AGP Executive Report

AI Hiring Shift: Major banks are cutting junior analyst intake and leaning on AI-driven screening, leaving graduates spending hours preparing for automated interviews instead of meeting recruiters. Fraud & Data Sharing: The US Treasury issued new guidance to let banks share customer information more easily in real time when fraud, money laundering, or terrorist financing is suspected, aiming to stop losses earlier. Banking Security: Vietnam’s banks are stepping up payment security as digital transactions surge and AI boosts both opportunity and cyber risk. Regulatory Pressure on Banks: Egypt’s central bank data review shows the sector’s assets and deposits dynamics in 2025, while Greece’s ECB rate hike is expected to widen the loan-deposit profit gap for banks. Trade Finance Boost: EBRD approved a $20m trade finance line for Bank of Africa-Benin to back imports, exports, and private-sector growth. Consumer Access: A new cash and face-to-face banking hub opened in Yeadon, expanding services for multiple banks and building societies. Legal/Banking Risk: A Belgian court ruling in a banking fraud dispute could reshape how fraud victims are treated when they transfer money after being manipulated.

AI Reshapes Banking Hiring: Major banks are cutting junior analyst intake and pushing AI-led screening, leaving graduates to prepare for automated interviews instead of human recruiters. Fraud Law Turning Point (South Africa): A Belgium court ruling could reshape how banking fraud claims are handled, after an Antwerp decision rejected banks’ “gross negligence” argument in a case involving transfers to a Portugal account. Global Growth Pressure: The World Bank cut its 2026 growth forecast to 2.5% as Middle East conflict lifts energy prices, fuels inflation, and weakens demand. ECB Tightens Again: The European Central Bank raised rates by 0.25 points, citing inflation pressures from the Iran-linked war and warning growth is stalling. UK Retail Banking Squeeze: Lloyds set a closure date for its Ilkeston branch, adding to the wider high-street pullback debate. Nigerian HoldCo Rules: Nigeria’s central bank proposed tighter governance for financial holding companies, including limits on parent involvement in lending decisions. Deposit Protection in Kerala: Kerala will publish a public list of cooperative banks and societies whose deposits are government-guaranteed up to ₹5 lakh.

AI in Banking Hiring: Bloomberg reports major banks are cutting junior analyst intake while leaning on AI-driven screening, leaving graduates to spend hours preparing for automated interviews instead of meeting recruiters. Tech & Policy: The Senate Banking Committee is considering a markup of export control legislation tied to advanced chips headed to China, potentially feeding into NDAA talks. Banking Cyber Risk: A Palm Beach real estate law firm says $17.3m vanished from escrow after 13 unauthorized wires and is suing First Horizon Bank over alleged security failures. Corporate Restructuring: Sleep Number filed for Chapter 11 and agreed to merge with Sleep Country Canada in a court-supervised sale, seeking up to $260m debtor-in-possession financing. Payments & Crypto: Ripple expands its Bitso partnership, issuing Bitso’s MXN-backed stablecoin on the XRP Ledger for enterprise cross-border settlement. Youth Finance Deal: Barclays agreed to buy GoHenry’s UK business for £180m, aiming to scale money education for children. Global Growth Watch: The World Bank projects Jordan growth to reach 3% by 2028 and keeps Armenia’s forecast at 5.3% (2026) and 5.1% (2027). Banking Crime: Police charged a man in Surrey with two bank robberies; separately, Louisville police are investigating a PNC robbery on Preston Highway.

AI in Banking Hiring: Bloomberg reports major banks are cutting intake of junior analysts and pushing AI-driven screening, leaving graduates to navigate automated interviews instead of human recruiters. Global Growth Shock: The World Bank cut its 2026 global growth forecast to 2.5%, blaming the Iran-linked energy and inflation hit and warning of deeper downside if conflict spreads. ECB Turns Back to Rate Hikes: The European Central Bank resumed hikes, lifting borrowing costs by 0.25 points to 2.25% as Middle East energy pressures feed inflation. FX and Rates in Focus: Indonesia’s rupiah steadied after Bank Indonesia’s off-cycle benchmark hike to 5.5%, while China’s yuan use abroad remains resilient in a Bank of China poll. India Credit Momentum: India’s bank credit grew 17.44% y/y in May, extending double-digit expansion for a ninth straight month. RBI FCNR(B) Push: Banks are raising NRI dollar deposit rates after the FCNR-B revival, with Jefferies flagging potential upside for HDFC Bank. Fraud Watch: US prosecutors arrested an Indian-origin financier over an alleged $100m bank fraud using forged loan documents and manipulated records.

