AGP Executive Report

Banking Regulation & Risk: The Bank of Russia has proposed draft recommendations for banks’ climate stress testing, focusing on how the shift away from fossil fuels could hit loan books and trade links. Philippines Banking Outlook: Moody’s cut the Philippines banking system outlook to negative, citing weaker growth, higher inflation, and risks to asset quality. Central Banking & FX: Albania’s lawmakers urged the Bank of Albania to keep a close eye on the exchange rate and align more closely with EU rules, while also reviewing the role of the Financial Supervisory Authority. Corporate Finance & Markets: Lloyd Blankfein says he’s focused on tech, energy, and financial services, trading mostly in risky assets like single stocks and ETFs. Investing & Funds: A quick ETF face-off: Fidelity’s FNCL and State Street’s XLF both charge 0.08%, but FNCL shows a higher dividend yield (1.7% vs 1.5%) and stronger 1-year returns. Payments & Cyber: Curaçao and Sint Maarten’s central bank set fintech, digital banking, virtual assets, and cyber risk as research priorities for 2026–2028. Banking M&A Watch: UK lender Lloyds is reportedly exploring a potential bid for Aldermore as the challenger-bank consolidation story continues. Fraud & Consumer Safety: A Georgia sheriff warned residents about check fraud targeting mail, urging tighter handling and faster account monitoring.

Central Banking Watch: The Bangko Sentral ng Pilipinas is expected to keep lifting rates, with Deutsche Bank Research forecasting two more quarter-point hikes to 5.25% as El Niño risks push inflation higher. Regulatory Relief: BSP also granted banks time-bound mark-to-market leeway on peso government securities, waiving losses from April to December if holdings are moved to maturity-basket—aimed at protecting capital after Middle East-driven yield spikes. Digital Payments & Banking Access: Kenya’s KCB and Airtel Money struck a deal letting Airtel customers deposit and withdraw cash at 22,000+ KCB agents, boosting interoperability and inclusion. Capital Markets Infrastructure: HKEX and HKMA launched a pilot to use e-HKD for after-hours derivatives margin payments, aiming to improve risk management outside regular banking hours. M&A/Investing: Janus Henderson secured approvals to complete its take-private at $52 per share by June 30, with shares set to delist from the NYSE. Crypto & Stablecoins: South Korea’s Toss Bank partnered with the Solana Foundation for cross-border remittance and stablecoin settlement tests; meanwhile Altura began winding down its stablecoin yield vault after a redemption rush. Insolvency Stress Test: India’s IBC recoveries fell to 23% with average haircuts of 68% in FY26, highlighting persistent resolution delays and weaker outcomes. Consumer Protection: India’s CCPA fined Storia Foods and English Oven maker Rs 1 lakh each over “100%” claims that didn’t match product composition.

Banking Regulation: The RBI has revised India’s Lead Bank Scheme to tighten district-level credit planning, clarify roles for lead banks and committees, and push priority-sector lending and financial inclusion. Credit & Markets: Moody’s affirmed Gulf Bank’s A3 long-term deposit rating on solid capital, liquidity and provisioning, with profitability expected to recover after near-term risk costs. Banking Tech & Privacy: TD Bank plans to use workplace tracking software to monitor parts of employees’ browser and chat activity, prompting consent and privacy questions. Crypto Derivatives & Oversight: CME Group sued the CFTC over approvals of competitor crypto perpetual futures, arguing the regulator exceeded its authority. Stablecoins: US regulators are moving toward treating stablecoin issuers like banks, raising compliance costs that could squeeze smaller players. Crypto Flows: Despite weak broader sentiment, XRP, SOL and HYPE ETFs kept drawing inflows while Bitcoin ETFs stayed in the red. Macro & Rates: BSP is expected to stay hawkish, with lenders projecting further hikes to support the peso and fight supply-side inflation. Local Finance: Bank of Israel’s current-account fee reform rolls out in stages from Oct 2026, capping charges for basic transactions.

