| Market Development
Interbank market needs clear regulation to take off Myanmar Times 24th Jul 2015
The interbank market for foreign exchange has been slow to take off, as banks are still waiting for the Central Bank of Myanmar to publish precise rules and regulations, sources said. The interbank forex market was set up in 2013 after the government introduced a managed float for the kyat the year before. In theory banks are free to set their own rates with each other and trade the currency, but in practice the Central Bank still dominates the official forex market. However, this cannot continue indefinitely – a growing trade deficit and a shortage of US dollars over the past few months has highlighted the need for an active interbank market. Central Bank governor U Kyaw Kyaw Maung has previously asked foreign banks to help to expand the market. Others also see international lenders as the solution.
Ringgit sukuk outperforming The Star 22nd Jul 2015
Malaysia’s ringgit sukuk are outperforming as their relatively higher yields offset the outlook for a weaker currency. Sovereign domestic notes due in 2016 and 2021 returned 2.5% and 3.5% respectively this year, compared with 0.8% and 1.7% for similar Islamic dollar debt, data compiled by Bloomberg show. The premium for the 2016 securities over their global counterpart is more than 200 basis points. Macquarie Group Ltd, the second most-accurate forecaster for the currency in the three months through June, predicts Asia’s worst-performing exchange rate will decline another 1.1%t before Dec. 31.
Will the Vietnamese stock market continue to lure foreign investors? Voice of Vietnam 22nd Jul 2015
The rising Vietnamese stock market is now attractive in foreign investors’ eyes amid the turmoil of the Chinese and European markets. But this does not mean that a price boom will occur, experts say. The Greek debt crisis, which affects the future of Europe, plus the fall of the Chinese stock market, have seriously affected global markets. Observers believe investors will instead flock to Vietnam, one of the rare markets worldwide that has seen stock indexes on the rise. Vietnam’s recent passage of Decree No 60 will help. 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.
Singapore's asset management industry grew strongly in 2014: MAS The Straits Times 21st Jul 2015
Singapore's financial sector grew 7.7 per cent last year, as assets under management rose to a record high, the Monetary Authority of Singapore said on Tuesday when announcing its latest annual report. AUM rose 30 per cent from $1.8 trillion in 2013 to over $2.3 trillion in 2014, while foreign exchange trading jumped 40 per cent year-on-year to US$480 billion in October 2014, MAS managing director Ravi Menon said, adding that Singapore already commanded 60 per cent of infrastructure financing transactions in Asean. "Allocation to Asia-Pacific investments accounted for two-thirds of total AUM, reflecting continued global investor interest in the region," MAS said in its annual report.
MAS initiatives to help Singaporeans manage their finances better Channel NewsAsia 21st Jul 2015
The Monetary Authority of Singapore (MAS) recorded profits of S$281 million in the financial year ended in March, compared to S$15.8 billion in the previous financial year. MAS said the drop is on the back of negative currency translation effects, as the strengthening of the Singapore dollar against the euro and yen more than offset translation gains as the Sing dollar weakened against the US dollar. The central bank said that in the past two years, it has been focused on helping Singaporeans better manage their finances. The Total Debt Servicing Ratio on property purchases, and restrictions on housing and motor vehicle loans were among measures implemented by MAS to encourage prudent borrowing. The latest to kick in is the limit on unsecured credit for individuals whose unsecured debt exceeds 24 times their monthly income.
‘Boost savings to fuel Asean growth’ Manila Times 21st Jul 2015
Member economies of the Association of Southeast Asian Nations (Asean) must strengthen their financial markets for the region to tap its own savings and fuel its own growth, the chairman of the Asean Business Advisory Council (BAC) Malaysia said in Manila on Tuesday. Asean-BAC Malaysia Chairman Tan Sri Dr. Mohd Munir bin Abdul Majid said in an exclusive interview with The Manila Times the financial and capital markets are the lifeblood of the real economy, which must be developed to support the economic bloc’s investment requirements. “If we develop our own markets and let them grow, then we can tap our own sources of savings for our own investment needs,” he said in an interview at the venue of a business forum set for today (Wednesday) on the regulatory environment of an integrated Asean Economic Community (AEC).
