| Market Development
Banks to advise Myanmar on first credit rating Brunei Times 18th Jul 2015
Citigroup Inc and Standard Chartered Plc are set to advise Myanmar on its first credit rating, according to people with direct knowledge of the matter, paving the way for the country to issue its maiden international bond. After decades of isolation from international capital markets under military rule, Myanmar faces a widening current account deficit that could be reduced by borrowing once it has a credit rating from agencies such as Fitch, Moody’s or Standard & Poor’s None of the big three agencies have currently assigned Myanmar a rating, which professional investors use as a benchmark of a country’s ability to repay debt. Citi and StanChart will this month be given a formal mandate to advise the Southeast Asian nation on the steps necessary to earn the credit rating, one of the sources said, declining to be identified because the matter is not yet public.
New day for old finance market The Phnom Penh Post 17th Jul 2015
The formalisation of Cambodia’s derivatives sector will provide budding investors with more choices for their portfolio – although at a risk, insiders say. After years of deliberation, the Securities and Exchange Commission of Cambodia (SECC) on July 2 passed a prakas, or regulation, which allows individuals to apply for the Kingdom’s first derivatives licence. The complex financial instruments – essentially bets made over the future price of either a currency or a commodity – won’t be traded over the nation’s stock exchange but through individual brokerage firms. Despite the SECC’s recent move, and a mini-crackdown in 2011 that saw five derivatives firms’ activities shut down at once, derivatives have been available – albeit under the radar – in Cambodia for about a decade, and the number of outfits has grown.
Stock market delayed due to election Myanmar Times 16th Jul 2015
The launch of the Yangon Stock Exchange has been pushed back until after the November 8 election, according to deputy finance minister Dr Maung Maung Thein. The stock exchange had initially been scheduled to be launched in late October, but the new date is roughly scheduled to be the third or fourth week of November or the first week of December. “It’s been pushed back because of the election,” he said. “Because people will be focusing on the election, so [the launch] has been moved.” Dr Maung Maung Thein said there are still some things to do ahead of the launch of the exchange.
Singapore to Cooperate in Banking Supervision Myanmar Business Today 16th Jul 2015
Banking authorities of Myanmar and Singapore have agreed to cooperate in banking supervision and capacity building, an official report said. The move will be made under a memorandum of understanding signed between the Central Bank of Myanmar and the Monetary Authority of Singapore at their 5th Myanmar-Singapore Joint Ministerial Working Committee Meeting. The joint meeting exchanged views on developing an inter-bank funding market as well as deepening technical cooperation in banking and capital market supervision. The meeting also touched upon business environment for foreign investors, urban development strategy, transportation and logistics, food and agriculture, expansion of air connectivity, development of small and medium enterprises.
Malaysia's Tenaga hires 3 banks to raise $2.5 bln Islamic bond for power project -IFR Reuters 15th Jul 2015
Malaysia's Tenaga Nasional Bhd has hired three banks to help raise up to 9.5 billion ringgit ($2.50 billion) through an Islamic bond issue, or sukuk, to develop a greenfield power plant it has taken over from debt-laden state fund 1MDB, IFR reported on Wednesday. The bond by Malaysia's national utility would be the largest sukuk globally this year, a major boost for the sukuk market after issuance fell in the first quarter to its lowest point in four years, Reuters had reported earlier. CIMB Investment Bank, HSBC and Maybank Investment Bank have been appointed as joint lead managers for the 11.7 billion ringgit greenfield 2,000 MW coal-fired plant project, of which up to 9.5 billion ringgit will be raised through debt.
Malaysia expects its Islamic finance sector to grow by 18% annually Gulf Times 14th Jul 2015
The Shariah-compliant banking sector in Malaysia, already among the largest in the world by assets, is forecast to grow at an average annual rate of 18% over the next years to reach a value of $296.26bn in 2019. This is the prognosis contained in the Malaysia Islamic Finance Report 2015 revealed at a press conference in Kuala Lumpur on June 30. The report, commissioned by Malaysia’s CIMB Islamic and produced in partnership with Jeddah-based Islamic Research and Training Institute (IRTI), the General Council for Islamic Banks and Financial Institutions based in Manama, Bahrain and Thomson Reuters, also projects that takaful contributions in Malaysia will grow at an average 18.2% year-on-year to reach a market share of 17.96% of total insurance premiums by 2019, equal to $5.51bn.
