AGP Executive Report

M&A Watch: Great American Bank and Cottonwood Valley Bank signed a definitive deal to merge, creating a community-banking franchise with about $569m in assets and 8 branches across Kansas. Dealmaking: Brookfield is in active due diligence for KKR’s $5b-plus buyout of Colonial First State, with Citigroup advising on takeover prep. Crypto Compliance: Bitget will tighten rules on 16 sanctioned crypto platforms in phases (Aug 7, 13, 23), mirroring Binance’s approach and responding to OFAC and EU Russia sanctions. Digital Banking Access: Ethiopia’s EthioPost plans to turn 3,000 branches into banking agents, starting with a 700-branch pilot to let customers deposit, withdraw and pay bills across commercial banks. Banking Performance (Nepal): Nepal’s 20 commercial banks posted near NPR 70bn net profit in FY2082/83, up 32.3%, led by Nabil Bank; one bank (Prabhu) recorded a loss. Rates Watch (South Korea): Savings banks cut deposit rates again as competition for stock-market-bound funds cools, with 12-month time deposits averaging 3.77%.

Digital Banking Awards (Kuwait): Weyay Bank and National Bank of Kuwait (NBK) both racked up major “World’s Best Digital Bank” style honors, with NBK taking 17 awards across consumer and corporate digital services and Weyay highlighted for precision credit, lending, and social/community banking. Cyber & AI Risk Watch (Switzerland): FINMA warned banks and insurers that cyberattacks are rising sharply and that advanced AI risks are sector-wide, pushing firms to tighten operational risk controls, including third-party dependencies. Co-op Banking Fallout (Kerala): Depositors in Kerala say they’re stranded after the Halal Fayida Islamic Banking Cooperative Society allegedly left crores unaccounted for, with complaints about missing financial reporting and the society’s abrupt closure. E-banking Fraud Reminder: A new explainer flags how e-banking fraud is evolving, pointing to phishing, identity theft, malware, and card skimming as common threats. Port of Montreal Expansion (Canada): Construction has begun on a new wharf as part of a fast-tracked “nation-building” project, with the Port Authority citing delivered stone volumes and a $1.16-billion loan backing the expansion. Crypto Legal/Market Noise: Netflix and Tyra Banks are in a renewed court fight over defamation claims tied to “America’s Next Top Model,” while crypto coverage stays active with XRP sentiment concerns and Ethereum trading stuck in consolidation.

RBI AI Lending Push: India’s central bank chief Sanjay Malhotra urged banks to use AI trained on alternative data (cash flows, GST, utility payments) to expand credit—while keeping humans accountable for bad decisions. Payments Disruption: A suspected global Mastercard outage hit Australian banks’ tap-and-go payments, with customers reporting declined transactions while ATMs stayed working. US Crypto Regulation Stalls: CLARITY Act odds fell to 10% as Senate action slipped; meanwhile the SEC cancelled a key “Regulation Crypto” vote, leaving token firms waiting on rules. Crypto Banking Charter: The OCC granted World Liberty Trust Co. conditional approval for a national trust bank tied to the USD1 stablecoin, advancing Trump-family crypto plans. Israel Crypto Expansion: Israel’s Bank Leumi is partnering with Galaxy to offer crypto trading services. Banking Tech & Fraud Controls: TRAI rolled out India’s 1601 number series for service/transaction calls to help consumers spot impersonation scams. Banking Market Watch: YES Securities flagged stressed recoveries at India’s PSU banks, noting written-off loan stocks remain material. Corporate Finance Deal: Goldman Sachs agreed to buy NEOS Investments, adding about $30B in options-based income ETF assets. Security/Compliance in Crypto: Ripple’s Sherlock audit contest found 96 XRP Ledger vulnerabilities before mainnet, including critical bugs that could have enabled account-draining attacks.

RBI Policy Move: India’s RBI will end its FCNR(B) USD-INR forex swap facility early, moving the FCNR(B) deposit mobilisation deadline to Aug 31, 2026, after inflows hit $56.846bn as of Aug 13. Banking Tech Upgrades: Stanbic IBTC says it has upgraded its transaction banking software to FinnAxia® 9.0, aiming for more real-time payments, collections, liquidity and cash management. Open-Banking Legal Tension: The CFPB’s open-banking plan is set for a 90-day White House review, with banks and fintechs bracing for a new legal fight over whether banks can charge fees for data access. Workforce Restructuring: NatWest International plans to cut 32 back-office jobs in Gibraltar, saying customer services won’t be affected. Digital Banking Partnership: Strata Credit Union selected Alkami’s Digital Banking Platform to modernize mobile-first, personalized member experiences. Crypto Market Shock: Hyperscale Data shares fell 16% after it liquidated about 685 BTC for roughly $43m, earmarked largely for a Michigan data center. Cybersecurity Alert: Apple is now showing “high-confidence” spyware attack warnings directly on the iPhone lock screen in 110 countries. Bank Performance: KeyCorp reported strong Q2 results, with revenue up 26% and commercial loans up $2.1bn, while asset quality stayed solid.

