Keywords: US FDIC, Thomas Hoenig, Central Bank Of Kenya, BMI Bank, Al Salam Bank, MAS, Central Bank Of Myanmar

"If they’ve now targeted a return on equity that’s 20%, we have a problem."
FDIC vice chairman Thomas Hoenig, on banks pursuing high returns with inherent risk more suited to hedge funds.

The following are notes from our Monday morning meeting.

FDIC data indicates fewer problem banks in the US, down 6.7% to 651 in Q1 2013, as only four institutions failed, the least since 2008.

Spanish banks granted 274,700 new home mortgages in 2012, a drop of 80% from 2006, as demand in the domestic mortgage market continues to weaken.

Central Bank of Kenya reported total bank branches rose to 1,272 in 2012, up 20% from 2010 as they looked to tap into deposits and speed up loan applications.

Bahrain’s BMI Bank and Al Salam Bank will merge, creating the Gulf state’s third-largest bank by assets.

Asian Banker Research found a sharp drop in South Korea’s cheque transaction volume since 2004, declining 26% to 306m in 2012. Click here for more.

ATM ownership in China increased to 307 sets per million people, up 16% from 2011 on the back of sustained demand for cash transactions in the country.

Central Bank of Myanmar will reduce the amount of government deficit it directly finances to zero from around 40%. Click here for more.

Singapore's MAS censured 20 banks for trying to rig benchmark interest rates, ordering them to set aside up to $9.6b as cash deposits at zero interest pending steps to improve internal controls.

Asian Banker Research found gross NPL ratio of commercial banks in India rose to 3.1% in FY 2012, the highest over the past six years. Click here for more.

Asian Banker Research found Australia’s credit card volume stood at 15m in FY 2012, as growth rates gradually declined to 1.1% from 8.1% in 2006. Click here for more.