| Market Development
Continuing regulatory focus on cybersecurity Lexology 13th Apr 2016
The Board of the International Organization of Securities Commissions (IOSCO) published a report on cybersecurity issues on 6 April 2016. The report states that cyber risk is not “just another risk,” but rather a unique, highly complex and rapidly evolving phenomenon, and suggests that this topic requires swift and sustained attention by regulators and market participants. The report, Cyber Security in Securities Markets – An International Perspective, provides a review of the different regulatory approaches related to cybersecurity and the potential tools available to regulators to respond to cyber risk. The report also describes some of the practices adopted by market participants.
Bullish on Indonesia's Consumer Sector, Home Credit Seeks to Expand Jakarta Globe 12th Apr 2016
Indonesia's promising consumer sector has attracted global consumer finance provider Home Credit to expand its operations in the archipelago through its local affiliate, to forge cooperation with more leading retailers. Home Credit Indonesia, the local affiliate of the Amsterdam-based company – which provides multipurpose financing for durable consumer goods, such as home appliances, electronics, cellphones and furniture – said in a statement on Monday (11/4) that it seeks to expand its operations to 10 cities, including Malang (East Java), Denpasar (Bali) and Banjarmasin (South Kalimantan). "We strongly believe that the growth prospects of the Indonesian consumer market are very good," Home Credit Indonesia chief executive Jaroslav Gaisler said.
Green Stock Funds Bloom in Malaysia as Shariah Goes Sustainable Bloomberg Business 12th Apr 2016
Islamic asset managers are setting up sustainable stock funds in Malaysia as they tap demand for more environmentally conscious investing. Saturna Sdn., a unit of the company that runs the biggest Shariah-compliant share fund in the U.S., is considering setting up a Kuala-Lumpur based vehicle that will invest in green shares, said Executive Director Monem Salam. BIMB Investment Management Sdn., aims to start a Malaysia-focused environmental plan in the third quarter, said Chief Executive Officer Najmuddin Mohd Lutfi.
Bank ‘reputational risk’ from $81-M heist feared hitting OFW funds Business World 10th Apr 2016
REMITTANCES could take a hit as Philippine banks reel from “reputational risk” in the wake of the $81-million heist involving the country’s financial system, analysts at ANZ Research said in a report, warning that this, in turn, could weigh on economic growth. “[T]he reputational risks emanating from the recent investigations on money laundering involving one of the country’s biggest banks may weigh on remittance growth. Media reports note that foreign banks have severed ties with remittance companies servicing overseas Filipinos,” ANZ economists Eugenia F. Victorino and Glenn B. Maguire said in the report. “To sustain the consumption level of recipient families, [overseas Filipino workers, or OFWs] may be forced to transact directly with banks, facing higher transaction costs and less favorable exchange rates.”
OJK wants bank asset to GDP ratio at 75% within 5 years The Jakarta Post 8th Apr 2016
The Financial Services Authority (OJK) wants to increase the ratio of bank assets to gross domestic product (GDP) by five percent per year through financial market expansion. In the next five years, the ratio is expected to reach 75 percent. OJK chairman Muliaman Hadad said the OJK and the central bank would increase the variety of long-term securities. He predicted that financial expansion would help the ratio grow by five percent a year.
Authorities create new body to integrate financial deepening The Jakarta Post 8th Apr 2016
Indonesia authorities have launched a Coordination Forum for the Development Financing through Financial Market (FK-PPPK), to intensify coordination on financial market deepening -- that is, increasing provision of financial services with a wider choice of services geared to all levels of society -- in a bid to support national development. Finance Minister Bambang Brodjonegoro said the fiscal authorities would adjust their policies in line with the measures stipulated in the forum. He said that financial markets should support national development, especially amid a situation of limited liquidity in the country.
Policy continuity watched as PHL keeps debt rating Business World 8th Apr 2016
FITCH RATINGS has kept its minimum investment grade rating on the Philippines, the debt watcher announced Friday, citing solid macroeconomic footing even as it flagged continuity of reforms through the change of administration at the end of June as a key source of risk to the country’s outlook. In a statement, Fitch said it has affirmed the country’s long-term foreign-currency issuer default ratings (IDR) at “BBB-”. Rating for the Philippines’ long-term local-currency IDR was also kept at “BBB”.
Joint Statement of the 2ndASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) ASEAN 6th Apr 2016
We, the ASEAN Finance Ministers and Central Bank Governors, convened the Joint Meeting of the ASEAN Finance Ministers and Central Bank Governors under the cochairmanship of H.E. Dr. Liane Thykeo, Minister of Finance of Lao PDR, and H.E. Dr. Somphao Phaysith, Governor of the Bank of Lao PDR.
ASEAN endorses action plans for financial integration 2025 ASEAN 6th Apr 2016
The Second ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (2nd AFMGM), the Twentieth ASEAN Finance Ministers’ Meeting, and the Twelfth ASEAN Central Bank Governors’ Meeting (12th ACGM) were held on 4 April in Vientiane, Lao PDR. The 2nd AFMGM reviewed the progress of regional initiatives on financial integration and financial cooperation, and endorsed the Strategic Action Plans for ASEAN financial integration 2025. The ASEAN Finance Ministers and Central Bank Governors are committed to implementing the action plans to promote financial integration, financial inclusion and financial stability in the region, in support of ASEAN macroeconomic stability and growth. The meeting endorsed the ASEAN Capital Markets Forum Action Plan 2016-2020 and the establishment of the ASEAN Insurance Forum, the Working Committee on Financial Inclusion, and the Working Committee on ASEAN Banking Integration Framework. Meanwhile, the finance ministers meeting endorsed the six broad strategies of taxation action plans.
ASEAN cautiously speeds steps toward financial integration Nikkei 5th Apr 2016
ASEAN finance officials have adopted a new timeline for integrating financial services across the regional bloc, aiming to tear down market barriers more quickly. Finance ministers and central bank governors from the Association of Southeast Asian Nations met here Monday to set deadlines for steps toward financial integration through 2025. The ASEAN Economic Community, launched at the end of 2015, has brought a certain amount of success in lowering tariffs and otherwise liberalizing the trade of goods. But efforts to remove financial market barriers are lagging.
Central Bank Looks to Mobile Banking to Ramp Up Financial Inclusion The Irrawady 5th Apr 2016
The Central Bank of Myanmar (CBM) revealed on its website on Monday the official rules and regulations for mobile financial service providers (MFSPs), seen by observers as a way to reach more rural customers throughout Burma. The regulations detail the application requirements, such as how to acquire a registration certificate and pay relevant fees and charges. They also outline MFSP duties, including permitted mobile financial transactions and measures to ensure customer protection.
