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Korea Exim Bank, Iran ink US$15B package; Australian banks to cut home loan rates

Banking Essentials Newsletter - November Edition

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University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

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Korea Exim Bank, Iran ink US$15B package; Australian banks to cut home loan rates

*Central bank governors and top financial officials from Japan, South Korea andChina said in a meeting in Frankfurt that they intend to overcome economic andfinancial uncertainties at national and regional levels through collaborativeefforts, The Korea Herald reported.

*Export-Import Bank ofKorea said it has signed a financial package with the Iraniancentral bank worth US$15 billion to pave the way for South Korean companiestaking part in Iran's state-funded projects in sectors that include health andinfrastructure, The Korea Times reported.

*Australia & New ZealandBanking Group Ltd. CEO Shayne Elliott said the bank has cut thevalue of its holdings in AmBank(M) Bhd. by nearly 20%, TheAustralian reported.The CEO said a scandal involving Malaysian Prime Minister Najib Razakhas indirectly affected ANZ's holdings in the lender.

*BDO Unibank Inc.said joint ventureunit PCIB Securities Inc. has been renamed BDO Nomura Securities Inc. Thecompany's board had approved the name change in January.

GREATER CHINA

*Changyong Rhee, director of the IMF's Asia Pacific department, estimates thatChina's capital outflow would keep increasing in 2016, with the majority fromChinese enterprises repaying overseas corporate debts, Caixin reported.The IMF also estimates that the country's economic growth will be 6.5% in 2016and 6.2% in 2017, thanks to strong stimulus measures and credit policiesapplied in 2016.

*The People's Bank of China injected 760 million yuan through its standinglending facility in April, including 750 million yuan of overnight SLF at aninterest rate of 2.75% and 10 million yuan of seven-day SLF at an interest rateof 3.25%, Shanghai Securities News reported.Outstanding SLF stood at 410 million yuan at the end of April.

*The Chinese central bank will make pledged supplementary loans to the country'sthree major policy banks — ChinaDevelopment Bank Corp., Export-Import Bank of China and — on a monthly basis to match their lending for targeted sectors in April, Shanghai Securities News reported.Outstanding PSL stood at about 1.39 trillion yuan at the end of April.

*Sixty-eight trust companies in China saw combined net profit of 59.4 billionyuan in 2015, the Economic InformationDaily reported.

*The assets of eight nonlisted insurers in China surpassed 100 billion yuan in2015, thanks to an increase in insurance business and capital market investmentreturns, the National Business Daily reported. Amongthem, Anbang Insurance Group's assets were nearly 1.3 trillion yuan, withAnbang Life Insurance Co.Ltd.'s assets increasing 668% year over year.

*The Nikkei Taiwan Manufacturing Purchasing Managers' Index dropped to 49.7 inApril from 51.1 in March, signifying a slight deterioration in the sector'soperating conditions, the Taipei Timesreported.

*Yuanta Securities Investment Trust Co. is looking to issue exchange-tradedfunds linked to the Korea Stock Exchange Index 200, the China Post reported.The Taiwan Stock Exchange said Yuanta Securities has filed an application withthe exchange for certification in the KOSPI 200 to prepare for issuing ETFslinked to the index.

*Taiwan's Financial Supervisory Commission said people in Taiwan used theircredit cards to spend about NT199.6 billion in March, the highest for the monthsince 2011, the Central News Agency reported.Thirty-six financial institutions issued 38.79 million credit cards on theisland as of the end of March.

JAPAN AND KOREA

*According to a survey conducted by Deloitte Tohmatsu Consulting, the median payfor presidents at Japan's large companies increased by 18.5% in the last threeyears amid improved corporate performance as well as tighter competition withoverseas companies in retaining talent, Tokyo's The Nikkei reported.

* Bankof Japan Governor Haruhiko Kuroda reiterated that the central bank will nothesitate to implement additional monetary easing policy to achieve a pricestabilization goal of 2%, The AsahiShimbun reported.

*According to the Japan Center for Economic Research, Japan's real GDP shrunk0.5% month over month in March, TheNikkei reported.

* HaYoung-koo, president of the Korea Federation of Banks, said the impact ofindustrial restructuring among commercial banks will be limited as SouthKorea's state-owned banks are taking on most of the exposure right now,especially that of the marine and shipbuilding giants, Yonhap News Agency reported.He also added that the merit-based monetary rewards system has to be in actionas soon as possible.

