Regional/ International

The Basel Committee has issued a proposal that requires banks to ensure that capital instruments issued by them can either be written off or changed into common shares if the bank is ailing. The proposal states that this requirement, which should be written into the agreement terms of capital instruments, is necessary as a precondition for capital instruments to be treated as regulatory capital.

UK´s Financial Services Authority (FSA) has fined the London unit of Société Générale $2.45 million for submitting inaccurate reports related to about 80% of its reportable transactions over a two-year period. The bank also violated FSA rules by failing to maintain all transaction reporting data.

Bank of Scotland, a unit of Llyods Banking Group, will cease operations in Ireland in December 2010. The bank´s assets will be transferred to Bank of Scotland.

Eugen Haltiner, chairman of Finma, Switzerland´s financial regulator, will resign. Haltiner´s tenure was controversial due to an alleged conflict of interest between his role in Finma and his connections to former employer UBS.

Middle East

Saudi Arabia´s Islamic Development Bank will list its first ringgit-denominated sukuk worth $319 million on the Kuala Lumpur Stock Exchange.

Central banks of the six Gulf Cooperation Council countries have asked commercial banks to reduce annual interest rates on credit cards. Many credit card owners in these countries currently pay up to 26% in annual interest rates due to bad loans and poor credit ratings.

UAE´s Bank of Sharjah has raised $150 million in a term-loan from a group of banks including Commerzbank, Intesa Sanpaolo, National Bank of Abu Dhabi, UniCredit Group and Wells Fargo Bank. The funds raised will be used to meet corporate objectives.

Indochina

Vietnamese authorities have asked the State Bank of Vietnam, the country´s central bank, to review its directive regarding an increase in capital adequacy ratios and risk management regulations to banks. This comes as many banks have asked for an extension to implement this directive as they require time to restructure their investment portfolio accordingly.

Vietnam´s Sacombank Securities Company and Laos´ Lao Development Bank have set up a financial consultancy joint venture in Laos that will provide financial advisory services to firms seeking listing on the Lao Stock Exchange.

ASIA Green Development Bank is awaiting approval from the Central Bank of Myanmar to open three branches. The bank recently opened its headquarters in Mandalay, Myanmar.

South Asia

India´s Axis Bank is planning to raise about $500 million through the sale of foreign currency bonds.

Bangladesh Bank, the country´s central bank, has limited financial institutions´ investment in the stock market to 25% of their paid up capital and reserves to limit the firms´ exposure to market-related risks.

Pakistan´s central bank is planning a new microfinance strategy as the current strategy is only serving a small segment of the microfinance market. The new strategy will integrate the Microfinance Credit Guarantee Facility fund, the Institutional Strengthening Fund and the Improving Access to Financial Services Fund.

Australia/New Zealand

ANZ has started due diligence on a 57.27% stake in Korea Exchange Bank worth $3.8 billion. ANZ´s proposed acquisition of Korea Exchange Bank will help the bank establish a presence in the Pan-Asia banking sector.

Commonwealth Bank of Australia has opened its first branch in India, allowing the bank to gain a foothold in the Indian banking industry. The branch is located in Mumbai and will provide trade finance, remittance and foreign exchanges services to companies involved in Australia-India trade.

Government-owned Kiwibank is planning to raise about $357 million from offshore debt market.

China

People´s Bank of China, the country´s central bank, has unveiled a pilot project that will allow Hong Kong banks to invest renminbi funds in the Chinese interbond market.

China Banking Regulatory Commission, the country´s financial regulator, has approved Mizuho Corporate Bank China´s proposed sale of $147 million worth of two-year bonds in the Chinese bond market.

China Securities Regulatory Commission, the country´s securities regulator, has given ICBC approval to issue about $3.7 billion worth of convertible bonds. This is in addition to the bank´s plans to raise about $6.6 billion in a rights issue.

Hong Kong Fubon Bank has admitted to providing customer data to insurance companies for marketing purposes. This comes after the Hong Kong Monetary Authority identified six banks that supplied customer data to third parties.