Singapore Banks' Outlook Lowered by Moody's as Pressures Mount Bloomberg 4th Apr 2016
DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. had their credit rating outlooks lowered to negative by Moody’s Investors Service, which said it expected a further weakening of conditions for the three largest Singaporean lenders as economic growth slows. “A more challenging operating environment for banks in Singapore in 2016, and possibly beyond, will pressure the banks’ asset quality and profitability,” Moody’s said in a statement, citing a slowdown in economic and trade growth both domestically and in the wider region.
PHL retains flexibility to expand credit -- StanChart Business World 4th Apr 2016
In a report: “Asia leverage -- after the boom,” the bank said the country faces low risk of over-leveraging, or having debt reach a level that is not sustainable in terms of perceived returns. “The Philippines, an outperformer in Asia, has plenty of room to expand private-sector leverage to boost domestic consumption and sustain growth,” the report read. “There is also ample scope for the private sector to partner with the government in financing large-scale infrastructure projects.” Alongside Thailand and Taiwan, the Philippines remains among three economies identified that have the ability to issue more loans to consumers and the private sector, the bank added.
Brunei Darussalam edges closer to stock market launch Oxford Business Group 31st Mar 2016
Preparations for the launch of a standalone stock exchange in Brunei Darussalam look to be moving ahead, supported by progress on a regulatory framework for the bourse. The Sultanate’s long-awaited exchange could open as early as next year if the groundwork is in place, according to the Autoriti Monetari Brunei Darussalam (AMBD), which oversees the country’s financial sector and is developing regulations to govern the bourse.
ASEAN Capital Market Regulators Rolls Out Initiatives Under ACMF's New 5-Year Roadmap ASEAN 30th Mar 2016
The ASEAN Capital Markets Forum (ACMF) today approved the ACMF Annual Implementation Plan 2016 (Annual Plan 2016), which sets out ACMF’s immediate priorities for the year, during its 24thmeeting hosted by the Securities and Exchange Commission, Thailand. This Annual Plan 2016 was developed based on the earlier approved ACMF Action Plan 2016-2020 (Action Plan) which will be presented to the ASEAN Finance Ministers at the upcoming meeting in April 2016 for endorsement.
Indonesian banks boosting small-business loans Nikkei 24th Mar 2016
Banks in Indonesia are boosting lending to operators of small and midsize companies, who have traditionally relied on family and friends for loans, as demand for credit grows. Loans to such businesses in the Southeast Asian country increased to about 740 trillion rupiah ($55.8 billion), or roughly 20% of total bank lending, at the end of December. Bank Rakyat Indonesia, the nation's second-largest by assets, and Bank Tabungan Pensiunan Nasional, partly owned by Japan's Sumitomo Mitsui Banking, have worked out new mechanisms to provide funds for the growth of some 60 million smaller enterprises.
OJK Seals Cooperation Deal With Timor Leste's Central Bank The Jakarta Globe 22nd Mar 2016
Indonesia's Financial Services Authority (OJK) has signed a memorandum of understanding with the Central Bank of Timor-Leste to ensure a smooth exchange of information and to improve Timor Leste's surveillance capacity in the financial sector, a senior official said. OJK chairman Muliaman D. Hadad and Banco Central de Timor-Leste (BCTL) Governor Abraão de Vasconselos signed the agreement in Dili on Tuesday (22/3). "The potential for business in Timor-Leste is quite big because Indonesia is Timor Leste's biggest trade partner," Muliaman said in his speech in Dili.
OJK gains wider access to Australia The Jakarta Post 21st Mar 2016
The Financial Services Authority (OJK) has signed an agreement with the government of the state of Victoria and a financial center in Australia as part of the efforts to help local financial services expand their businesses there. The agreement with the financial center aims to help OJK staffers improve their capacity by learning from the Australian institution.
Asset Management
Salutica inks underwriting deal with RHB Investment Bank The Star Online 11th Apr 2016
Salutica Bhd has signed an underwriting agreement with RHB Investment Bank Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd. The one-stop solution provider for manufacturing consumer electronic products said on Monday RHB Investment Bank is the company’s principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
Singapore's Mom-and-Pop Investors are Losing Their Fervor for Bonds Bloomberg 8th Apr 2016
Singapore’s mom-and-pop investors are losing their fervor for bonds as the economy cools, after the amount of notes sold to individual investors was twice initial public stock offerings in 2015. Prices on the exchange-traded notes are beginning to converge with those sold to institutions on the interbank market. Four companies raised S$975 million ($722 million) selling bonds to individuals last year, outstripping the S$496 million of IPOs, filings show. The one bond sale this year to such investors met with lower demand.
The Panama Papers Leak: Implications for Organisations and Individuals in Singapore Lexology 8th Apr 2016
As regulatory and enforcement agencies all around the world move to investigate some of these matters, it may be tempting for an organisation or individual to want to take comfort from not having ever heard of Mossack Fonseca (let alone used their services) and not having ever been involved in the setting up of an offshore company, and therefore deduce that there is therefore little to worry about. This however would be quite wrong.
Thai mutual funds defying sluggish global trend Bangkok Post 8th Apr 2016
The asset value of Thailand's mutual fund industry rose 4.35% in the first quarter of 2016. The increase is in line with the high rate of return in the Thai equity market, in contrast to sluggish global equity, says Morningstar Research. Assets under management in Thai mutual funds were valued at 4.24 trillion baht, an increase of 4.35% year-on-year. "Thai equity return rose impressively at 9.3%, with net fund inflows of 111 billion baht in the first quarter," said senior analyst Kittikun Tanaratpattanakit.
YSX Set for Rapid Expansion in 2016: Official The Irrawaddy 6th Apr 2016
About a half-dozen additional companies could potentially list on the Yangon Stock Exchange by year’s end, Maung Maung Thein, chairman of the Myanmar Securities Exchange Commission, told The Irrawaddy on Wednesday, bolstering the economic heft of a bourse that last month began trading with just one firm’s shares available. That company, First Myanmar Investment (FMI), saw its shares publically tradeable starting from March 25. For months, officials involved said it, along with five other companies, would be the first to list on the new bourse. Myanmar Citizens Bank; Myanmar Thilawa SEZ Holdings Public Limited; Myanmar Agribusiness Public Company Limited (Mapco); First Private Bank; and Great Hor Kham were the other five firms expected to initially list on the YSX.
