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Indian state banks to consolidate overseas ops; CBA unit float moves forward

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Indian state banks to consolidate overseas ops; CBA unit float moves forward

* Government bailout will likely remain a primary crisis-fighting tool in Asia-Pacific banking, as most governments in the region will keep supporting systemically important banks, compared with those in North America and Western Europe, S&P Global Ratings said. The rating agency added that reforms concerning crisis management and resolution processes are at a relatively early stage in the region and that the agency's view may still change depending on developments.

GREATER CHINA

* The China Insurance Regulatory Commission released new rules for asset-liability management in the industry, deciding to start a trial period for such rules to guide insurers to manage their funds prudently. Insurers are required to submit reports by Aug. 31 based on their financials ending June 30, the regulator said, adding that it will categorize the companies into four classes after the pilot of the rules.

* Ye Jianqing, vice president of China Zheshang Bank Co. Ltd., was appointed as chairman of Bank of Wenzhou Co. Ltd., the 21st Century Business Herald reported.

* Hong Kong-based AIA Group Ltd. established a US$6 billion global medium-term note and securities program, which will be listed on the city's bourse for a 12-month period. The group expects the listing to take effect on or around March 2.

* John S. C. Chen, senior executive vice president of Taiwan's Shanghai Commercial & Savings Bank Ltd., is set to take over as president of the lender, the Liberty Times reported. Chen noted that the bank is seeking to acquire or purchase stocks of other lenders in the future, and will apply for the establishment of three new branches on the island in May.

JAPAN AND KOREA

* Japanese financial services group ORIX Corp. invested ¥6.4 billion in Wecash, a Chinese startup that provides credit assessment using technology based on big data and artificial intelligence, The Nikkei reported.

* Japan-based Mizuho Bank Ltd. entered into a memorandum of understanding for business cooperation with Colombian lender Itaú CorpBanca Colombia SA. The MOU is intended to offer enhanced services to companies seeking to enter or expand their operations in the South American country.

* Japan's Mitsubishi UFJ Factors Ltd. and Seven Bank Ltd. will introduce a system that automates the processing of scheduled bill payments, The Nikkei reported.

* South Korea-based Industrial Bank of Korea established a committed line of credit worth 200 billion won, or ¥20 billion, each with Bank of Tokyo-Mitsubishi UFJ Ltd. and Mizuho Bank, the Maeil Business Newspaper reported.

ASEAN

* Thailand's regulatory framework for cryptocurrencies, which is expected to be developed by early March, will fall under Know Your Customer rules, the Bangkok Post reported, citing Pornchai Thiraveja, an adviser to the country's Fiscal Policy Office. Virtual currencies with either underlying assets or services can be traded to avoid losses from investment, the official added.

* Thailand's Ministry of Finance and the State Enterprise Policy Office agreed to appoint Pornlert Lattanan as the new chairman of Islamic Bank of Thailand's board, Post Today reported, citing sources from the ministry. He is said to replace Chaiwat Utaiwan, who will complete his term as the bank's chairman March 15.

* The Monetary Authority of Singapore is evaluating whether additional regulations on cryptocurrencies are required to protect investors, Reuters reported, citing Ong Chong Tee, the authority's deputy managing director for financial supervision. The central bank currently regulates activities involving virtual currencies if they pose specific risks, the report said.

* Land Bank of the Philippines priced its offer to acquire a 66.67% stake in Philippine Dealing System Holdings Corp. at 360 pesos per share, the Philippine Daily Inquirer reported, citing Alex Buenaventura, president and CEO of the lender. This comes after the bank said in January that it was conducting due diligence on PDS Holdings after receiving approval from its board to proceed with the proposed deal.

SOUTH ASIA

* Indian state-owned banks will consolidate 35 overseas operations, with another 69 operations under review, Mint reported, citing a tweet from Rajiv Kumar, secretary of the country's department of financial services. The consolidation, aimed toward "cost efficiencies and synergies in overseas markets," includes offshore branches, representative offices, joint ventures, subsidiaries and remittance centers.

* World Bank Group private investment arm International Finance Corp. proposed to extend loans to Bangladesh-based Bank Asia Ltd., Pubali Bank Ltd. and One Bank Ltd., DealStreetAsia reported, citing three separate disclosures. The loans would be used for small and medium-sized enterprises, among other things.

* Bangladesh Bank appointed Ahmed Jamal as a deputy governor on a contractual basis, the Dhaka Tribune reported, citing a circular signed by Muhammad Abdul Latif, deputy secretary of the country's public administration ministry. Jamal, who served as an executive director of the central bank, will remain in the deputy governor post until June 30, 2023.

* Indrajit Coomaraswamy, governor of the Central Bank of Sri Lanka, urged the country's lenders to find some way of granting loans without collateral to micro, small and medium-sized enterprises, in a bid to facilitate credit flow to the sector, KNN India reported.

AUSTRALIA, NEW ZEALAND AND MICRONESIA

* Commonwealth Bank of Australia is said to have tapped professional services company KPMG to work on separating Colonial First State Global Asset Management's financial accounts from the parent bank, in connection with the unit's float, The Australian reported. The task has to be completed before CBA and its managers start a deal roadshow, according to the report.

* The Australian Competition and Consumer Commission is investigating the country's major banks for potential cartel behavior over claims the lenders manipulated the benchmark interest rate, The Australian reported, citing Marcus Bezzi, head of enforcement and compliance at the competition watchdog. The authority often worked closely with the Australian Securities and Investments Commission on investigations where there is an overlap.

* Papua New Guinea-based Bank of South Pacific Ltd.'s consolidated net profit for the year ended Dec. 31, 2017, climbed to 757 million kina, or 162 toea per share, from 643.5 million kina, or 137.7 toea per share, for the year-ago period.

* The Marshall Islands is set to issue its own sovereign cryptocurrency, which will be circulated as legal tender along with the U.S. dollar, Reuters reported, citing David Paul, minister-in-assistance to the president of the remote Pacific republic. The new currency, named SOV, will be released to the public via an initial coin offering.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Afreximbank eyes triple African listing; Hapoalim ups provision for US tax case

Europe: Commerzbank gets final offers for unit; AIB, Dexia post FY'17 results

Latin America: Credicorp appoints CFO; Banco Agropecuario restructuring; BTG eyes loan growth

North America: Wells allegedly mishandled fraud probes; BofA fires 2 in sexual misconduct probe

North America Insurance: AmTrust agrees to sale; NJ insurer reports $550M tax benefit

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

R Sio, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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