Bank of East Asia is planning to launch yuan-denominated certificates of deposit and insurance products.

Indonesia

Bank Indonesia, the country´s central bank, is reviewing the country´s Islamic banking regulations. This comes after Islamic banks and banking units have requested the central bank to reduce restrictions by allowing term changes in loans to avoid the rise of non-performing loans.

Government-owned Bank Mandiri is planning to raise between $1.45 – 1.56 billion via a rights issue in December 2011.

Indonesian banks are briefing up their security after a bank heist at a CIMB Niaga branch in Medan left a police officer dead.

Japan

Japan Sumitomo Trust & Banking Corporation and Chuo Mitsui Trust Holdings have finalized their merger which will form a new holding company named Sumitomo Mitsui Trust Holdings.

Aozora Bank will be launching an executive share stock ownership programme which allows the bank´s directors, auditors and executives to purchase company stock deducted from their pay packets.

Korea

Korea, South Euh Yoon-dae, chairman of KB Financial Group, is seeking a merger with a foreign bank rather than merge with Woori Finance Holdings or Korea Exchange Bank.

The Financial Supervisory Service, the country´s financial regulator, will conduct checks on banks, securities firms, insurers and savings banks to prevent fraud. The regulator will prepare a checklist of financial infringements and will begin its inspection of financial institutions in October.

South Korea´s Hana Daetoo Investment Bank has signed an agreement with India´s YES Bank. According to the agreement, both banks will provide each other with advice on cross border deals, including joint ventures, equity raising and merchant banking.

Malaysia

CIMB Bank has launched the installation of automated teller machines (ATMS) that offer foreign currencies in Kuala Lumpur. Each ATM will allow the bank´s customers to withdraw cash in any four combinations of US dollar, Euro, Australian dollar, Japanese yen, Hong Kong dollar, Thai Baht, Chinese Renminbi and Indonesian Rupiah currencies.

Hong Leong Bank has obtained shareholders´ approval to postpone its EGM on the proposed acquisition of EON Capital to September 30th. An earlier planned EGM was declared invalid as it did not meet the required 21-day notice period to shareholders

Philippines

Bank of the Philippine Islands has raised about $222 million from a stock rights offer, increasing its capital adequacy ratio to 16.4% from 13.8%.

Bank of Commerce has undergone a restructuring process and has named Virgilio Goquingco as its new CEO. Previous CEO Raul deMesa has been named as chairman.

The Philippine government has named Francisco del Rosario Junior and Jose Nuñez as the new president and chairman of Development Bank of the Philippines, respectively.

Singapore

The Monetary Authority of Singapore (MAS) has lifted the ban on CIMB Securities, DMG and Partners Securities, Kim Eng Securities, OCBC Securities, UOB Kay Hian and Phillip Securities regarding the sale of structured products. The six financial institutions were banned by the regulator due to non-compliance of rules relating to the sale of structured products.

UOB has launched a new branch in Marina Bay Sands. The branch will offer wealth management services to clients of the bank´s Privilege Banking service which caters to clients with $1 million or more assets in the bank.

Taiwan

Taiwan´s First Financial Holding will sign a memorandum of understanding with the mainland's China Everbright Bank to offer loans to Taiwanese businesses that are based in China. First Commercial Bank, a unit of First Financial Holding, will vet the loan applications while China Everbright Bank will underwrite the loans.

Taiwanese regulator, the Financial Supervisory Commission, has approved the applications of Cathay United Bank and Hua Nan Commercial Bank to set up branches in China. Both applications were rejected earlier due to incomplete documentation.

The Financial Supervisory Commission is reviewing plans to permit Taiwanese financial services firms to invest in Chinese financial leasing companies.

Thailand

Thanachart Bank has teamed up with Thailand´s Government Pension Fund to provide discounted banking services to the fund´s associates. The services to be offered include vehicle leasing and insurance coverage for vehicle loss, as well as home and personal accident policies.

TMB Bank and the Stock Exchange of Thailand have launched a financial literacy project. Both financial institutions will provide training on financial planning and investment knowledge to the bank´s branch managers and customers.