message from the secretary treasurerindia- india’s central bank may hike rates this week japan-...

ABA Newsletter July 2018

1

Message from the Secretary Treasurer

Greetings from ABA!

IampleasedtopresenttheJuly2018issueoftheABANewslettertoallourcolleaguesinthebankingandfinance

sector.

Inthisissue,readerswouldgainfirst-handinformationonourpreparationsforthe35thABAGeneralMeetingand

ConferencetobeheldonNovember15-16,2018inKurumbaResort,Maldives.Furthermore,weincludethestoriesonWorld

Bank’sforecastontheglobaleconomyin2018aswellastheregionaldevelopmentof“Regtech”(RegulatoryTechnology)in

Asia.Inthesectionof“MemberPersonalities,”wefeaturethepersonnelchangesofMaybankandSMBC.

Readerscanalsofindarticlesregardingtherecentpoliciesofcentralbanksandcyberriskexposure,latestnewson

ABAmembers,aswellashighlightsonthebankingindustryintheAsia-Pacificregion.

WehopethatyouwillfindthearticlesincludedinthisNewsletterofgreatvalue,andlookforwardtoyourcontribution

to and comments on the future issues of the Newsletter.

BestRegards.

Ernest Lin

Secretary-Treasurer

2


Table of ContentsGeneral Meeting and Conference ………………………………………………………........................……………......… 3MaldivesConferencetoFeature“DiscoverABA”Session

News Updates …………………………………………………………………….....…..…………….....……………........... 3ABAAdvisoryCouncilMemberChatriSophonpanichPassesAwayGlobalEconomytoExpandby3.1percentin2018,SlowerGrowthSeenAheadLatestFICCIFinancialInsightsFocusesonMSMELending

Special Feature ………………………………………………………………………..……………….....……........……..... 6TheEvolvingRegtechLandscapeinAsia

Member Personalities ………………………………………………………………………..…………....................……... 8MaybankappointsMichaelFoongasCEO,InternationalMr.KenichiHosomiNamedNewRepresentativeofSMBCatABABoard

Among Member Banks ………………………………………………………………………..….....................………….... 9SBIpresentationfuelstalkofbankmergersMizuhosettodevelopcloud–basedmarketriskmanagementsystemMUFGblockchainpaymentsplatformtoprocessamilliontransactionspersecondKoreaDevelopmentBankIssuesGreenBondsUOBtoholddigitalclinicstohelpsmallbusinessescrackthedigitalisationcodeCTBCandITRIco-createAIUnderwritingService-coreproductof“CTBCBrain”PlanTaishinFHC’sQ1ProfitsAchieve14%GrowthYoYUnderActiveGovernanceTaiwanCooperativeprofitsurgesonrobustlendingVietinbanktoissue400,000bondsin2018CommerzbankdemonstratesfirstGermancorporateFXdealonblockchain

Banking and Finance Newsbriefs …………………………………………………………………..........................…….. 13Australia-InternationalbanksplanareturntoAustraliaIndia-India’scentralbankmayhikeratesthisweekJapan-JapanpushesuseofcashlesspaymentsasOlympicsapproachandbanksstrainKorea-Govt.totightenreportingrulesonfinancialtransactionsMongolia-Mongolia’scentralbanklaunchescampaigntoincreasegoldreservesOman-Oman’sbankingsectorpostsreasonablegrowthPhilippines-Bigbanksreadyfornewrule–Moody’sSingapore-MASpartnersIFCtospurgreenbondmarketinAsiaUzbekistan-UzbekistansettodevelopIslamicbankingsystemVietnam-Vietnamdeterminedtoreducenumberofcommercialbanks

Publications ………………………………………………………………………..……………………............………..… 17IMFFinancialOperations2018GlobalShocksandtheNewGlobalandRegionalFinancialArchitecture:AsianPerspectives


3

General Meeting and ConferenceMaldives Conference to Feature “Discover ABA” Session

As in previous year’s Conferences, one of the high-lightsofthisyear’sprogramisaspecialsessionentitled“Dis-coverABA”.ScheduledonthemorningofNovember15,thissession will feature special country presentations by member banksfromselectedABAmember-countries. Thecountrypresentationsareintendedtoprovidethe delegates the opportunity to obtain more information on theeconomyandthefinancialmarketsinthecountriesofthepresenting banks, or on special programs, projects, products or servicesofthepresentingbanksthathavebenefitedtheircus-tomer base or the community they serve and may be adapted by member banks from other countries. Severalmemberbanksfromfivecountrieshave

already been invited to make separate presentations on the current trends and latest developments in their respective economies and banking sectors, or on other topics of their own preference–e.g.,theirstrategyforfuturegrowth;transfor-mationalchangesintheirorganization;theirnewproducts,services or activities offered to their members that may be of interest to other banks in the region as well. Each of the country presenters will be requested to use their creativity and resourcefulness to make their presenta-tions as lively, interesting and colorful as possible. Delegatestothisyear’sConferencecanthereforelook forward to an interesting, informative and productive gatheringinMaldives.

News UpdatesABA Advisory Council Member Chatri Sophonpanich Passes Away

It is with profound sadness that the Asian BankersAssociation(ABA)informsallmembers,associates and friends of the passing away of ABA AdvisoryCouncilMemberMr.ChatriSophonpan-ich,ChairmanoftheBoardofDirectorsandAdvisortotheExecutiveBoardoftheBangkokBank.Mr.Chatri died of natural causes on the evening of June 25,2018.Hewas85. Mr.ChatriwasthesecondsonoftheBangkokBankfounder,ChinSophonpanich.Hewasappointedchairmanandadviserin1999.EducatedinHongKongattheKwangTaiHighAccountancyCollege,hefurtheredhisstudiesattheRegentStreetPolytechnicofLondon and the Institute of Bankers in England. Chatri joined his father’s Bangkok Bank as an assistant accounting manager in1959,androsetobecomeitsfourthpresidentfrom1980-92.Hewasthesecondgenerationmanagement,inheriting

the bank from his father and becoming one of the country’s most respected bankers. Duringhistenure,BangkokBankbecamethe leading bank in the country with focus on quality serviceandtechnology.Heoversawtheintroductionof an online network in the banking sector. Chatri stepped down from bank presidency and was suc-ceededbyhisownson,Chartsiri,in1994. Mr.ChatrihadservedasmemberoftheABA Advisory Council, composed of former ABA

chairmen and other eminent bankers from the region, since 2007, providing valuable guidance in steering the Associ-ation towards its objective of advancing the interest of the bankingcommunityintheregion.Hisdemiseisthereforeagreat loss to the ABA. ABAmembersarerequestedtojoinMr.Chatri’s family in prayer for the eternal repose of his soul.