Digital Payments Push: Qatar Central Bank enabled cash withdrawals and balance checks on HIMYAN national cards via Apple Pay tokenization on ATMs nationwide, aiming to boost security and convenience. Banking Incentives: Royal Bank of Scotland is offering £200 to customers who open a current account, switch using the Current Account Switch Service, pay in £1,250 within 60 days, and then log in to the mobile app. Financial Inclusion: Wau-Waria’s new access points for Mama Bank agents come with an MoU to improve money-management know-how. Development Finance: AfDB joined EBID as its first international development finance shareholder with $30m equity plus a $70m long-term credit line for West Africa projects. Expansion on the Ground: TISA Bank opened a Kavieng branch in New Ireland to widen access for families and businesses. Household Credit Watch: South Korea’s five major banks saw household loans jump by 6tn won in two months, driven by stock-investment borrowing and housing demand. Fraud & Enforcement: An Axis Bank manager and associates were arrested in Bengaluru over an alleged ₹2.66 crore cheating scheme targeting a businessman. Banking Tech & Privacy: TD Bank in Canada plans software to track employee time on apps and browsers, raising consent and privacy questions. Outage: Bank of America suffered a major app and online banking disruption on Saturday, leaving customers unable to access services. M&A: North Shore Bank agreed to buy PyraMax Bank owner 1895 Bancorp for about $95m.

Russia Rates Watch: The Bank of Russia cut its key rate to 14.25% from 14.5%, warning policy is unlikely to ease soon as war spending, sanctions and a fuel crunch keep pro-inflation risks elevated. Banking Tech & Privacy: Canada’s TD told some staff it will use WorkiQ software to track time spent on browsers and internal chats, sparking consent and workplace privacy questions. Islamic Banking Stability: Bangladesh’s Islami Bank Bangladesh issued a legal warning against disruptions as it says liquidity support is helping operations return to normal and deposit withdrawals ease. Digital Savings Push: Kuwait’s Weyay Bank added an app “Round-up” feature that automatically transfers purchase change into a savings pot. Regulatory & Consumer Pressure: India’s health ministry banned 16 fixed-dose combination drugs over safety and lack of therapeutic justification. Payments & Data Sovereignty: Nigeria’s ALTON backed a CBN rule requiring payment data to be hosted locally from 2027 to reduce FX exposure. Central Bank Credibility: The Fed’s vice chair for supervision, Michelle Bowman, attended a Bank of America dinner during the FOMC quiet period, raising transparency questions. Community Finance: Gulf Bank and Wellpoint-backed Galveston Diaper Bank expanded Father’s Day and diaper support programs, targeting families facing cost pressures.

Banking Rates Watch: The Bank of England kept Bank Rate at 3.75% (7–2 vote) as CPI eased to 2.8%, but officials warned energy prices are still volatile and could push inflation higher later. Leadership Change: United Bank & Trust said President Robert Thomas will retire later this year after a decade leading the Marshalltown community lender. Digital Push in India: HDFC Securities named Vipul Nirwani head of digital products, aiming to scale tech-led investing experiences. Mortgage Adviser Shift (NZ): With trail commission fading, mortgage advisers are looking at KiwiSaver as a new income stream. Legal/Recovery Case (Sri Lanka): Sri Lanka’s Court of Appeal dismissed Daya Group’s challenge to People’s Bank’s auction of mortgaged properties under parate execution powers. Banking Expansion (Kenya): Absa plans to raise its stake in Absa Bank Kenya to 85%, continuing South African banks’ push deeper into East Africa. Central Banking & FX (Turkey): Turkey’s central bank stepped up foreign-currency purchases, adding nearly $10bn amid improved risk sentiment. Corporate Finance (India): The World Bank cleared $1.5bn for India’s structural reforms and jobs push, backing private-sector-led employment.

