhap News Agency reported. The new U.S. unit will focus on alternative investments such as real estate.
ASEAN
* The Malaysian government has identified a new central bank governor to succeed Muhammad bin Ibrahim who resigned, but has declined to name the candidate prior to receiving approval from the head of state, The Sun Daily in Malaysia reported, citing the prime minister's office. Former deputy governor Nor Shamsiah Mohd Yunus is widely expected to take on the role.
* Kenanga Research said foreign holdings of Malaysian bonds fell to an eight-year low in May and is expected to decline further amid the government's decision to cancel large-scale infrastructure projects, The Sun Daily reported.
* Malaysia-based RHB Bank Bhd. is looking to approve 100 million ringgit in loans for small and medium enterprises in the next 12 months with the launch of its online financing platform targeting the sector, The Sun Daily reported, citing Jeffrey Ng Eow Oo, head of group business and transaction banking. Ng said no collateral will be required to apply for the loans.
* Separately, the Philippine central bank warned the public against fake loan documents, deposit certificates, fund transfer documents, among others, that are supposedly guaranteed by the central bank. Bangko Sentral ng Pilipinas said that it does not issue or guarantee commercial documents or products.
SOUTH ASIA
* India-based ICICI Bank Ltd. said it has not received any "specific communication" from the U.S. SEC with regard to an investigation into CEO Chanda Kochhar's alleged connection to an improper loan to Videocon Group. The bank was responding to a report that the U.S. SEC has involved itself in the investigation as ICICI Bank is listed in the U.S.
* India's central bank drafted guidelines to modify the loan system for delivery of bank credit for large borrowers. The draft stipulates a minimum level of "loan component" in fund based working capital finance and a mandatory credit conversion factor for the undrawn portion of cash credit/overdraft limits availed by large borrowers, among other things.
* Punjab National Bank, Union Bank of India, Syndicate Bank Ltd. and three more public sector banks are expected to fall under the Reserve Bank of India's prompt corrective action framework, The Economic Times reported, citing government sources. The prompt corrective action framework imposes restrictions on banks to improve performance.
* IndusInd Bank Ltd. moved a step closer to closing its acquisition of Bharat Financial Inclusion Ltd after getting approval from India's central bank to incorporate a wholly owned subsidiary as part of the pending deal.
* Bangladesh-based Islamic Finance & Investment Ltd. appointed Abu Zafore Md Saleh as managing director and CEO, The Daily Star in Bangladesh reported.
AUSTRALIA AND NEW ZEALAND
* Westpac Banking Corp. has called off its referral partnership with Prospa Group Ltd., an Australian online lender targeting small businesses, as it aims to focus on developing its own products to compete in the unsecured small business lending, The Australian Financial Review reported, citing a Westpac spokesperson.
* Swiss Insurer Chubb Ltd. is set to introduce a new accounts receivable operating model in Australia, which would mark the first time that it rolls out the model across its global network, Insurance Business Australia reported. The new approach to premium collections will benefit broker partners through the earlier payment of commissions and lower administration costs, among others, the report said.
* The Reserve Bank of New Zealand is looking to unveil new norms for bank directors amid ongoing scrutiny from regulators, The New Zealand Herald reported, citing documents released to the publication under the Official Information Act. The regulator plans to introduce a series of initiatives for banks, including more guidance on risk management and a review of their corporate governance policy.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Commercial Bank ends United Arab Bank stake sale talks; Moody's downgrades Gabon
Europe: Swiss voters reject banking reform; UK FCA goes ahead with disputed listing rule
Latin America: Cryptocurrency traders in Brazil, Chile clash with banks
North America: Wells Fargo faces patent infringement suit; BofA division to hire 10,000 people
North America Insurance: AIG must defend Cosby; CFIUS signs off on Genworth/China Oceanwide deal
Janna Estares, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.
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