4


Emerging, Developing Economies to Ac-celerate as Commodity Exporters Recover

Despite recent softening, glob-al economic growth will remain robust at 3.1 percent in 2018 before slowinggraduallyoverthenexttwoyears,asad-vanced-economy growth decelerates andthe recovery in major commodity-ex-porting emerging market and developing economieslevelsoff,theWorldBanksaidonJune5,2018. “If it can be sustained, the ro-bust economic growth that we have seen this year could help lift millions out of poverty, particularly in the fast-growingeconomiesofSouthAsia,”World Bank Group President Jim Yong Kim said. “But growth alone won’t be enough to ad-dresspocketsofextremepovertyinotherpartsoftheworld.Policymakersneedtofocus on ways to support growth over the longer run—by boosting productivity and labor force participation—in order to ac-celerate progress toward ending poverty andboostingsharedprosperity.” Activity in advanced economies is expected to grow2.2 percent in 2018beforeeasingtoa2percentrateofexpan-sionnextyear,ascentralbanksgraduallyremove monetary stimulus, the June 2018 GlobalEconomicProspectssays.Growthin emerging market and developing econ-omies overall is projected to strengthen to 4.5percent in 2018, before reaching4.7percent in 2019 as the recovery in com-modityexportersmaturesandcommodityprices level off following this year’s in-crease. Thisoutlookissubjecttoconsid-erabledownside risks.Thepossibilityofdisorderlyfinancialmarket volatility hasincreased, and the vulnerability of some emerging market and developing econo-mies to such disruption has risen.Trade

protectionist sentiment has also mounted, while policy uncertainty and geopolitical risks remain elevated. A Special Focus cautions that,over the long run, the anticipated slow-down in global commodity demand could put a cap on commodity price prospects and thus on future growth in commodi-ty-exporting countries. Major emergingmarkets have accounted for a substantial share of the increase in global consump-tion of metals and energy over the past two decades, but growth of their demand formostcommodities isexpected tode-celerate,theSpecialFocussectionsays. “The projected decline in com-modities’ consumption growth over the long run could create challenges for the two-thirds of developing countries thatdepend on commodity exports for reve-nues,”saidWorld Bank Senior Director for Development Economics, Shan-tayanan Devarajan.“Thisreinforcestheneedforeconomicdiversificationandforstrengtheningfiscalandmonetaryframe-works.” Another Special Focus findsthat elevated corporate debt can height-enfinancialstabilityconcernsandweighon investment. Corporate debt—and, in some countries, foreign currency debt—hasrisenrapidlysincetheglobalfinancialcrisis, making them more vulnerable to rising borrowing costs. “Policymakers in emerg-ing market and developing economies need to be prepared to cope with possi-ble bouts of financial market volatilityas advanced-economy monetary policynormalization gets into high gear,” saidWorld Bank Development Economics Prospects Director Ayhan Kose.“Risingdebt levels make countries more vulner-able to higher interest rates.This under-lines the importance of rebuilding buffers

againstfinancialshocks.” After many years of downgrades, consensusforecastsforlong-termgrowthhavestabilized,apossiblesignaltheglob-al economy isfinallyemerging from theshadow of the financial crisis a decadeago.However,long-termconsensusfore-casts are historically overly optimistic and may have overlooked weakening potential growth and structural drags on economic activity, the report cautions. The report urges policymakersto implement reforms that lift long-termgrowth prospects. A rapidly changing technological landscape highlights the importance of supporting skill acquisition and boosting competitiveness and trade openness. Improving basic numeracy and literacy could yield substantial develop-mentdividends.Finally,promotingcom-prehensive trade agreements can bolster growth prospects.

Global Economy to Expand by 3.1 percent in 2018, Slower Growth Seen Ahead


5

Regional Summaries:

East Asia and Pacific: Growth in the region is forecast to ease from6.3percentin2018to6.1in2019,reflectingaslowdownin China that is partly offset by a pickup in the rest of the re-gion.GrowthinChinaisanticipatedtoslowfrom6.5percentin2018to6.3percentin2019aspolicysupporteasesandasfiscalpoliciesturnlessaccommodative.ExcludingChina,growthintheregionisforecasttomoderatefrom5.4percentin2018to5.3percentin2019asacyclicaleconomicrecoverymatures.Indonesia’seconomyisexpectedtogrow5.2percentratethisyearand5.3percentthenext.GrowthinThailandisexpectedaccelerate to 4.1 percent in 2018, beforemoderating slightlyto a3.8percent rate in2019.Forboth commodity exportingand importing economies of the region, capacity constraints andpricepressuresareexpectedtointensifyoverthenexttwoyears, leading to tighter monetary policy in an increasing num-ber of countries.

Europe and Central Asia: Growth in the region is projected to moderatetoanupwardlyrevised3.2percentin2018andedgedownto3.1percentin2019asamodestrecoveryamongcom-modityexportingeconomiesisonlypartiallyoffsetbyaslow-downamongcommodityimporters.InTurkey,growthisfore-casttoslowto4.5percentin2018andto4.0percentin2019asdelaysinfiscalconsolidationandtheextensionofthecreditsupport program temper an anticipated slowdown following the strongrecoveryin2017.GrowthinRussiaisanticipatedtoholdsteadyata1.5percentratein2018andaccelerateto1.8percentin 2019 as the effects of rising oil prices and monetary policy easing are offset by oil production cuts and uncertainty around economic sanctions.

Latin America and the Caribbean: Growth in the region is projected to accelerate to a downwardly revised 1.7 percent in 2018andto2.3percentin2019,spurredbyprivateconsump-tionandinvestment.ThecyclicalrecoveryunderwayinBrazilis projected to continue,with growth forecast to be 2.4 per-cent thisyear and2.5percent in2019. InMexico,growth isexpectedtostrengthenmoderatelyto2.3percentin2018and2.5percentin2019asinvestmentpicksup.GrowthinArgen-tina is anticipated to slow to 1.7 percent this year as monetary and fiscal tightening and the effects of the drought dampengrowth, and to remain subdued in 2019, at 1.8 percent. Growth insomeCentralAmericanagriculturalexportersisexpectedtopick up in 2018 and 2019, while growth among the commodity importers of that sub-region is expected to stabilize or slow.Economies of the Caribbean are forecast to see a lift to growth

in2018frompost-hurricanereconstruction,tourism,andsup-portive commodity prices.

Middle East and North Africa: Growth in the region is pro-jectedtostrengthento3percentin2018andto3.3percentin2019,largelyasoilexportersrecoverfromthecollapseofoilprices. Growth among members of the Gulf Cooperation Coun-cil(GCC)isanticipatedtoriseto2.1percentin2018and2.7percent in2019,supportedbyhigherfixed investment.SaudiArabia is forecast toexpandanupwardly revised1.8percentthisyearand2.1percentnextyear.Iranisanticipatedtogrow4.1percentin2018andbythesameamountin2019.Oilim-porting economies are forecast to see stronger growth as busi-nessandconsumerconfidencegetsaliftfrombusinessclimatereformsandimprovingexternaldemand.Egypt isanticipatedtogrow5percentinFiscalYear2017/18(July1,2017-June30,2018)and5.5percentthefollowingfiscalyear.

