AGP Executive Report

Banking Regulation: Trump regulators propose an overhaul of the “weaponized” Community Reinvestment Act, aiming to refocus lending and stop community-development funds being diverted to advocacy groups. Deposit & Funding Pressure: India’s RBI data shows banks lifted fresh term-deposit rates in June as credit growth outpaced deposits, while South Africa’s SARB says it won’t bring non-bank shareholders into PayInc, keeping it as a payment utility. Banking Operations: CFSB plans two new branches in Paducah, expanding frontline teller and drive-thru capacity. Consumer Banking Rules: August brings multiple finance changes, including updates to banking rules and CKYC 2.0, plus the next ITR deadlines for certain taxpayers. Private Banking/Wealth: Societe Generale and NatWest report higher private banking and wealth profits, with NatWest citing AuM boosts. Digital Finance & Fintech: Kredivo Vietnam and Dien May Xanh deepen embedded BNPL and cash lending across retail channels. Crypto Market Watch: Bitcoin faces a choppy August as traders weigh macro cues and ETF flows, while Russia expands crypto mining restrictions around Moscow.

Fair-Lending Overhaul (US): The Trump administration, via the OCC and FDIC, has proposed major Community Reinvestment Act rule changes, aiming to reduce the number of banks fully subject to compliance while tightening how “community development” grants are shown to benefit targeted areas. Deposit Pricing Rules (India): The RBI will let banks offer differential interest on bulk deposits from Oct. 1, tied to liquidity risk under the LCR framework, while keeping uniform rates for similarly placed depositors and adding more disclosure. Crypto Regulation Push (US): Circle secured a limited-purpose trust charter from NYDFS for Circle New York Trust, adding state oversight for USDC-related custody/asset services after its federal trust-bank approval. Crypto Consumer Crackdown (US): New York sued prediction-market Kalshi, arguing it operates sports/event wagering without a gaming license. Mortgage Cooling (US): Mortgage applications fell 6.4% for the week ending July 24 as higher rates hit both purchases and refinancing. Banking Cyber/Crime (India): Police in Khammam arrested a gang that made fake gold, pledged it to banks/finance firms for loans, and defrauded a Hyderabad gold buyer. Banking Tech (UK): Lloyds says AI will support every customer interaction by 2030 as it targets further cost cuts and productivity gains. Private Banking (UK/France): NatWest’s private banking/wealth arm lifted operating profit on Evelyn Partners momentum, while Societe Generale reported stronger private banking inflows and AuM growth.

Regulatory Pressure on Lending: The OCC and FDIC backed an Oregon law challenge, warning it could disrupt interstate lending by forcing banks to navigate conflicting state caps. Deposit Pricing Rules: India’s RBI will require uniform fixed-deposit rates across branches for the same amount on the same day from Oct 1, aiming to curb pricing gaps and boost transparency. Credit Outlook in Asia: Philippines banks broadly expect stable lending standards in Q3 2026, with most lenders keeping business and household criteria unchanged despite lingering regional risks. HSBC Exit From Retail Australia: HSBC will wind down Australian retail banking after selling its home and personal loan portfolio to Blackstone, with private and institutional banking continuing. Dealmaking in Financial Services: CBIZ will be spun off and backed by private equity after a $5B Grant Thornton acquisition deal. Cash Logistics in Korea: As Korea goes cashless, banks are stuck managing coin-heavy vaults, adding sorting and transport burdens. Fintech Banking Expansion: Increase, a fintech, launched a bank charter after acquiring Twin City Bancorp, positioning itself as a regulated partner for other fintechs. AI in Banking Innovation: Alpha Bank opened FinQuest 2026, inviting European startups to build AI-led banking, fraud prevention, and digital trust solutions. Credit Risk Watch: India’s CIBIL flags rising over-leveraged borrowers and slowing growth in new-to-credit customers, signaling tougher next-phase credit expansion.

