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DGB Financial's brokerage deal halted; Chinese banks post higher profits

S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

M&A updates

* South Korea's Financial Supervisory Service said it will not approve DGB Financial Group Co. Ltd.'s proposed acquisition of HI Investment & Securities Co. Ltd. until governance issues involving Chairman and CEO Park In-gyu are resolved.

* Japan's Mizuho Financial Group Inc. and Sumitomo Mitsui Trust Holdings Inc. agreed to merge their units, Trust & Custody Services Bank Ltd. and Japan Trustee Services Bank Ltd., respectively, to create a leading trust bank specializing in asset administration services in the country.

* Korea Development Bank is reportedly considering infusing an additional 200 billion South Korean won of capital into KDB Life Insurance Co. Ltd., and selling a stake in the unit on the condition the buyer participates in the capital increase.

* Mitsubishi UFJ Lease & Finance Co. Ltd. will sell its 50% stake in MMC Diamond Finance Corp. to Mitsubishi Motors Corp., which owns 47% of the auto financing company.

* Westpac Banking Corp. said subsidiary Hastings Management Pty. Ltd. completed the sale of its international businesses to U.K.-based Northill Capital LLP.

Regulatory, legal developments

* Indonesia's Financial Services Authority, or OJK, ordered the country's systemically important banks to create a Tier 1 capital surcharge of between 1% and 3.5% of risk-weighted assets, depending on the size and viewed riskiness of the bank.

* India's IDBI Bank Ltd. disclosed that it detected 7.72 billion rupees worth of fraudulent loans issued by five of its local branches between 2009 and 2013.

* Taiwan's Mega International Commercial Bank Co. Ltd. and EnTie Commercial Bank Co. Ltd. clarified they do not have a relationship with Metropolitan Asset Management Corp., after media reports alleged the latter used falsified documents to obtain bank loans.

* The Mongolian central bank lowered its benchmark interest rate to 10% from 11%, while the central bank of Thailand maintained its policy rate at 1.50%.

Chinese banks' FY'17 profits

* Industrial & Commercial Bank of China Ltd. reported a 2.80% year-over-year rise in net profit for the year ended Dec. 31, 2017.

* Agricultural Bank of China Ltd. reported a 4.9% year-over-year increase in net profit for 2017.

* China Construction Bank Corp. reported a 4.7% year-over-year rise in net profit for 2017.

* China Everbright Bank Co. Ltd., Postal Savings Bank of China Co. Ltd. and China CITIC Bank Corp. Ltd. also reported yearly increases in their respective net profits for 2017.

In other news

* Japan's Sumitomo Mitsui Financial Group Inc. is revamping its brand by, among other things, changing its acronym to "SMBC" from "SMFG," effective April.

* Bank of China Ltd. received approval from New Zealand's central bank to provide banking services in the country.

* The Vietnam central bank granted Agricultural Bank of China a license to set up a branch in Hanoi.

* Shinsei Bank Ltd. will abolish its banking infrastructure planning division, effective April 1.

* India's Jana Small Finance Bank Ltd. commenced operations, and plans to enter the affordable housing and consumer durable loans segments in addition to microfinance.

* China Merchants Bank Co. Ltd. plans to set up an asset management unit with 5 billion yuan in capital.

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