South Asia: Growth in the region is projected to strengthen to 6.9percentin2018andto7.1percentin2019,mainlyasfac-tors holding back growth in India fade. Growth in India is pro-jectedtoadvance7.3percentinFiscalYear2018/19(April1,2018-March31,2019)and7.5percentinFY2019/20,reflectingrobustprivateconsumptionandstrengtheninginvestment.Pa-kistanisanticipatedtoexpandby5percentinFY2018/19(July1,2018-June30,2019), reflecting tighterpolicies to improvemacroeconomicstability.Bangladeshisexpectedtoaccelerateto6.7percentinFY2018/19(July1,2018-June30,2019).

Sub-Saharan Africa: Growth in the region is projected to strengthen to3.1percent in2018and to3.5percent in2019,belowitslong-termaverage.Nigeriaisanticipatedtogrowby2.1percentthisyear,asnon-oilsectorgrowthremainssubdueddue to low investment, and at a 2.2 percent pace in 2019. An-golaisexpectedtogrowby1.7percentin2018and2.2percentin2019,reflectinganincreasedavailabilityofforeignexchangedue to higher oil prices, rising natural gas production, and im-provedbusinesssentiment.SouthAfricaisforecasttoexpand1.4 percent in 2018 and 1.8 percent in 2019 as a pickup inbusinessandconsumerconfidencesupportsstrongergrowthininvestmentandconsumptionexpenditures.Risingminingout-put and stable metals prices are anticipated to boost activity in metalsexporters.Growthinnon-resource-intensivecountriesisexpectedtoremainrobust,supportedbyimprovingagriculturalconditions and infrastructure investment. World Bank Press Release

6


The Financial Sector team of theFederation of Indian Chambers of Com-merce and Industry (FICCI) has issued thelatesteditionofitsquarterlypublication-Fi-nancialInsights.Theissuefocuseson“TheEvolving Contours of MSME Lending inIndia”, which presents insightful write-upscontributedby industry leaders andexpertsin this domain. Micro, Small and Medium En-terprises (MSMEs) are a major engine ofgrowth and employment generation in the country.However,withover50millionMS-MEsinthecountrywehaveonly4.5millionunique borrowers from the formal industry. TraditionallypublicsectorbankshavebeenthelendersforformalcredittoMSMEs.Pri-vate sector banks and NBFCs have been steadily increasingtheshareinMSMEsfinancing.However,latelynon-tradition-al(oralternate)lendershavealsoenteredtheMSMElendingspace.These non-traditional lenders are using data and digi-talprocesses to transformthe lendingspace.Theyworkwithnew-economy partners, use non-traditional data sources and

have developed new credit rating algorithms en-ablingsmootherstraight-throughdigitalprocess-es for loan approvals. Thepolicyinterventionssuchasdemonetiza-tionandintroductionofGSThaveledtomassiveformalizationofthebusinessesofMSMEs.Thisisgeneratingenormousfinancialinformationda-tabaseofMSMEs’businessesandfinances.ItisexpectedthatthisbigdatabasewillbeusefulforimprovingfinancingofMSMEs’capitalrequire-ment, including working capital. Further, theproposed on boarding of public sector banks and corporatesonTradeElectronicReceivableDis-countingSystem(TReDS)platformandlinkagewithGSTNwouldalsobebeneficialforMSMEfinancing. This issue of Financial Foresights has at-

temptedtooutlinereformsforstrengtheningtheMSMElend-ingstructureleadingtogrowthoftheMSMEcredit. Interested parties may download the publication from thefollowinglink: http://ficci.in/SPdocument/22981/Financial_Fore-sight_May1.pdf

Latest FICCI Financial Insights Focuses on MSME Lending

Technologyempowerspeopleandbusinesses tostayconstantly “switchedon” in a rapidly changing environment,and we are increasingly reliant on it. Increased mobile use, the riseofsocialmedia,andgrowingdigitizationhasledtoanex-ponentialincreaseintheamountofdataavailable.Ofthedatacurrently available, more than 90 percent was created in the lastfiveyearsalone.Thishasenabledbigdataanalysisandtheuseofmachine learningandartificial intelligencetogenerateinsights that were not previously possible. In addition, competition in the financial services in-dustry has increased significantly with the rise of financialtechnology(fintech).Manynewbusinessmodelsareemergingfrom both fintech and incumbent financial institutions to ad-dress changing customer preferences. Meanwhile,bankshave facedanunprecedented lev-elof regulatoryscrutinysince theglobalfinancialcrisis.De-

Special Feature

spite spending billions on regulatory compliance remediation programs,manyfinancialinstitutionshavebeenfinedheavilyand are still struggling to comply with regulatory requirements, resultingin theadventofregulatorytechnologyor“regtech.”Regtech is defined as “the use of new technologies to solveregulatory and compliance requirements more effectively and efficiently”aspertheInstituteofInternationalFinance.

Regtech in Asia Theregtechlandscapeisrapidlyevolvingandcoversawiderangeofpossibleservices,rangingfromthosespecifictoindustriessuchasfinancialservicesandhealthcare,tocross-in-dustry services such as vendor risk management, cybersecurity andidentity/backgroundchecks. The regtech industry is still relatively fragmented

By Wei Ying Cheah, Partner in the Asia-Pacific Finance & Risk Practice at Oliver Wyman

The Evolving Regtech Landscape in Asia


7

globally, with a large number of small-scale players and no dom-inant player in the market or even the region. While most regtechfirmsarebasedintheU.S.andEu-rope,theyarebeginningtoexpandtheirreachintoAsia.Forexample,American Express plans to exportKYCregtech toAsiaafter its suc-cess in Australia, which led to re-ducing client onboarding times in half after adopting Simple KYC’scloud-basedtechnologyplatformasreportedbyTheAustraliaFinancialReview. Local players are also starting to appear in Asia. Notable startupsincludeFintellix,anIndianfirmthatleveragesexistingdatainfrastructurestomanagelocalregulatoryreportingrules;CynopsisSolutions,astartupfromSingapore thatspecializesin transaction monitoring to combat money laundering and terrorism-relatedfinancialactivities;andKYC-Chain,ablock-chain-basedcustomeronboardingplatform. SingaporeisleadingtheAsianregtechspaceandhostsnumerous regtech players such asDatarama,which providesa riskmanagement platform tomake compliance-driven duediligencemoreefficientandaffordable.Singapore-incorporat-edOtonomosusesblockchaintechnologytochangehowcom-paniesareincorporated,administered,andfunded.Separately,theSingaporeExchange(SGX)recentlylauncheda“Members’Surveillance Dashboard,” which allows data related to mar-ket misconduct to be reported, including details of alerts from SGX’sownsurveillancesystem. Citibank, OCBC and DBS have recently launchedchatbotsinSingapore.CitibankandDBSeachhaveachatbotontheirFacebookpagesthatanswerscustomerinquiries,andOCBChastwochatbots—onethatdoeshomeloansandanoth-er for internal human resource purposes. Indiaiscatchingup,too.Bangalore-basedSignzy,forexample,providesanonlinecontractingsolutionthatusestech-nology, including biometric signature and blockchain, to com-pletetheentireonlinedigital trustsystem.TheIndiaFinTechForumiscurrentlyrunninganannualcompetitiontorecognizeemerging fintech innovations in the Indian ecosystem, and ashortlistof20fintechshavebeenchosentopitch.Regulatory Approach to Regtech The riseof regtech in recentyearshasnotgoneun-noticedbyregulators.TheFinancialConductAuthorityintheUKwas thefirst to respondby launching thefirst regulatorysandbox in 2015.The concept of a “sandbox” is to create a

