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FS Weekly Digest: 25th June

25th June (19th June – 25th June Coverage)

India

  1. In a latest RTI, banks have clarified that they are not liable of any loss of contents for lockers as it is only a rent agreement
  2. IDFC Bank CFO Sunil Kakar appointed MD & CEO of IDFC Ltd, replacing Limaye
  3. Aegon Life explores fintech firms and e-commerce players to ramp up new policy sales
  4. RBI has made banks responsible for misseling by expanding Ombudsman scheme to include complaints on the same as well
  5. IRDAI directs Sahara Life Insurance to stop underwriting new business. This is after it had already appointed an administrator for the insurer. The genesis was in the irregularities in the financial statements of the insurer
  6. Canara bank set to take over Vijaya Bank & Dena bank as per inputs from some senior government official. Others being nudged are IOB, Indian Bank, & Syndicate
  7. RBI amends the Ombudsman scheme to include complaints related to misseling, mobile & electronic banking as well.
  8. RBI has directed banks to resolved 55 high value bad loans cases within next 6 months or else the regulator will direct the banks to file insolvency & bankruptcy procedures against them
  9. RBI & Gov has now allowed banks, including district central cooperative banks & post offices, to deposit banned 500 & 1000 Re notes to RBI by July 20. The amount will be credited to designated account of the bank
  10. Axis bank sold off 8% of its stake in Mswipe technologies. The stake sale earned the bank around 81 crores INR.
  11. ICRA recent report shows overall housing credit growth slowing down (from 19% to 16%: FY17 to FY16)
  12. Bankbazaar.com, online financial services marketplace, opens offices in Malaysia.
  13. Banker’s met internally to finalize their plan for approaching NCLT on the 12 NPA accounts which RBI has directed them to file insolvency. The list includes, Amtek Auto, Bhushan Steel, Essar steel, Bhushan Power & Steel, Alok Industries, Monnet Ispat, Lanco Infra, Electro Steels, Era Infra, Jaypee Infratech, ABG Shipyard, Jyoti Structures

 

International

  1. A report by Cyber security firm Kaspersky has found that an incident involving a bank’s online banking services could cost an organization a $1.75 Million. The top 4 threats that banks fears are digital/ online attacks (45%), POS (40%), phishing etc. (35%) & so on.
  2. Marc Faber, the editor of “The Gloom, Boom & Doom Report”, is not backing down from his prediction of a ‘Doom’ and expects markets to fall by 40% or more though there may be an increase in near term.
  3. Chinese banking regulator has singled out 4 key overseas assets buyers for further scrutiny primarily to check any financial risks or potential money laundering. The scrutiny will be done by number of banks, including ICBC, and the 4 players are Wanda, Fosun, Anbang, HNA and Rossoneri Sport Investment
  4. Moody recently downgraded the ratings of the 4 largest Australian banks from Aa3 to Aa2 (long term credit rating) in view of risks from high household debt levels after sharp property price rises. The banks are NAB, Westpac, Commonwealth Bank, Australia & New Zealand Banking Group
  5. World retail banking report 2017 observed that more than 50% of Gen Y & tech savvy customers in emerging economies of China & India, have relationships with non-traditional firms for financial services and this is highest globally.
  6. Klarna, Swdish fintech company value at $2.25 Bn in 2015, has now got the banking license. One of the largest fintech company in Europe, it had pioneered ‘buy now pay later’ where consumers could buy goods online and pay later and Klarna takes on the credit risk for retailers in return for a part of the sales price.
  7. UK SFO (Serious Fraud office) has charged Barclays and 4 of its senior former executives on charges of fraudulent actions during 2008 financial crisis
  8. Italy’s financial system is also facing the challenges of huge non-performing assets. In a recent development 2 Italian banks, Veneto Banca and Banca Popolare di Vincenza (mid-size lenders) are set to be wound down after ECB reported that they are ‘likely to fail/ will fail’ considering that their capital position is not expected to improve
  9. Fed’s Loretta Mester opined that Fed must keep raising interest rates to avoid employment or inflation getting out of hand & causing recession

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