Asset Management
PSE capital raising reaches P104B in H1 The Philippine Star 16th Jul 2015
Capital-raising activities at the Philippine Stock Exchange reached P104 billion in the first half, putting the local bourse on track to meet its P200 billion target despite the ongoing volatility in global markets. “As of June 30, we’ve raised P104 billion through the exchange. That includes private placements and IPOs (initial public offerings),” PSE president Hans Sicat said. Given strong revenues in the first semester, Sicat is optimistic the exchange would hit its full-year target despite the uncertainties in Greece and China. “We’re literally on target. We hope there will be more. There will be continued volatility in the next two weeks but then again this volatility is a temporary thing."
SGX searches for its roar Finance Asia 16th Jul 2015
The Singapore Stock Exchange, Southeast Asia’s biggest, is entering a new and uncertain chapter as it welcomes Loh Boon Chye as its new chief executive. For Loh, a veteran with more than two decades of experience in the financial industry, the chapter’s synopsis is very clear: winning back business. According to a consultancy PwC, the Hong Kong Stock Exchange processed 122 IPOs in 2014 compared to Singapore’s 27. Thailand even surpassed Singapore with 41 IPOs last year, while Indonesia and Malaysia were not far behind the Lion City. Meanwhile, about S$266 billion worth of shares changed hands on SGX last year, down from S$352 billion in 2013, data from the World Federation of Exchanges (WFE) showed. In comparison, the Hong Kong bourse saw about US$1.45 trillion worth of shares traded in 2014, up from US$1.27 trillion in 2013.
S&P likely to keep Philippines' rating until next year The Philippine Star 16th Jul 2015
Global rating agency Standard & Poor’s is likely to maintain the country’s credit rating until next year despite growing economic uncertainties this year. In its Asia-Pacific Sovereign Ratings Trends Mid-year 2015 report, S&P said it could raise the ratings of the Philippines if further institutional and structural reforms boost investment and economic growth prospects. The debt watcher upgraded the country’s rating to ‘BBB’ from ‘BBB-’ in May last year. It said other factors that could lead to a rating upgrade include the implementation of changes in governance and the policy environment for a better assessment of institutional and governance effectiveness. “We consider this scenario unlikely over the next year,” S&P said.
Ringgit Forwards Point to Further Weakness Weighed by Oil, 1MDB Bloomberg 16th Jul 2015
Offshore forwards show the ringgit may weaken another 2.7 percent in the next 12 months as Brent crude prices below a 10-year average hurt export earnings, combined with controversy over a state investment company. Twelve-month non-deliverable forwards retreated 0.2 percent to 3.9145 a dollar as of 5 p.m. in Kuala Lumpur, data compiled by Bloomberg show. The contracts declined to a record 3.9608 on July 8. The onshore ringgit fell to its lowest since the Asian financial crisis this month and is the region’s worst-performing currency in 2015. As Asia’s only major net oil exporter, a 50 percent slump in Brent crude from last year’s peak is weighing on the ringgit, just as a looming U.S. interest-rate increase may spur capital outflows. Investor sentiment has also deteriorated amid a probe into funds linked to 1Malaysia Development Bhd. that has embroiled Prime Minister Najib Razak.
Foreign ownership law lifts securities market VietnamPlus 14th Jul 2015
The securities market in HCM City has seen positive changes since the issuance of Government Decree 60/2015 which would permit a higher rate of foreign ownership in domestic public companies. The decree amends and supplements several articles of Decree 58, providing details and implementing guidelines on several articles of the Law on Securities and Amended Laws on Securities. The new decree, due to take effect on September 1, will remove limits on foreign ownership in listed companies. Current regulations cap foreign stakes in public companies at 49 percent.