Motorists stop at a junction as the Raffles Place financial business district is seen in Singapore. The city-state is leading the Asian regtech space and hosts numerous regtech players. Roslan Rahman/AFP/Getty Images

safespaceforfirmstoexperimentwithnew technologies before getting finalapprovalfromtherespectivefinancialregulators or authorities and offering them to customers. As with the launch of any new busi-ness or technology, there are multiple risks in the financial world.Will thenew technology work?What are therisks related to client data and confi-dentiality?Howsecureisitfromcyberrisks? The creation of a regulatory sand-box not only allows firms to experi-ment freely within a controlled envi-ronment, it also allows the regulator to get a better understanding of the

newtechnologiesandpossibleapplications.Moreimportantly,it helps the regulator avoid burdening the new business with overly restrictive regulations before an actual launch. The regulatory sandboxapproach isgaining tractionand is now spreading globally. It is in various stages of devel-opmentandimplementationincountriessuchastheU.S.,Swit-zerland,Australia,HongKong,Singapore,Malaysia,ThailandandtheUAE. Beyondjustsettingupregulatorysandboxes,regula-tors should also consider the possibility of using some of these regtechtechnologiesthemselvestopotentiallysupervisethefi-nancialsectormoreeffectively.Forexample,theycouldapplybig data analysis and machine learning to information collected from banks and identify potential emerging risks, or they could createcross-firmdatathatallfirmscouldleverage. TheIndonesiangovernmentissettinganexamplebyopeningthecountry’sIDcarddatabasetofinancialinstitutionsforKYCpurposes.IDcardsinIndonesiaarealreadyusedasthebasisforissuingpassports,drivinglicenses,taxdocumentation,insurance policies, land rights certificates and for biometricdata.Thusfar,morethan190financialinstitutionsandserviceprovidershavesignedup toaccess the IDdatabase forKYCpurposes.

What Can Organizations Do? Whileregtechisrapidlygrowing,thereareanumberofkeychallengesthatfinancialinstitutions,fintechsandregu-lators need to overcome with regard to successful implementa-tion. First,firmsneedtohaveaclearstrategywithregardtotheuseandapplicationofregtechandthinkaboutdigitizationmore holistically while designing customer journeys and new productofferings,forexample.Firmsalsoneedtobecarefulin

8


Member PersonalitiesMaybank appoints Michael Foong as CEO, International

MaybankhasappointedMichaelFoongSeongYewaschiefexecutiveof-ficer,International,replacingPollieSimwho retired on June 1. ThenewrolewillbeinadditiontoFoong’scurrentroleasgroupchiefstrategyofficer,apositionhehasheldsince2014. Foongfirstjoinedthegroupaschiefstrategyandtransformationofficerin 2011. “AsanexpertinStrategy

Wei Ying Cheah is a partner in Oliver Wyman’s fi-nance & risk practice, having spent time in Europe and Asia. Her primary focus is on non-financial risk. She maintains the firm’s intellectual capital on a variety of non-financial risk top-ics spanning from operational risk, cyber risk, financial crime, business continuity management, business risk, reputational risk, conduct risk, compliance & audit.

businessunitssince2016,”saidMaybankin a press statement. Foongheldvariousmanagementpositions in Accenture prior to joining Maybank,andwaslasttheseniormanag-ing director of its management consulting practiceinMalaysia. In the press statement, group presidentandCEODatukAbdulFaridAliasthankedPollieSimforheroverthreedecadesofservicewithMaybank.The Star Online

DevelopmentandBusinessTransforma-tion,MichaelhasmadecontributionstoInternational when he oversaw, with the GroupPresident&CEO,thetransfor-mationprogrammesforMaybankHongKong,MaybankPhilippinesandMay-bankCambodiafrom2014. “In addition, he drove the adop-tion of new and enhanced digital plat-forms, partnering with Group Commu-nityFinancialServices,forInternational

evaluatingopportunities—efficiencycannotcomeatthecostofcomplianceorcustomerexperience.Additionally,theymustbeawareofnewemergingrisksasaresultofincreasingdigitiza-tion and interconnectedness. Second, regulators should aim to streamline or sim-plify rules where possible while ensuring that security is not compromised. Various regulatory jurisdictions have different requirements for data security and privacy, as well as restric-tions on the sharing of information across institutions or nation-al borders. While regulators in the region are encouraging theproliferation of regtech within their respective national borders, they should also look to have regular dialogues across the re-gion to enable the application and adoption of regtech solutions acrossborders.Thiswill lead todataharmonizationandwillenable more powerful insights to be generated through greater pooling of available data and applications. Notaddressing these issueswillmake itdifficult forregtech to achieve its full potential. Brink Asia

*A version of this piece first appeared in Banking Insight De-cember 2017 – AICB.

About the AuthorWei Ying CheahPartnerintheAsia-PacificFinance&RiskPracticeatOliverWyman


9

Sumitomo Mitsui Banking Corporation (SMBC),ABABoardMember from Japan, has appointedMr.KenichiHosomiasitsnewrepresentativeattheBoard. Mr.Hosomi is aManaging ExecutiveOfficer, Dep-utyHeadof InternationalBusinessUnitofSumitomoMitsuiFinancialGroup(SMFG). HeisalsoaManagingExecutive

Mr. Kenichi Hosomi Named New Representative of SMBC at ABA Board

Officer,DeputyHeadofInternationalBankingUnitofSMBC. Mr.HosomijoinedTheSumitomoBank,Ltd.(apre-decessorbankofSMBC)in1985.Afterspendinganumberofyears at Umeda Branch and Corporate Banking DepartmentinOsaka, hewas transferred to JapaneseCorporateBankingDepartment,NewYorkBranch in1993.Hewaspromoted toHeadofMarketingGroup,SanFranciscoBranchin1996.HereturnedtoNewYorkin1999asHeadofCorporateBankingDepartment-I,coveringallclientsacrosstheU.S.,andmanagedoverUS$7billioninassetsandastaffofmorethan20employ-ees. InApril 2017,Mr.Hosomi assumed his current po-sition asManagingExecutiveOfficer,DeputyHeadof Inter-nationalBusinessUnit,SumitomoMitsuiFinancialGroupandManaging Executive Officer, Deputy Head of InternationalBankingUnit,SumitomoMitsuiBankingCorporation. BorninHyogoPrefecture,Japanin1963,Mr.HosomiholdsaB.A.inEconomicsfromtheKwanseiGakuinUniversi-ty(HyogoJapan)andanMBAwithBetaGammaSigmahonorsfromTheGeorgeWashingtonUniversity(WashingtonD.C.theU.S.A.).