Foreign Funds Add to Indonesia Sovereign Bond Holdings Bloomberg Business 4th Apr 2016
Overseas investors have added to their holdings of rupiah sovereign bonds for the fourth week in a row. Foreign funds bought a net 1.42 trillion rupiah ($108 million) of Indonesian government notes on Thursday and 1.19 trillion rupiah on Friday, according to the latest available data from the Indonesian Finance Ministry. That took weekly inflows to 1.06 trillion rupiah. Indonesian sovereign debt has returned 8.7 percent this year, the most in Asia, as the central bank cut its benchmark rate three times and inflation stayed within its 3 percent to 5 percent target range. An 11 percent advance in the rupiah over the past six months has also improved the allure of the nation’s local-currency securities.
Military-owned MEHL applies to become public company Myanmar Times 1st Apr 2016
Myanma Economic Holdings Limited has applied to the national planning ministry to become a public company, as speculation builds that the sprawling military-owned giant is considering corporatisation. For almost two decades since the conglomerate was set up in 1990, MEHL and its sister company Myanmar Economic Corporation dominated the economy, controlling everything from imports, exports and natural resources to alcohol, cigarettes and consumer goods.
Sand in the Vaseline, courtesy of SEC The Manila Times 30th Mar 2016
Not everyone was surprised by the move by the Securities and Exchange Commission on Tuesday to reject the proposed acquisition of bond market operator PDS Holdings by the Philippine Stock Exchange, but it is doubtful that anyone, whether they agree with the SEC’s decision or not, is very happy about it.
Will YSX Deal a Blow to Burma’s Real Estate Market? The Irrawaddy 30th Mar 2016
Burma’s newly launched Yangon Stock Exchange (YSX) has left observers wondering what this could mean for the country’s volatile real estate market. Rangoon, Burma’s commercial capital, has for many years boasted the country’s highest prices for property. Yet some experts believe that the emergence of the YSX, which kicked off trading on March 25 after months of internal dry-run testing, might poach investors who had previously invested solely in the real estate market.
IDX to lure sharia investors through expo The Jakarta Post 29th Mar 2016
The Indonesia Stock Exchange (IDX) will hold a Sharia Capital Market Exhibition at the IDX building in Jakarta from March 30 to April 2, as part of an effort to attract more investors to sharia products in the capital market. IDX development director Nicky Horgan said the exhibition was aimed at increasing people's knowledge about capital market products, especially sharia-compliant stocks. The IDX aims for 5,000 new sharia investors this year, a 100 percent increase from 2014.
Thirteen funds qualify for Asean Collective Investment Schemes The Star Online 27th Mar 2016
Thirteen funds have been recognised by regulators from their countries of origin as qualifying for the Asean Collective Investment Schemes (CIS), of which five have been launched in other countries (host jurisdictions). The Asean Capital Markets Forum (ACMF), comprising capital market regulators from 10 Asean jurisdictions, said in a statement that it welcomed the progress of the framework for cross-border offering of Asean CIS.
Stock trading opens in Myanmar USA Today 25th Mar 2016
U.S. and global investors will soon have a new financial exchange for their trading — in Myanmar. The Asia-based Yangon Stock Exchange (YSX) opened Friday with a single listing, fulfilling a plan that managing director U Yin Zaw Myo in a welcome message to traders said had been 20 years in the making.
Here’s why wealth management is all the rage for Singapore’s banks Singapore Business Review 24th Mar 2016
Especially in a time of loan growth turmoil. With Barclays’ divestment of its Singapore and Hong Kong private-wealth business, Singapore banks, DBS, UOB, and OCBC, has reportedly been interested and are scrambling to get their hands on the sale. According to Maybank Kim Eng, this is because the sale is a golden opportunity for Singapore’s banks to increase their share of the Asian wealth management (WM) industry and bolster earnings.
INVESTORS BRUSH UP ON NEW BOURSE RULES Frontier Myanmar 23rd Mar 2016
Inside the graceful halls of Myanmar's first modern bourse a huddle of business leaders crowds into a crash course on sharetrading, as the former junta-run country takes another leap towards economic revitalisation. The Yangon Stock Exchange (YSX) is due to debut its first listed company on Friday, just days before a new civilian government overseen by Aung San Suu Kyi comes to power in a nation fast opening up after decades of military rule.
Money services business transactions continue to expand New Straits Times 23rd Mar 2016
Money services business (MSB) transactions continued to expand last year, growing 23.2 per cent in outward remittances to RM34.8 billion from RM28.2 billion in 2014. Bank Negara Malaysia, in its 2015 Financial Stability Report, said the retail money changing segment had turned around to grow 16.4 per cent from a marginal drop in 2014 to RM60.6 billion.
Learning to trade: Myanmar investors gear up for new bourse Rappler 23rd Mar 2016
Inside the graceful halls of Myanmar's first modern bourse a huddle of business leaders crowds into a crash course on sharetrading, as the former junta-run country takes another leap towards economic revitalization. Yangon Stock Exchange (YSX) is due to debut its first listed company on Friday, March 25, just days before a new civilian government overseen by Aung San Suu Kyi comes to power in a nation fast opening up after decades of military rule.
FMI to Commence Trading in YSX on March 25 Myanmar Business Today 21st Mar 2016
Trading on the Yangon Stock Exchange (YSX) will commence with the trading of First Myanmar Investment (FMI) Co Ltd on March 25, the company said. Dr Maung Maung Thein, deputy minister for finance, confirmed that at a seminar held at YSX premises. “Share trading will start on March 25, that’s for sure. It will start with FMI, which will be followed by Myanmar Thilawa SEZ Holdings Public Limited, Myanmar Citizens Bank and First Private Bank. “We cannot start two or three companies simultaneously. If we start with three companies it will be complicated. However, it will not take months, only days between the successive opening of the trading,” Dr Maung Maung Thein said.
China Railway Group to invest US$2bil in Bandar Malaysia The Star Online 21st Mar 2016
China Railway Group Ltd has announced that it will invest US$2bil (RM8.1bil) to build its own regional centre in Bandar Malaysia. This comes three months after it won the bid with joint-venture partner Iskandar Waterfront Holdings (IWH) to acquire 60% of equity in Bandar Malaysia for RM7.41bil from 1MDB Real Estate. The announcement was made in the presence of Prime Minister Datuk Seri Najib Razak earlier on Monday.
