AGP Executive Report

Iran Sanctions Hit UAE Banking: The US Treasury proposed revoking Banque Misr UAE’s correspondent access, citing about $1.8B processed for 103 firms tied to Iranian shadow banking under Operation Economic Outcast. US Consumer Protection Stakes: A roundup flags how key state attorney general and governor races could reshape banking-related consumer protection and fee rules as federal enforcement shifts. Fed Watch at Jackson Hole: Kevin Warsh’s hawkish inflation message lifted rate-hike odds and pushed mortgage rates to a 3-week high, while mortgage demand cooled. Banking Settlement Fallout: A judge approved Bank of America’s $72.5M settlement for Jeffrey Epstein accusers, adding to the wave of financial-industry payouts. Digital Banking Push in Asia: Asian regulators urged banks to prepare for stablecoin legislation as frameworks advance across Hong Kong, Singapore, Japan and South Korea. India Inclusion Milestone: PM Jan Dhan Yojana hit 12 years, reaching 59.09cr accounts and Rs 3.17 lakh crore in deposits, with 32.92cr female beneficiaries. UK Cash Access: A new North Yorkshire banking hub opened for major-bank customers via Cash Access UK, supporting cash withdrawals, deposits and private help. Crypto Flows With Banking Relevance: Solana spot ETFs logged record $138M net inflows over 10 days, while XRP spot ETF inflows hit a cumulative $1.637B.

Bank Capital Raising: East West Banking Corp. is seeking about P9 billion via a stock rights offering, with Filinvest entities backing the move to fund wealth growth, digital tech, and loan expansion. Deal Expansion in Leasing: Sumitomo Mitsui Finance and Leasing completed a 30% stake purchase in RCBC’s leasing arm, aiming to grow priority sectors like manufacturing, renewable energy, healthcare, and logistics. Regulatory Shift for Lending: India’s SEBI proposes exempting merchant bankers for small-value debt sold via private placement, targeting lower compliance costs and more frequent small issuances. MSME Guarantee Limits: India’s ECLGS 5.0 support will run only until the ₹2.5 lakh crore guarantee cover is used, with banks told not to sanction beyond available cover. Banking Under Pressure from Flood Risk: Nepal and China warn a barrier lake near the Nepal-Tibet border may breach, raising fears of a second downstream flood. Local Banking Moves: Rockland Trust adds Sep Salimi to expand corporate banking in New England; NatWest invests £253k to revamp its Chester branch while pledging no further closures until 2029. Crypto Market & Policy Watch: Bitcoin surged past $80k amid Nvidia-led tech strength and ETF inflows, while investors await Fed Chair Kevin Warsh’s Jackson Hole remarks for rate guidance. Consumer Finance Product Update: The Philippines’ BSP allows banks to offer PERA time deposits, expanding retirement options beyond market-linked products. SEC Crackdown on Fake Advisers: The US SEC sues 38 entities over alleged false adviser filings to lure retail investors.

Broker Upgrades: Peel Hunt lifted Computacenter to ‘buy’ and raised its FY26 adjusted pre-tax profit forecast by 8% to £350m, pushing shares up about 6% and boosting FY27E/FY28E EBIT forecasts on stronger customer spend and monetisation. Market Mood: Europe closed mostly lower as investors weighed sticky US inflation and Jackson Hole signals, with the Fed chair’s speech in focus; US stocks were mixed with Nvidia, Salesforce and Okta driving tech gains. Fed Watch: Kansas City Fed’s Jeff Schmid said inflation remains “stubborn and sticky,” warning policy may still need more work as central bankers debate how innovation in payments could disrupt liquidity and settlement. Payments & Banking Tech: Maldives banks and Customs signed a verification deal to curb counterfeit telegraphic transfers, while the US BankChain Alliance set a 2027 target for a bank-owned blockchain for tokenised deposits and stablecoins. Crypto & Tokenisation: Ethena Foundation overhauled ENA tokenomics with buyouts and buybacks, and Ripple Prime launched Delta One total return swaps for institutional clients across equities and digital assets. Regulation & Competition: ICBA warned the Clarity Act could let stablecoins mimic deposit-like yield, calling for the loophole to be closed.