World Bank Shock: The World Bank cut its 2026 global growth forecast to 2.5% and warned growth could fall to 1.3% if Middle East energy disruptions hit harder, with inflation and borrowing costs rising. ECB Rate Move: The European Central Bank lifted rates by 0.25 percentage points to 2.25%, citing war-driven energy inflation. Supreme Court Limits Fund Lawsuits: The U.S. Supreme Court shielded many closed-end investment funds from activist shareholder suits under the Investment Company Act, pushing enforcement toward the SEC. Bangladesh Credit Cards: Bangladesh’s budget plan would shift approval for new credit cards from the central bank to commercial bank boards, while keeping existing rules. UK High Street Retreat: Lloyds and Halifax are set to close 79 more branches, adding to earlier cuts as customers move online. Pakistan Reserves: Pakistan’s foreign exchange reserves edged up, with SBP reserves rising to $17.215bn. Ghana Bank Shake-up: Ghana International Bank’s CEO Dean Adansi was removed; a successor was named pending clearance. Gold Diversification: Georgia’s National Bank bought $100m of physical gold, lifting the gold share of reserves. Renewables Lending: Philippine National Bank approved a P3bn solar project finance facility for a new 82MW plant in Isabela.

AI Fraud Surge in India: A BioCatch survey says 84% of Indian banking leaders report rising fraud losses, with AI agents and instant payments like UPI flagged as the biggest vulnerabilities, and 93% saying AI is making scams more sophisticated. Wealth Banking Push: JPMorgan doubled its Singapore-based private bankers serving wealthy clients to 50+ as it targets more business from the region, with many hires focused on Indonesia. RBI Forex Boost Watch: Jefferies says HDFC Bank could be a top beneficiary of the RBI’s renewed FCNR-B and ECB-linked measures to attract foreign currency inflows, citing its strong mobilising role in the 2013 scheme. Digital Payments Upgrade: Woori Bank plans a dedicated digital wallet for overseas tourists in South Korea, plus a prepaid card and tests using currency-backed stablecoins, starting in the second half of 2026. Banking Policy & Rates: In the UK, Chase is set to raise cashback to 2% from July 1 but with tighter monthly spending and savings criteria; in India, Bank of Baroda lifted MCLR by 5 bps from June 12. Green Finance Deal: ICBC Dubai is marketing USD and RMB three-year green bonds under its GMTN programme, aimed at renewable energy cooperation. Regulatory/Legal Risks: The US DOJ is probing whether major banks closed accounts over political views, issuing subpoenas to JPMorgan, Bank of America and Wells Fargo. Geopolitics: Amnesty accuses Israel of “ethnic cleansing” in the West Bank, while Israel’s cabinet is expected to approve funding for 61 new settlements.

Digital Banking Modernization: Members First Credit Union picked Mahalo Banking to modernize its digital experience alongside a Corelation Keystone core platform upgrade, aiming for faster integration and a more intuitive member journey. Open Banking Connectivity: Alkami expanded open-banking data sharing with a new FDX API integration with Yodlee to improve reliability and reduce friction for financial institutions. Bangladesh Banking Governance: Bangladesh Bank appointed Executive Director Md Ashraful Alam as an observer to Islami Bank Bangladesh amid unrest and depositor withdrawals, with the regulator saying the move is meant to restore discipline, protect depositors, and strengthen transparency. Central Banking Watch: The Bank of Canada held its key rate at 2.25% for a fifth straight meeting, citing a weak economy and “wiggle room” as it balances recession risk against energy-driven inflation. Banking Sector Risk: Fitch cut its outlook on the Philippines’ banking system to “deteriorating,” warning that US-Iran conflict-driven oil shocks could dampen lending and raise credit costs. M&A Signals: Deutsche Bank said Greek banks look like takeover targets, flagging Eurobank and Piraeus as standouts and suggesting Bank of Cyprus could attract interest. Fraud/Enforcement: US prosecutors arrested a man accused of defrauding a bank of nearly $100m using forged title documents and falsified records. Consumer Protection: India’s NSE warned investors about two people allegedly offering stock tips and guaranteed returns via social media, saying they are not authorized.