Asset Management
SET plans new products, services to expand long-term investor base The Nation 24th Jul 2015
The Stock Exchange of Thailand (SET) targets expanding the long-term investor base by developing more products and services as part of its transformation into a digital exchange to ensure consistent growth in the future. SET president Kesara Manchusri said yesterday that the SET continues to encourage investment in provident funds to ensure employees can look forward to long-term financial stability. It wants to increase the number of companies adopting the investment cafeteria policy for employees. The exchange also provides investment knowledge on provident funds for higher long-term returns through online media. "For the remaining six months, the SET will proceed with its "Diversified-Digital-Sustainable-International' business plan, expand various products and services with quality, boost liquidity and develop its work system towards the digital exchange and GMS Connector.
Baht weakens further on drought, Fed bet Bangkok Post 23rd Jul 2015
The baht is poised to breaking the 35 level against the US dollar for the first time since 2009, after weakening by 2% this week. Chantavarn Sucharitakul, assistant governor for financial markets operations, said the local currency had depreciated quickly this week due to both internal and external factors. The US Federal Reserve will likely increase the policy interest rate this year since the economy is recovering steadily. Gold prices, which plummeted below US$1,1oo an ounce, have triggered higher demand for the precious metal and the US dollar. At home, worries about the economy and impacts from the drought, as well as public investment delays, have led to downward revisions of economic forecasts in the latter half of this year.
Singapore Savings Bonds: Good intent, bad timing, say analysts Channel NewsAsia 23rd Jul 2015
Singapore's plan to launch a savings bond to encourage long-term retail savings is unsettling domestic banks and economists who fear this bond will push interest rates up and suck cash out from an already anaemic economy. The new bond, which will begin selling in October, will have a term of 10 years. It will offer the same yields as government bonds or ten times the returns on bank deposits, and can be redeemed without penalty at any point. Such a juicy proposition could cause a flight of cash from bank deposits into these bonds and force interest rates higher as banks compete to attract savers. The government says it will issue a maximum of S$4 billion worth of bonds this year, which is still more than a fifth of deposit growth in 2014.
Twitchy market holding its own The Nation 23rd Jul 2015
The Thai stock market is still of interest as there are many inexpensive securities to invest in, despite sentiment being dampened by such external factors as the global economic slowdown and the effects of a likely rise in the US short-term interest rate, executives in the securities industry said yesterday. Speaking at a seminar on how to invest in the stock market amidst negative factors, hosted by the Association of Investment Management Companies and the Association of Thai Securities Companies, the executives said that when the stock market plummeted it was a good time to buy. The Stock Exchange of Thailand is inevitably pressured by such external factors as the global slowdown, the monetary-easing policies of the European Union and Japan, a probable hike in the US Federal Funds rate, and a slow recovery of China's economy, all of which feature alongside the downward trend of the Thai economy.
Indonesian rupiah hits 17-year low, authorities downplay impact The Star 23rd Jul 2015
Indonesian authorities on Thursday downplayed the weakening rupiah, which hit a fresh 17-year low against the dollar, saying it would not have a significant impact on Southeast Asia's largest economy. The rupiah, the second worst performing Asian currency this year after the Malaysian ringgit, fell as much as 0.2% on Thursday to 13,395 per dollar, its weakest since August 1998. "The ups and downs of the rupiah are normal. It will not have a big impact," chief economics minister Sofyan Djalil told reporters. "The government with (the central bank) will try to safeguard the rupiah in accordance to its fundamentals."
Investors can apply for the first Singapore Savings Bonds from Sept 1: MAS The Straits Times 21st Jul 2015
Retail investors can apply for the first issue of the much-anticipated Singapore Savings Bonds from September 1, said the Monetary Authority of Singapore (MAS) on Tuesday (July 21). The first Savings Bonds will be issued on Oct 1 and MAS said it could potentially issue between $2 billion and $4 billion worth of such bonds this year, depending on demand. "A new Savings Bond will be issued every month for at least the next five years, so there is no need to rush for the first issuance," MAS managing director Ravi Menon told a press conference on the release of the central bank's latest annual report.