Among Member Banks

SBI presentation fuels talk of bank mergers-ThestageissetforintensificationofattemptsatpublicsectorbankconsolidationafterapresentationbyStateBankofIndia(SBI)chair-manRajnishKumaratarecentmeetingofbankers,althoughitisn’tquiteclearonwhowillmakethefirstmove. BankersandgovernmentofficialstoldTimesofIndiathatKumarmadeadetailedpresen-tationonSBI’sexperiencewiththemergeroffiveassociatebanks,pointingouthowthereweresomeinitialnigglesduringthefirstfewmonths,alongwithheightenedanxiety.Butthingshavesettleddownsmoothlyandthepositiveimpactisnowvisible. Thepresentationtalkedabouthowtherewereapprehensionsabouttheimpactonstockofbaddebt,integrationandstaffissues.SBI,however,sawitasamovetogainsize,somethingthathaseludedIndianbanks. Whileofficialssaidlendershavestartedinitialdiscussionsonthelong-pendingconsolidationefforts,withtheCentrebackingtheseattempts,bankersareawaitingaclearerstrategyfromthegovernment.“SBIdidtalkabouttheprosandconsbutthegovernmenthastosuggestways,”saidabankchief,whowaspresentinthemeetinginMumbai.Times of India

10


Among Member Banks Mizuho set to develop cloud–based market risk management system - As one means of strengtheningitsresponsetochangesinglobalfinancialregulationspromptedbythe2008globalfi-nancialcrisis,MizuhoFinancialGroup,Inc.(President&GroupCEO:TatsufumiSakai)andMizuhoBank,Ltd. (President&CEO:KojiFujiwara)areplanning todevelopamarket riskmanagementsystemusingacloudcomputingenvironmentprovidedbyAmazonWebServices(AWS). TheFundamentalReviewoftheTradingBook(FRTB)isaglobalfinancialregulationin-troducedby theBaselCommittee onBankingSupervision (“BaselCommittee”) triggered by theglobalfinancialcrisis.TheBaselCommitteereleaseditsmostrecentconsultativedocumentinMarch2018andisworkingtofinalizerevisionstotheFRTB.WhencalculatingmarketriskvaluesundertheFRTB,moreadvanced,complex,andextensivecalculationsare required than previously, as well as more accurate risk measures based on product type and risk category. In light of this, global financialinstitutionsinparticulararebeingcalledupontoenhancetheirmarketriskmanagementsystems. InordertocomplywithFRTBimplementationrequirementsby2022,theyareplanningtodevelopamarketriskmanage-mentsystemthatwillincorporatecalculationlogiccapableofsupportingsophisticatedriskmanagement,aswellasutilizeAWS’scloudservices,whichhavebeenwidelyadoptedinthefinancialservicesindustryinrecentyears.Mizuho Bank News Release

MUFG blockchain payments platform to process a million transactions per second -MUFGispartneringwithUScloudsoftwarecompanyAkamaitodevelopablockchainservicewiththeabilitytoprocessamilliontransactionspersecondandfinalisetransactionsinlessthantwoseconds. TheblockchainsystemwillbebuiltonAkamai’scloudservice,AkamaiIntelligentPlatform,with the bank planning to roll out the payment network service by 2019 or early 2020. “MUFGandAkamai,usingAkamai’sgloballydeployedhigh-speedandhigh-securityplatform,willutilizethisnewblock-chain’shigh-speedprocessingandsecurevaluetransferabilitiestopromotepay-per-use,micropayments,andothernewIoTgener-ationpaymentmethods,”thebanksaidinastatement. As Japanese banks face falling loan demand brought about by a shrinking population they are increasingly turning to digital methods to cut costs. East & Partners

Korea Development Bank Issues Green Bonds-AccordingtotheMinistryofStrategyandFinance,theKoreaDevelopmentBankissuedgreenbondstodomesticinstitutionalinvestorsonMay29. Thetotalamountofbondsissuedwas300billionwonandthecouponratestoodat2.53percent.Maturityisthreeyears. Greenbondsarespecial-purposebondswithuselimitedtoenvironmentally-friendlyprojects.Koreanfinancialinstitu-tionshadissuedgreenbondspreviouslyonsevenoccasions,butallweresoldtoforeigninvestorsandneverissuedinKoreanwon. Thecapitalraisedbythebondswillbeinvestedinaccordancetorelevantguidelinesthatdictatethatfundsgotowardsgreen energy projects. Investorswillbegivenafullreportonthematter.Anofficialattheministrysaidthattheissuanceofgreenbondswillbring about a positive effect in the market. Moreover,“thegovernmentwillreviewpolicymeasuresthatcanfacilitatefutureissuanceofgreenbonds,”saidtheoffi-cial. Korea Bizwire


11

UOB to hold digital clinics to help small businesses crack the digitalisation code - UnitedOverseasBank(UOB)ismakingiteasierforsmallbusinessestotakethefirststeptowardsdigitalisationwiththelaunchofmonthlydigitalclinics.Throughtheclinics,smallbusinesseswilllearnhowtheycanuse technologyto improvetheirprocessesandreceivepractical,one-on-oneguidancefromdigitalisationexpertsonhowtoimplementdigitalsolutionsintotheiroperations. The digitalisation expertswill be drawn fromUOB’s ecosystemof partners, includingSAP,HReasilyandEnterpryze.Eachsmallbusinessthattakespartintheclinicwillreceiveexpertadviceontheareasinwhichtheircompanycanbenefitfromdigitaltechnologyandinformationonthefundingsupportthatisavailabletothem.Afterthesession,thesmallbusinesswillreceiveadetailedreportwithrecommendationsonthenextstepstheycantakeindigitalisingtheirbusiness.UOB News Release

CTBC and ITRI co-create AI Underwriting Service - core product of “CTBC Brain” Plan-CTBCandTaiwan’sIndustrialTechnologyResearchInstitute(ITRI)announcedanewunlimitedAIUnderwritingService inTaiwanonMay7th,2018.Thisproject isacoreproductof“CTBCBrain”Plan,whichadoptedandimplementeddeeplearningalgorithmstoim-provetraditionalunderwritingprocessandmaximizeoutputandefficiency.Thejobofanunderwriteristoanalyzeandevaluatethepotentialrisksinvolvedintheprocessofensuringapplicantsandtheirassets.WiththeintegrationofAItechnologieslikecomputervision, advanced analytics, and machine learning, the age of AI underwriting is here. “CreatingvalueintheDataEconomy,thenewcapabilitiesrequiredofbothdatatechnologyanddigitaltransformation.CTBCBankhasbeenaleadingplayerinprovidinginnovativeservicesanddevelopingBigDatadeeplyinTaiwan.TheCTBCDataR&DCenterwasfoundedinJanuary2018headedbyMr.FriedmanWang,ExecutiveVicePresidentofCTBCBank,bringingto-gether“CTBCBrain”Plan,AItechnology,datascientistandotherservicesintoanintegratedandorganizeddata-drivenserviceforthewholeCTBC,”saidMr.JamesChen,PresidentofCTBCBank.CTBC International Newsletter