AI in Banking: University of Glasgow and Lloyds Banking Group will run a four-year research programme on “agentic AI” to help software and data engineers code, debug and manage projects. FX & Commodities Policy: Sri Lanka tightens rules on repatriation and mandatory conversion of export proceeds, while Russia’s central bank sets June 10 reference rates for yuan and euro and publishes precious-metals discount prices. AML Enforcement: New Zealand’s High Court orders ASB Bank to pay a record $6.731m civil penalty for seven AML/CFT breaches, citing long-running weaknesses in transaction monitoring and customer due diligence. Digital Payments Glitch: Singapore’s banks association says it’s aware of feedback after PayNow name masking produced obscene combinations, using “X” because not all systems support special characters. Fraud Alerts: A woman in Georgia lost nearly $10,000 after a scammer posed as a bank fraud department rep and pushed her to use a Bitcoin machine. Banking Access & Growth: Kiwibank rolls out StartUp+ after a pilot showed demand more than three times expected; Pakistan’s Ignite and Mobilink Bank will set up the National Incubation Center in Sialkot. Market Watch: India’s bank stocks trade mixed as Nifty and Sensex edge higher, with CSB Bank among top gainers.

Banking Leadership: Citi hired Andrew Conway as global chair of consumer and retail investment banking, aiming to grow market share in a key franchise. Resolution Planning: The FDIC is reshaping “resolution readiness” for large banks, sparking debate over whether regulators should focus on likely outcomes or keep detailed plans for rare but catastrophic scenarios. Market & Stocks: Geojit upgraded Torrent Power to BUY with a Rs 1,638 target, citing renewable expansion and distribution strength; in Bangladesh, Beximco and Islami Bank shares slid after the regulator lifted a long-standing floor price rule. Liquidity Stress: Islami Bank Bangladesh sought Tk 100bn liquidity support from Bangladesh Bank after deposit withdrawals surged amid management uncertainty. Payments Risk: A study warns that instant payments can force banks to hold more high-liquidity assets, changing liquidity management and risk-taking. Geopolitics & Finance: Western countries expanded sanctions tied to West Bank settler violence, while France barred Israeli Finance Minister Bezalel Smotrich from entering the country. Crypto & Policy: SBI Shinsei Bank plans crypto vouchers linked to deposit interest, nudging mainstream savings toward a regulated crypto on-ramp. Corporate Finance: World Bank granted a six-month interim extension for a delayed $300m Metro Manila quake-preparedness project.

UK Mortgage Shake-Up: The FCA has set out five new mortgage rules in a consultation running until July 28, aiming to widen access for first-time buyers, freelancers and older borrowers by giving lenders more flexibility. Lebanon Digital Payments: Whish Money is expanding access to digital financial services through TotalEnergies stations, with 19 sites offering app-enabled voucher sales and three flagship locations adding full branch services for deposits, withdrawals and account management. India Corporate Bonds: Tata Steel and Tata Projects are preparing to return to the bond market after a 15-month gap, as RBI’s steadier policy stance has eased yields; Tata Steel is targeting ₹3,000 crore via five-year bonds. Crypto & Politics: Convicted FTX co-founder Sam Bankman-Fried has formally applied for a Trump presidential pardon to take effect after his 25-year sentence. Banking & Markets: Indian shares rose as RBI detailed a concessional forex swap facility for overseas borrowings, lifting bank stocks; sentiment also improved after Israel-Iran halted attacks. Housing Finance: NatWest launched a £250m Section 106 loan fund to help housing associations buy affordable homes, targeting around 2,500 properties. Regulation & Crypto Funds: The UK FCA proposed allowing certain funds to hold up to 10% in crypto ETNs, with a conservative cap to protect retail investors.