S&P’s: Rise in contingent liabilities no risk to rating New Straits Times 21st Jul 2015
Standard & Poor’s (S&P’s) said Malaysia’s stable sovereign rating outlook will not be affected by the recent increase in contingent liabilities based on the impact on the banking system. “Despite 1Malaysia Development Bhd (1MDB) and other state-owned enterprises or SOEs, we do not see the contingent liabilities weightage a rating risk in the near term,” said S&P’s sovereign and international public finance ratings senior director Tan Kim Eng in a webcast yesterday. Tan said although contingent liabilities have risen in Malaysia over the years, the level has not increased to warrant a change in the “A-” stable outlook.
SBV won't weaken dong further: official Vietnam Investment Review 21st Jul 2015
The State Bank of Viet Nam will not weaken the dong by more than 2 per cent this year to protect national interests, Deputy Governor Nguyen Thi Hong has said. Hong said this in an interview with the Vietnam News Agency last week after some experts recently suggested further devaluation of the domestic currency. Notably, the SBV had raised the inter-bank exchange rate in May by 1 per cent for the second time this year, to VND21,673 per US dollar, leaving no room for adjustment later this year. ANZ Bank economists Eugenia Victorino and Glenn Maguire said in a research paper earlier this month that Viet Nam's economic recovery was broadening, and as a result its current account balance was sliding from a surplus into a deficit.
Banking
BII to disburse $300 million loans in second half Jakarta Post 24th Jul 2015
Private lender Bank Internasional Indonesia (BII), part of Malaysia’s financial services group Maybank , is seeking to disburse at least US$300 million worth of loans in the second half of this year to various corporate clients. BII global banking director Eri Budiono told The Jakarta Post that talks regarding the loans were almost finalized and that the bank was looking to finalize the deals in the coming weeks. “There are several projects in our pipeline that are related to various sectors, such as plantations and energy. One deal that we are closing very soon is acquisition financing in the plantation sector,” he said on Wednesday. The loans will be disbursed in both US dollars and rupiah, depending on customer needs.
Credit Suisse Asia Chief Eyes Expansion as Regional Profit Doubles Jakarta Globe 23rd Jul 2015
Credit Suisse Group’s Asia chief on Thursday said the Swiss bank would consider raising headcount or buying a smaller peer to build up its private banking business, in a region where pretax profit doubled in the first half of this year. Asia is the world’s fastest-growing private banking market, driven largely by China’s growing economic clout. China created 1 million new millionaire households last year, according to Boston Consulting Group, bringing the total to 4 million — second only to the United States with 7 million. But bankers say Asia is the world’s most competitive region for hiring staff to cater to the very rich, with salaries driven up by high demand for relationship managers and a scarcity of experienced candidates. “We are open to opportunities to grow the business via acquisitions,” Chief Executive for Asia Pacific Helman Sitohang said in an interview, declining to elaborate.
Mandiri expects new MoU to pave way for Malaysia expansion The Jakarta Post 23rd Jul 2015
State-owned lender Bank Mandiri expects that a new agreement between Indonesia and Malaysia banking regulators on market access will pave the way for the lender to finally expand operations in the neighboring country this year, after facing stumbling blocks in the past few years. The new agreement, scheduled to be signed in September at the latest, is a follow-up from an agreement signed by the heads of Bank Indonesia (BI), the Financial Services Authority (OJK) and Bank Negara Malaysia (BNM) last year, in which Malaysia agreed to ease restrictions imposed on Indonesian banks to operate in the country.
Banks eye better credit following relaxation Jakarta Post 23rd Jul 2015
Banks say that they are anticipating credit improvement in their portfolios this year, supported by relaxation measures expected to be introduced by the Financial Services Authority (OJK). The measures are expected to enable banks to promptly restructure potentially troubled loans, preventing them from becoming non-performing loans, which can encumber their balance sheets and escalate risks. When they are put in place, banks will be required only to assess customers’ loan repayment abilities to proceed with any restructuring plan and disregard customers’ business prospects and financial situation, which are the current prerequisites.
