MONEY MASTER

 Global banks and asset managers are urging Asian exchanges to proceed cautiously with adopting  shorter settlement cycles , warning that markets must make significant operational upgrades to avoid higher risks of failed trades, according to a new report by the  Asia Securities Industry & Financial Markets Association (ASIFMA) . The report, covering seven major markets including Hong Kong, Japan, Korea and several Southeast Asian exchanges, highlights the complexities of implementing  T+1 settlement  in a region defined by diverse currencies, varying market practices and high levels of cross-border trading. “Solving the T+1 problem in Asia has a very different set of challenges compared to the West,” said Lyndon Chao, ASIFMA’s managing director of equities and post-trade. A Different Starting Point From the West The US shifted to T+1 settlement in 2024, and the EU and UK plan to follow in 2027. India already operates on T+1, while mainland China settles equi...

Europe’s top bank resolution official is seeking clarity from the United States to ensure that  US regulators will not obstruct write-downs of Additional Tier 1 (AT1) bonds  during future bank failures, a crucial mechanism used to safeguard financial stability. Background: Lessons from Credit Suisse Dominique Laboureix, chair of the  Single Resolution Board (SRB) , said in an interview that the issue has been raised at the  Financial Stability Board (FSB) , where a working group is “seriously” addressing potential cross-border obstacles. The move follows lingering uncertainty since the  2023 collapse of Credit Suisse , where  AT1 bondholders were fully wiped out  to facilitate the bank’s rescue. With the  Trump administration’s reorientation of US regulatory priorities , European officials are now seeking renewed assurance that Washington will continue to uphold global resolution standards. “You cannot achieve 100% comfort all around the globe wit...

Singapore’s financial powerhouses—DBS, UOB, and OCBC—are accelerating their expansion into RMB cross-border settlements , positioning themselves as  regional leaders  in Asia’s rising RMB payment ecosystem, driven by China’s Belt and Road Initiative (BRI) and the global momentum behind RMB internationalization. RMB Payment Volumes Hit Record Highs In  2024 , China's  Cross-Border Interbank Payment System (CIPS)  handled over  RMB 175 trillion , marking a  42.6% YoY increase , underscoring the  growing relevance of RMB as a global settlement currency . This surge aligns with a broader trend of  de-dollarization , further incentivizing regional financial institutions to  deepen RMB infrastructure capabilities  and  tap into the expanding RMB payment corridor . Singapore’s Big Three: Strategic Integrations with CIPS DBS Leads the Charge in RMB Clearing First Singaporean bank to become a  direct CIPS participant . Achieved...

Trump wants cuts. Markets want clarity. The Fed says: not so fast. While central banks around the globe are  slashing interest rates  in response to tariff turmoil and cooling inflation, the  Federal Reserve remains cautious  — resisting political pressure from President Trump to loosen monetary policy. Key Takeaways from Bloomberg’s Global Rate Watch : 🔹  Fed (US): ➡ Current: 4.5% | Forecast: 4.25% ➡  One rate cut expected —possibly in Q4. ➡ Trump wants action, but policymakers are wary of inflation risks from tariffs. 🔹  ECB (Europe): ➡ Forecasts two more cuts this year to 1.5%. ➡ Tariff threats on pharma exports weigh on eurozone growth. 🔹 BOJ (Japan): ➡ Could raise rates  slightly  amid inflation and wage growth, but politics may delay action. 🔹  BOE (UK): ➡ Expected to cut rates twice by year-end as job markets weaken and inflation stays sticky. 🔹  BOC (Canada): ➡ Two rate cuts likely this year due to softening growth. ...

Trump’s tariff storm may be unsettling global markets — but for Wall Street’s biggest banks, it's proving to be a golden opportunity. JPMorgan Chase (JPM)  and  Citigroup (C)  just posted some of their  strongest trading quarters in years , fueled by surging market volatility from sweeping tariff announcements. 🔥Q2 Trading Blowout JPMorgan : Equity trading revenue : $3.25B – a  Q2 record , following an all-time high in Q1 Fixed income : $5.69B – crushing expectations Investment banking fees : +7% YoY (vs -14% expected) Citigroup : Stock trading revenue : $1.61B Fixed income trading : +20% to $4.27B Investment banking fees : +13% YoY to over $1B What the Execs Are Saying “Volatility is going to be a feature, not a bug, of the new world order.” —  Jane Fraser, CEO, Citigroup “The revenue growth is not coming for free. We are deploying a lot of capital, and we’re earning good returns.” —  Jeremy Barnum, CFO, JPMorgan Why It Matters for Investors Market s...