More US firms raring to invest in PH Philippine Daily Inquirer 21st Mar 2016
ABOUT six American firms engaged in manufacturing, IT-business process management and infrastructure are expected to firm up their planned investments and expansion plans in the Philippines within the year to take advantage of the country’s economic gains. This development was an offshoot of a successful road show held by the Philippine government in the United States earlier this month, Trade Undersecretary Nora K. Terrado said. Terrado said the government conducted a series of investment seminars in New York, Chicago and Las Vegas attended by hundreds of prospective US-based investors. On the sidelines, Terrado and her team were able to conduct one-on-one meetings with 12 American firms that have strongly expressed their interest to be part of the country’s economic success story.
Banking
More foreign banks eye PHL operations Business World 13th Apr 2016
TWO MORE foreign banks are looking to set up shop in the Philippines, an official from the Bangko Sentral ng Pilipinas (BSP) said, which if approved would add to the six offshore lenders that entered the country last year. BSP Deputy Governor Nestor A. Espenilla, Jr. said another Asian lender has signaled intent to operate in the Philippines, which joins a pending application filed earlier by another bank from within the region. “We may have a new applicant -- one, Asian,” Mr. Espenilla told reporters on Monday, which brings the number of pending applications to two.
SCB Brunei to launch investment banking unit by Q3 2016 The Brunei Times 12th Apr 2016
Standard Chartered Bank Brunei (SCB Brunei) is planning to establish its subsidiary that deals with investment products in the third quarter of 2016 as the bank looks into growing its business further. In an interview, Rino Donosepoetro, CEO of SCB Brunei, said that the subsidiary is part of the bank’s strategy to develop its wealth management business having seen a good response from clients on the bank’s investment products.
SBI Holdings invests $10m in Indonesia’s Bank Index Selindo Deal Street Asia 12th Apr 2016
SBI Holdings, Inc Monday said it had completed a $10 million investment into PT Bank Index Selindo, a SME-focused commercial bank in Indonesia, for a minority stake. Other details of the transaction were not disclosed. The Singapore-based venture capital firm did the deal through its wholly-owned subsidiary SBI Ven Capital Pte Ltd, which manages the SBI FMO Emerging Asia Financial Sector Fund Pte Ltd. This fund is in partnership with the Netherlands Development Finance Company (FMO), the world’s largest development bank, and focuses on growth PE investments in the financial services and fintech areas across emerging Asian economies.
Indonesian regulators want banks to trade more derivatives Business Times 12th Apr 2016
Indonesia's financial authorities are finalising several measures to encourage transactions of promissory notes and other money market derivatives between banks to deepen the country's financial market, the central bank governor said on Friday. Governor Agus Martowardojo said the authorities, including Bank Indonesia, the Financial Services Authority (OJK) and the finance ministry, will issue regulations to boost interbank trade of promissory notes with one-, three-, six- and 12-month tenures.
SCB, KBank pick fintech start-ups for digital option Bangkok Post 7th Apr 2016
Siam Commercial Bank (SCB) and Kasikornbank (KBank) are pouring money into financial technology (fintech) start-ups to make inroads into the digital age. SCB's wholly owned subsidiary Digital Venture plans to start investing in fintech businesses through foreign mutual funds next month, the bank's chief risk officer Anucha Laokwansatit said.
Central Bank halves departments Myanmar Times 7th Apr 2016
An organisational revamp at the Central Bank of Myanmar has more than halved the number of departments, and should make the bank more efficient, officials said. The new structure comprises seven departments: Governor’s Office, Monetary Policy Affairs and Bank Regulation, Currency Management, Administration and Human Resources Development, Financial Institutions Supervision, Foreign Exchange Management, and Accounts. The Union Government approved the new structure at a meeting on January 28, a senior Central Bank official said.
PNB Savings to set up more branches this year Business World 6th Apr 2016
PNB SAVINGS Bank, the thrift banking arm of Lucio C. Tan-led Philippine National Bank (PNB), is looking to add more branches this year in “key growth areas” in a bid to widen its footprint nationwide. PNB Savings, which was the product of the merger of PNB and its fellow Lucio C. Tan-owned Allied Banking Corp. in 2013, plans to expand its network of branches to 60 in 2016 to cater to more clients nationwide. “PNB Savings Bank is consolidating its branch network in key growth areas,” PNB Chief Marketing Officer Norman Martin C. Reyes said in a text message when sought for details on the thrift bank’s expansion plans this year.
BSP tells lenders to be on guard versus dirty money transactions Business World 6th Apr 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) has reminded banks to take “extra caution” in dealing with money changers and remittance agents, which comes amid the reported involvement of several firms in the cleansing of $81-million stolen funds through several transfers from financial institutions to casinos. The central bank through Memorandum 2016-004 stressed the need for banks to take “enhanced due diligence” in transacting with foreign exchange dealers as part of lenders’ risk management activities.
UPDATE 2-Top four Thai banks cut key lending rates in bid to aid growth Reuters 5th Apr 2016
Thailand's four biggest banks cut lending rates on Tuesday in moves they said would help the country's flagging economy, and the central bank said it expects more banks to follow suit. The cuts were the first by Thai commercial banks since May 2015, after the last policy rate trim by the Bank of Thailand (BOT).
Japan's MUFG on hunt for M&A deals in U.S., Indonesia: top executive Reuters 4th Apr 2016
Japan's biggest bank, Mitsubishi UFJ Financial Group (MUFG) (8306.T), is on the lookout for acquisition opportunities in the United States and Indonesia as it pursues its goal of becoming a global financial powerhouse, the head of its core unit said. "As a global commercial bank, the United States and Asia are our base," said Bank of Tokyo-Mitsubishi UFJ (BTMU) president Takashi Oyamada, told Reuters in an interview. He didn't say how much the bank plans to spend on potential new acquisitions. "In terms of growth potential and demographic characteristics, (the next target) is Indonesia. We are looking for acquisition opportunities there," Oyamada said, without specifying any targets.
Baiduri Bank named one of the best banks in Asia-Pacific emerging markets The Brunei Times 2nd Apr 2016
Baiduri Bank has been named as ‘The World’s Best Emerging Markets Banks in the Asia-Pacific 2016 for Brunei’ by international banking and finance magazine Global Finance, the local bank said in a press release yesterday. The statement said the award winners are selected from the best emerging banking markets’ in the region and in 25 countries following input from Global Finance editors, industry analysts, corporate executives and banking consultants.