Credit growth ceiling increase raises concerns Viet Nam News 23rd Jul 2015
Experts are concerned the State Bank of Viet Nam's recent decision to raise credit growth ceiling for many lenders could raise serious risks in the coming years. SBV raised the credit growth ceiling for 18 lenders this week to boost economic growth. The ceiling was raised to more than 30 per cent for some lenders. The central bank's decision has been supported by the lenders – whose profit mainly comes from lending activities – as they have already used the lending quota allowed earlier this year. According to Dau tu chung khoan (Securities Investment) newspaper, experts said an increase in credit growth ceiling was necessary as the economy had become stable and was growing. However, a hike of more than 30 per cent could cause serious consequences such as high inflation, as it happened in 2009.
State-owned banks maintain ground in first 6 months VietnamPlus 23rd Jul 2015
The Bank for Investment and Development of Vietnam (BIDV) and the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), two of the four state-owned banks in Vietnam, have reported positive financial results for the first half of 2015, confirming their leading positions in the market, according to a local newspaper. The Thoi bao Kinh te Vietnam (Vietnam Economic Times) quoted BIDV Chairman Tran Bac Ha as saying that the bank remains one of the largest listed banks in the industry with total assets of around 730 trillion VND (33.46 billion USD), a surge of 25 percent against the same period last year and 14 percent from the beginning of 2015. It saw a 31 percent lending growth and 33 percent deposit growth year-on-year to 535 trillion VND (24.52 billion USD) and 574 trillion VND (26.3 billion USD), respectively.
Financial resources up 8.3% to P14.1 T in Q1 The Philippine Star 22nd Jul 2015
Resources of domestic banks and non-bank financial institutions strengthened further despite external shocks brought about by the debt crisis in Greece as well as the stock market collapse in China. In a report, the Bangko Sentral ng Pilipinas (BSP) said total resources of the Philippine financial system grew 8.3 percent to P14.1 trillion in end March this year from P13.01 trillion in the same period last year. Resources of universal, commercial, thrift, and rural banks rose 8.7 percent to P11.35 trillion in end March from P10.45 trillion in the same period last year. Banks accounted for more than 80 percent of total resources of the country’s financial system.
Banking industry coverage ratios experience slowdown as lenders boost loan-loss reserves The Nation 22nd Jul 2015
The coverage ratio of the banking industry at the end of June declined sharply from the close of last year, following the need for higher loan-loss reserves for bad debt as the economic slowdown affected repayments by clients, and by small and medium-sized enterprises (SMEs) in particular. Coverage ratio is a measure of a business's ability to meet its financial obligations. The additional level of provisioning in the second quarter reflected the weaker debt-repayment ability of customers, which consequently dampened the profitability of the banking industry compared to the same period last year. According to their reports to the Stock Exchange of Thailand, six out of nine banks witnessed a decline in coverage ratios between December 31 and June 30, due mainly to an increase in non-|performing loans (NPLs) |and a contraction in lending growth.
Lending standards broadly steady Business World 22nd Jul 2015
Lending standards of banks for both businesses and households were mostly unchanged last quarter from the previous three months and are expected to remain steady up to September, a new survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed. The central bank’s Senior Bank Loan Officers’ Survey for the second quarter of 2015 showed that overall credit standards to enterprises were basically unchanged from the previous poll covering the January-March period. The Senior Bank Loan Officers’ Survey is a quarterly poll conducted by the central bank to enhance the understanding of credit behavior in the country. The analysis contained in the survey is based on the quarter-on-quarter change in the perceptions of respondent banks. Representatives of 35 commercial banks participated in the latest survey.