Philippines Impeachment Paperwork: Senate impeachment court set time slots for subpoenaed banks and the AMLC to hand over VP Sara Duterte’s peso-denominated bank records, with some banks requesting extra days for remaining documents. Bank Earnings Watch: RCBC reported first-half net income down 22.5% to P4.11B as it boosted credit impairment provisions amid geopolitical uncertainty, even as lending and net interest income rose. Central Bank Move: Bangladesh Bank cut its repo rate by 50 bps to 9.5% and reduced the standing lending facility to 11%, marking the first policy easing in six years. RBI Deposit Rules: India’s RBI said deposit interest rates, including on bulk deposits, must be uniform across branches and customers, with limited flexibility tied to liquidity run-off factors. AI for Banking in India: BHASHINI and PNB signed an MoU to roll out multilingual AI voice/text banking across PNB’s digital channels. EU AI Infrastructure Push: The European Commission opened applications for up to seven AI “gigafactories” backed by €10bn public funding, aiming to cut Europe’s dependence on external AI compute. Market Signals: Qatar’s QSE ended the week down 1.11%, while Philippine banks expect stable lending standards in Q3, per the BSP survey.

Philippines AML/Impeachment: Subpoenaed banks and the AMLC were ordered to hand over Vice President Sara Duterte’s peso-denominated bank records to the Senate impeachment court in scheduled time slots, with AMLC materials first reviewed privately by teams. Mortgage Pressure: Australia’s NAB flagged a 15% drop in home-loan applications in the June quarter, adding to signs of cooling housing demand and setting up a likely mortgage pricing war among big lenders. Digital Banking Onboarding: BPI says National ID-linked account opening is now easier—customers can verify via live selfie in the mobile app, boosting completed applications by about 50%. Banking Cybersecurity: Bank of Baroda’s alleged data breach surfaced on the dark web, raising fresh alarm over leaked KYC documents and the fraud risks that come with ready-made identity kits. Payments & Stablecoins: MiFinity launched PayAnyCoin for enterprise global payouts using stablecoins, enabled by BVNK infrastructure, aiming for faster 24/7 settlement via a single API. Customer Alerts Policy: Pakistan’s SBP clarified SMS banking alerts are optional and provided only with consent as banks shift toward app push and email notifications. Banking Expansion (MENA): Commercial Bank of Dubai rolled out CBD Invest inside its mobile app, targeting affluent clients with consolidated “wealth 360” views and US equity/ETF trading. Workplace/Compliance: A London tribunal ordered Goldman Sachs to pay £1.45m to a former senior compliance officer over sex discrimination and unfair dismissal tied to parental leave. Retail Banking Access (UK): Harborne in Birmingham opened a shared “banking hub” to replace lost high-street branches, offering cash, deposits, bill pay, and advice with community bankers on set days.

Bangladesh Banking Policy: Bangladesh Bank told lenders to hold back incentive packages unless borrowers first withdraw lawsuits against the government, the central bank, or the banks—aimed at cutting litigation and speeding credit to priority sectors. Cross-Border Payments: BB also cleared a framework for local banks to partner with foreign digital payment and money-transfer providers (including PayPal and Payoneer) to move remittances and freelancer payments more transparently. Maritime Banking Deal: Standard Chartered Bangladesh signed an MoU with the Bangladesh Merchant Marine Officers’ Association to offer mariners priority banking, preferential lending rates, fee waivers, and cashback. UK Consumer Watchdog: The UK CMA opened an investigation into whether Microsoft misled customers about Microsoft 365 subscription renewals and Copilot-related price changes. UBS Capital Return: UBS reported stronger-than-expected results, flagged healthy client activity, and announced a $3bn buyback as AI stock jitters fade but geopolitics stays a risk. Stablecoin IP Move: Circle acquired nearly 1,000 IBM blockchain patents, a potential new lever for stablecoin competition with banks. Gold Loan Outlook: ICRA said organised gold loans could top Rs 30 lakh crore by March 2028, with NBFCs needing tighter risk controls as competition rises. Agentic Commerce Payments: A new push in agentic commerce highlights a near-term cards-first reality, but warns banks that ignoring local payment rails could slow growth.

Banking Regulation: India’s Delhi High Court has ordered the winding up of Paytm Payments Bank after RBI cancelled its licence for non-compliance, with a liquidator appointed to take over. UPI Privacy: NPCI is pushing UPI apps and banks to mask users’ phone numbers on payments, with a September 4 deadline to reduce privacy exposure. Wealth Tech: OCBC’s Bank of Singapore is rolling out agentic AI to cut wealth client onboarding to 15 business days, with expansion planned across regions and into OCBC’s premier segment. Banking Performance: Deutsche Bank reported Q2 profit up 10% as investment banking strength offset higher costs, while Standard Chartered posted a 9% jump in first-half pretax profit and announced a $1bn buyback. India Banking Costs: India’s Finance Ministry said private banks collected ₹4,948.71 crore in FY26 minimum-balance penalties versus ₹2,137.92 crore for PSBs, reigniting debate over charges. Cyber & AI Risk: Singapore’s MAS formed a task force with banks to tackle AI-driven cyber threats and quantum risks, aiming for guidance and defensive trials. Regional Finance Links: Pacific Islands Forum advanced work on correspondent banking and a payments mechanism roadmap to improve connectivity and AML/CFT support. Energy Finance: Saudi Energy secured a SAR15.8bn (about $4.1bn) shariah-compliant murabaha facility from seven Saudi banks for seven years.

