* The Federal Reserve lowered its benchmark interest rate by 25 basis points Sept. 18, though officials were divided as they eased policy for the second time this year to stave off worries about a potential slowdown. The federal funds rate will move down to a new target range of 1.75% to 2%, according to the post-meeting statement from the Federal Open Market Committee. Three officials dissented on the decision, with one favoring a more aggressive cut and two preferring to keep rates unchanged.
GREATER CHINA
* China's Ministry of Finance issued 3.96 trillion yuan of local government bonds in the first eight months of 2019, including 2.35 trillion yuan of special-purpose bonds aimed at providing financial support for public-interest projects. The country's outstanding local government bonds totaled 21.41 trillion yuan at the end of August.
* Sun Deshun, former president of China CITIC Bank Corp. Ltd. and current chairman of China CITIC Bank International Ltd., is under investigation for undisclosed reasons, Caixin reported, citing sources familiar with the matter. Sources said the probe might be related to irregular transactions at the group's asset management subsidiaries.
* The China Banking and Insurance Regulatory Commission clarified in a notice that insurance companies will need to get a license from the regulator before they can sell products of other insurance providers, Shanghai Securities News reported.
* Taiwan's Financial Supervisory Commission fined Taiwan Business Bank Co. Ltd. NT$1 million for allowing a grace period for loans of luxury home buyers, in violation of a regulatory guideline, United Daily reported.
JAPAN AND KOREA
* Japan's Norinchukin Bank will invest ¥50 billion in bonds issued by International Bank for Reconstruction and Development that supports an effort to reduce food waste, The Nikkei reported. This investment will make Norinchukin Bank the largest investor in the bonds. The bank has so far used about ¥1 trillion of the ¥64 trillion it allotted for investments under its environment, social and governance criteria.
* SMBC Nikko Securities Inc. hired Masao Muraki to focus on global financial sector research, The Nikkei reported. Muraki was an equities analyst with Deutsche Securities Inc. prior to the appointment, which will take effect in October.
* Japanese regional banks Hamamatsu Iwata Shinkin Bank, Shizuoka Yaizu Shinkin Bank. and Mishima Shinkin Bank formed an agreement to collaborate on business succession and M&A processes of small and midsize businesses to prevent them from going out of business, The Nikkei reported.
* South Korea's MG Non-Life Insurance Co. Ltd. received regulatory approval to increase its capital by 200 billion won as part of its financial normalization plan, the Maeil Business Newspaper reported, citing industry insiders.
* Online payment platform operator Viva Republica Co Ltd. may withdraw its application for a brokerage license and a digital banking license in South Korea due to constant changes in regulations, The Chosun Ilbo reported, citing CEO Seung Gun Lee. Viva Republica operates the Toss peer-to-peer payment platform.
ASEAN
* CIMB Thai Bank PCL expects its corporate loans to grow between 18% and 20% in 2019, up from 15% in 2018, as more local companies expand into international markets, particularly in the ASEAN region, Krungthep Turakij reported, citing Pornchai Padmindra, company senior executive vice president.
* Singapore's DBS Bank Ltd. plans to double its wealth assets under management in Thailand through a partnership between DBS Private Bank and DBS Vickers Securities (Thailand) Co. Ltd. The partnership aims to increase AUM to S$8 billion by 2023 from S$4 billion currently. The bank will also double the number of its wealth relationship managers in the country, as its sees increasing demand from Thailand's growing pool of high-net-worth individuals.
* Malaysian rating agency RAM Holdings Berhard named Lee Wai Kit group CEO and Promod Dass deputy group CEO.
* Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the regulator is likely to cut the country's reserve requirement ratio further by 100 basis points, and continue with its monetary easing cycle, The Philippine Star reported. Diokno added that the monetary board may again lower interest rates when it meets Sept. 26.
* Bank of China Ltd.'s Manila branch was designated by the People's Bank of China and the Bangko Sentral ng Pilipinas as a clearing bank for yuan-denominated business in the Philippines, allowing domestic lenders to take part in China's foreign exchange market, among other things, The Philippine Star reported, citing Deng Jun, country head for the branch.
SOUTH ASIA
* Moody's said the decision by the Reserve Bank of India to cut the risk weight on consumer loans is credit negative, as it may encourage local lenders to increase their exposure to the cyclical segment amid a macroeconomic slowdown, Indo-Asian News Service reported.
* The Central Vigilance Commission, an Indian government agency tasked to address institutional corruption, established an advisory board to investigate acts of banking-related fraud of over 500 million rupees, the Press Trust of India reported. The board will be led by T.M. Bhasin, a former commissioner of the agency.
* The Securities and Exchange Board of India fined Infrastructure Leasing & Financial Services Ltd. 1 million rupees for its failure to disclose to the Bombay Stock Exchange price-sensitive information relating a rights issuance worth 45 billion rupees and a decision to cut its debt by 300 billion rupees by divesting some assets, the Press Trust of India reported.
AUSTRALIA AND NEW ZEALAND
* Sydney-based ClearView Wealth Ltd. has handed over a total of A$730,138 as recompense to 215 of its customers who were previously given poor life insurance advice, Insurance Business Australia reported. The firm is also reissuing documents and disclosing fees to 21 clients as part of nonfinancial remedies following an Australian Securities and Investments Commission probe that unearthed noncompliance issues by the company's representatives.
* The Australian government's introduction of the comprehensive credit reporting regime has led to the country's banks sharing their customers' loan data and repayment history to credit bureaus, with Commonwealth Bank of Australia becoming the last Big Four lender to do so on Sept. 17, The Australian Financial Review reported.
* A number of senior traders have left the Australian equities team of Citigroup Inc Research Division, The Australian Financial Review reported. Matt Rae was said to have resigned as an institutional equities trader, while Ross Barrows, Trent Allen and Tony Brennan left their roles as small caps coverage head, gold analyst and equity strategist, respectively.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Israel's tight election; Moody's expects Islamic finance in Africa to grow
Europe: Metro Bank execs probed; HSBC French unit under review; Lloyd's H1 profit up
Latin America: Cofide mulls appeal over Minera IRL case; Banrisul cuts share count in offering
North America: FB Financial to acquire Ky.-based bank; JPMorgan leads race for Deutsche clients
Global Insurance: Lloyd's pretax profit surge; named storm trio; American Progressive fined
Janna Estares, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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