RBI Loan Pricing Overhaul: India’s central bank proposes rules to make loan pricing more transparent, limiting how lenders can change most parts of a loan spread for three years unless credit risk shifts, and requiring clearer disclosure of what drives pricing. Capital Markets Funding: Bank of Baroda raised $1.1 billion via US dollar bonds, joining other Indian lenders tapping offshore markets as deposit support needs persist. Green Energy Cost Cut: Gujarat’s regulator cut the “banking” charge for green power open access from INR 1.50/kWh to INR 1/kWh from Sep 1, 2026 to Mar 31, 2027, with future charges set annually from actual Discom impact. HSBC Singapore Restructure: HSBC plans to streamline Singapore operations by combining wholesale, retail and private banking under one entity. Wealth Tech Upgrade: BPI Wealth selected BlackRock’s Aladdin to centralize risk analytics and portfolio workflows for multi-asset, onshore and offshore managed portfolios. Crypto Meets Housing: Coinbase and Better Mortgage opened a Bitcoin-backed mortgage product for US buyers, letting borrowers pledge BTC for the down payment instead of selling it. Stablecoin Expansion: Revolut began rolling out its euro stablecoin EURR in select EU markets under MiCA, issued via Stripe’s Bridge. Credit Union Outlook: Global credit unions met in Sydney to discuss AI, cybersecurity and advocacy as competition and member expectations rise. Property Lending Pressure (Philippines): Philippine banks cut property exposure to a seven-year low as higher borrowing costs and uncertainty weigh on real estate demand.

Central Banking & Capital Rules: Swiss National Bank Vice Chairman Antoine Martin said “robust” capital buffers help banks take market share in downturns, as lawmakers weigh tougher requirements for UBS. AI in Banking: Google Cloud launched Gemini Enterprise for Financial Services, pitching agentic tools for KYC research, credit opportunities and bond issuance. Digital Currency & Privacy: ECB board member Piero Cipollone said offline digital euro payments stay visible only to payer and payee, while banks can still see identities for online checks. Stablecoins Move Closer to Mainstream: Shinhan agreed to test stablecoin issuing, sending and cashing via Visa’s network as Korea nears rules; JPMorgan said it may evaluate a stablecoin later depending on demand and regulation. Banking Tech Modernization: Vietnam’s Sacombank upgraded its Temenos core banking to hybrid cloud on Red Hat OpenShift and IBM Power, aiming for faster deployment and better performance. Mortgage Pressure: New Zealand mortgage commitments fell 7% in July to $7.9bn, and US mortgage applications dipped as rates rose, with refinancing activity down sharply. Banking Demand for Short-Term Credit: Kenya’s Co-op Bank reported rising disbursements for salary-linked mobile credit, reflecting growing worker demand for payslip-backed advances. Regional Credit Expansion (India): SIDBI and RRBs explored expanding MSME co-lending to boost rural and semi-urban credit access. Banking Governance & Oversight: Venezuela’s Treasury Bank working group unified valuation criteria for housing restitution social credit, using pre-approval and secondary-market property selection. Banking Market Signals: Ethiopia’s FX auctions saw participation drop from 28 banks to 5 by late August, with bids and allotments shrinking. Corporate/Market Watch: Canaccord raised its Applied Nutrition target after a beat and upgraded FY27 guidance; Chesnara saw director buys alongside an M&A-focused outlook.

Stablecoin Push: Revolut plans to launch a GBP-pegged stablecoin after FCA sandbox testing, aiming to move from crypto middleman to digital currency issuer and build settlement rails. Rates Watch: Australia’s inflation print keeps the RBA under pressure, while ANZ is calling for a 25 bps hike in November as markets largely price a hold. Crypto Volatility: XRP slid about 5% as leverage hit a seven-month high, even after a strong weekly run; Bitcoin also surged toward a 15-week peak before pulling back. Banking Expansion in Africa: MTN is seeking banking licences to compete with digital lenders and push lending as its next growth engine. India Credit Momentum: India’s bank credit growth hit a four-year high near 20% YoY, while deposits lagged, keeping loan-to-deposit ratios elevated. Rural Banking Upgrade: India’s regional rural banks posted record FY25-26 profits and are being urged to accelerate digital and tech upgrades. Payments & Fintech: AsiaPay integrated PesoPay into PGA Insurance’s online booking to streamline premium payments. Disaster Risk: Nepal’s flash floods and river alerts are forcing evacuations along the Bhote Koshi and Trishuli river systems.