Banking Fraud & Losses: A Union Bank of India chief cashier in south Mumbai was booked for allegedly misappropriating Rs 32.33 lakh after an internal audit found a cash shortfall. Regulatory Scrutiny: India’s Supreme Court flagged a “deep-rooted nexus” between banks, asset reconstruction companies and borrowers after a Rs 1,537 crore debt was settled for just Rs 73.50 crore. Cyber & Consumer Protection: Andhra Pradesh’s CM urged banks to set up a special SOP to tackle cyber financial crimes, including digital arrest scams. Holiday Disruption: Juneteenth 2026 is set to keep most US banks and the stock market closed, while FedEx and UPS operate normally. AI Investment in Banking: Liberty Bank announced an “AI Center of Excellence” with Flare AI to boost governance and automate core processes. Central Banking Moves: Canada’s OSFI cut the domestic stability buffer to 3%, giving big banks more capital flexibility. Global Finance: The World Bank approved $1.5bn for India’s structural reforms aimed at job creation and growth. Community Banking: CRDB Bank backed a Tanzanian family after the birth of quintuplets, opening accounts and providing support.

Oman CBDC Push: Oman’s central bank is lining up an independent assessor to validate its Central Bank Digital Currency programme, with tenders due June 28—aimed at stress-testing feasibility, governance and implementation risks. RBI Enforcement: The RBI cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank in Karnataka, citing weak capital and earning prospects; depositors are set to be covered largely via DICGC on liquidation. Cross-Border Banking Deal: RBL Bank approved a preferential equity issue worth Rs 26,015 crore to Emirates NBD, with the UAE lender set as a 60% promoter and board changes following. Market & Rates Watch: India’s banking liquidity fell to a fiscal-year low, pushing money market rates higher, while HDFC Bank got RBI approval to extend interim chairman Keki Mistry’s tenure by three months to Sept 18. NRI Deposit Drive: Saraswat Bank launched an FCNR(B) campaign for NRIs, promoting higher foreign-currency deposit returns through Sept 30, 2026. UK Branch Shake-up: Lloyds will close its Soho Road branch in Birmingham, replacing it with a banking hub model as it continues shifting customers toward digital services. Fraud & Security: CBI arrested a suspended IAS officer in a Rs 79.46 crore IDFC First Bank-linked fraud case, while a US court sentenced a bank-impersonation fraudster to three years and restitution of $251,300. Corporate/Finance Tech: Wing Bank rolled out “Jib Jib” and refreshed its app to boost everyday digital banking engagement.

Central Banking Watch: The Bank of England held rates at 3.75% in a 7-2 vote, citing a “game of patience” as the US-Iran ceasefire eases oil but risks of second-round inflation remain. Global Rates: Switzerland’s SNB kept its policy rate at zero, while Norges Bank left rates unchanged at 4.25% but signaled a higher chance of near-term hikes. EU Banking Rules: Brussels urged EU supervisors to “avoid zero-risk tolerance,” arguing regulators should focus on material risks to boost competitiveness. Digital Banking Revenue: Nigeria’s banks earned N224.69bn in ATM and e-banking charges in Q1 2026, up 12.56% year-on-year, led by Access and UBA. Banking Operations & Safety: Fire gutted a Polaris Bank building on Lagos Island, while police reported a South Bank robbery in Bukidnon netting about P1.677m. Corporate Moves: Pinnacle Financial Partners will lease 165,000 sq ft in Midtown after its Synovus merger, and Montreal’s business community is pitching a downtown tower for NATO’s Defence, Security and Resilience Bank. Banking Products: Meghna Bank relaunched five revamped retail products in Bangladesh; Pubali Bank highlighted strong 2025 performance; Prime Bank retained top AAA/ST-1 ratings. Tech in Finance: AI agents are moving beyond pilots in banking, with WorkFusion pointing to compliance workloads outpacing staffing. Security Alerts: Tripoli warned of fake Facebook pages impersonating banks to steal account details.