SEBI Investor Rules: India’s market regulator proposes expanding the Accredited Investor pool by adding securities market assets—₹5 crore for individuals and ₹20 crore for corporates—potentially lifting eligibility to ~400,000. Central Bank Liquidity: Nigeria’s CBN overhauls money-market rules, letting banks access its Standing Lending Facility same day as FX trades and primary government securities auctions, aiming to improve liquidity. FX Access Update: Nigeria’s naira firms after CBN eases FX and securities restrictions and opens the discount window, though official-parallel gaps persist. Dollar Funding Push (India): ICICI Bank launches a ~$1.45bn syndicated offshore loan, joining a wave of Indian banks using cheaper central bank swap facilities. Banking Competition & Rates: Australia’s “mortgage war” looks set to intensify as new sign-ups slump and lenders compete with more sub-6% options. Bad Loans Transparency (Greece): Greece launches a centralized electronic platform to track nonperforming loan transactions, standardizing reporting for distressed-credit markets. Crypto Security & Banking Tech: Studies flag thousands of high-risk Ethereum/BNB addresses tied to ~$574.8m losses, while Bitcoin security teams expand AI-assisted scans across open-source projects. Bank Leadership: BNK Banking removes “interim” tags for CEO Steve Kinsella and CFO Judith Newman as its digital SME push develops.

Blockchain Settlement: MUFG says it will run a proof-of-concept for real-time onchain settlement of Japanese government bond trades, aiming to cut the usual 1–3 day process and improve repo efficiency. Crypto Market Pressure: Swissquote cut full-year guidance after first-half net crypto income fell 66.2%, with shares dropping 14% as trading volumes slid. Payments Interop Push: Matera released an open-source implementation of the ANSI X9.150 merchant-presented payment QR standard to speed adoption of interoperable account-to-account payments. Digital Identity for Banks: Worldline and Lissi launched a managed hub to help banks connect to European digital identity wallets under eIDAS 2.0. Banking Security: Metrobank rolled out new anti-scam controls in its app, including a 24-hour cooling-off after major account changes and payee verification. Regulatory/AML Watch: Bangladesh Bank met an ADB delegation on banking reforms and stability, while APG flagged concerns about past AML/CFT irregularities ahead of Bangladesh’s 2027-28 mutual evaluation. AI Threats to Banks: A Taiwan breach showed how autonomous AI agents can be used to compromise accounts, raising new concerns for bank-grade defenses. SME Credit & Inclusion: Mindanao traders urged mobile banking to bring informal agricultural players into the financial system. Investment Banking Hiring: Guggenheim Securities hired Blake Jones to expand global services investment banking coverage for wealth and asset managers.

RBI Loan Pricing Overhaul: India’s central bank invited public comments on draft rules to standardise interest-rate setting for banks and NBFCs, including tighter benchmark and spread norms plus board-approved pricing policies. AI in Banking Ops: Suryoday Small Finance Bank teamed with Kyndryl to deploy agentic AI for onboarding, compliance, customer support and lending workflows. Ghana Credit Push: Bank of Ghana Governor urged banks to sustain private-sector credit expansion as lending growth surged 41.2% in June. UK Savings Competition: Spring launched an app-only 5% savings account (up to £5,000), intensifying the race for depositors. Crypto Rulemaking & Market Signals: The SEC is set to vote on “Regulation Crypto” and Solana stayed online despite validator disruptions; meanwhile, Bitwise’s CIO argued token valuations could double if protocol revenue links strengthen. Legal/Market Risk Watch: ASX shareholder seeks court permission to sue over the failed CHESS replacement project, while CFTC warned prediction-market platforms about incentive filings that may raise manipulation concerns.