BSP revs up push for bank consolidation Business World 22nd Jul 2015
The Bangko Sentral ng Pilipinas (BSP) has approved a program aimed at boosting merger activities among small lenders to strengthen the network of financial institutions in the country. “The Monetary Board of the Bangko Sentral ng Pilipinas has approved in principle on June 18 the Consolidation Program for Rural Banks (CPRB), a progressive incentive program jointly conceptualized by the BSP, the Philippine Deposit Insurance Corp. (PDIC), and the Land Bank of the Philippines (Landbank) to encourage mergers and consolidations among rural banks,” the BSP said in a statement yesterday. It noted that the program is envisioned to create a “less fragmented” banking system by enabling rural banks to “improve financial strength, enhance viability, strengthen management and governance and expand market reach, among others.” The BSP noted that 512 rural banks are currently operating in the country.
Banks vie for tech-savvy youth The Phnom Penh Post 21st Jul 2015
Cambodian banks are increasingly starting to incorporate online banking services into their product offerings, as they look to stay relevant with the Kingdom’s young, tech-savvy demographic, according to industry insiders. With CIMB Bank’s announcement on Friday that it will provide corporate and valued customers online banking services, they enter a small pool of about a dozen banks – mostly foreign – offering internet banking products. As per the National Bank of Cambodia’s supervisory report for 2014, there are 36 commercials banks currently operating in the Kingdom. For its part, CIMB, in a release, said it is looking at readying itself to cater to the needs of businesses once the upcoming ASEAN Economic Community launches later this year.
Chart of the Day: Singapore banks at risk from shaky foreign loans AsiaOne 21st Jul 2015
Southeast Asian corporates are a sore spot. Singapore banks will see a mild deterioration in asset quality due to non-performing foreign loans, according to a report by Moody's. Moody's said that loans to corporates in emerging markets will likely deteriorate in the near future, particularly loans to Southeast Asian borrowers. "Asset quality will likely deteriorate mildly because of loan seasoning and possibly higher interest rates. The deterioration in cross-border loans will be more acute compared to domestic loans," the report said. "The banks’ problem loan ratios have historically exhibited higher levels outside of Singapore, namely in emerging markets that tend to have higher asset-quality risks than Singapore such as Southeast Asia (excluding Singapore), India and the Middle East.
Higher reserves to drag down banking profits The Nation 21st Jul 2015
The stubborn sluggishness of the economy has swollen non-performing loans, forcing banks to keep hiking reserves. In their quarterly filings to the Stock Exchange of Thailand, banks said the economic recovery remained slower than expected. TMB Analytics, the research unit of TMB Bank, said the banking industry is expected to slow down in synch with the lags in investment and consumption. As of the end of May, the outstanding loans of 17 local banks were up 3.8 per cent from the same month last year but only 0.7 per cent from the end of last year. Kasikornbank, the fourth largest by assets, which outperformed its peers in the first quarter in net profit growth, witnessed a slowdown in the second quarter due mainly to a high loan loss provision of Bt2.03 billion.
Malaysia’s CIMB Group appoints new directors Free Malaysia Today 21st Jul 2015
Malaysia’s CIMB Group has appointed two new directors, Mohd Nasir Ahmad and Lee Kok Kwan, effective immediately, the bank announced on Monday. “Mohd Nasir Ahmad and Lee have played pivotal roles in governance and advisory and have deep experience in finance,” said Zafrul Aziz, chief executive of CIMB Group.
E-Payments
MasterCard brings prepaid credit card to Myanmar Telecom Asia 23rd Jul 2015
MasterCard and Myanmar’s Myanma Apex Bank have joined hands to launch a prepaid MasterCard service in the nation. The MAB Travel Prepaid MasterCard aims to provide Myanmar customers with an easier way to pay for purchases during their travels or make online purchases. The latest MasterCard survey indicates that three in five Myanmar consumers intend to travel within the next 12 months (either as much or more than they did in the past 12 months). “Myanmar’s gradual opening up presents many opportunities for entrepreneurship and commerce to flourish,” MasterCard country manager for Thailand and Myanmar Antonio Corro said.