Philippines Payments Cost Pressure: The IMF warned the Philippines’ fragmented clearing setup is pushing retail fees higher than regional peers, citing cross-settlement frictions between PESONet and InstaPay that banks pass to customers. Crypto Clemency Bid: Sam Bankman-Fried formally filed for a Trump presidential pardon from prison, adding another twist to the FTX fraud case as DOJ pardon records list the petition as pending. UK Crypto Fund Rules: The FCA proposed letting investment funds hold up to 10% in crypto ETNs, aiming to expand regulated access while capping risk. Private Markets Liquidity Test: Blackstone is reportedly marketing a deal to sell $2bn+ of stakes in private fund portfolios via a bond-style structure, as exits remain hard for older buyout assets. Islamic Banking Overhaul (Turkey): Turkey plans to merge three state Islamic banks to expand participation banking, with an IPO for Emlak Katilim also in the works. Nigeria Liquidity Watch: Nigeria’s CBN faces a near-term cash boost as OMO and Treasury bill maturities totaling about N2.55tn return to banks, reshaping refinancing needs. SEBI Enforcement: Kotak India Growth Fund II agreed to pay about ₹10.88 lakh to settle a SEBI case over a 5+ year delay in winding up a venture capital scheme. World Bank Flood-Project Push: The World Bank urged Philippine agencies to finish the delayed Metro Manila flood-control project before financing expires, noting progress but lingering site delays. Banking Security Incident (France): French police arrested a man after stopping an apparent bomb attack outside a Bank of America branch in Paris.

AI Banking Rollout: Bank ABB in Azerbaijan has launched voice-enabled AI assistants, AI-nur and AI-khan, for all customers after a beta that drew 230,000 users and 2.5m interactions, letting clients transfer funds, send money by mobile number, and block or reactivate cards. ING Leadership: ING named Andrea Cesaroni chief risk officer, moving him into the Management Board Banking role effective 8 June, as Ljiljana Čortan steps down. Capital Markets & Credit: Vietnam’s Masan Group secured a $750m syndicated loan at a 1.8% margin, refinancing debt and extending maturities with 6-year tenor. Regulation & Trading Tech: Sterling Trading Tech says it has implemented revised FINRA Rule 4210 for Lightspeed Financial, replacing PDT with an intraday margin regime. Open Banking Watch: Nigeria’s open banking rollout is now slated for mid-2026, with the CBN’s registry and BVN-based consent framework run via NIBSS. Wealth & Payments: OCBC will offer physical gold trading for institutional and high-net-worth clients from 10 June, with Singapore vault custody. Markets: Westpac shares fell 1.22% as investors stayed cautious on Australian banks amid mixed signals. Geopolitics: An Iranian missile barrage hit a West Bank settlement, damaging homes, as air-raid sirens sounded across Israel and the West Bank.

Banking Reform Push (Bangladesh): Bangladesh’s banking sector needs a dedicated reform commission, with officials and industry leaders citing politically backed takeovers, weak oversight and eroded public confidence. Credit Growth (Philippines): BSP data shows universal and commercial bank lending rose 11.4% year-on-year in April to P14.75tn, the fastest in nine months, led by stronger business borrowing. Budget Pressure (Bangladesh): Ahead of the FY27 budget, analysts warn a revenue shortfall is forcing heavier reliance on bank borrowing, raising debt-trap concerns. FX Intervention (Israel): The Bank of Israel bought $801m in May to slow a sharp shekel gain, after exporters complained about damage to growth. Digital Banking (Bangladesh): Southeast Bank reopened its Motijheel Islamic branch after relocation, while Mutual Trust Bank launched MTB Trade X to digitise trade requests end-to-end. Compliance & Fraud (Bangladesh/UK): Prime Bank ran AML/CFT training; UK police warned Midlands residents about counterfeit £20 notes used in home purchases. Cross-border Islamic Banking (Middle East): Al Baraka Islamic launched a service letting customers open and manage accounts in Egypt. Airline Stress (Global): IATA warned higher jet fuel costs from the Middle East conflict could drive more airline bankruptcies and consolidation. Sanctions Watch (Israel/West Bank): UK and allies plan sanctions aimed at deterring companies from backing a proposed West Bank settlement plan.

