The most read financial stories in S&P Global Market Intelligence's Asia-Pacific coverage include APRA's tighter requirements for Australian banks, while editors' picks feature the weakening loan book for Japanese regional banks.
1. Australia regulator requires 3 banks to tighten intra-group funding arrangements
The Australian Prudential Regulation Authority required Macquarie Bank Ltd., Rabobank Australia Ltd. and HSBC Bank Australia Ltd. to tighten the intra-group funding for their Australian operations following a review of funding agreements across the industry.
2. Australian regulator imposes additional capital requirements on 3 major banks
APRA is also requiring Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd. and Westpac Banking Corp. to increase their minimum capital requirements by A$500 million each to reflect higher operational risk.
3. Punjab National Bank hit by 38.05B-rupee fraud
India's Punjab National Bank reported a borrowing fraud of 38.05 billion rupees in Bhushan Power & Steel Ltd.'s account. The bank observed that the company misappropriated bank funds and manipulated books of accounts to raise funds from consortium lender banks.
4. JPMorgan to close Indian nonbanking financial subsidiary
JPMorgan Chase & Co. is shutting down its J.P. Morgan Advisors India Pvt. Ltd. unit but will continue to operate another nonbanking financial unit, J.P. Morgan Securities India Pvt. Ltd., in the country, Mint reported.
5. S&P revises outlooks on major Australian banks, affirms ratings
S&P Global Ratings revised its outlooks on National Australia Bank, Australia and New Zealand Banking Group, Westpac Banking and Commonwealth Bank of Australia to stable from negative, reflecting the expectation that lenders would maintain solid operating performance, low credit losses and adequate capital levels over the next two years.
1. Data Dispatch Asia-Pacific: Japan's regional banks add shrinking loan books to long list of challenges
Japan's regional banks saw their loan books shrink for the first time in six years, leaving them more exposed to bad-debt risk and harder to make profits, analysts said. Outstanding loans at regional banks in Japan totaled ¥250.66 trillion as of end-June, down slightly from ¥250.80 trillion as of end-March, according to data released by Bank of Japan.
2. Data Dispatch Asia-Pacific: Major Chinese banks score high in efficiency among Asia-Pacific lenders
Chinese banks score some of the lowest cost-to-income ratios among major Asia-Pacific lenders, citing contained funding costs, adoption of mobile banking as well as income growth from lending, an analysis by S&P Global Market Intelligence finds. Bank of Shanghai Co. Ltd. had the lowest ratio at 20.36% as of end-March and improved from 25.20% in the prior year.
3. Data Dispatch Asia-Pacific: India's largest banks to sit on more excess capital as leverage ratios eased
India's pending cut of leverage ratios for banks could free up more than 3 trillion rupees of capital at the country's 10 largest lenders, according to data from S&P Global Market Intelligence. Under the new regulatory requirements, effective Oct. 1, the nation's two largest private-sector banks, HDFC Bank Ltd. and ICICI Bank Ltd., could have 1.626 trillion rupees of excess Tier 1 capital based on their actual Tier 1 capital levels as of end-March.
4. Data Dispatch Asia-Pacific: Major Indian life insurers post higher net income, premiums in fiscal 2019
Three of India's four largest life insurers — Life Insurance Corp. of India, SBI Life Insurance Co. Ltd. and HDFC Life Insurance Co. Ltd. — reported higher net income in the fiscal year ended March as premiums continued to grow, data compiled by S&P Global Market Intelligence show.
5. Singapore digital bank hopefuls eyeing JVs to boost license chances
The race among nonbank companies for Singapore's digital banking licenses is heating up, with at least two interested parties looking for key partnerships to boost their chances. The five digital banking licenses up for grabs will include two full permits and three wholesale ones. MAS is expected to reveal eligibility and admission criteria details when applications open August.
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.