China's rural banks are  drawing public scrutiny  after launching  controversial loan products  that help  low-income earners and the elderly  make up for shortfalls in their pension contributions. This unusual lending tactic is aimed at boosting participation in China’s underfunded pension system — but it’s raising eyebrows over the potential  debt burden on financially vulnerable groups . What’s Happening? Banks in  Hunan and Sichuan  provinces began  offering loans to fund social insurance contributions  — either to increase future pensions or to meet the 15-year eligibility requirement. Loan sizes : Typically around  ¥90,000 (≈US$12,500) Terms : Up to  15 years , with  interest rates between 3.1% and 3.45% Some loans are  capped at age 65 One example:  Agricultural Bank of China  confirmed issuing such a loan in  Tibet  to help a resident cover pension contributions. The Controversy While...

  Key Takeaways: Shifting Talent Trends :  40 former bankers  from major global firms such as  UBS  and  BNP Paribas  have joined  Chinese brokerages  in the past year, signaling a shift in the competitive landscape in Hong Kong. This marks a reversal of the previous trend where Chinese talent flocked to global institutions. Cause of the Shift : This talent movement is driven by  layoffs  in global banks and a  weak dealmaking environment  in Hong Kong. As global firms cut costs, Chinese brokerages, despite offering lower compensation, have become attractive options for many bankers seeking promotion opportunities or more structured compensation packages. Cost of Transition : While compensation at  Chinese investment banks  is about  30%-40% lower  than at global firms,  structured pay packages —often tied to client referrals—can significantly boost earnings, making these positions more appealing t...

Three of Southeast Asia’s largest economies — Indonesia , the Philippines , and Thailand — are set to announce their monetary policy decisions today, as they contend with politics, inflation, currency volatility , and geopolitical risks . Each central bank faces unique pressures, but the general consensus is that rate hikes are off the table, with policymakers expected to either hold or cut rates . Indonesia Bank Indonesia is widely expected to hold its benchmark rate at 6% , according to a Bloomberg survey of 41 economists. In September, Indonesia surprised markets with an early rate cut as part of an easing cycle, but recent rupiah weakness — down over 2% this month — may prompt a more cautious approach. With low inflation and subdued consumption, the case for further rate cuts remains, though foreign exchange reserves could provide support through market intervention to stabilize the rupiah. Philippines The Bangko Sentral ng Pilipinas (BSP) is poised to cut its target reverse...

 The UK government has granted banks more time to investigate payments they suspect might be fraudulent, offering a reprieve to lenders ahead of new rules requiring them to reimburse scam victims . Previously, banks had to process such payments by the next business day, but the new law will give them an extra 72 hours if there are "reasonable grounds" for suspicion. “This will allow payment providers to reach out to customers and provide the advice needed to prevent criminals from stealing their money,” said Ben Donaldson , managing director of economic crime at UK Finance. The change comes in response to a global surge in authorised push payment (APP) fraud , where criminals trick victims into sending money to external accounts. Losses in the UK alone reached £460 million in 2023. Under new rules effective Oct 7, British banks, fintechs, and payment firms will be required to reimburse fraud victims within five days , with the cost shared between the sending and receiving ...

On Wednesday, at least three banks—Mizuho Financial Group Inc, BNP Paribas SA, and Nomura Holdings Inc—obtained crucial US payroll data ahead of the broader market due to an unexpected delay in the official release by the Bureau of Labor Statistics (BLS). The incident has raised concerns about the fairness and integrity of market-sensitive data dissemination. Key Takeaways: Advance Access to Data : The BLS failed to release its revisions to monthly payroll figures at the scheduled time of 10 a.m. New York time. Mizuho, BNP Paribas, and Nomura proactively contacted the BLS directly and obtained the data, which showed a significant downward revision of 818,000 jobs for the 12 months through March 2024. This revision is the largest markdown since 2009 and supports speculation that the Federal Reserve may start cutting interest rates next month. Market Reactions : Upon the eventual public release of the data around 10:30 a.m., the S&P 500 initially surged before later paring gains, whi...