Singapore bank lending dips in February as general commerce loans slide Channel NewsAsia 31st Mar 2016
The Republic's total bank lending in February fell from January on a decline in loans to general commerce, central bank data showed on Thursday (Mar 31). Loans and advances by domestic banks in the city-state amounted to S$596.2 billion in February, data from the Monetary Authority of Singapore showed. That compared with S$600.2 billion in January. February bank lending slid 1.2 per cent from the year-earlier level of S$603.5 billion.
Moody's revises outlook of Singapore banks to negative Channel NewsAsia 31st Mar 2016
Credit ratings agency Moody’s Investors Service has lowered the outlook on Singapore’s largest banks to negative from stable. The affected banks are DBS Bank, its parent company DBS Group, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB). Moody’s said the rating reflects its expectation that a more challenging operating environment for banks in Singapore this year, and possibly beyond, will put pressure on the banks’ asset quality and profitability.
The banking industry in interesting times The Standard 30th Mar 2016
The Chinese are fond of wishing their friends well by saying “may you live in interesting times.” The banking industry is now at the crossroads due to the recent Bangladesh scandal and the coming elections. It was as if it was written for the movies. It was the story that put Ocean’s 11 to shame, the story that told of millions of dollars being illegally rerouted from Bangladesh’s foreign exchange reserves into the country’s highly active casino scene. With the country’s fairly good image in the international scene, no one expected the Philippines to be the setting for such a crime and provoke universal indignation.
Tisco upbeat on asset quality, bad loans this year Bangkok Post 30th Mar 2016
Tisco Bank expects asset quality to improve from this quarter in the absence of major debt defaults and with fewer car and small-business loans turning sour. The bank's non-performing loans (NPLs) for the three months to March are expected to decline from the end of last year, even as the bad-loan ratio remains unchanged because of fewer loans outstanding, said chief executive Oranuch Apisaksirikul.
Banking Hopefuls Open Pre-emptive Branch in Yangon Myanmar Business Today 30th Mar 2016
Taiwan-based CTBC Bank has opened a representative branch in Yangon. A representative branch only allows a bank to provide advisory services to its clients but it doesn’t allow them to conduct any business in Myanmar. “The rep office is being launched as the initial stage of getting a licence in the country and after getting the licence, services for international trade and commercial assistance will be available,” said James Chan, CEO of CTBC Bank. “We are looking at foreign companies for services concerning trade and commerce. If we are allowed to work in cooperation with the local banks, we will focus on providing service for small and medium enterprises,” he said.
Mandiri to get $2b more capital from asset revaluation The Jakarta Post 29th Mar 2016
State-owned lender Bank Mandiri will have a bigger capacity for expansion, owing to a higher capital adequacy ratio (CAR) expected this year as a result of asset revaluation. The publicly listed bank, which is the country’s largest lender in terms of assets, has completed an asset revaluation in which it will obtain about Rp 27 trillion (US$2.04 billion) in additional capital, its top executive says.
HSBC sets sights on Vietnam Bangkok Post 28th Mar 2016
HSBC seeks to offer a better integrated regional service with the increase of cross-border investment following the formation of the Asean Economic Community (AEC). The bank in particular is looking at Vietnam, where investment is set to surge under government policies to attract foreign investment.
TBank targets auto loans Bangkok Post 28th Mar 2016
Thanachart Bank (TBank) is offering refinancing loans at a special promotional rate to participants of the first-time car buyer scheme in a bid to expand its auto loan portfolio amid sluggish demand. A total of 1.25 million cars were ordered under the Yingluck Shinawatra government's populist scheme, which ran from Sept 16, 2011 to Dec 31, 2012, with TBank accounting for 20%, said Tirachart Chiracharasporn, head of product and marketing for automotive lending.
Banks in Singapore still seeking to grow SME loan book The Straits Times 28th Mar 2016
A string of recent announcements by banks here underlines the importance they attach to the small and medium-sized enterprise (SME) segment, even as SME loan demand looks set to moderate this year. SMEs are vital to the local economy so any slowdown amid prevailing business headwinds will be only temporary. And banks are already acting to secure their market positions ahead of this inevitable recovery. Just two weeks ago, Maybank Singapore said it wants to "aggressively" target the retail SME segment - its term for small businesses with revenues of up to $20 million - and grow its loan book in the segment by 40 per cent this year. It is a bold statement, given the choppy operating environment for companies here, but the bank's community financial services head Choong Wai Hong said the push is both timely and necessary. "Sure, the growth and trade conditions are in a bit of a struggle now, but the SMEs still contribute to over half of gross domestic product and employment in Singapore," he told The Straits Times. "That tells us that the SMEs here are still thriving, or they can with enough resources to grow in a high-cost environment.
PBB gets Vietnam’s foreign-owned licence The Star Online 26th Mar 2016
Public Bank Bhd (PBB) has received the 100% foreign-owned bank licence from the State Bank of Vietnam and will rename its existing joint-venture bank as Public Bank Vietnam Ltd (PBVN). In a filing with Bursa Malaysia, PBB said it had on March 24 received the approval in relation to its acquisition of the remaining 50% equity capital in VID Public Bank (VPB), the 50:50 joint-venture bank with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
Public Bank receives 100% foreign-owned bank licence in Vietnam The Star Online 25th Mar 2016
Public Bank Bhd (PBB) has received the 100% foreign-owned bank licence from the State Bank of Vietnam and will rename its existing joint-venture bank as Public Bank Vietnam Limited (PBVN). In a filing with Bursa Malaysia, PBB said it had on March 24 received the approval in relation to its acquisition of the remaining 50% equity capital in VID Public Bank (VPB), the 50:50 joint venture bank with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
Banks awash with cash spurring sovereign bond rally Bangkok Post 25th Mar 2016
Banks awash with excess cash are propelling a record rally in sovereign bonds. With economic growth stuck below 3%, that shows no signs of abating. Baht-denominated sovereign notes have risen 2.6% in March and are headed for an unprecedented ninth monthly gain, according to a Bloomberg index that goes back to the start of 2010. The debt has returned 6.1% this year, second only to Indonesian securities in Asia, and the 10-year yield dropped to a record low last week.
Outlook for Banks Remains Stable on Govt Plan to Cap Interest Rates: S&P The Jakarta Globe 24th Mar 2016
An expected rise in lending following the government's plan to cap deposit interest rates would offset any excesses Indonesian banks stand to gain from the policy this year, according to global rating firm Standard & Poor's Financial Services. Standard & Poor's has maintained a stable outlook on Indonesia's banking sector, which is projected to remain one of the most profitable in the world. The Financial Services Authority (OJK) plans to cap the interest rates state-owned banks pay on customers' time deposits starting from next month. It also seeks to ease requirements on the opening of branches or the launch of new products for banks that are keen to narrow their net interest margins.