Mobile Banking Struggles to Gain Traction in Indonesia The Wall Street Journal 21st Jul 2015
Packets of cookies, peanuts and other snacks hang from the walls of Basri’s kiosk in north Jakarta. He’s been selling goods in this narrow-alley enclave for years and as technology has progressed so has what he’s able to offer. He recently started accepting payments by transfer via mobile phone, part of an electronic money program introduced by the central bank several years ago and adopted by 20 licensed banks, telecommunication companies and electronic payment agencies. Mr. Basri, who goes by one name, is one of around 500 people in this neighborhood who do their banking via mobile, along with buying and selling goods.
Insurance
Insurer AIA's Singapore operation posts strong performance in first half-year The Straits Times 24th Jul 2015
Insurer AIA Singapore reported strong financial results for the first half of 2015, thanks to a productive agency and more long-term unit-linked protection products. Its value of new business for the six months to May 31 was up 19 per cent to US$142 million, compared with the same period a year earlier. Annualised new premiums, a measure of new business activity, rose 13 per cent to US$225 million from a year ago. New business margin, or the value of new business as a percentage of annualised new premiums, grew to 62.9 per cent.
Myanmar: Insurance supervisor suspends issuance of licences Asia Insurance Review 24th Jul 2015
The Myanmar Insurance Business Supervisory Board has suspended granting licences for foreign insurers to operate in Myanmar's special economic zones. The granting of new licences will resume next year. To date, three Japanese insurers have been allowed to operate in the country's special economic zones (SEZs), including Thilawa SEZ, the first phase of which is set to open in September this year, reported the Xinhua News Agency citing local official reports. Insurance firms operating in the SEZs are limited to property insurance, motor insurance, marine cargo insurance, contractors' all-risk insurance and cash transfer insurance, said Dr Maung Maung Thein, Chairman of the supervisory board.
NRCP pushes for mandatory disaster insurance for homeowner property Business Mirror 22nd Jul 2015
The National Reinsurance Corp. of the Philippines (NRCP) is seeking mandatory risk cover on some 40 million households across the country against so-called catastrophic events. NRCP President and CEO Augusto Hidalgo said they already presented a disaster recovery concept to 67 insurance companies in hopes of eliciting some form of feedback. “We are continuing with our comments-gathering activities. We will also present the mandatory risk-coverage proposal to the Department of Finance. If the government likes it, we will wait for them to say ‘go ahead,’” Hidalgo said. According to the executive, some 10 million 40-square-meter concrete homes across the country are uninsured.
Vietnam: < 1% of state agencies buy disaster insurance for public assets Asia Insurance Review 21st Jul 2015
Less than 1% of state agencies, organizations and units assigned to manage public property buy disaster insurance to cover the assets they oversee, according to the Ministry of Finance. Mr Phung Ngoc Khanh, Director General of the Insurance Supervisory Authority which is a unit of the Finance Ministry, speaking at a conference last week for property insurers, said that there are 90,000 agencies across the country managing public property valued at nearly VND1,000 trillion (US$45.8 billion), not including infrastructure and property of the armed forces and state enterprises. According to the World Bank, the damage caused by natural disasters for public assets in Vietnam in recent years amount to nearly VND11 trillion (US$504 million) a year, reported Vietnam Television.
Market Regulation
Guidelines on public selling of financial products The Straits Times 24th Jul 2015
The increasing practice by banks and insurers to hawk credit cards, insurance policies and the like at malls and other public places is set to come under stricter controls. These institutions may soon be required to adhere to new market conduct guidelines, such as ensuring they give consumers proper advice. They may also be obliged to notify the Monetary Authority of Singapore (MAS) of their marketing activities at such places. The proposals are part of an MAS effort to prevent the sale of unsuitable products and deter the harassment of consumers. Yesterday, MAS issued a consultation paper detailing these proposals and is asking for feedback to reach it by Aug 24.