Banking
Lending down 30 per cent in first half, banks in North say The Nation 20th Jul 2015
Banks in the North have witnessed a serious drop in loans and deposits, as commercial and individual customers have been hit by the economic slowdown, according to the Chiang Mai Bankers Club. The real estate sector, which depends on borrowing, has been affected a lot, Anan Boonmahathanakron, the club chairman said last week. The club, which has 16 bank members with 273 branches, said the number of customers coming to make transactions had dropped by 30 per cent in the first half of this year compared to the same period last year. This was more than anticipated and lending was down by about a third also. Several banks in Chiang Mai have cut their lending target by half, as they believe the economy in the rest of the year will get worse, he said.
4 foreign banks to operate in PHL this year GMA News 20th Jul 2015
The move by Philippine monetary authorities to ease the rules that limit the entry of foreign lenders into the country widens the variety of banking options, products and services available to businesses and individual clients. The majority of foreign banks now operating in the Philippines is global financial leaders and have expansive international reach. With the onset of the ASEAN regional integration and the easing of banking policies, Asian banks are now starting to carve inroads into the Philippines. Foreign banks with a wider network of international branches offer remittance options for overseas Filipinos loved ones back home. The Bangko Sentral ng Pilipinas (BSP) has so far approved four foreign banks under Republic Act (RA) 10641 or “An Act Allowing the Full Entry of Foreign Banks in the Philippines.”
Shrinking China Trade Drags on Hong Kong to Singapore Banks Bloomberg 19th Jul 2015
The business of financing China’s trade is shrinking, curbing what had been a fast-growing revenue stream for banks in Hong Kong and Singapore over the past decade. Since reaching a peak of about $145 billion in June last year, the value of trade loans provided by lenders in the two financial hubs has tumbled 20 percent due to the slowing Chinese economy and a slump in commodity prices, central bank data show. The slide raises concern that Singaporean banks such as Oversea-Chinese Banking Corp. and global lenders like Standard Chartered Plc and HSBC Holdings Plc, which have been financing trade in Asia since the mid-19th century, may face lower earnings growth. The companies have profited from the 10-fold surge in trade loans since China’s 2001 entry into the World Trade Organization.
Regulators push banks to expand regionally Philippine Daily Inquirer 19th Jul 2015
Local regulators have plunged headfirst into talks for bilateral deals that will allow more foreign banks to enter the country, even as Philippine lenders seem content to keep their investments in the domestic market. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla Jr. said discussions were ongoing for a deal with one of the country’s neighbors to allow local banks to expand across their borders, and vice versa. “We’re beginning dialogues for bilateral agreements,” he told reporters. Espenilla declined to identify the countries with which negotiations are taking place. Last March, central bank chiefs of the Association of Southeast Asian Nations (Asean) signed a new framework agreement to advance the integration of the region’s banking sector.
Banks expect robust growth in 2015 Viet Nam News 18th Jul 2015
The business performance of commercial banks is expected to improve in the third quarter, helping the banks achieve much better results in 2015 as against last year. In a recent survey of business sentiment among commercial banks by the State Bank of Viet Nam, the banks expressed optimism about economic recovery, customers' ability to absorb loans and banks' improving business in the third quarter. They expect pre-tax profit growth in the banking sector this year to average 8.9 per cent. The sector could post annual credit growth of 18.2 per cent this year, higher than an earlier estimate of nearly 17 per cent, while bad debts may account for 2.49 per cent of total outstanding loans, below the Government target of 3 per cent, the survey found. Good liquidity would be a key factor helping credit growth accelerate in the last two quarters, the banks said. They expect deposits to grow 6.8 per cent in Q3 and 15.8 per cent for the whole year.
Moody's raises Singapore's banking system outlook from negative to stable The Straits Times 16th Jul 2015
Moody's Investors Service said on Thursday that it has upgraded its outlook for Singapore's (Aaa stable) banking system to stable, reflecting the domestic property market's soft landing, and moderating domestic and cross-border credit growth. The outlook was previously negative since July 2013. Moody's rates all three of Singapore's major banks - DBS Bank, Oversea-Chinese Banking Corporation and United Overseas Bank - as Aa1 stable, aa3. It also rates Bank of Singapore, the private-banking subsidiary of OCBC, as Aa1 stable, a3.