E-Payments
Moody's credits electronic payments with creating over 13,000 jobs in Singapore in past 5 years The Straits Times 12th Apr 2016
Higher usage of electronic payments - such as credit, debit and pre-paid cards - helped create more than 13,000 jobs in Singapore between 2011 and 2015 due to an increase in the country's consumption. Electronic payments also contributed a total of S$1.7 billion to Singapore's gross domestic product (GDP), according to a report by Moody's Analytics Study released on Tuesday (April 12).
BSP looking at ‘sender only pays’ rule for NRPS Business World 10th Apr 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) is eyeing to implement a “sender only pays” policy for retail transactions as part of the reforms sought under its planned e-payments platform, a central bank official said. In a speech before the SWIFT Business Forum Philippines last week, BSP Deputy Governor Nestor A. Espenilla, Jr. said one of the priority projects under the National Retail Payments System (NRPS) launched in 2015 was the creation of an electronic credit transfer scheme, which aims to lessen the costs while fast-tracking money transfers across banks and financial entities. Among the key changes eyed by the central bank is the promotion of a “sender only pays” rule, where fund recipients can accept funds or payments “with no deductions” under the NRPS.
E-payment set for roll-out soon Bangkok Post 8th Apr 2016
The registration process for the national e-payment scheme to link a single bank account with a mobile phone number or citizens' ID card number is expected to start in July, says a senior Bank of Thailand official. "A bank account that is used regularly can be connected with an ID card number or mobile phone number, but linking with the latter is more convenient," said Nisarat Trairatvorakul, a senior director of the payment systems policy department.
Mobile money regulations released Myanmar Times 6th Apr 2016
The Central Bank of Myanmar has released regulations on mobile financial services, widening a market previously limited to banks to include non-banking financial institutions. The Central Bank announced yesterday that it had issued rules on mobile financial services at the end of last month to build an enabling regulatory framework for efficient and secure mobile financial services in Myanmar. For some, the country seems primed for these services. Few of its 51.4 million population have bank accounts, and distrust of the financial sector remains high.
Indonesia’s radical new plan to catch tax cheats: spy on everyone’s credit card spending Quartz 5th Apr 2016
Few people enjoy paying taxes, as millions of Americans can attest to this time of year. Indeed the recently linked “Panama Papers” show how far some political and business elite will go to hide their assets from the prying eyes of finance officials. In Indonesia, tax authorities are about to gain a new weapon against those who under-report their incomes on their tax returns: credit card data. Starting at the end of May, Indonesia’s finance ministry is forcing 23 banks to share their customers’ credit card transactions on a monthly basis. Among the banks are not only the nation’s largest lenders, including Bank Central Asia and Bank Mandiri, but also branches of foreign banks, including Citibank, Standard Chartered, and HSBC.
Public advised to beware of ATM scams The Brunei Times 5th Apr 2016
The Brunei Association of Banks (BAB) is reminding all bank customers to be extra careful and vigilant when conducting bank transactions in light of increasing card skimming cases on automated teller machines (ATM) in Asia. “Given this rising trend, we would like to remind all bank customers to constantly exercise caution and vigilance when conducting banking transactions,” the association said in a press statement yesterday.
MAS working on unified Point of Sales terminal for seamless payments Channel NewsAsia 2nd Apr 2016
The Monetary Authority of Singapore (MAS) is working on a single terminal that will be able to read all kinds of cards at retail and hospitality outlets, according to its Managing Director Ravi Menon. Speaking at the Singapore Forum on Saturday (Apr 2), Mr Menon said a "key priority" for MAS is greater inter-operability across data systems. MAS is also looking at a possible "all-in-one" addressing system that will enable a user to pay someone electronically using their mobile number, email address, social network account or other proxies, Mr Menon revealed on Saturday.
Electronic Payments Now Possible on Cipali Toll Road, Thanks to BCA Jakarta Globe 1st Apr 2016
Motorists traveling on the Cikopo-Palimanan toll road in West Java can now use electronic money issued by Bank Central Asia and its partners as a toll payment alternative, after the lenders and toll road operator Lintas Marga Sedaya signed an agreement on Thursday (31/03). BCA's Flazz smart card allows customers to "enjoy faster payment at the tollbooth and a smoother ride," said Santoso, the bank's head of group business consumer cards. Flazz is currently accepted in Makassar, South Sulawesi, and on the Surabaya-Gresik, and Waru-Juanda toll roads, both in East Java. BCA partners — including OCBC NISP, Bank Danamon Indonesia, DIY Regional Development Bank, Bank Jatim and Bank Kalbar — also issue Flazz cards to their customers.
Money discipline should precede getting a credit card The Manila Times 30th Mar 2016
Only 7 million Filipinos own a credit card as of 2015, according to data from the Credit Card Association of the Philippines, yet many card-holding Filipinos are deeply in debt. Statistics from the Bangko Sentral ng Pilipinas reveal that credit card debt in the country reached P157.34 billion in 2014. These numbers suggest that Filipinos who qualify for credit cards on paper aren’t necessarily equipped with the skills to use them responsibly.
Banks and fintech firms can and must collaborate: MAS executive Channel NewsAsia 29th Mar 2016
While financial technology (fintech) is upending many different aspects of the financial industry, it does not necessarily pose a challenge for traditional banks and financial services companies, said a senior Monetary Authority of Singapore (MAS) executive on Tuesday (Mar 29). Instead, fintech – which involves using technology to devise new financial services and products – can be seen as a partner that will enable banks to create better products for customers.
Thai e-payment system to use ‘any ID’ feature The Nation 28th Mar 2016
A national e-payment system will advance Thailand's financial infrastructure by another five to 10 years once it is fully implemented, a member of the national e-payment panel said. The first "any ID" service will be available around September. Subcommittee member Punnamas Vichitkulwongsa, chief executive of the Ascend Group, said the Cabinet-approved master plan for the national e-payment would increase the transparency and efficiency of the financial system while helping the government collect more taxes. The national e-payment committee, headed by Deputy Premier Somkid Jatusripitak, is tasked with moving the economy towards a digital future with less reliance on the use of cash.