Banking Security: South Bank’s Libona branch staff in Bukidnon were ambushed on a highway, with robbers escaping with about P1.677m in cash after gunfire; police are reviewing CCTV and running a dragnet. Capital Markets: India’s NSE has appointed a record 20 book-running lead managers for its proposed Rs 30,000 crore IPO, structured as an Offer for Sale by existing shareholders. FX & Funding: HDFC Bank became the first user of the RBI’s new special swap facility, raising $750m via five-year bonds at GIFT City. Monetary Policy: China’s central bank is shifting toward overnight rate tools to smooth money-market volatility and support yuan bond appeal. Regulation & Compliance: Bangladesh Bank says Islamic banks’ financial health deteriorated in 2025, with weaker capital, asset quality, liquidity and non-compliance flagged. Tech in Banking: HSBC is partnering with Google Cloud and DeepMind to deploy AI for wealth support and faster financial-crime risk monitoring. Education Finance Process: India’s NTA lets NEET UG 2026 re-exam candidates download admit cards before completing bank account verification tied to fee refunds. Middle East Finance: Reuters reports a $300bn US-Iran private investment fund in the framework, with more than half already committed, as tensions flare around shipping.

Digital Banking & Fraud: Axis Bank pushed back on “Mythos” security-gap claims, saying fraud is driven more by social engineering than weak systems, while also reporting a 40% drop in retail digital fraud in FY26. Branch Expansion: Axis Bank plans 50 new branches across Eastern India, targeting deeper advisory-led coverage in West Bengal, Sikkim and the Northeast. Central Banking & Reserves: The World Gold Council says central banks are likely to keep boosting gold stockpiles despite falling prices, citing geopolitical risk and reserve diversification. Banking Stress (Bangladesh): Bangladesh Bank reported distress assets topping Tk 11 lakh crore by end-2025 as NPLs surge and capital ratios deteriorate, and urged media to avoid panic from inconsistent “distressed loans” calculations. Regulation & Governance (Philippines): BSP tightened screening for bank executives, requiring more granular personal data and privacy waivers to improve leadership integrity. Payments/Tech: A tokenized-deposits debate resurfaced around programmable payments and potential revenue shifts for banks. Consumer/Operations: Citizens Bank customers reported intermittent online/mobile disruptions tied to scheduled maintenance. World Bank Finance: The World Bank approved a $2bn guarantee package for Argentina to unlock private lending for foreign-currency debt needs. Security/Travel: Qatar updated rules limiting power banks in cabin luggage to two units under 100Wh each.

Central Banking & Markets: China’s central bank rolled out six new financial measures, including tweaks to short-term rate regulation and a plan to improve overnight policy tools, while also expanding offshore renminbi repo access for foreign institutions. Banking Regulation: India’s Karnataka High Court said banks can’t freeze entire accounts beyond the exact limits set by investigators, a reminder that compliance must follow official directions. Islamic Finance: Dubai Islamic Bank is set to raise $750m via a three-year senior unsecured Islamic financing deal. Cross-Border Finance: Iran and Russia are moving to complete integration of banking payment systems within two months, aiming to let Iranian travelers pay in Russia with domestic cards. US-Iran Deal: Reuters reports a framework agreement includes a $300bn private Reconstruction and Development Fund, with commitments already secured from firms across multiple regions. Banking & Fraud/Controls: A report flags serious governance and cash-management concerns amid large reported losses across banking entities. AI in Financial Services: A study found negative reviews blaming AI chatbots jumped 55% in Europe’s top banking apps, highlighting failures at account access and payment-decline moments. Banking Deals/Investing: HDFC Bank’s board will review findings tied to an Atanu Chakraborty probe, while Indian Overseas Bank lifted FCNR(B) USD deposit rates to 6.5% for longer tenures. Corporate/Banking News: Dubai Islamic Bank’s fundraising, plus EBA’s plan to simplify EU bank capital rules, set the tone for a week of policy and product change.

Central Banking: The Bank of Japan lifted its policy rate to a 31-year high of 1.0%, citing inflation risks from higher oil prices and a weak yen, while saying it will keep tightening until inflation is stable near 2%. Crypto & Markets: Traders are watching the yen carry trade for spillover effects on risk assets after the BOJ hike. Banking Systems: Iran and Russia say they will complete integration of their banking payment networks within two months, enabling Iranian travelers to use domestic cards in Russia. Fraud & Security: A UK banking ombudsman warns customers to read and act on bank security alerts as scam complaints rose 18% in Q1; meanwhile, New Zealand banks report recovering about $10m using a real-time inter-bank fraud intelligence exchange. AI in Banking: RBC’s CEO says he uses a customized AI report tool daily to speed decisions, while experts warn banks aren’t ready for AI agents that move money. Regulation & Governance: Bangladesh’s central bank says bank capital buffers turned negative after hidden bad loans surfaced, and lawmakers in Nepal propose adding a third deputy governor at Nepal Rastra Bank. Payments Infrastructure: Swift appoints Michael Manos as CIO, and Rabobank is migrating iDEAL to Wero for real-time payments. Local Banking: Halifax plans to close its Bury St Edmunds branch as customers shift to digital and phone banking.