South Korea’s Busan Bank to open office Myanmar Times 16th Jul 2015
South Korea’s Busan Bank has registered with the Directorate of Investment and Company Administration (DICA) to open a representative office in Myanmar, through DICA’s one-stop-shop service, according to the regulator’s website. Busan Bank, a subsidiary of Korean holding company BNK Financial Group, will join a number of other South Korean financial institutions in opening a Yangon office, according to information from the Central Bank of Myanmar. The central bank lists Hana Bank, The Export-Import Bank of Korea, Industrial Bank of Korea, Kookmin Bank, Korea Development Bank, Shinhan Bank and Woori Bank among those that have opened representative offices in the country.
Singapore banks expected to report slight increase in Q2 profits Channel NewsAsia 16th Jul 2015
Singapore banks are expected to report mild improvements in profitability for the second quarter, during the upcoming earnings season. Banking analysts have said that while rising interest rates are likely to boost loan margins, interest income may be hurt by higher credit costs and slower loans growth. Singapore's benchmark lending rate has doubled since the start of this year. The Singapore Interbank Offered Rate (SIBOR) is currently at 0.82 per cent, up from 0.4 per cent at the end of 2014. Industry observers said this should benefit the banks' bottomlines for the second quarter as they reprice their SIBOR-based interest earning assets. However, they also cautioned that this could be offset by higher credit costs and slower loans growth.
BRI eyes lower profit growth this year amid weak economy Jakarta Post 15th Jul 2015
State lender Bank Rakyat Indonesia (BRI) expects a decline in the bank’s earnings growth this year as the country’s economic slowdown is hurting the bank’s loans expansion. BRI finance director Haru Koesmahargyo said the bank’s profits would likely grow only by a single digit as compared to the more than 14 percent in 2014. “Our business targets have changed as the months have passed. We are still calculating our bottom line projection, but our profits will most likely be below last year’s achievement, at a single digit only,” he said. BRI — still the most profitable lender in Indonesia — recorded Rp 24.2 trillion (US$1.82 billion) in its bank-only net profits in 2014, an increase of 14.3 percent from 2013.
Personal loans to see second year of single-digit growth The Nation 15th Jul 2015
For the second year in a row, personal loans will post only single-digit growth in 2015, bankers say, as financial institutions respond to high household debt and low purchasing power in the agricultural sector by tightening loan approvals. Non-performing personal loans in the banking system have risen since the end of last year, and the overall level is now 5 per cent. For non-banks, the NPL (non-performing loan) rate in this category is 4.8 per cent, also an increase. Krungthai Card (KTC) is weathering the storm relatively well, as its NPL rate is only 1.1 per cent, said Sudaporn Janwatanagool, executive vice president for personal loans. She said that because of the economic slowdown and lower purchasing power, personal loans in the financial system in the first five months expanded by only 4.1 per cent to Bt315.50 billion year on year. For non-banks, the growth was 6.2 per cent, and 2.5 per cent in the banking system.
Banking system has optimistic outlook for 2015 VietnamPlus 15th Jul 2015
Vietnamese credit institutions and foreign bank branches in Vietnam continue to see a bright business outlook for 2015, according to a survey of the State Bank of Vietnam’s Monetary Forecasting and Statistics Department. Up to 99 percent of the institutions predict an average credit growth rate of 6.8 percent in the third quarter of 2015 and 18.2 percent for the whole year, faster than the 14.2 percent pace in 2014 and the annual target of 13-15 percent set by the central bank. Almost all credit institutions also anticipate that deposit and lending interest rates will remain stable or decline slightly through September.
Lion City to shed some private banks Finance Asia 15th Jul 2015
Competition between Singaporean private wealth players and foreign groups is roaring in the Lion City but only the fittest will survive. Private banks that opened shop in recent years face mounting challenges ranging from rising costs to robo–advisers that provide algorithm-based portfolio management at low costs, challenging the traditional private banking model. According to a Deloitte study in 2015 total assets under management excluding domestic assets in Singapore rose by 25% between 2008 and 2014 and stood at $500 billion end-2014, making it the sixth largest private banking hub in the world. However, despite the growth, there are questions as to whether the pie is big enough for everyone.