Fitch Ratings anticipates a supportive operating environment for Malaysian banks over the next 12-18 months, driven by sustained credit demand, a recovery in net interest margins (NIM), and a constructive market trading environment. Key Highlights: Stable Interest Rates: Fitch expects the key interest rate in Malaysia to remain stable in the near term, which should support banks' loan yields and help mitigate impairment risks, particularly in the largely retail-focused loan portfolios. Household Leverage: Although household leverage in Malaysia was high at around 84% of GDP at the end of 2023, Fitch believes risks are likely to be contained due to healthy job market conditions and a stable real estate market. Net Interest Margins (NIM): NIMs are expected to gradually recover in the second half of 2024 as funding competition eases. Increased loan contributions from the SME segment are also anticipated to bolster margins over the medium term. Market-Related Income: Fitch projects...

On Wednesday (2nd March), Macquarie Equities Research (MER) released a research report, discussing data on the loan and deposit growth for Malaysia for the month of January. The report highlighted that the overall non-performing loans (NPL) in Malaysia increased 0.8%, mainly contributed by real estate & construction and auto financing. MER also expressed their defensive view on the Malaysian banks while stating Public Bank as their top pick in Malaysia.   Read on excerpts from the report titled “Singapore loans contracted while Malaysia asset quality worsened” below… Public Bank Bhd Event • Bank Negara Malaysia (BNM) released loan and deposit growth data for Malaysia for January 2016. • In Malaysia, asset quality trends were negative. Non-performing loans (NPLs) increased 0.8% MoM mainly driven by real estate & construction, and auto financing. The uptick in real estate & construction NPL was mainly due to slowdown in property sales leading to cash flow problems...

Just past few weeks, a friend of mine just started to use his Paypal account. The purpose he opened a Paypal account is to sell stuff at some auction websites, which I'm not sure, though I strongly believe it could be Ebay. Anyway, he told me that he got a problem getting the money and it will serve no purpose if the money can only stay in the Paypal account and use for online business as he might want to cash out anytime soon. Anyway, I told him that there is actually a way to withdraw money to his bank account and then tell him step by step how to do it while we were on the phone. Anyway, due to the phone conversation, I know some of us are not aware that we can actually withdraw the money to the banks in Malaysia . Below are the step by step on how to do it beginning from registering a bank account to the Paypal account. 1. Login to your Paypal account. You should be getting something like the following screenshot. 2. Next, click on the Withdraw tab and you will see that you can...

What is Swift code? Swift code is known as ISO 9362 and is a standard format of Bank Identifier Codes approved by the International Organization for Standardization (ISO). It is the unique identification code of a particular bank. These codes are used when transferring money between banks, particularly for international wire transfers, and also for the exchange of other messages between banks. The codes can sometimes be found on account statements. The Swift code needs to be filled in a form whenever a person want to do International transfer, like wiring money from the United States to Malaysia. Other activities that requires the Swift code is withdrawing money from Paypal to Malaysia in local currency. Below are the Swift code for most banks in Malaysia. Malaysian Bank Swift Code Affin Bank Berhad = PHBMMYKL Alliance Bank Malaysia Berhad = MFBBMYKL Ambank Berhad = ARBKMYKL Bank Islam Malaysia Berhad = BIMBMYKL Bank Kerjasama Rakyat Berhad = BKRMMYK1 Bank Muamalat Berhad = BMMBMYKL Ba...

The global economy crisis has led the central banks all over the world to reduce the interest rates to close to 0% which is the all time low. With interest rates that low, borrowing has been cheap which can indirectly spurs the economy - low interest rates, company can borrow to for company expansion, people can borrow more to buy properties and people are forced to spend their money or savings. In fact, the global stock market has been rallying non-stop since March 2009 because of low interest rates and this lead to the presumption that global economy has recovered, although the jobless in the United States stays at 10%. Some has the feeling that the stock market and commodities rally was led by low interest rate because people starting to treat stock market as just another legalized casino. Nevertheless, I do believe we are on the way of recovery but this road is expected to have a lot of potholes. With recovery on the way, central banks will be slowly starting to raise the interest...

While many people have been talking about 2010 being the year towards economy recovery. However, things does not always look too good despite of all these speculations. However, South East Asia stocks does not seem to feeling the positive push. And it could be that the whole world is feeling it as well. Singapore and most South East Asia countries have been on the fall for the sixth day, while Malaysia bank hits. Singapore's index fell for a sixth session on Wednesday, weighed down by selling in Genting and other big caps, while Malaysia hit its lowest in almost a month, with banks suffering the most. Most likely, the fall and impact especially towards the bank was due to worries among the public regarding the recent banking proposals in the United States by the Obama administration. There are tough and strict rules being proposed to limit the size and the scope of activities of the country's biggest banks. There are a lot of fears that this might eventually spread towards Eu...