Banking Stress Signals: South Korea’s commercial banks saw the NPL ratio hit a five-year quarterly high by late March, with bad loans rising to 17.7tn won and coverage falling as write-offs and distressed-asset sales were scaled back. Regulatory Scrutiny: India’s Supreme Court asked the government and RBI to respond to a plea for a supervisory review/audit of banks’ real-estate exposure, with homebuyers also seeking ED action over alleged diversion of funds. AI and Jobs: HSBC urged staff not to fight AI, arguing it will reshape roles rather than simply destroy them, while Standard Chartered tried to calm workers after announcing major corporate-function cuts. India Markets & Flows: MSCI’s May 29 rebalancing is set to drive passive outflows of $800m–$1bn from India’s Standard Index and heavy churn in Smallcaps. Banking Performance: India’s listed commercial banks reported a record FY26 profit above ₹4 lakh crore, led by SBI, HDFC Bank and ICICI, though treasury income was pressured by bond-yield moves and a late FX-related trading cap. Policy Pressure on Costs: New Zealand’s finance minister said banks shouldn’t pass on a new prudential levy to customers, framing it as modest versus big-bank profits. Deal Watch: Butterfield Bank agreed to buy CIBC Caribbean for $1.8bn, expanding its Caribbean banking and wealth platform. Digital Banking Reality Check: JD Power found AI virtual assistants help with simple tasks but struggle with fraud and complex disputes, leaving customers stuck in self-service loops. Credit Conditions in China: China’s central bank reportedly pushed state banks to boost lending after April’s loan growth fell unexpectedly, highlighting fragile demand. Property Rules in Dubai: Dubai signed a 2026 law to regulate shared housing/bedspace rentals, aiming to end grey-market practices and protect tenants.