RBI Interest-Rate Overhaul: The Reserve Bank of India has issued draft rules to harmonise how banks and NBFCs set loan interest rates, with board-approved pricing policies and annual reviews, and public comments open until Sept 11. Wealth & Markets: Motilal Oswal reiterated a BUY on Nuvama Wealth, lifting its target to Rs 2,100 after a strong 1QFY27 driven by capital markets. Depository Liability in Focus: India’s Supreme Court stayed an ₹86 lakh CDSL-linked award in a case over alleged unauthorised transfer and pledge of investor shares, scheduling the next hearing for Sept 10. Banking Digital Push: The Union Bank Company completed a digital banking platform upgrade with smoother self-service and financial wellness tools. Open Banking Payments: Flywire expanded its Trustly partnership to enable “Pay by Bank” open banking payments across the U.S. and Canada via ACH and pre-authorised debit. Retail Banking Wins: Doha Bank won “Best Retail Bank” and “Best for Remittances” at MEED MENA for digital onboarding and a unified remittance platform. Bonus Rules in Switzerland: Switzerland launched consultations on tighter banker bonus rules, including potential bonus withholding or recovery for top managers at systemically important banks. Corporate Deal Watch: ECB appears ready to greenlight UniCredit’s €43bn Commerzbank takeover bid, pending final assessment. Crypto-Legal Twist: FlightAware withdrew its federal lawsuit against Kalshi after contract modifications, ending the dispute without a court ruling. Banking Tech in Agriculture: The Philippines’ agriculture department is piloting drone-and-AI monitoring to detect crop threats earlier, aiming to reduce disease outbreaks.

Kenya Capital Markets: The CMA has approved Wallstreet Africa’s WSA Banking Index ETF, set to list on the Nairobi Securities Exchange in Q4 and become Kenya’s first ETF domiciled locally and focused on banking stocks, as lenders rally. India Banking Funding: Banks are racing to lock in cheaper dollar funding via RBI’s 1.5% swap premium ahead of a Dec 31 cut-off, with HDFC Bank and others weighing up to $3bn in dollar bonds/loans. India Bank Margins: Kotak expects net interest margin pressure to ease as banks shift toward lower-cost FCNR and retail deposits, while credit growth moderates. SME Credit Data Push: SBI MD Ashwini Kumar Tewari says GST alone leaves most MSMEs outside the data ecosystem and urges credit bureaus to use alternative signals like power and telecom usage. RBI Governance & AI Oversight: RBI is pushing banks toward meaningful human oversight and accountability for AI-driven decisions, warning against blaming models for faulty outcomes. Cyber Risk in Banking: A new report highlights hackers targeting business travellers via hotel/airport WiFi to compromise Microsoft 365 accounts, underscoring holiday-time cyber exposure. Ghana Banking Costs: A Ghana banking workforce-cost analysis shows personnel costs per employee vary more than fourfold across lenders, pointing to different operating models and tech/lean strategies. Crypto Enforcement: The SEC and CFTC have sued Goliath Ventures over an alleged $425m crypto-linked Ponzi scheme, renewing focus on investor protection.

Regulatory Pushback on Mortgage Escrow Interest: US state AGs, including Connecticut’s William Tong and California’s Rob Bonta, sued to block OCC rules that would let big national banks keep interest earned on mortgage escrow accounts, arguing it strips consumer protections and undermines state authority. Central Bank Settlement Upgrade: The Philippines’ BSP proposed expanding its Intraday Settlement Facility with a new off-hours option to help banks settle large-value payments without delays, including a third access window before normal operating hours. AI and Human Oversight in Banking: Bank leaders and regulators emphasized that AI can speed delivery, but human control and reskilling are still essential to manage fraud and governance risks. Digital Banking Modernization: Police Federal Credit Union launched Mahalo’s “Thoughtful Banking” platform alongside a core conversion, adding real-time access and improved self-service and transfers. Tokenization in Capital Markets: Aviva Investors launched a tokenized share class for a US dollar liquidity fund, using digital wallets and custody via BNY Mellon, signaling continued momentum in fund tokenization. Crypto Treasury Strategy Shift: Twenty One Capital’s new CEO outlined plans to grow beyond its Bitcoin balance sheet after a major H1 loss tied to BTC price moves. Retail Banking Growth in Qatar: Doha Bank won Euromoney awards for Best Retail Bank and Best Mortgage/Home Loans Bank, citing heavy digital usage and housing portfolio expansion. FX Risk Rules in Ukraine: Ukraine’s NBU will gradually ease banks’ foreign-exchange position calculations starting Sept 1, restoring more flexibility to manage FX risk and support lending. Fraud Prevention Win: Idaho AG Labrador said investigators stopped a scam-in-progress by coordinating with UPS to halt and return $14,000 sent for “safekeeping.”