Banking Sector Watch: S&P Global cut Bangladesh’s long-term outlook to negative, citing persistent banking weakness plus fiscal and external headwinds tied to energy and trade. Consumer Banking Accountability: Australia’s ASIC says mortgage offset-account failures left borrowers paying over $55m in compensation, including cases where offsets weren’t linked to loans. Digital Banking & Awards: Qatar’s QNB won “Best Digital Bank” and “Best for Product Marketing” at MEED MENA Banking Excellence Awards, citing 60+ digital features and higher digital transactions. Cybersecurity Push: Singapore’s MAS and banks formed an AI-Driven Cyber and Technology Risk Taskforce with DBS, OCBC and UOB to strengthen defenses and guidance against AI-enabled attacks. Market Structure: Malaysia’s EPF chief backs expanding the FBM KLCI beyond 30 constituents to reduce banking concentration in the benchmark. Local Banking Expansion: Bangladesh’s IFIC Bank opened a new ATM booth in Shewrapara, part of plans to install 150+ ATMs this year. Banking Liquidity Snapshot: UAE central bank data showed May 2026 gross bank assets up 1.1% to Dh5.633tn and credit up 0.5% to Dh2.733tn. Public Banking Angle: A Vermont public-banking event will feature the Bank of North Dakota’s president on how state-owned banking supports farms, disaster recovery and community development.

Banking Data Breach Watch: Bank of Baroda confirmed an employee email compromise and says core banking systems are secure, while RBI scrutiny and possible penalties loom depending on a forensic probe. Payments Resilience: A report on UPI’s centralized setup highlights recurring outages and questions whether there’s enough redundancy or a regulated fallback plan for a system used by hundreds of millions. Crypto-Regulation Crossroads: The U.S. Senate shelved the crypto Clarity Act, leaving a stablecoin yield truce between banks and crypto in limbo. Digital Banking Expansion: Elon Musk’s X Money is rolling out to all U.S. Premium subscribers, offering FDIC-insured deposits via Cross River Bank and up to 6% yield. Wealth & Trust Compliance: Greater China’s offshore trust scrutiny is intensifying as tax transparency and enforcement rules tighten, pushing families toward more defensible structures. Philippines Banking Growth: Philippine banks’ total assets hit a record P31.13T in June, with loans and investments rising despite external risks. AI in Financial Services: Fikra Ventures and Glimmer are partnering to commercialize enterprise AI for banks across the Gulf, targeting faster fraud and loan processing. Islamic Finance Push: The Philippines SEC and ADB-backed guidelines set new rules for sukuk issuance and disclosure to expand Shari’ah-compliant capital markets. Market Rates Update: South Korea’s lending rates rebounded in June as expectations for further central bank hikes grew.

Branch Upgrades in Kuwait: Gulf Bank reopened a renovated Jahra Cooperative Society branch with a 24/7 interactive teller machine, greener building features, and smart energy controls as part of its 2030 transformation. Digital Banking Push in Kuwait: National Bank of Kuwait highlighted its expanding branch network and rolled out new services including an ITM in London and digital safety deposit boxes in Kuwait. Bangladesh Retail Banking: Mercantile Bank opened a relocated Nayabazar branch in Dhaka, adding modern services for local customers. VAT Drive in Bangladesh: The National Board of Revenue outlined four pillars to hit a Tk 2.57 lakh crore VAT target for FY27, focusing on closing the compliance gap, boosting development spending, and tightening tobacco enforcement. US Sanctions Simplification: The US Treasury removed 84 companies and people from its sanctions lists to reduce compliance burden and keep sanctions focused on serious terrorist financing. Cybersecurity Watch: Bank of Baroda is investigating claims of a reported 1TB data leak after an employee email compromise, with sensitive customer and corporate records allegedly appearing online. EU Market Infrastructure: ESMA authorized EuroCTP to run the consolidated tape for EU shares and ETFs, improving transparency for investors. Banking Sector Performance (Philippines): Philippine banks hit record assets of P31.128tn and posted H1 net profit of P208.39bn, driven mainly by interest income despite trading volatility. AI Hiring Signal (HSBC): HSBC plans new Singapore AI roles to support a Global AI Centre of Excellence focused on wealth, payments, and governance. Legal Risk for Banks: A former JPMorgan banker expanded a lawsuit alleging racism and sexual coercion, saying the bank’s conduct irreparably damaged his career.