MasterCard, Cooperative Bank Launch New Travel Card Myanmar Business Today 28th Mar 2016
For travellers looking to secure their finances while vacationing, collaboration between a local bank and an international payment firm may bring that peace of mind. MasterCard and Cooperative Bank have introduced their newest endeavour in Myanmar, the CB EasiTravel Prepaid MasterCard Contactless card. With the contactless card, users can hold the card roughly four centimetres above a point-of-sale device at a retailer to complete the transaction instead of swiping the card through a card reader. Global fraud protection through MasterCard helps ensure safe transactions through a recently expanded network of listed countries. The card is geared to suit travellers and with more than 60 percent of Myanmar nationals looking to travel internationally in the next twelve months, according to the US payment giant.
E-payments usage to be boosted by launch of TPN debit card The Nation 25th Mar 2016
Thai Payment Network (TPN) has partnered with UnionPay International to launch Thailand’s first local-card network for processing electronic payments, in support of the Bank of Thailand’s policy that all payments by domestically issued debit cards must be processed locally. TPN targets issuing 3 million-5 million debit cards in the first year, and debit-card transactions climbing to 5 per cent of the total value of cash withdrawals from ATMs, against 2 per cent at present, TPN chairman Shoke Na Ranong said yesterday. Merchants in the Kingdom to date have been discouraged from accepting debit cards due to the high transaction fees, while cardholders are not confident about using them and have concerns about the security of the magnetic stripe, Shoke said.
Philippines’ mobile wallet providers announce interoperability Enterprise Innovation 21st Mar 2016
Mobile money interoperability in the Philippines took a step forward with the successful integration of the digital payments mobile app of Paymaya Philippines, the digital financial services arm of PLDT and Smart Communications, Inc. (Smart), with Globe Telecom’s mobile money service GCash. It is seen to boost the local digital commerce ecosystem. The interoperability agreement is part of an initiative of the GSM Association (GSMA) and the Philippine Central Bank in making mobile money services more inclusive and accessible to more people in the country. With the interoperability in place, users of the PayMaya app can soon send funds to users of other mobile money systems, including GCash, and vice-versa. This move is seen to boost the growth of mobile money usage in the country, and in turn, expand the local digital commerce ecosystem.
Insurance
Philippines: Minimum capital of US$2.2 mln proposed for HMOs Asia Insurance Review 14th Apr 2016
The Insurance Commission (IC) is proposing requiring new Health Maintenance Organisation (HMOs) to have a minimum paid-up capital of PHP100 million (US$2.2 million). According to the draft circular, all existing HMOs must have a minimum paid-up capital of at least PHP10 million, reported the Manila Times. These existing HMOs obtained their licence from the previous regulator, the Department of Health (DOH), and those which renewed their licence with the IC in December 2015.
Vietnam: Finance Ministry to stipulate minimum reinsurance retention Asia Insurance Review 14th Apr 2016
The Ministry of Finance is proposing to limit the amount of reinsurance placed overseas by stipulating a compulsory minimum retention level. The ministry is currently drafting a decree to give effect to this decision, said Mr Pham Thu Phuong, deputy head of Vietnam Insurance Supervisory Authority (ISA) which is a unit under the Finance Ministry. Mr Phuong explained that the move was due to “certain issues with overseas reinsurance”, including the amount of foreign currency that insurers transfer to their reinsurers abroad, reported Vietnam Investment Review (VIR).
Malaysia: Moderate growth forecast for insurance & takaful marts Asia Insurance Review 8th Apr 2016
Growth in the Malaysian insurance and takaful sectors is expected to moderate this year amid the challenging landscape and uncertainties in the financial markets, says RAM Rating Services. The ratings agency said that against its GDP forecast of 4.4% for 2016, gross premiums are projected to expand by about 5% for life insurance, 2%-3% for general insurance and 4%-5% for takaful contributions, reported The Star newspaper.
ASEAN: Insurance Forum established to facilitate insurance industry integration Asia Insurance Review 8th Apr 2016
ASEAN finance ministers and central bank governors have welcomed the establishment of the ASEAN Insurance Forum (AIFo) to ensure that the integration of the insurance sector of the regional grouping is implemented in a prudent manner, and benefits all ASEAN member states. The AIFO will boost collaboration between the Working Committee on Financial Services Liberalisation and the ASEAN Insurance Regulators’ Meeting, according to a joint statement issued at the 2nd ASEAN Finance Ministers’ and Central Bank Governors’ Meeting in Vientiane this week.
Demand for cyber insurance in Singapore to grow by 50% in 2016: AIG The Straits Times 31st Mar 2016
The cyber insurance market in Singapore will grow by 50 per cent this year as more businesses look to mitigate the high reputational and financial risks associated with cyber breaches, according to AIG Asia Pacific Insurance (AIG Singapore). As Singapore gears up in its drive to be the world's first Smart Nation, new interconnected technologies and increasing automation mean a rise in threats of cyber attacks and sabotage for all companies, said AIG Singapore. Said its head of financial lines Lai Yen Yen: "While cyber attacks grow in size, volume and sophistication, defensive methods and technologies have not seen a corresponding evolution, potentially costing businesses millions in the event of a cyber breach."
Malaysia: Consumer body urges rethink of risk-based auto pricing Asia Insurance Review 28th Mar 2016
Islamic consumer association, Persatuan Pengguna Islam Malaysia (PPIM), is urging insurance companies to reconsider risk-based assessment for pricing motor insurance. PPIM chief, Mr Nadzim Johan, said that risk-based assessment would be unfair, urging the government to review the practice which is to be introduced next year, reported Free Malaysia Today. He said that such assessments would affect more those who are poor and from rural areas.
Don’t focus on profits, consumer group tells insurance firms Free Malaysia Today 26th Mar 2016
Persatuan Pengguna Islam Malaysia (PPIM) chief Nadzim Johan has said risk-based assessment for vehicle insurance premiums was unfair and urged the government to review this practice expected to be introduced next year. He said such risk-based assessment would impact the public, more so those who were poor and from rural areas. Nadzim said the poorer section of the public usually stayed in higher-risk areas compared with those who were more well off.
Market Regulation
OJK to Ease Requirements for the Establishment of Bank Branch Offices Hukum 13th Apr 2016
The Financial Services Authority (OJK) is currently formulating an OJK regulation which will reduce the mandatory minimum core-capital requirement for banks seeking to establish new branch offices and thus improve their efficiency. It is hoped that this new OJK regulation will be issued before the end of April 2016. According to Muliaman D. Hadad, Chairman of the Board of Commissioners at the OJK, the mandatory minimum core-capital requirement for the establishment of branch offices will be reduced significantly. “It [the mandatory minimum-capital requirement] will probably be reduced by around 40% to 50%,” Mr. Hadad stated from Jakarta on Friday, 3 April 2016.