UAE Finance Diplomacy: The CBUAE, with the UAE Ministry of Finance and the UAE Banks Federation, will host the UAE Banks’ Reception in Bangkok on Oct 15 on the IMF-World Bank sidelines, aiming to boost UAE banks’ global partnerships around stability, sustainable finance and digital transformation. Russia Deposit Rates: Russia’s top banks lifted the maximum interest on ruble deposits to 12.9% per year, as the Bank of Russia data shows a steady easing from earlier peaks. Fed Discount Rate Debate: Fed minutes show four regional bank boards voted to raise the discount rate ahead of the July meeting, highlighting internal disagreement before the policy rate was left unchanged. Private Banking Push (US): City National Bank expanded its private bank team in California with 10 new private bankers to deepen wealth and trust services for HNW/UHNW clients. Scam Alerts: FNB Community Bank warned customers about phone scams urging victims to click email links to “stop” transactions. Digital Banking Tech: Alkami said FI Navigator ranks it #1 digital banking solution for credit unions and fastest-growing for banks. Blockchain Rails for Community Banks: Iowa Bankers Association helped launch the BankChain Alliance, an industry-owned blockchain network for secure modern banking features like tokenized deposits and automated settlement. USDA Food Purchases: USDA plans up to $156m in food buys for schools and food banks, including major shrimp procurement.

Mortgage Pressure & Valuations: Australia’s Big Four face a downturn in home-loan demand, with investors questioning rich bank valuations as tax changes and higher rates bite. Central Banking Liquidity: The RBA says “ample reserves” are still above demand while it shifts to a new liquidity system that keeps rates near the cash target. US Sanctions Risk to Banks: The Trump administration’s “Economic D-Day”/“Economic Outcast” plan targets Iran-linked networks, warning foreign banks and firms they could be cut off from the dollar system. Dollar Inflows Debate in India: A discussion paper challenges how effective India’s FCNR(B) and swap-driven dollar deposit drive really is, arguing much of the inflow is debt-like and swap costs sit with the RBI. UK Cash Access Rules: The UK government confirms 12 banks/building societies will face new FCA-enforced cash access rules, with a review starting late 2026. Scam Defenses: Bankwest highlights “stop, check and protect” as it rolls out sender-ID rules for SMS fraud prevention. Crypto Market & Banking Tech: Bitcoin pushes past $80K on ETF inflows and Treasury buyback talk, while Coinbase launches tokenized equities on Base and BNB Chain activates a security-focused hard fork. Banking Operations: ING continues its €1bn buyback, repurchasing 1.76m shares in mid-August, and Lloyds shuts a Carlisle branch as customers shift online.

Debt & Capital Markets: Tyson Foods set pricing terms for previously announced debt tender offers, including eliminating a 5.400% 2029 tender sub-cap, while FS Bancorp authorized a $5m share repurchase program. Wealth & M&A: SAX Wealth Advisors acquired Lighthouse Financial, adding about $350m in AUM, and Lombard Odier reported record client assets and a 25% jump in half-year net profit. AI Regulation & Risk: Colorado’s AI law would require banks to disclose and explain AI-driven decisioning and let customers correct inaccuracies; a Third Circuit ruling also flags legal exposure when AI pricing systems pull non-public competitor data. Rural Banking Digitization: The Philippines’ BSP will fund rural banks’ cloud core banking upgrades for up to three years, but only for adequately capitalized lenders. Geopolitics & Sanctions: Treasury launched “Operation Economic Outcast,” warning banks and businesses that supporting Iran’s oil and financial networks could mean exclusion from the U.S. dollar system. Crypto & Policy: Illinois crypto groups sued to block a 0.2% digital asset tax set for Jan. 1, 2027, as Bitcoin rallied toward $80k on ETF inflows and short covering.

Banking Unions vs Government: India’s UFBU has called a nationwide strike for Sept 11 over delayed five-day banking, disputes on the PLI scheme, and pension-related demands, with a possible escalation to a 3-day strike from Sept 28 and an indefinite walkout from Oct 26. Asset-Quality Optimism: Motilal Oswal says Indian banks are in their best shape in a decade, citing NPAs near historic lows (gross ~1.8% in March 2026; net ~0.4%) and comfortable capital buffers. Credit vs Deposits Pressure: Bernstein reports India’s credit growth is up around 20% YoY, but deposit growth lags, keeping the loan-to-deposit ratio near decade-high levels. Digital Yuan Expansion: China’s PBOC added eight banks to the digital yuan operator roster, bringing active institutions to 30 to broaden access to e-CNY services. Cyber Threats to Banking: Fortra flagged a rise in “Chameleon SEO Poisoning,” using manipulated search results and fake banking sites to steal credentials while dodging security scans. Central Bank Liquidity Move: Maldives’ MMA withdrew MVR 3bn via reverse repos to curb surplus liquidity, and plans higher reserve requirements next month. Private Banking Hire: Bank of Singapore appointed Julius Baer veteran Ankit Swaika to lead Global South Asia coverage for wealthy Indian clients. Workforce Reskilling: DBS signed an AI-skills MOU with IBF, pledging to “save people, not jobs” as it upskills staff for AI-driven role changes.

