GREATER CHINA
* Huang Wei, assistant chairman of the China Securities Regulatory Commission, called for improved laws on capital markets as the financial technology sector poses "unprecedented" challenges to traditional financial supervision, Xinhua News Agency reported.
* The Hong Kong Monetary Authority granted a banking license to China Zheshang Bank Co. Ltd., effective Dec. 19. The move brings the number of licensed lenders in Hong Kong to 155, the central bank said.
* Taiwan's Financial Supervisory Commission has required banks to refrain from participating in or offering bitcoin exchange, Liberty Times reported. The regulator also warned people to prudently evaluate risks in investing in virtual currencies.
* Taiwan's financial regulator will issue three major measures to channel insurance funds into the island's public construction industry by the end of 2017, Central News Agency reported. Vice Chairman Cheng Cheng-mount said 10% of the insurance funds, or about NT$2.2 trillion, could be put into the public construction sector, while the actual input comprises 1% of the insurance funds.
JAPAN AND KOREA
* Japanese megabanks are set to increase fees for changing banknotes for new or smaller bills in their search for more revenues to offset the impact of the Bank of Japan's negative interest rate policy, The Nikkei reported. The fee increase will be effective from January 2018 at Mizuho Bank Ltd.
* Japan's Government Pension Investment Fund has begun to actively invest in domestic real estate funds, with investments of up to 5% of its ¥156 trillion holdings in alternative assets, The Nikkei reported. The fund has been seeking outside asset managers specializing in infrastructure projects, private equity and real estate since April.
* South Korea's Financial Supervisory Service said it does not see Bitcoin and other cryptocurrencies as "real" currencies, adding that it would not seek to regulate their trade beyond guidelines released in the week of Dec. 11, Reuters reported, citing Governor Choe Heung-sik. The regulator contributed to a task force that set the country's first official rules for cryptocurrencies.
* Industrial Bank of Korea is in discussions with two Indonesian lenders, aiming to acquire majority stakes in the latter by March 2018, The Korea Times reported, citing a banking industry source. If successful, the acquisition would become the first overseas M&A deal of the South Korean bank, according to officials.
* YouBit, a South Korean cryptocurrency exchange, was forced to shut down following a cyberattack, Yonhap News Agency reported, citing a statement from the exchange. YouBit said hackers stole about 17% worth of virtual currency traded in the exchange.
ASEAN
* Chao Kengchon, managing director of Kasikorn Research Center, warned investors that Bitcoin is in a speculative bubble, and central banks in many countries, including Thailand, have yet to regulate the cryptocurrency, Krungthep Turakij reported.
* Sukhumvit Asset Management Co. Ltd. is collaborating with the Bank of Thailand and commercial lenders to amend some eligibility requirements to allow freelancers to take part in the country's "Debt Clinic" project, Manager Daily reported. The new requirements will be effective Jan. 1, 2018.
* The Monetary Authority of Singapore issued a statement urging the public to act with "extreme caution" and understand the "significant risks" of choosing to invest in cryptocurrencies. The central bank added that such currencies are not legal tender and that the recent surge in their prices is driven by speculation.
* JSCB for Investment and Development of Vietnam, or BIDV, will shutter its representative office in Yangon, Myanmar, as the latter's laws require foreign banks to close such offices after setting up a branch in the country, Viet Nam News reported.
SOUTH ASIA
* The Competition Commission of India approved the proposed amalgamation of Bharat Financial Inclusion Ltd. with IndusInd Bank Ltd. The plan remains subject to shareholder approval, as well as approval from the Reserve Bank of India and other regulators. In October, IndusInd Bank agreed to buy Bharat Financial in an all-stock transaction.
* Housing Development Finance Corp. Ltd.'s board approved a plan to raise up to 130 billion Indian rupees through an issuance of equity shares and/or other permissible securities. A portion of the amount will be used by the company to infuse up to 85 billion rupees in HDFC Bank Ltd., aimed at maintaining its shareholding in the latter.
* Bangladesh Bank froze 510 million taka from One Bank Ltd.'s current account with the central bank and 250 million taka from Premier Bank Ltd.'s account for aggressive lending practices, The Daily Star reported. The lenders' advance-deposit ratios exceeded the permissible limit of 85%.
* Bangladesh's central bank removed Farmers Bank Ltd. Managing Director A. K. M. Shameem on charges of helping the lender's board engage in loan disbursement irregularities, the Dhaka Tribune reported. The irregularities found by the central bank amounted to about 5 billion taka.
AUSTRALIA AND NEW ZEALAND
* Kenneth Hayne, who was appointed by the Australian government to head the royal commission into misconduct in the banking, superannuation and financial services sectors, expanded the terms of reference to include mortgage broking, The Australian Financial Review reported. Under the original terms of reference, a financial services entity was defined as a bank, an insurer, holders of Australian Financial Services Licenses, as well as registrable superannuation entity licensees.
* The Australian Bankers' Association is set to unveil a number of changes to its code of conduct, including allowing customers to cancel their credit cards online and waiving or refunding "statement fees" for clients with no access to electronic statements, The Sydney Morning Herald reported. CEO Anna Bligh said lenders are committed to change, with the new code being "stronger, broader and written in simple to understand language."
* Australia & New Zealand Banking Group Ltd. Chairman David Gonski said the country's business sector should drop its traditional role of being "solely shareholder-focused organizations" and put customers and communities first, The Australian reported. Gonski noted that the banking sector had "a great deal to do" to restore public trust.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: South Africa's ANC picks new leader; National Bank of Kuwait plots expansion
Europe: Old Mutual agrees to sell unit; MPS gets new chair; Bankia eyes 2,500 job cuts
Latin America: Bladex names new CEO, CFO; Brazil court approves bank compensation deal
North America: Wells Fargo seen as tax bill's top winner; Gulf Coast B&T buys SBA lender
North America Insurance: MetLife under probe over unpaid pensions; Validus' cat bond grows to $400M
R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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