*According to data from the Bankof Korea, the total amount of foreign currency reserves of SouthKorean banks has increased for two straight months and recorded US$372.5billion as of April 30, the MaeilBusiness Newspaper reported.

ASEAN

*Thailand's Krungthep Turakij reported that TMB Bank PCL will temporarily suspend its interbank ATMservice from 9 p.m. to 10 p.m. for a system upgrade.

*Thailand's consumer confidence index fell for a fourth consecutive month,plunging to a seven-month low at 72.7 in April due to concerns over the Thaieconomy's slow recovery, severe weather conditions and low prices ofagricultural products, Krungthep Turakijreported.

*Thai Finance Minister Apisak Tantivorawong held bilateral talks with VictoriaKwakwa, the World Bank Group's regional vice president for East Asia and thePacific, and Takehiko Nakao, president of the Asian Development Bank, oncooperation and development among countries in the region, Manager Daily reported.

*PT Bank Permata Tbklooks to boost insurance products, bonds and mutual funds, with an annualgrowth target of 10% to 15%, BisnisIndonesia reported,citing Bianto Surodjo, Bank Permata's retail banking director.

*PT Bank MNC InternasionalTbk will get a capital injection of 500 billion rupiah, Infobank reported.Separately, Infobank reportedthat MNC Bank appointed Eko Supriyanto as president commissioner.

*Six companies may launch IPOs in May or June, out of 11 IPOs targeted by theIndonesia Stock Exchange, the JakartaGlobe reported,citing Tito Sulistyo, president director of the bourse. The six companiescomprise independent power producers Megapower Makmur and Cikarang Listrindo,property developer Graha Andrasentra Propertindo, health and beauty productsretailer Duta Inti Daya, shipping firm Sillo Maritime Perdana and lender BankGanesha.

*Bank Muamalat MalaysiaBhd. Chairman Munir Majid said the bank is ready to be listed onBursa Malaysia if the bank's shareholders agree, The Star reported.Bank Muamalat is 70% owned by DRB-Hicom Bhd., but the group is required byMalaysia's central bank to cut its stake to 40%.

*Security Bank Corp.posted first-quarter net income of 3 billion Philippine pesos in 2016, downfrom 3.36 billion pesos for the corresponding period last year, The Philippine Star reported.

SOUTH ASIA

*The Reserve Bank ofIndia said it is working on a framework for addressing customerissues and liability issues from fraudulent electronic transactions, the PressTrust of India reported.

*Kotak Mahindra BankLtd. opened its IFSC banking unit in India's Gujrat InternationalFinance Tec-City to fulfill the needs of offshore banking operations fromIndia, the Press Trust of India reported.

*ICICI Bank Ltd.expects its net interest margin for fiscal 2017 to drop approximately 20 basispoints from 3.37% as of March 31, TheHindu reported.

AUSTRALIA AND NEW ZEALAND

*Top Australian banks, including National Australia Bank Ltd., andWestpac BankingCorp., will lower their home loan rates by 0.25 percentage point,in response to a rate cut by the Reserve Bank of Australia, The Australian reported.Bank of QueenslandLtd. is also expected to follow suit.

*The Australian government will spend millions of dollars on various regulatorybodies to modernize data collection and dissemination systems in the next fewyears, The Australian reported.Regulators have received a boost in their budgets following scandals coming tofore in the financial industry recently.

IN OTHER PARTS OF THEWORLD

*FCA Bank SpA andFerrari NV Italian indirect unit Ferrari Financial Services SpA a memorandum ofunderstanding for the former to acquire a majority stake in Ferrari FinancialServices AG.

*Argentine casino magnate Cristóbal López's business conglomerate, , is , formerly known as Generali Argentina, just six months afteragreeing to purchase it from Italian insurer Assicurazioni Generali SpA, La Nación reported, citing anonymoussources.

*MAPFRE SA first-quarter resultsattributable to the controlling company of €191.7 million, down from €201.4million in the same period in 2015. EPS for the period was 6 cents, compared to7 cents a year earlier.

*PJT Partners Inc. hashired Jacques Brandas a dealmaker, Reuters reported May 2, citing "people familiar with thematter." Brand is leaving his role at Deutsche Bank AG as CEO of North America, according tothe report.

Sally Wang, Sarun Saelee,Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

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