Banking Crime & Enforcement: India’s CBI carried out searches at six locations across Chandigarh, Panchkula and Delhi-NCR in a ₹661 crore alleged Haryana government fund siphoning probe tied to IDFC First Bank and AU Finance Bank, with claims of collusion between public servants, bank officials and a Noida consultancy (Vipam Consultancy) and seizure of digital devices and documents. Governance & Markets: IndusInd Bank said it has not received any whistleblower complaint referenced in a report, while also noting prior examination of concerns and cooperation with authorities; the stock was nearly flat year-to-date. Digital Money & Payments: Russia’s central bank said 12 major banks are ready to offer digital ruble services from September 1 as the QR-based rollout expands. Regulation & Crypto: US regulators defended post-crisis bank reforms and the GENIUS Act stablecoin framework at a contentious congressional hearing, as lawmakers warned safeguards could weaken. Global Finance Diplomacy: France is coordinating national sanctions (asset freezes, travel bans) against individuals linked to West Bank violence as EU unanimity stalls. Banking Business Expansion: Hana Bank opened a Subic office in the Philippines to support Korean corporate financing and regional growth. Household Finance: Kansas food banks warned SNAP cuts after nearly 22,000 Kansans lost benefits under the “One Big Beautiful Bill.” Banking Operations: RBI holiday calendar shows Indian banks closed nationwide on June 13 (second Saturday) and June 14 (Sunday).

Regulation Watch: Fed Governor Michael Barr warned that recent US moves to loosen bank rules could “considerably weaken” supervision and raise financial stability risks, targeting changes to capital, liquidity and oversight. On-Chain Banking: JPMorgan, Bank of America and Citi plan a shared tokenized deposit network via The Clearing House by mid-2027, aiming to keep deposits from drifting to stablecoins. Stablecoin Update: PayPal’s PYUSD supply fell 31% from a March peak of $4.2bn to about $2.92bn, as volatility reduced minting and inflows. Central Banking (India): The RBI held the repo rate at 5.25% and unveiled measures to support the rupee via incentives for foreign investors and better terms for FX deposits. Banking Compliance (India): RBI fined Canara Bank ₹2.49 lakh for delayed currency chest reporting. Credit Concentration (Bangladesh): Bangladesh Bank data shows 85% of defaulted loans are concentrated in 15 banks, with Islami Bank Bangladesh the biggest share. Corporate Finance (India): Supra Pacific Financial Services approved a ₹20 crore secured NCD private placement; Moongipa Capital Finance signed deals to expand digital lending via MoneyAse and Quess.

Banking & Payments: The Clearing House says major US banks will launch a shared tokenized deposit network by mid-2027, aiming to keep deposits inside the banking system while giving them faster, programmable capabilities that could otherwise lure customers to stablecoins. Regulation & Risk: India’s RBI lets banks price bulk deposits with differential rates tied to liquidity risk under LCR run-off rates, with new daily transparency rules for deposit rate schedules. Fraud & Enforcement: US Treasury OFAC sanctioned an Iranian LPG smuggling and shadow-banking network using UAE/China front firms and vessels to disguise Iranian fuel as Omani shipments. Central Banking & Markets: Indonesia’s central bank and finance ministry agreed to boost yields on local assets to draw portfolio inflows and support the rupiah after recent lows. Consumer Finance: Nationwide will pay eligible members £100 from June 10 as part of its Fairer Share scheme. Banking Operations: RBI also confirmed banks are open on Saturday, June 6 (first Saturday), with closures mainly on second/fourth Saturdays and Sundays. Corporate Moves: Sigma Advanced Systems approved a large preferential share issue (~₹460 crore) and a stake increase in its defence subsidiary via share swap.