Stablecoin Sovereignty: Central bankers warn dollar-pegged stablecoins are undermining monetary control, arguing CBDCs won’t be a real fix. Power-Sharing Deals: Madhya Pradesh and Uttar Pradesh sign an MoU to procure and share power and explore 2,000 MW of solar-plus-storage. Agent Banking Gap: Bangladesh Bank data shows rural borrowers still get fewer loans against deposits than urban customers, despite more agent-banking activity. Private vs PSU Banks: Goldman Sachs expects private banks to gain share over the next two years as liquidity advantages narrow and credit economics improve. North Korea Transfers: Private money-transfer brokers are returning as distrust in banks grows after crackdowns. Cyber & Consumer Protection: India orders Google to remove Firebase pages used to impersonate banks and steal credentials; Cyprus police remand a suspect in a €6,800 online banking fraud. Banking Tech & Inclusion: Egypt’s central bank approves rules for a digital identity platform to enable remote account opening. Crypto Market Shock: Bitcoin surges toward $80K amid ETF inflows and massive short liquidations; separate reports flag a potential end to the bear market. DeFi Governance Hit: Term Labs confirms an ~$8.5M governance exploit draining vaults. FD Rate Moves: HDFC Bank, Federal Bank, Slice SFB and ESAF SFB revise fixed-deposit rates, with senior offers up to 8.50%. Regulatory Overhaul: Bangladesh SEC moves to update merchant banking and portfolio manager rules after nearly 30 years.

Cybersecurity & Fraud: India’s government has ordered Google to take down Firebase pages impersonating banks, after investigators linked the sites to phishing and stolen card/OTP data used in digital scams. Islamic Banking Recognition: QIIB won awards for innovation in Shariah-compliant products and corporate Islamic banking services, citing digital upgrades and compliance. Digital Assets in Banking: RCBC and PDAX will explore tokenized gold access via RCBC’s digital channels, aiming to remove storage and authenticity friction. Forex Funding Boost (RBI): Indian banks mobilised about $72.8–$72.85B via the RBI USD-INR forex swap facility, led by FCNR(B) deposits (~$65.4B). Deposit Momentum (Korea): South Korea’s top banks are nearing 1,000 trillion won in time deposits as rates rise and money shifts back from markets. Loan Pressure (Korea): Banks are tightening household lending with far more restrictions than last year, as regulators cap debt growth. Branch Consolidation (UK): Lloyds, Halifax and RBS plan to close 26 branches in September 2026 as high-street banking keeps shrinking. Payments Expansion: Alipay+ added Hang Seng Bank to its cross-border QR network, extending merchant reach to millions of users. Market Volatility (Crypto): Bitcoin and major altcoins fell sharply as Wintermute built heavy short positions. Tokenized Funds (US): Franklin Templeton received SEC staff relief to place its $721M onchain money-market fund into conventional ETFs/mutual funds.

ESG Upgrade: Burgan Bank (Kuwait) says MSCI lifted its ESG rating from BB to BBB, citing stronger governance, disclosures, and risk management. Digital Onboarding: National Bank of Kuwait launched fully end-to-end digital account opening for minors via the NBK Mobile Banking App, with e-verification and KYC handled online. Financial Inclusion Push: Prime Bank ran a financial literacy seminar at Khulna University, focusing on youth money management and inclusion. PSB Pressure in Cards & GCCs: India’s public sector banks are losing higher-value market share in premium credit cards and global capability centres, with CASA share decline raising margin concerns. Forex Inflows Boost: RBI data shows banks mobilised about $72.8bn in forex inflows and $65.4bn in FCNR(B) deposits as NRI demand chases higher returns. Egypt Digital Banking: CIB received preliminary approval to launch yomo, a digital bank, while the central bank ordered banks to embed financial literacy into inclusion strategies. Cyber & Payments Resilience: HumidiFi suspended trading after a Solana network security incident, while Asia-Pacific central banks formed a task force to share info against digital scams. Banking Tech Spotlight: National Bank of Malawi detailed its BankNet 360 internet banking platform for 24/7 personal, SME and corporate access. Islamic Banking Awards: QIIB won international accolades for Shariah-compliant corporate Islamic banking and innovation.