Taishin FHC’s Q1 Profits Achieve 14% Growth YoY Under Active Governance - TaishinFHC(TaishinFinancialHoldingCo.)helditsQ1analystmeetingonMay7th.ThemeetingwashostedbyPresidentWelchLin,CFOCarolLai,CIOEricChien,PresidentOliverShangofTaishinBank,andWholesaleBankingGroupCEOSharonLinofTaishinBank.Drivenbygrowthin net interest income, net service fee income, andfinancial transaction income inQ1,TaishinFHC’sQ1netprofitgrew14%YoY. WelchLinindicatedthatstablebusinessgrowthofTaishinFHCanditssubsidiariesimproveditsprofitability,andaQ1netprofitofNT$3.8billionwasa14.4%growthcomparedwiththesameperiodlastyear.AnEPSofNT$0.34wasalso17.2%higherthanlastyear.Withregardtomainsourcesofincome,netinterestincome,netservicefeeincome,andfinancialtransactionincomegrew9%,11%,and40.8%YoY,respectively.Servicefeeincomefromoursecuritiesgrew5.5%QoQandreached241.7%YoY,thankstothesynergisticeffectsfromthemergerbetweenTaishinSecuritiesandTaChongSecurities.TaishinFHC’scapitaladequa-cyratiowas117.9%andthebank’sCAR14.2%,whichreflectedahealthycapitalstructure.Furthermore,TaishinBankcontinuedtomaintainexcellentcreditassetqualitywith0.25%non-performingloan(NPL)ratioand527.7%coverageratio.Taishin Financial Holding Co. News Release

Among Member Banks

12


Taiwan Cooperative profit surges on robust lending - State-runTaiwanCooper-ativeFinancialHoldingCosawaprofitincreaseofnearly9percentinthefirstfourmonthsof2018onthebackofrobustloandemandandexpectsthegrowthmomentumtocontinuethrough the rest of the year. A stable economy at home and abroad should continue to lend support to core busi-nessesatthebank-focusedconglomerate,spokeswomanChenMei-tsusaid. Cumulativenetincomerosealmost9percenttoNT$5.16billion(US$172.05million),orearningspershareofNT$0.41,rankingit10thamongthenation’s15listedfinancialserviceproviders,TaiwanStockExchangedatashowed. “Theimprovementwasinlinewithourexpectationsandshouldkeeppacegoingforwardwithnomajordownsiderisksinsight,”ChentoldreportersonthesidelinesofapublicfunctioninTaipei. MainsubsidiaryTaiwanCooperativeBankgeneratedNT$4.59billioninprofitfromJanuarytoApril2018,accountingfor89percentofoverallprofit,Chensaid. Feeincomeheldsteadyfromthesameperiodof2017,withsalesofmutualfundsovertakingthoseofinsurancepolicies,shesaid,addingthatinvestorsareseekingtotakeadvantageofstockralliesandbenefitfrominterestratehikesoverseas.TaipeiTimes

Vietinbank to issue 400,000 bonds in 2018 - ViệtNamBankforIndustryandTrade(VietinBank)plans to issue400,000bondsworthVNĐ10millioneach to raise itscapitalbyVNĐ4trillion(US$174.7million). Thesewillbenon-convertiblebondsunsecuredbyproperty. ThescheduleddateforissuanceisJune28,andthedeadlineforregistrationandpay-mentisfromJune5to25. VietinBankplanstoissuebondstothepublicforatermof10years.Afterfiveyears,VietinBankcanexercisetherighttobuy back all the above bonds, as it is not allowed to buy a part of the bonds. Thebondinterestrateisfloatingandisdeterminedbythereferenceinterestrate(the12-monthsavingdepositrateofAgrib-ank,Vietcombank,BIDVandVietinBank)plus0.8percent.Thisbonusinterestrateislowerthanthepreviousbondissuance(1.2percent). TheproceedsareexpectedtosupplementVietinBank’soperationalcapitalandimproveitsfinancialcapacity.Viet Nam News

Commerzbank demonstrates first German corporate FX deal on block-chain - CommerzbankandThyssenkrupphave replicated a foreign exchange trans-actionusingblockchain,thefirstsuchdealinvolvingalargeGermancompanywhichproponents say could make doing business cheaper and quicker. Theuseofblockchain,atransactionledgerthatunderpinsvirtualcurrencybitcoin,couldhelpreducedelaysandmanualerrors,CommerzbanksaidonMay24. It will eliminate the need for transaction reconciliation, because the transaction is stored as a single immutable record. Reconciliationisamajorissueforbankswhentradingforex,CommerzbankmanagerNikolausGiesbertsaid. “Significantresourcesarededicatedtoresolvingtheissuesthatoccurduringthematchingprocess.Thisdealdemonstrateshowtheuseofdistributedledger(blockchain)cantransformanddigitalisetheprocessesinthisspace,”hesaidinastatement. TheEUR/PLNFXForwarddeal,whichamountedto500,000euroswithaonemonthtenor,wasinitiatedbyThyssenkrupponMay23usingCommerzbank’sFXLiveTraderplatform. ThedealconfirmationwassenttoThyssenkruppdirectlyviaCORDA,adistributedledgerdesignedforfinancebytheR3blockchain consortium. Reuters

Among Member Banks


13

Banking and Finance NewsbriefsAustralia

International banks plan a return to Australia AsAustralia’sbigbanksarefocusedontheRoyalCommission,foreignbanksareagainlookingtoAustraliaasresourcesand infrastructure investment picks up. Barclaysisplanningareturntothemarketonlytwoyearsafterleaving,withABNAMROexpectedtolaunchonshorebankingoperationsinAustraliainthesecondhalf.Italy’sIntesaSanpaoloandParis-basedSociétéGénéralearealsoplanningtore-openbranchesinAustralia. Moreareexpectedtofollowgiventheeconomicgrowthoutlook,anexpectedpick-upininvestmentinAustralia’sre-sources sector as well as ongoing infrastructure investment. PeterDavis,executivedirectorforAPACcorporateandinstitutionalbankingatABNAMROsaid,“WeareseeingalotofEuropeanbankswhohaveexpertiseinnewareassuchasrenewableenergyjointhemarkethere,whereasinitiallysomeoftheAustralianbanksweresloworthereturnexpectationswerenottotheirliking.” Australianregulatorsarealsoencouragingtheentryofforeignfinancialfirmstofacilitatecompetitionanddilutethedom-inance of the country’s large institutions. East & Partners