Banking Law Update (India): India’s Rajya Sabha passed the Bankers’ Books Evidence Bill, 2026, replacing a British-era law and making digital and virtual banking records admissible in court, with Finance Minister Nirmala Sitharaman saying the framework now matches today’s fintech and payment ecosystem. Corporate Banking Hiring (US): JPMorgan Chase plans to expand Asia-Pacific corporate banking hiring through 2027, citing momentum from AI, data centers and cross-border trade. Loan Write-Offs (India): Parliament was told banks wrote off Rs 9.95 lakh crore in large-industry and services loans over 12 years; the annual write-off fell to Rs 20,485 crore in 2025-26, with officials stressing write-offs are accounting cleanups, not debt cancellation. Digital Wallet Launch (Fiji): Bank South Pacific rolled out BSP eDollar, Fiji’s first bank-backed electronic wallet, enabling QR payments and transfers across participating banks and wallets. Share Buybacks (Europe): ING reported repurchasing 2,000,000 shares under its €1.0bn buyback program, with about 53% of the maximum value completed. Regulation Consultation (New Zealand): The Reserve Bank of New Zealand opened a consultation on a prudential levy covering banks, non-bank deposit takers and insurers, estimated to raise about $209m. Market Watch (Australia): Australian shares were flat as investors awaited the RBA decision, with banks weighing on sentiment. Cyber & Fraud Controls (US): Surfside Beach, after a $545,000 cyber scam, introduced stricter verification and dual-control authorization for outbound municipal transactions. Islamic Banking Awards (Qatar): QIIB won two Global Business Magazine awards for mobile banking experience and product innovation in Islamic finance, highlighting its digital transformation.

Workforce & Culture: National Bank of Kuwait (NBK) was named LinkedIn’s top employer in Kuwait and the banking sector for 2025, highlighting its focus on employee well-being, development, and an innovation-led workplace. Islamic Banking Digital Push: Qatar’s QIIB added awards for “Mobile Banking Experience” and “Product Innovation – Islamic Finance,” pointing to continued app-led upgrades and Shariah-aligned product innovation. Nigeria Regulation & Coordination: Nigeria’s Senate Committee on Banking urged tighter collaboration among regulators and stakeholders (CBN, NDIC, AMCON, NAICOM, NEXIM) to strengthen the financial system and support sustainable growth. Payments Incentives: Bangladesh Bank waived merchant fees for Bangla QR transactions and set incentives for small purchases up to Tk 2,000, aiming to accelerate adoption of the national QR platform from Oct 1. Banking Risk & Compliance Scrutiny: A Senate Finance Committee investigation alleges major Wall Street banks missed or delayed reporting suspicious activity tied to Jeffrey Epstein, including Deutsche Bank, JPMorgan and Bank of America. AI Governance in Finance: BSP chief warned that as banks move from generative to agentive AI, strong governance is needed to manage new risks while capturing productivity gains. Credit Quality Watch: Kenya’s gross non-performing loans fell 3.3% to Sh674.3bn in 2025, signaling improving repayment performance but still-high bad-loan levels. Banking Tech & Infrastructure: FIS promoted its digital money network for banks (Project Keystone), designed to let institutions issue, transfer and settle tokenized deposits with compliance and audit controls built in. Industry Outlook: AM Best said reinsurance’s next year will test whether record capital sustains underwriting discipline or slides back into a soft-cycle driven by competition. Market & Policy Catalysts: Investors tracked RBA’s upcoming decision and broader macro signals as rate expectations and geopolitical shipping risks around Hormuz continued to move markets.

UK Employment Reform Shock: Lawyers say investment banks face a surge in tribunal claims as the UK scraps the unfair dismissal compensation cap and cuts the time to file from two years to six months from Jan. 1, 2027. Kenya Digital Fraud Risk: Kenya’s regulator reports fraud and scam complaints tied to mobile money and digital financial services jumped sharply, with SIM control increasingly acting like an identity switch for banking access. RBI Deposit Rules: India’s RBI will tighten fixed-deposit rules from Oct. 1, standardizing how banks offer retail deposit rates and boosting daily disclosure so customers can compare offers more easily. RBI Loan Recovery & Capital Oversight: India’s central bank also moves to strengthen bank capital and tighten loan recovery practices, with new leverage and prudential frameworks aimed at reducing stress from defaults and financial-contract losses. Nigeria Dividends Blocked: Nigeria’s CBN says only six major listed banks paid 2025 dividends totaling N1.27tn; five profitable lenders were barred for failing prudential requirements. Australia Mortgage Pressure: Westpac shares slid after a quarterly update showing a 20% drop in mortgage applications and weaker housing credit outlook ahead of the RBA decision. NYSE Tokenized Securities: NYSE says it’s building onchain settlement infrastructure for tokenized securities, following live testing with DTC and signaling a broader push toward faster settlement. Philippines Payments Upgrade: BSP and PPMI launched Direct Debit PH plus InstaPay Cash-In and higher InstaPay for Business limits to expand access and raise transaction capacity. India Gold Loans Push: Indian banks are expanding gold loans to win NBFC customers, citing faster disbursals and growing portfolios.