Google Crackdown on Bank Impersonation: India’s I4C reportedly ordered Google to remove 57 Firebase pages impersonating major banks like SBI, ICICI and Axis, used for fake reward offers and credit-limit scams that also harvested card details and OTPs. ECB Rate-Transmission Watch: A new ECB study says euro-area banks’ funding mix matters for how fast policy-rate changes hit loan and deposit pricing—short-term money-market funding reacts more quickly than longer-term bond funding. Pakistan Systemic Bank Designations: SBP named UBL, HBL and NBP as 2026 domestic systemically important banks, triggering tighter oversight and resilience requirements. UAE Payments Push: Dubai Islamic Bank launched the Jaywan debit card, using the UAE’s national card scheme to localize processing and reduce reliance on international networks. Kenya Loan-Repayment Risk: Kenya’s lenders warn inflation and weaker consumer spending could dent loan recovery as operating costs rise. India FCNR Funding Boost: Indian banks raised $12bn abroad via RBI’s one-time swap, supporting FCNR(B) deposits and likely aiding FY27 growth. Private Banking Momentum: Private banking stocks gained on improving asset quality and Q1FY27 results, though some profit booking hit ICICI Bank and HDFC Bank. Crypto-Compliance Signal: SEC insider-trading charges hit two former Wall Street bankers tied to a South Jersey Industries deal, underscoring tighter enforcement.

Correspondent Banking: A payments expert says correspondent banking is the “invisible plumbing” of global finance, but digital assets are pressuring the old economics that supported cross-border clearing. Crypto ETF Watch: The SEC opened a comment period on Cboe’s proposal for daily 3x leveraged Bitcoin and Ethereum futures ETFs, a reminder that leveraged products can drift and regulators are watching closely. Mortgage Pressure: The Mortgage Bankers Association cut its refinance outlook as rates stay above 7%, with the 30-year fixed-rate mortgage hovering just over that level. Banking Litigation: A U.S. judge let Anti-Terrorism Act claims proceed against Palestine Investment Bank over checks marked “martyr,” raising the stakes for how banks handle transactions tied to designated entities. Digital Banking Shift: A D.C. area bank is selling off branches to focus on a digital future, while Forbright is paying a deposit premium to exit parts of its physical footprint. Ghana Crisis Context: Dr Opoku-Afari argues Ghana’s banking stress was years in the making, with fiscal weakness migrating into bank balance sheets via government debt exposure. Pakistan Credit Trend: SBP says private-sector credit-to-GDP has fallen sharply over decades and urges banks to refocus on retail deposits and private lending. Cyber/Compliance: Ukraine’s central bank drafted new statistical reporting rules for banks, including open-banking user/account and payment-transaction indicators.

Court Action & Cyber Fraud: Nigeria’s Access Bank customers panicked after ₦1.34bn was allegedly siphoned into accounts across 71 banks; the lender secured a Federal High Court order to freeze beneficiary accounts via a Post No Debit restriction. Fintech & Payments AI: Razorpay launched “Vulcan,” a payments-focused AI foundation model aimed at boosting payment success, routing, and fraud detection, with early tests citing higher success rates and fewer alerts. Digital Banking Expansion: Egypt’s CIB got preliminary approval to launch yomo, a new digital bank targeting Q4 2026, after investing $300m. Banking Security Threats: ToxicPanda 2.0 widened an Android banking Trojan campaign, adding invisible overlays to steal PINs and credentials across 140+ apps in 16 countries. Crypto & Market Moves: Bitcoin reclaimed $75,000 amid a broader bullish flip, while a major short squeeze liquidated over $3bn in leveraged positions. Banking Strategy & Risk: Absa took over master-custodian duties for South Africa’s GEPF, handling safekeeping and administration of R3.5tn in assets. IPO Watch: Upstox is exploring an IPO to raise about $350–400m, with plans to let early investors exit.