India

India’s central bank may hike rates in mid-June India’scentralbankisgettingpoisedtoraiseinterestratesforthefirsttimesinceJanuary2014,analystssay-thequestioniswhetherthiswillhappenonJune6orinAugust. Theanticipatedincreasecouldputadentingrowth,whichhasrecoveredafterblowsfromtheNovember2016demoneti-sationandthebumpyJuly2017launchofanationalgoodsandservicestax. Indiareportedstellar7.7annualpercentgrowthforthequarterendedMarch31,2018.ButthekeyconcernoftheRe-serveBankofIndia,whichhaslongkeptthereporateat6percent,istheinflationrate,whichiswidelyexpectedtoclimbfurther. A sharp increase in global oil prices has hit the Indian economy hard and the rupee, among the best performing Asian currencies in 2017, is one of the worst in 2018. The Business Times

Japan

Japan pushes use of cashless payments as Olympics approach and banks strain Earnest efforts are underway in both the public and private sectors to promote cashless payments ahead of the 2020 Olympics. Credit cards, electronic money and other cashless systems account for 20 percent of all consumer payments in Japan, comparedwith40percentto60percentintheUnitedStates,EuropeancountriesandChina. Thegovernmentandbusinessesconsideritessentialtosubstantiallyreducesociety’srelianceoncashtostimulatespend-ingbythoseexpectedtovisitJapanfortheOlympicsandotherinternationalathleticevents. Thelong-rootedcustomofusingcheckstopayinNorthAmericaandEuropemeanttheysmoothlyandquicklyembracedcredit cards and other cashless means of payment. InSweden,wheretransportingcashisdifficultinwintertime,mostpeoplearesaidtouseasmartphone-basedsystemcalledSwish,andanincreasingnumberofstoresarenolongeracceptingcash. InChina,mobilepaymentsbasedonQR(quickresponse)codesareinwideuseduetowidespreadcounterfeitingprob-lems. InJapan,however,cashlesspaymentsarelimitedbyeasyaccesstoATMsandfewerproblemswiththeftandcounterfeit-ing. Japan Times

14


Korea

Govt. to tighten reporting rules on financial transactions Thegovernmenthasproposedabilltotoughentherulesforreportingoncertainfinancialtransactions,thecountry’stopfinancialregulatorsaidJune3. ThemoveispartofSeoul’songoingeffortstobetterferretoutfinancialcrimeandmoneylaunderingactivities,theFinan-cialServicesCommission(FSC)said. SouthKoreahastightenedregulationsonanti-moneylaunderingandpossibleterrorismfinancing,targetingsomeloop-holes that may be used by people to conceal their wealth. TheFSCsaidinastatementthatundertheproposedbill,“publicenterprisesandothergovernment-affiliatedinstitutionsaretofallunderthenewlyenhancedcurrencytransactionreporting.” “Thedefinitionofaone-offfinancialtransactionistobechangedtoatransactionperformedbyacustomerthathasnotestablishedabusinessrelationshipwithafinancialserviceprovider,”itsaid.(Yonhap)The Korea Herald

Mongolia

Mongolia’s central bank launches campaign to increase gold reserves TheBankofMongoliasaidonJune5ithaslaunchedacampaign“NationalGoldtotheFundofTreasures”withintheframeworkofthe“Gold-2”nationalprogram. Thefive-monthcampaignisaimedatencouraginggoldminersandindividualstoselltheirgoldtothecentralbankandcommercial banks, increasing the gold reserves, intensifying training and promotion on the process of gold purchase among the publicandintroducerelevantlawsandregulations,theBankofMongoliasaidinastatement. TheBankofMongoliapurchasedover3.2tonsofgoldfromlegalentitiesandindividualsinthefirstfourmonthsof2018,whichisanincreaseof257.6kgfromthesameperiodof2017. ThegovernmentofMongoliahascarriedoutanumberofmeasuresdirectedatenrichingthetreasuryfundandimprovingthelegalenvironmentonforeignexchangeoverpastfiveyears.Asaresult,goldminerssubmitted20.01tonsofgoldtothecentralbank in 2017, contributing 800 million dollars to the state budget. Annualgoldproductionhadnotsurpassed20tonssince2005whenitreacheditsrecordhighat25tons.Xinhua

Banking and Finance Newsbriefs

Oman

Oman’s banking sector posts reasonable growth Thebankingsectorcontinuedrecordingreasonablegrowthratesandsupportedongoingeconomicdiversificationinitia-tives,includingmeetingthecreditneedsofalleconomicsectorswithmorefocusonsmallandmediumenterprises(SMEs). TheCentralBankofOman(CBO)hasintroducedmanyamendmentstobankingsectorregulationstoraisetheavailablecreditliquidity.Thisledtocreatingabusiness-friendlyenvironmentthatencouragesthegrowthoftheeconomy. Theaccumulatedfiguresforthebudgetofthebankingsector,whichincludeIslamicandtraditionalbanks,orwhatareknownasotherdepositscompanies,providesacomprehensiveviewaboutthefinancialbrokerageofthebankingsystemintheSultanate,notesthatthecreditbalancereportedbythebankingsectorstandsatOMR24.10billionattheendofMarch2018;agrowthof7.8percentcomparedtotheendofMarch2017. Also,theCBOreportpointedoutthatcreditmadeavailabletotheprivatesectorgrewby6.3percenttoOMR22.4billionattheendofMarch2018.Times of Oman


15

Philippines

Big banks ready for new rule – Moody’s Moody’sInvestorsServicebelievesthebiggestPhilippinebankswillbeabletocomplywithnewliquidityrequirementsset to take effect in 2019. InastatementonJune7,thedebtwatchersaidthat10ratedPhilippinebankswouldbenefitfromadoptionofthenetsta-blefundingratio(NSFR),recentlyapprovedbytheMonetaryBoardaspartofongoingeffortstostrengthenthedomesticbankingindustry. TheNSFR,ameasureofabank’sabilitytofundliquidityneedsoverayear,ispartoftheBaselIIIreformpackagedrawnupbyinternationalregulatorsresponsetothe2007-2008globalfinancialcrisis. BeginningJanuary1,2019,banksalongwithselectsubsidiarieswillhavetomaintainanNSFRof100.0percentonbothsolo and consolidated bases. Moody’s-ratedPhilippinebanksareLandBankofthePhilippines,ChinaBankingCorp.,UnitedCoconutPlantersBank,BDOUnibankInc.,BankofthePhilippineIslands,PhilippineNationalBank,UnionBankofthePhilippines,RizalCommercialBankingCorp.,MetropolitanBank&TrustCo.andSecurityBankCorp.. “Thesebankscurrentlyhavestrongcapitalprofilesandlargebasesofcurrentandsavingsaccount(CASA)deposits,whichareamongthemostfavorablefundingsourcesunderNSFRrules,andlowrelianceonshort-termconfidence-sensitivewholesalefunding,”thecreditraternoted.The Manila Times