Banking Resilience Watch: Qatar’s central bank says robust fiscal reserves and a highly liquid, well-capitalised banking sector are cushioning the economy against regional shocks and Strait of Hormuz disruptions. Consumer Finance & Fraud: The Philippines’ central bank reported a 73% jump in consumer complaints in 2025, while Bahrain warned of scam texts pushing fake traffic-fine payment links. Loan Recovery Crackdown: Bangladesh Bank is moving to trace and freeze overseas assets tied to defaulted loans, using eight international law and forensic firms on a “no win, no pay” basis. Digital Payments & Banking Rules: India’s EPFO is planning PF withdrawals into UPI-linked accounts from September 2026, and lawmakers in the UK/elsewhere continue pushing open-banking and UPI fee frameworks. Crypto & Markets: Bitcoin ETFs pulled in $853.5m net inflows, and IMF cautioned that local stablecoins could unintentionally speed dollar-token adoption. AI Infrastructure for Finance: Globe Telecom highlighted data-center investment as AI and cloud demand grows, underscoring the infrastructure banks and fintechs increasingly rely on. Banking Sector Pressure: RBI flagged margin stress as deposit costs and credit growth keep pressure on Indian banks’ net interest margins.

Israel Banking Security: Police arrested a 54-year-old man after bullets and knives were reportedly planted at Mizrahi Bank branches in Bat Yam and Tel Aviv and at a Rami Levy branch in Holon, triggering investigations into threats and property damage. South Korea Markets & Risk: Bloomberg Intelligence says retail and institutions are unlikely to “go all-in” again after a leverage unwind hit KOSPI-linked positions, with regulators and banks tightening limits on leveraged ETFs and risk controls. India Banking Law: India’s Rajya Sabha is set to consider the Taxation and Other Laws (Amendment) Bill and the Bankers’ Books Evidence Bill after Lok Sabha passage, with Finance Minister Nirmala Sitharaman moving the bills. Crypto Regulation Watch: The U.S. CLARITY Act faces low odds of passing this year, but a Senate procedural vote is being pushed for mid-September, while crypto demand (including Bitcoin ETF inflows) is holding up. India Housing Finance: HUDCO expects its loan book to cross Rs 2 lakh crore in FY27, planning Rs 75,000 crore of borrowing to fund disbursements of Rs 65,000 crore. Azerbaijan Banking Liquidity: Azerbaijan’s banking sector is reported to hold a sizable excess liquidity cushion, supporting lending while meeting reserve and buffer requirements. Thailand Anti-Scam Banking: Thailand plans real-time cross-bank data links to freeze “mule accounts” tied to fraud, coordinated with the Bank of Thailand and the Thai Bankers’ Association.

Crypto ETF Flows: T. Rowe Price is using active crypto security selection in its trillion-dollar asset-management push, including a “grow-with-me” crypto ETF design as SEC standards expand. Digital Banking Push: Kuwait’s NBK says its NBK Mobile Banking App is driving faster, branch-free transactions with a focus on security and customer autonomy. Bank Resolution Powers: Bangladesh Bank issued rules for temporary administrators under the Bank Resolution Act, allowing them to keep critical functions running and even replace top management. Bangladesh Digital Credit: Bangladesh Bank’s draft would let banks offer interest-free digital “salary-backed” style overdraft/utility loans up to Tk 5,000 with only fixed service fees and full digital onboarding. UPI Fees Clarification: The Philippines’ digital banks say BSP’s framework allows cost-based transfer fees, not permanent zero-fee transfers. UPI Cost Debate (India): India’s government reiterated UPI stays free for users, with any merchant fees framed as limited MDR for certain transactions. Regulatory Capital & Risk: RBI proposals include leverage buffers for global systemically important bank branches and new rules for banks’ financial contract loss coverage. Urban Co-op Banking Reform: Amit Shah urged India’s urban cooperative banks to modernize tech, boost transparency, and join NUCFDC for support as RBI resumes licensing. Market Mood: Bitcoin ETFs logged a strong week with record inflows, while Japan’s top banks boosted foreign-currency liquidity buffers amid Iran-related dollar funding worries.