Central Banking Shock: The Bank of Japan lifted rates to 1%—a 31-year high—citing inflation risks from the Iran-linked energy shock and a weaker yen, while the Nikkei pushed past 70,000. Rate Watch: Australia’s RBA held the cash rate at 4.35%, warning inflation is still too high and hinting further hikes if needed. Banking Profit vs Funding Strain: Indian banks posted record FY26 profits, but analysts flag a growing deposit-versus-credit mismatch that’s tightening funding. ESG Credit Slowdown: European ESG bond and loan issuance fell 24% YoY in Q1 2026, with sustainability-linked and green categories hit hardest. Regulatory & Fraud: India’s ED froze 129 bank accounts worth ₹18.4 crore in an online investment scam probe; Karnataka HC ruled banks can’t freeze entire accounts over limited police directions. Household Debt Clampdown (Asia): South Korea’s internet-only lenders tightened unsecured credit access as authorities monitor household leverage. Consumer Lending Settlement: Santander Consumer USA agreed to pay $400k over undisclosed auto-loan extension fees in New York. Legal Spotlight: Tyra Banks sued Netflix over alleged defamation in an ANTM documentary, claiming her interview was edited to support a false narrative.

Banking Oversight: The US GAO urged the FDIC to rotate bank examiners to curb regulatory capture, and to set clearer timelines on blockchain-related risks. High-Street Reshuffle: NatWest is permanently shutting four UK branches this week as footfall falls and customers shift online. Fraud Fight: UK Finance said payment fraud theft rose 4% to £1.28bn last year, blaming AI-fuelled scams and calling on tech platforms to take enforceable responsibility for fraudulent ads. Bangladesh Banking Crisis: Bangladesh Bank dissolved Islami Bank’s board and appointed an administrator, while Islami Bank shares surged 32% amid renewed liquidity support. Corporate Restructuring: West Marine filed for Chapter 11 and plans to close 59 stores across 23 states. Central Banking & Markets: Nigeria launched a new transaction-based benchmark, the Nigerian Overnight Financing Rate. Crypto & Risk Appetite: Bitcoin reclaimed $66k as reports of a tentative US-Iran peace deal lifted sentiment. UK-Japan Deal: The UK and Japan announced a multi-billion pound investment push spanning infrastructure, financial services and offshore wind. Banking Access & Compliance: Portugal’s biggest bank began mass account closures for Russian clients, with payouts offered via branches.

AI Hiring Shake-Up: Major banks are cutting back on junior analyst intake and leaning on AI-driven screening, with executives warning that “lower-value” roles are being replaced. Consumer Banking & Fraud: UK regulators urged “special care” in online financial promotions, while HSBC said it’s fixing Hong Kong mobile banking access issues. Banking Supervision After Fraud: The IMF urged Sri Lanka to strengthen banking oversight after the National Development Bank fraud, with a forensic audit underway. Deposit & Funding Moves: India’s banks are courting NRI deposits with dollar FCNR(B) rates up to 7.1%, and Vietnam reported record household deposits as idle cash piles into banks. Digital Payments: Singapore’s cashless shift keeps accelerating, with PwC projecting digital payments growth to $113.65b by 2030. Property & Branch Access: UK high-street banks continue closures, including Halifax in West Bridgford and multiple Essex branches. Crypto Markets: Bitcoin pushed above $65,000 after a US-Iran peace deal boosted risk sentiment. Legal/Consumer Case: Kerala’s consumer commission ordered IDBI Bank to pay Rs 10 lakh after a fire destroyed a borrower’s property papers.