Maybank ties up with Thai bank to boost transaction banking The Star 15th Jul 2015
Maybank has tied up with Kasikornbank Pcl, a Thai commercial bank, to boost transaction banking as well as tap into business opportunities arising from the Asean Economic Community (AEC). Maybank said on Wednesday both banks would provide customers with transaction banking services in Malaysia and Thailand. “The MoU will also see both banks provide advisory services to clients, the sharing of customer referrals to boost business for cross-border trade and investment and to explore a collaborative framework in other areas of business,” it added.
Expansion plans on hold for local banks VietNamNet Bridge 15th Jul 2015
Banking authorities will halt the issue of licences to domestic credit institutions that propose network expansion over the next few months. The authorities will not allow new establishments such as branches, transaction and representative offices, as well as automated teller machines to be set up. The provision of new business services will also be suspended. The State Bank of Viet Nam (SBV) made the announcement in a document dated July 6. It said the move was part of efforts to reduce the overall ratio of non-performing loans (NPLs) to less than three per cent before October 1. The government wants the bad debt cap to be achieved by the end of this year, but the SBV has revised the deadline after reviewing banking operations at a meeting with local lenders late last month.
BNI set to open overseas operations in Myanmar, South Korea Jakarta Post 14th Jul 2015
State-owned lender Bank Negara Indonesia (BNI) is inching closer to opening overseas operations in Myanmar in this year’s second half. The bank recently received approval for its Myanmar representative office from the Central Bank of Myanmar, paving the way for BNI to begin operations there in August. “We will prioritize our consumers, including state-owned enterprises that have already set up shop there or plan to expand there. We will try to facilitate the business of Indonesian companies in Myanmar,” Financial Director Rico Rizal Budidarmo said. The leased office, located in Yangon, will share space with the office of state-run construction firm PT Wijaya Karya (WIKA). The representative office is expected to facilitate the expansion of fellow state-owned enterprises as well as private enterprise in the neighboring country.
Vietnam's banks see lower bad debts, more loans-c.bank Reuters 14th Jul 2015
Vietnam's banks expect improved business in the third quarter ending September and better results for the whole of 2015, with loans expected to grow faster and bad debts kept in check, the State Bank of Vietnam said on Tuesday. "Banks extended their optimism over the economic recovery, customers' ability to absorb loans and banks' improving businesses in the next quarters of 2015," the central bank said of its survey of business sentiment among the country's lenders. The sector could post annual credit growth of 18.2 percent this year, higher than a previous estimate of nearly 17 percent, while bad debts may account for 2.49 percent of total loans, below a government target of 3 percent, the bank said.
E-Payments
Freight transport moves to e-commerce Voice of Vietnam 17th Jul 2015
A transport e-commerce market place that enables all major stakeholders in the freight transport business to easily link up is expected to be begin its initial operating period in 2016. Nguyen Van Quyen, Directorate for Roads of Viet Nam (DRVN) Deputy General Director, was quoted by Transport newspaper as saying that the formation of the online transport market aimed to create a breakthrough to enhance the economy's competitiveness, as transparency was expected to be enhanced and transport fees lowered. Quyen said the pilot implementation of the online transport market was approved by the transport ministry, adding that the legal framework, along with management software, were being developed. Following the roadmap, the transport market would become operational at the beginning of next year, Quyen added.
Line Pay debuts in Thailand Bangkok Post 15th Jul 2015
Line users in Thailand can now register their debit or credit cards on their Line accounts to make mobile payments both online and in stores, free of charge. Line Pay service is now available in Thailand, the second country after Japan, said Chase Chang, vice-president for global business development of Line Pay, a subsidiary of Line Corporation. It aims to cash in on growing mobile commerce opportunities here, he said. Line Pay is the group's second-largest project apart from the mobile messaging app it established here four years ago, said Mr Chang. "We are fully confident that mobile payment service will be a lucrative revenue opportunity in the future thanks to booming mobile commerce in Southeast Asia," he said.