OJK Reregulates Provision on Bank Business Plans Hukum Online 12th Apr 2016
The Financial Services Authority (“OJK”) has issued Regulation No. 5/POJK.03/2016 (“OJK Regulation”)on Bank Business Plans. In essence, the OJK Regulation specifies the various aspects which must be elaborated upon by conventional and sharia-based banks (“Bank”) when formulating their business plans. Furthermore, the OJK Regulation also sets out procedures for banks as regards the reporting of their business plans and reporting of the realization of their business plans to the OJK. Prior to the issuance of the OJK Regulation, these matters were regulated under Bank Indonesia (“BI”) Regulation No. 12/21/PBI/2010 on Bank Business Plans (“BI Regulation”).[1] The OJK Regulation is of relevance to both conventional and sharia-based banks.
OJK Anticipates SIB Related Issues Through Issuance of Several Regulations Hukum Online 5th Apr 2016
In spite of the widely held belief that the recently passed Bill on the Prevention and Control of Financial-System Crises(Bill) already sets out comprehensive provisions on the control of Systematically Important Banks (SIB), the Financial Services Authority (OJK) has just stated that it has established a number of new provisions pertaining to the same matters. Under the Bill, a bank is to be classified as an SIB if it is considered to have the potential to affect the entire financial system should it get into any trouble resulting from its asset pool, capitalization, responsibilities, network, transaction complexity, and/or close relationships with other financial sectors. Three distinct areas covering Systematically Important Banks (SIB) are set out under the Bill.
New Provision on Foreign Financial Product Agency for Banks Hukum Online 5th Apr 2016
The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 8/POJK.03/2016 on Prudentially Principles for the Undertaking of Foreign Financial-Product Agency Activity by Conventional Banks (“OJK Regulation”). The OJK Regulation stipulates a number of actions that must be taken by conventional banks (“Banks”) in order to reduce the potential of financial risk when acting as agents for foreign financial consumer products. To that end, the OJK Regulation sets out guidelines for Banks which are looking to become agents for foreign financial products, and covers: licensing procedures; foreign financial products; the implementation of risk management measures; consumer protection; and mandatory reporting to the OJK.
Asean ministers, bank governors strengthen financial regional integration Vientiane Times 5th Apr 2016
Financial integration, financial service access, and financial stability have been the central issues in discussions among Asean finance ministers and central bank governors at the meeting in Vientiane over the past few days. The ministers and governors have agreed upon the direction of regional cooperation in these areas over the next ten years. These include the Protocol to Implement the Seventh Package of Commitments on Financial Services, which the ministers adopted in principle and will be signed next month at an Asean+3 meeting in Frankfurt, Germany. The Adoption of the Strategy Action Plan on Asean Monetary and Financial Integration Framework 2016-2025, which defined the activities of various working groups, was also concluded at the Second Asean Finance Ministers and Central Governors Meeting (AFMGM).
MAS reveals plans for unified payment system for retail and hospitality outlets Singapore Business Review 4th Apr 2016
The central bank plans to harness breakthrough financial technology. Singaporeans may be experiencing more seamless payments soon as the Monetary Authority of Singapore (MAS) reveals that it is working towards a unified Point of Sales (POS) terminal that can read all kinds of cards at retail and hospitality outlets. In a speech by Ravi Menon, managing director of the MAS, he announced that the regulatory body is also exploring an all-in-one addressing system that will enable residents to pay someone electronically using only the payee’s mobile number, e-mail address, social network account, or other proxies, without using the payee’s bank account number.
SEC requires broker-dealers to build own websites Manila Bulletin 30th Mar 2016
To strengthen investor protection, the Securities and Exchange Commission (SEC), had set a new requirement to brokerage firms, obliging them to build their own websites to improve their accessibility to the public. According to SEC, the websites shall contain basic information about the brokerage firms such as the services offered, the names, current photos and contact details of its directors, principal officers, associated persons and salesmen. The corporate regulatory watchdog said while this requirement is included in the 2015 Implementing Rules and Regulations of the Securities Regulation Code (SRC IRR), this is also “intended to enhance investor protection”.
SEC deems market merger too risky The Manila Times 29th Mar 2016
The Securities and Exchange Commission, explaining its disapproval of the takeover by the Philippine Stock Exchange of PDS Holdings Inc., the country’s fixed-income market operator, said the integration could pose a serious threat on the country’s capital markets. In a press briefing held on Tuesday, SEC Chairperson Teresita Herbosa, said the decision to deny the application for exemptive relief by the PSE was based on the paramount importance of public interest.
Out-of-Court Settlement of Financial Disputes: Three Things Consumers Need to Know Hukum Online 29th Mar 2016
At present, the Financial Services Authority (OJK) has already incorporated six Alternative Dispute Resolution Agencies (LAPS) covering the financial services sector into the official list of alternative dispute resolution (ADR) agencies. These six LAPS have been granted the authority to engage in the out-of-court settlement of any financial disputes. According to Anggar B. Nuraini, the OJK’s Deputy Commissioner for Consumer Protection and Education, the existence of these LAPS will offer an alternative to consumers and Financial Service Businesses (PUJK) who are looking to settle disputes. “It is hoped that the LAPS may serve as a choice of forum for dispute settlements which can ultimately be incorporated into contracts [between consumers and PUJK],” asserted Mrs. Nuraini in Jakarta on Tuesday, 22 March 2016.
House Finally Passes Bill on the Prevention and Control of Financial-System Crises Hukum Online 29th Mar 2016
The Bill sets out the legal basis upon which financial-sector authorities can coordinate and implement certain measures in order to prevent and overcome national financial crisis. To this end, the Bill sets out provisions relating to the following matters: a. The establishment of the Financial System Stability Committee (Komite Stabilitas Sistem Keuangan – “KSSK”); and b. Measures to prevent and overcome any national financial-system crisis. The Bill is of relevance to all financial-service institutions.
New Provision on Outsourcing of Work by Banks Hukum Online 22nd Mar 2016
The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 9/POJK.03/2016 on Prudentially Principles for Banks that Outsource Services to Other Parties (“OJK Regulation”). In essence, the OJK Regulation sets out the types of activity which can be outsourced by banks (“Banks”) to third parties, as well as prudential measures which must be undertaken by Banks in order to ensure that such delegation will not result in any harm being caused to the Banks’ activities.
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