Indonesia regulator relaxes corporate bond buying rules for insurers, pension funds The Business Times 24th Jul 2015
Indonesia's financial regulator is allowing pension funds and insurance firms to buy corporate bonds with ratings below 'AA' to boost the local market, an official said on Friday. The rule easing has already been applied to pension funds, Firdaus Djaelani, non-bank financial institutions supervisor at the Indonesian Financial Services Authority, told reporters. It will apply to insurers later this year, he said. The authority on Friday issued 35 policies aimed at stimulating the economy, such as by developing the repurchase agreements market and encouraging small and mid-sized businesses to pursue initial public offerings. The regulator was considering easing investment in riskier products as the local market was "not liquid enough", Nurhaida, the capital market supervisor, told Reuters in March.
SET declares victory in curbing speculation Bangkok Post 24th Jul 2015
Measures aimed at addressing speculation in trading shares have proved a success, with the number of stocks in the turnover list more than halved, says the Stock Exchange of Thailand. The turnover list, which details stocks with a high turnover rate or irregular trading pattern, has declined to only 22, regarded as a normal level, from a peak of 73 in last year's fourth quarter, said executive vice-president Supakit Jirapraditkul. "The stringent measures are working well, as seen by the decline in the number of red hot stocks," he said. "The SET will keep them in place to help protect investors and reduce high market volatility." Under the measures, which took effect early this year, stocks issued with an alert are restricted to trading in cash for three weeks.
Thai regulator to shake up mutual fund industry Business Times 24th Jul 2015
Thailand's market regulator plans a major shakeup to the country's 3.5 trillion baht (S$138.2 billion) mutual fund industry to meet rising demand for riskier investment instruments with higher yields. The Securities and Exchange Commission plans to issue regulations by the end of September that would allow the launch of hedge funds and junk bond funds, SEC Secretary General Rapee Sucharitkul told Reuters in an interview on Thursday. "It's an unprecedented opening," said Mr Rapee, who took the helm at the SEC in May. "Traditionally, Thai mutual funds are quite conservative ones.... We are preparing our industry and our investors and sales people to become more familiar with the hard-core products." The SEC hopes the move will encourage Thai investors seeking higher yields to keep funds onshore, rather than taking cash abroad.
Jokowi considers turning LPS into superbody Jakarta Post 24th Jul 2015
President Joko “Jokowi” Widodo is considering a plan to broaden the authority of the Deposit Insurance Corporation (LPS) and provide its executives with legal indemnity during economic crises. The President held a closed-door discussion with LPS executives at the State Palace on Thursday, with the meeting also attended by top officials from the Finance Ministry, Bank Indonesia (BI) and the Financial Services Authority (OJK). The LPS, whose role is to guarantee citizens’ deposits in the banking system, wishes to expand into the non-banking sector, meaning that the corporation could guarantee citizens’ financial products such as insurance, the President’s Communications Team said in a statement distributed after the meeting.
Improved banking law submitted to parliament Myanmar Times 23rd Jul 2015
An updated banking law has won the support of the Pyithu Hluttaw Bill Committee and has been submitted to the Pyithu Hluttaw on July 21. The draft Banks and Financial Institutions Law had been delayed due its complexity, but its proponents say the law will assist with bringing the domestic financial sector in line with international standards. It will replace the 1990 Financial Institutions of Myanmar Law. The bill committee’s report said the new law includes what is necessary to allow proper regulatory oversight by the Central Bank, to keep the monetary system strong and to lessen the risk held by bank depositors.
Banks, insurers to face new market conduct when marketing at malls, public places The Straits Times 23rd Jul 2015
Banks and insurers could soon have to adhere to new market conduct guidelines, such as ensuring proper advice, when selling financial products and services at malls and public places. Financial institutions may also be required to notify Monetary Authority of Singapore (MAS) of their marketing activities at such places. This is all part of a proposal by MAS to prevent the sale of unsuitable products and harassment of consumers who could also be confused over the roles of the financial institutions and retailers. MAS has issued a consultation paper detailing the above proposals. Feedback would need to reach MAS by Aug 24.