Insurance
Philam Life sees growing trend in bancassurance business Business Mirror 19th Jul 2015
Philippine American Life and General Insurance Co. (Philam Life) sees the growing trend of bancassurance partnership between banks and insurance companies to better capture the emerging and affluent markets in the country. Philam Life Chief Marketing Officer Jaime Jose Javier said the bancassurance business is becoming popular, as the opportunity to distribute the products to the bank’s customers becomes relevant for both bank and insurance company. “It’s a win-win proposition for both. You leverage on existing relation of the banks with their customers, so they get to expand their offering not just banking products.
Innovation centre launch a milestone for MetLife and Singapore Asia Insurance Review 17th Jul 2015
The launch of LumenLab - MetLife's first and only global innovation centre established in Singapore - is a significant milestone for the insurer and city-state, said Ms Jacqueline Loh, Deputy Managing Director, Monetary Authority of Singapore. “LumenLab will shine the light forward on innovative and impactful solutions in health, wealth, and longevity that are developed in Asia, for Asia, and for the rest of the world,” she said at its official opening yesterday. With the digital revolution underway, established insurers must adapt quickly to transform or miss opportunities that start-ups can quickly exploit. “Insurers must look inwards to transform themselves, to embrace innovation at all levels, and create an environment where staff are empowered to be like start-ups: nimble, flexible, and creative."
EastWest Bank insurance arm gets SEC nod The Philippine Star 15th Jul 2015
East West Banking Corp. got the green light from the Securities and Exchange Commission (SEC) for the incorporation of a wholly-owned insurance arm. EastWest Bank corporate planning officer Aerol Paul Banal said in a disclosure to the Philippine Stock Exchange (PSE) the SEC has issued a Certificate of Incorporation dated July 6 signifying its approval of the Articles of Incorporation and By-Laws of East West Insurance Brokerage Inc. Banal said the subsidiary would primarily engage in the business of non-life insurance brokerage. The green light from the SEC came a month after EastWest Bank secured the approval of the Bangko Sentral ng Pilipinas (BSP) for its initial equity investment in the insurance company.
Private marine insurance as soon as this month: deputy minister Myanmar Times 14th Jul 2015
Private marine cargo insurance will be allowed to begin operating as soon as this month, according to deputy finance minister Dr Maung Maung Thein. Marine cargo insurance covers the loss of cargo when it is shipped from the point of origin to a final destination, including when it is sitting at the ports. State-owned Myanma Insurance has until now been the sole provider of this insurance in the country, and will continue to provide the insurance in the future. Dr Maung Maung Thein said private insurance will only cover the cost of the goods and the vessel, while state-owned insurer Myanma Insurance will also be able to cover jetties, as well as goods and vessels, with its insurance programs. “Insuring jetty facilities would be difficult, as it requires an advanced level of knowledge,” he said.
Market Regulation
MAS 'committed to safeguarding financial system' The Straits Times 16th Jul 2015
The financial regulator has outlined Singapore's anti-money laundering regime after an unfolding scandal at 1Malaysia Development Bhd (1MDB) put the private banking industry here in the spotlight. The Monetary Authority of Singapore (MAS) said yesterday in a statement: "Singapore is firmly committed to maintaining its status as a clean and trusted financial centre. It has no tolerance for its financial system to be used as a refuge or conduit for illicit fund flows." Its comments follow a Wall Street Journal report earlier this month that said Malaysian investigators following a paper trail from the debt-ridden state investment fund had traced US$681 million ($924 million) to what they believe are the personal bank accounts of Malaysian Prime Minister Najib Razak.
A difference remains even as Central Bank changes course Myanmar Times 16th Jul 2015
A difference persists between the official and unofficial exchange rates even as the Central Bank of Myanmar changed course this week and allowed its reference rate to be set by the market. The kyat has depreciated for most of the year against the US dollar, though the Central Bank’s official exchange rate had not kept pace with the drop in market rate used by businesses. This created a gap between the legal, official rate and the unofficial market rate. Businesses had complained of the trouble of exchanging currencies, as it is illegal to trade more than 0.8 percent from the official rate. The Central Bank moved to address this problem on July 13, changing the official rate from K1125 to K1200 a dollar overnight, bringing it much nearer to the market rate.