Singapore

MAS partners IFC to spur green bond market in Asia TheMonetaryAuthorityofSingapore(MAS)andInternationalFinanceCorporation(IFC),amemberoftheWorldBankGroup, are teaming up to boost the growth of the green bond market in Asia. In a memorandum of understanding signed on June 7, the two agencies said that would encourage green bond issuances byfinancialinstitutionsinAsiabyraisingawarenessandknowledgeoffinanceprofessionalsongreenfinanceissues.Theyalsoplan to promote the use of internationally recognised green bond standards and frameworks. ThesigningoftheagreementtookplaceonthesidelinesoftheIFC-EnvironmentalFinanceGreenBondsAsiaConfer-enceinSingapore. “Addressingclimatechangewillrequireinnovative,high-impactfinancialsolutionsthatmobilisetheprivatesector,”saidVivekPathak,IFC’sdirectorforEastAsiaandthePacificinamediastatement. “ThroughthiscollaborationwithMAS,wehopetostrengthenfinancialinstitutions’awarenessofgreenbondissuancesandhelpbuildcapacityfordecision-makersandbanks.WebelieveSingapore,astherisingfinancialhubofAsia,iswellplacedtocatalysethefundingoflow-carboninvestmentandfinancingintheregionandbeattheforefrontofthisgrowingassetclass.”The Straits Times

Banking and Finance Newsbriefs

16


Vietnam

Vietnam determined to reduce number of commercial banks Vietnam will attempt to further reduce the number of commercial banks according to Vice Chairman of the National As-semblyEconomicCommittee,NguyenDucKien. Thebankingsystemsawmanyacquisitionsandmergercasesfrom2011to2015.Forexample,DaiABankmergedintoHDBankandSacombankmergedwithSouthernBank.TheStateBankofVietnamtookthreeailingbanks,OceanBank,GPBankandVietnamConstructionBankintopublicownership.Vietnamcurrentlyhasfourstate-ownedbanksand31commercialbanks. KiensaidthatrestructuringofthebankingsectorwithmoreacquisitionsandmergerswasintendedforVietnamtohaveseveralmajorbanksintheSouthEastAsiaby2021. “Theycannegotiateanddecidethatamergerisnotworthitorifthetransactionsdon’tnecessarilyrepresentmarketvalu-ations.Thepointisthenumberofbanksmustbereducedandbankruptcyandclosuresarealsosolutions,”hesaid. FormerdeputyheadofNationalFinancialSupervisoryCommissionLeXuanNghiasaidmanyforeigninvestorsshowedinterests in the local banks but it was not easy to reduce the number of banks. Banks themselves needed to want to buy or merge. Moreover,localinvestorsdon’thavethefinance,hesaid.VietNamNet Bridge

Banking and Finance NewsbriefsUzbekistan

Uzbekistan set to develop Islamic banking system UzbekistanisjoiningtherisingnumberofCentralAsiannationstodevelopaShariah-compliantbankingsystemgivenitslargeMuslimpopulationandrisingdemandforfinancialservicesalignedtoIslamicbeliefs.InMay2018,theUzbekgovernmentissuedadraftresolutiontocreateinfrastructureforIslamicbankingandfinanceinthecountry,aspostedontheofficialgovernmentwebsite.TheaimistocreatealternativefinancingopportunitiesintheformerSovietrepublic,expandtherangeofbankingandfinancialservicesandopenthedoorsforIslamicinvestorsfromtheMiddleEastandpossiblySoutheastAsia. Tothatend,thecentralbankhasbeentaskedwithdevelopingalegalandregulatoryframeworknotjustforIslamicbank-ing,butalsofortakafulandsecuritiestrading,aswellasfinancingforsmallandmediumenterprisesandhalalmicrofinance.ThegovernmentalsowantstosetupaShariah-compliantdevelopmentbankinco-operationwithandsupportfromSaudiArabia-basedIslamicDevelopmentBank.Thus,theframeworkwillincludethelaunchoftheIslamicDevelopmentBankofUzbekistan(IDBU),whichwillprovidestandardretailbankingservices,tradefinancing,propertyandcommercialrealestatefinancing,aswellasleasing,takafulandsecuritiesservices. Gulf Times

Invitation to participate in theABA & Oliver Wyman Webinar on Technical Credit Analysis

August 8, 20184:00pm (Singapore Time)

Please email: [email protected] for more details


17

Publications

IMF Financial Operations 2018

IMFFinancialOperations2018providesabroadintro-ductiontohowtheIMFfulfillsitsmissionthroughitsfinancialactivities.ItcoversthefinancialstructureandoperationsoftheIMFandprovidesbackgrounddetailonthefinancialstatements.ItreviewstheIMF’sthreemainactivities:lending,surveillance,and technical assistance.

Contactfordetails:IMFBookstoreWebsite:https://www.bookstore.imf.org/

Published by the Secretariat, Asian Bankers Association Ernest Lin, Secretary Treasurer; Amador R. Honrado, Jr., Editor Wendy Yang, Contributing Editor; Teresa Liu, Assistant Editor

7F-2, No. 760, Sec. 4 Bade Road, Taipei 10567, Taiwan; Tel: (886 2) 2760-1139; Fax: (886 2) 2760-7569 Email: [email protected]; Website: www.aba.org.tw

Global Shocks and the New Global and Regional Financial Architecture: Asian Perspectives

In light of the evolving global economic order and the experiencesoftheglobalfinancialcrisisof2008–2009,thisbookaddresses the important question of how Asia’s regional archi-tectureforeconomicandfinancialsurveillance,financialsafetynets, and crisis management can be strengthened and meshed withthoseoftheInternationalMonetaryFund(IMF)andtheFinancialStabilityBoardtoestablishaneffectivemechanismfordealingwitheconomicandfinancialshocks.Thisincludesshocksemanating from both within the region and those transmitted via contagion from other regions. It assesses the capacity of regional institutions for surveillanceandfinancialsafetynets,focusingontheASEAN+3MacroeconomicResearchOffice(AMRO)andtheChiangMaiInitiativeMultilateralization(CMIM).Italsoreviewsthepoten-tialscopefordevelopingcoordinatedregionalfinancialregula-tioninAsia,takingintoaccounttheEuropeanUnionexperiencewithregardtofinancialsupervisoryandregulatoryarchitectureanditsrelevanceforAsia.Finally,itexamineshowtheIMF,asaproviderofglobalfinancialsafetynets,canworkwithregionalfinancingarrangements,includingboththeCMIMandbilateralswap arrangements.

Contactfordetails:ADBPublishingWebsite:https://www.adb.org/publications

message from the secretary treasurerindia- india’s central bank may hike rates this week japan-...

Documents