OJK imposes relaxed rulings to refine lending The Jakarta Post 22nd Jul 2015
The Financial Services Authority (OJK) is finalizing several measures to improve lending and will introduce them in the third quarter, a high-ranking official has said. According to OJK chairman Muliaman D. Hadad, the measures will include leniency for banks to restructure potentially troubled loans and the reduction of the risk-weighted asset (RWA) ratio for insured-credit programs. “The credit restructuring measures will only be implemented temporarily for two years because we think that banking customers that are currently impacted by economic slowdown will have bounced back after two years,” he said recently.
New policies aim to reduce household debt, promote ethical lending Brunei Times 22nd Jul 2015
The country’s policies on financial regulation have to be reformed to reduce household debt and promote ethical lending practices. The Autoriti Monetari Brunei Darussalam (AMBD) said in its policy statement that changes in financial regulation have been implemented to safeguard the country against the “vulnerabilities” resulting from household debt. The new rues include the introduction of a Total Debt Service Ratio to all customers applying for a credit facility, regulation of unsecured personal financing, promotion of consolidation loans and the regulation on some service fees and charges. AMBD said the new regulations promote and enhance financial debt management which, in turn, contributes to economic and financial stability.
Housing stakeholders pushing for simplified documentation Business Mirror 21st Jul 2015
Red tape, or bureaucracy, is a topmost concern for tedious task of applying for property loans and the slow, laborious mortgage-registration process that a tripartite alliance between property stakeholders and attached state agencies seeks to mitigate. The Organization of Property Stakeholders Inc. (TOPS), the Land Registration Authority (LRA) and the Bangko Sentral ng Pilipinas (BSP) are pushing for a standard and simplified loan mortgage document and develop an automated registration of mortgages. Called the Uniform Loan and Mortgage Agreement, or Ulama, this is a proposed shorter and more simplified document that can be used as an industry-standard agreement between borrower and lender for all housing-loan borrowings in the country.
BSP likely to slash banks’ reserve requirement ratios Business World 21st Jul 2015
The Bangko Sentral ng Pilipinas (BSP) could ease lenders’ cash reserve ratios next month -- more than a year after they were last adjusted -- to prod economic growth and stave off deflation, an economist at Bank of the Philippine Islands (BPI) said yesterday. In an e-mail, BPI lead economist Emilio S. Neri, Jr. said banks’ reserve requirement ratios (RRR) could be trimmed by two percentage points to “bolster GDP, (gross domestic product), inflation, bank credit, M3, and NG (national government) spending growth which are all slowing down.” The ratio is the percentage of current deposits banks need to keep with the BSP. It varies depending on the size of the bank: 20% for universal and commercial banks; 8% for thrift banks; and 5% for rural banks.
"Still premature" to lift property cooling measures: MAS The Straits Times 21st Jul 2015
Homeowners hoping for an end to the Government's property cooling measures and a rebound in home valuations must keep waiting. The Monetary Authority of Singapore (MAS) said Tuesday that the measures - including a total debt servicing ratio (TDSR) framework implemented in June 2013 - are unlikely to go any time soon. "Property prices have softened somewhat, but like I said last year, in the context of the price increase that occurred - 60 per cent over three years - the softening we've seen is really not all that much," MAS managing director Ravi Menon told a press conference on the release of the central bank's latest annual report. "So it's still premature to consider removing any of the cooling measures that are in place," he added.
Singapore Regulator Says Reviewing SGX’s Role Overseeing Markets Bloomberg 21st Jul 2015
The Monetary Authority of Singapore said it’s reviewing the regulatory role of Singapore Exchange Ltd. as global bourses expand in the city-state. The central bank and SGX are looking at how they split up duties in areas including listing and surveillance, according to MAS. Deutsche Boerse AG said last month its unit Eurex Exchange Asia will open a derivatives exchange in Singapore in the second quarter of 2016. Intercontinental Exchange Inc., which bought the Singapore Mercantile Exchange for $150 million in February 2014, plans to start futures trading in the island nation later this year following delays. “SGX is not unique any more so you need then to redraw some of those boundaries,” Ravi Menon, managing director of MAS, said at a media briefing Tuesday after the release of the central bank’s annual report. “That’s something that we are currently reviewing.”
|
