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
* The Philippine central bank cut the reserve requirement ratio for the second time in three months by 1 percentage point to 18% from 19%, effective June 1. Separately, the central bank said it will now allow banks to bypass obtaining approval for certain foreign exchange transactions.
* South Korea's Cabinet approved a bill to relax disclosure rules for banks looking to expand overseas.
* The People's Bank of China has allowed overseas yuan clearing banks to conduct more business, including interbank borrowing and cross-border account financing.
* Indian authorities are reportedly considering setting up a new governance body to oversee public sector banks in the wake of the Punjab National Bank loan scam.
* India's central bank relaxed rules on setting up banking units within an international financial services center, or IFSC, by international banks. Separately, the central bank released its final guidelines on net stable funding ratio for banks.
* Japan's Financial Services Agency asked regional banks to limit their investment losses as it bids to strengthen the financial health of smaller lenders.
Probes, fines and more
* The Federal Court of Australia ruled mostly in favor of Westpac Banking Corp. in a rate-rigging case filed by the securities regulator, but noted that the bank in certain occasions engaged in "unconscionable conduct" to influence the Bank Bill Swap Rate.
* Industrial & Commercial Bank of China Ltd.'s U.S. unit, Industrial & Commercial Bank of China Financial Services LLC, agreed to pay a US$5.3 million fine to the U.S. Financial Industry Regulatory Authority, or FINRA, over inadequate anti-money laundering measures and other financial violations.
* Indian police charged senior executives at Punjab National Bank for allegedly misleading the central bank in 2016 over its handling of the financial messaging system and credit guarantees that led to a US$2 billion bank fraud. Earlier, the country's securities regulator issued a warning to the bank for failing to adequately disclose concerns related to the fraud case.
* India's securities regulator is said to be examining ICICI Bank Ltd.'s compliance with disclosure norms in connection with the alleged involvement of CEO and Managing Director Chanda Kochhar in the Videocon Group loan scandal.
* The Reserve Bank of India fined South Indian Bank Ltd. 50 million rupees for breaching rules related to income recognition, asset classification and know-your-customer norms.
M&A updates
* Malaysia-based Kenanga Investment Bank Bhd. begun negotiations to acquire the stockbroking business of Inter-Pacific Securities Sdn. Bhd.
* Kuwait's Noor Financial Investment Co. is reportedly in discussions with six global investors to sell a combined 9.59% stake in Pakistan-based Meezan Bank Ltd.
* Vietnam Posts & Telecommunications Group obtained approval from the State Bank of Vietnam to sell Post & Telecommunication Finance Co. Ltd. to Southeast Asia Commercial Joint Stock Bank, or SeABank.
In other news
* South Korea's central bank kept its base rate unchanged at 1.50%.
* State Bank of India swung to a net loss for the fiscal year ended March 31 amid a rise in provisioning. The bank posted a net loss after minority interest of 45.56 billion rupees, or 5.34 rupees per share.
* Australia & New Zealand Banking Group Ltd.
* Woori Bank confirmed plans to convert itself into a holding company by early 2019 in order to help improve management efficiency and diversify its business portfolio.
* Vietnam's Orient Commercial Joint Stock Bank plans to increase its registered capital by 50% to 7.5 trillion dong through an issuance of shares ahead of its planned listing.
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