Philippine c.bank policymaker favours RRR cut if inflation falls Reuters 16th Jul 2015
The Philippine central bank should opt to reduce banks' required reserves rather than cut its key interest rates to support the economy if inflation falls below one percent, a member of the bank's policymaking Monetary Board said on Thursday. Analysts expect the board, which next meets on Aug. 13, to leave interest rates on hold for the rest of the year, having kept the benchmark rate unchanged at 4.0 percent since October. Felipe Medalla, one of the board's seven members, told Reuters in an email that lowering banks' reserve requirement ratio (RRR) would have more impact on the economy than cutting interest rates. Inflation hit a two-decade low of 1.2 percent in June, and if it drops under 1.0 percent, Medalla said: "it is good for both the short run and the long run to cut the RRR."
Singapore: Law amended to improve life insurance services Asia Insurance Review 15th Jul 2015
Lawmakers have passed a Bill to amend the insurance law to limit upfront commissions and spread the total commissions paid on a life policy over a specified period, among other measures aimed at improving life insurance services for consumers. In addition, the law as amended on Monday will empower the Monetary Authority of Singapore (MAS) to require insurers to submit information for the web aggregator, known as compareFIRST, and to specify the fees payable by insurers for the development, operation and maintenance, and use of the web aggregator. CompareFIRST is a collaboration among MAS, the Consumers Association of Singapore, the Life Insurance Association and MoneySENSE, which is the national financial education programme in Singapore. The web aggregator is an Internet portal that enables consumers to compare the premiums, key benefits and features of life policies from different insurers. It helps consumers to make better informed decisions when purchasing life insurance.
Local insurers burdened by Singapore's 'onerous' regulations, extreme manpower crunch Singapore Business Review 15th Jul 2015
Good insurers are getting 'strangled'. Local insurers are being burdened by Singapore's 'onerous' regulations, according to a report by PwC. The report said that new rules governing solvency and market conduct could swamp the industry with costs and compliance problems. It could also distract management from the task of running healthy businesses at a time when the industry faces radical structural change. A Singapore respondent warned that over-regulation “potentially strangles perfectly good and sound insurers from conducting good and sound business”.
Rules passed for derivatives The Phnom Penh Post 14th Jul 2015
Cambodia has moved to formalise its ill-regulated derivatives sector by launching a key regulation earlier this month. On July 2, the Securities and Exchange Commission of Cambodia (SECC) approved the prakas on the “Licensing and Supervision of Derivative Trading”. The prakas regulates the sector by allowing individuals or firms to apply for official broker licences, bringing the practice under the law. Derivatives will not be exchange-traded on Cambodia’s bourse, but through brokers, who must comply with several regulations if they receive a licence. Derivatives consist of contracts on the future price fluctuations of goods such as gold or oil, offering investors the chance to either place a bet on a good’s price or to use them as a form of insurance.
State Bank of Vietnam lifts lending ceiling VietnamPlus 14th Jul 2015
The State Bank of Vietnam (SBV) has allowed some lenders to raise their credit growth ceiling this year in a move to boost economic growth, according to Thoi bao Ngan hang (Banking Times). The lending ceiling of Vietcombank and VietinBank has been raised to 16 percent, while the figure for SeaBank and TPBank is 35 percent. The ceiling of Techcombank and LienVietPostBank was lifted to 30 percent. The new credit ceilings of VPBank, Nam A Bank, SHB and VIB are 18 percent, 25 percent, 15 percent and 20 percent, respectively. The figure for BaoVietBank is 36 percent. The central bank also adjusted the lending ceilings at the branches of some foreign banks. The ceiling for Standard Chartered Vietnam is now 30 percent, while for Korea Exchange Bank's Hanoi branch it is 35 percent. The ceiling for Taipei Fubon's Binh Duong branch is 24 percent.
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