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Bank of Jinzhou's FY'18 net loss; Dewan Housing Finance proposes resolution plan

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Bank of Jinzhou's FY'18 net loss; Dewan Housing Finance proposes resolution plan

GREATER CHINA

* Bank of China Ltd. will issue lines of credit worth an aggregate of 1 trillion yuan in the Yangtze River Delta Economic Zone in the next five years, Reuters reported. The bank is also looking to issue 20 billion yuan of preferred shares, 70 billion yuan of Tier 2 bonds and 40 billion yuan of perpetual bonds to raise capital.

* Chinese lender Bank of Jinzhou Co. Ltd. reported a net loss of 4.54 billion yuan for the year ended Dec. 31, 2018. The bank had signaled the potential for a sizable loss days earlier when it said higher provisions for impairments, a greater balance of nonperforming assets and the adoption of the IFRS 9 accounting standard would hurt its results.

* The China Banking and Insurance Regulatory Commission has urged government agencies to tighten the regulation of small and midsize banks, particularly those relating to the provision of loans for government platforms and potentially questionable infrastructure projects, Xinhua News Agency reported.

JAPAN AND KOREA

* Japan's Securities and Exchange Surveillance Commission has issued recommendations for the Financial Services Agency to impose sanctions on Tokyo-based brokerage firm Japan Private Asset Securities Inc., citing irregular transactions with a client.

* Hachijuni Bank Ltd. said it is set to repurchase up to 8,500,000 common shares between Sept. 2 and Nov. 29. The cost of the share buyback will be capped at ¥3 billion.

* Visa Inc. signed a memorandum of understanding with Fintech Center Korea under the Financial Services Commission to take part in the development of South Korea's financial technology ecosystem, Money Today reported, citing the U.S.-based card company.

* South Korea's central bank signaled that it might cut interest rates in the future should economic risks continue to rise, Bloomberg News reported. Bank of Korea Governor Lee Ju-yeol told reporters that there is "some room in monetary policy to respond to economic situations if necessary" after leaving the base rate unchanged at 1.50%.

ASEAN

* The Monetary Authority of Singapore has set up a steering committee that would oversee an industrywide transition into the Singapore overnight rate average, or SORA, benchmark, from the Singaporean dollar swap offer rate. SORA is based on transactions in a deep and liquid overnight funding market. The move comes amid preparations for the eventual discontinuation of the U.S.-dollar London interbank offered rate.

* The Bank of Thailand has commenced reporting the frequency of service outages in the banking system for each quarter, the central bank said in a release. During the second quarter, Krung Thai Bank PCL's mobile banking service went offline seven times, while Bangkok Bank PCL and TMB Bank PCL had five and four instances, respectively, of outages.

* CIMB Thai Bank PCL's research division lowered Thailand's economic growth projection for 2019 to 2.8%, down from its previous estimate of 3.3%, the country's Post Today reported.

* Bank of the Philippine Islands will issue 100 million Swiss francs in its first offering of ASEAN green bonds at an issue price of 100.040% and a reoffer yield of -0.020%. The bonds have a coupon rate of zero percent and are due Sept. 24, 2021.

SOUTH ASIA

* Punjab National Bank said its board would meet Sept. 5 to consider the Indian government's plan to merge the bank with Oriental Bank of Commerce and United Bank of India, which would create the second-largest bank in India. The board will also consider issuing 165 billion rupees of equity shares to the government.

* India Rating and Research, an affiliate of Fitch Ratings, downgraded Yes Bank Ltd.'s long-term issuer rating to IND A+ from IND AA-, with a negative outlook. The downgrade reflects "inadequate progress" in the bank's efforts to resolve certain stressed assets that may slip into the nonperforming category, the rating agency said.

* The board of troubled lender Dewan Housing Finance Corp. Ltd. approved the conversion of some or its entire debt into equity shares as part of its proposed resolution plan. The company, which owes roughly 800 billion rupees to lenders, is also proposing the disposal of assets and the subscription to additional credit facilities to turn its business around.

* Yes Bank said its board approved a plan to increase the lender's authorized share capital to 11 billion rupees from 8 billion rupees. The proposal is subject to central bank approval.

AUSTRALIA AND NEW ZEALAND

* Economists expect the Reserve Bank of Australia to keep its cash rate at a record low of 1.00% when it meets Sept. 3, but noted that the central bank could likely reduce rates twice to 0.5% by March 2020, Bloomberg News reported. This comes amid a worsening outlook brought about by ongoing trade tensions between the U.S. and China and declining commodity prices, a key export from Australia.

* Australia-based equipment financier Silver Chef Ltd. terminated its scheme of arrangement with private equity firm Next Capital Pty Ltd. after fund manager and shareholder Blue Stamp moved to vote against the potential sale. Blue Stamp, which owns a 20.0% stake in Silver Chef, countered Next Capital's offer with a recapitalization proposal under which Silver Chef would undertake a fully underwritten renounceable entitlement offer to raise about A$50 million at 31 Australian cents per share.

* Bank of Queensland Ltd. interim CEO Anthony Rose will leave the company Dec. 31 following the appointment of George Frazis as managing director and CEO in June. Frazis takes over the role Sept. 5 and Rose will stay on until the end of 2019 to ensure a seamless leadership transition.

* Tyro Payments Ltd, the fifth-largest provider of EFTPOS terminals in Australia, appointed David Thodey chairman as it prepares for its planned IPO, The Australian Financial Review reported. Thodey is a former CEO at Telstra Corp. Ltd.

R Sio, Emily Lai, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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