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China fines 6 banks; StanChart cuts 200 jobs in India


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China fines 6 banks; StanChart cuts 200 jobs in India

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.

Regulatory developments

* India's government named Shaktikanta Das governor of the Reserve Bank of India after Urjit Patel resigned from the position on Dec. 10. Das, a civil servant for more than three decades, became the country's economic affairs secretary before being appointed last year as India's representative to the G20.

* The Indian central bank fined Indian Bank 10 million rupees for violations of cybersecurity regulations. The central bank said the lender breached its guidelines on fraud, particularly with respect to classification and reporting by commercial banks.

* Meanwhile, the Reserve Bank of New Zealand proposed to almost double the required high-quality capital that banks must hold in order to prevent bank failures. The central bank noted that the increase will be in the range of 20% to 60%.

* The China Banking and Insurance Regulatory Commission fined six domestic banks a combined 155.3 million yuan for breaching rules on wealth management products in November.

* Bank Negara Malaysia and the Securities Commission Malaysia are devising guidelines to bring digital assets, such as digital currencies and digital tokens, within the remit of the country's securities laws.

M&A updates

* Punjab National Bank revived its plan to sell a 33% stake in PNB Housing Finance Ltd. The bank and U.S.-based Carlyle Group LP previously agreed to jointly sell a 51% stake in the housing finance company but the proposed sale was terminated after Carlyle dropped out of the sale process in November.

* U.S.-based Berkshire Hathaway Inc. is reportedly looking to acquire a 10% stake in Kotak Mahindra Bank Ltd. The potential deal could be valued between US$4 billion to US$6 billion.

* PT Bank Tabungan Pensiunan Nasional Tbk and PT Bank Sumitomo Mitsui Indonesia extended the proposed closing date for their proposed merger to Feb. 1, 2019, from Jan. 1, 2019.

In other news

* Commonwealth Bank of Australia expects fresh provisions related to customer remediation costs and its sale of certain assets to hit earnings for the six months ending Dec. 31.

* Postal Savings Bank of China Co. Ltd. and Bank of Qingdao Co. Ltd. plan to establish separate wealth management subsidiaries: PSBC Asset and Wealth Management Corp. Ltd. and Qingyin Wealth Management Co. Ltd.

* India's government is considering injecting an additional 300 billion rupees into public sector banks after they failed to raise funds from markets.

* Thailand's Kasikornbank PCL and Japanese mobile services company LINE Corp. set up a new venture, Kasikorn Line Co. Ltd., which will offer lending services in Thailand.

* Standard Chartered PLC cut 200 positions within its Indian operations, primarily in the retail segment.

* BNP Paribas (China) Ltd. received a license from China's National Association of Financial Market Institutional Investors to underwrite yuan-denominated bonds, also known as panda bonds.

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