Bridge Finance & AI Investment: SoftBank secured a $40B unsecured bridge loan with 21 lenders to fund a $30B follow-on investment in OpenAI via Vision Fund 2, with tranches scheduled through the year. Banking Competition: Australia’s APRA greenlight for Revolut to become a bank is framed as a new threat to big banks, raising the stakes for digital-first pricing and payments. Credit Tightening in Europe: The ECB says euro-area banks tightened lending standards again in Q2, especially for households, with firms facing trade-policy uncertainty. Home Loan Pressure in NZ: Westpac became the first mover to lift fixed home loan rates after wholesale jumps, while affordability is increasingly driven by rates and incomes rather than prices. Deposit Protection Debate (Zimbabwe): Stakeholders urged stronger safeguards so deposit protection keeps savings value, pays interest, and reimburses at prevailing exchange rates in bank failures. Consumer Banking Access (Australia): The ACCC re-authorised banks’ Banking Code collaboration to expand low- and no-fee accounts and suspend default interest on drought/disaster agricultural loans. Wealth Management Hiring (Asia): RBC Wealth Management added six senior private bankers across Hong Kong and Singapore to expand advisory coverage. Cyber & Fraud Risks: Antigua and Barbuda plans a national incident response team to coordinate defenses for banks and critical infrastructure, while North Korea-linked hackers target crypto holders via fake Zoom/Teams calls. ATM Security (India): Despite tighter ATM security, gangs reportedly continue uprooting cash-loaded machines across Rayalaseema.

Bangladesh Banking Oversight: Bangladesh Bank ordered scheduled banks to clear staff disciplinary cases within two months, extending the earlier one-month rule to reduce career uncertainty and speed staff mobility. Bangladesh HR Compliance: The same directive aligns bank HR timelines with the Bangladesh Labour Rules, 2015, and keeps other recruitment and release requirements intact. Bangladesh Bank Costs & Facilities: BB also issued new guidelines on bank business centres, including higher spending ceilings for new and relocated centres and board-level approval for airport lounges, with sanctions for breaches. Cyber & Scam Risk: Summer fraud is surging, with experts warning about urgent “bank account blocked” SMS lures that push victims to fake login pages and then steal OTPs. Crypto Exchange Fallout: BitMart will wind down its trading platform, halting new registrations and deposits immediately, ending spot and futures services by Aug 26, and fully closing by Jan 2027. U.S. Market Rules: The CFTC warned prediction markets not to use broad template-style contract certifications, stressing proper event-by-event terms and settlement methodology. Regional Payments Upgrade: Albania’s banks will enable instant account-to-account transfers 24/7 from November using euro-area TIPS tech, with low fees for small payments. Turkey Rate Pressure: Oil prices and the Iran war are keeping Turkey’s effective funding rates elevated despite hopes for a cut.

Cybersecurity & Consumer Protection: Hyderabad Police Commissioner VC Sajjanar warned Indiramma housing scheme applicants about cyber fraud using fake APKs, WhatsApp links and phishing sites, stressing there’s no broker role and EMD refunds go back to applicants’ original bank accounts. Monetary Policy Watch: Oil surged above $100 a barrel, putting central banks on alert ahead of major rate decisions, with inflation risks tied to energy prices and broader cost pressures. Banking Costs in Focus: Nigeria’s average maximum lending rate fell to 33.16% in June as the CBN kept the policy rate unchanged, though borrowing costs remain high versus last year. Market Pulse (Nigeria): Nigeria’s equities extended gains on banking-led buying, adding about ₦2.53tn to investor wealth, with financial services dominating turnover. Crypto & Financial Infrastructure: Coinbase outlined a plan for Bitcoin “quantum security” via a post-quantum key management effort, while Sberbank said it will launch regulated crypto depository and trading infrastructure by Dec. 1. Fraud & Enforcement: Pakistan’s FIA recovered Rs 220m from a bank defaulter private firm after a complaint by Habib Metropolitan Bank. Retail Banking Access: India’s banks remain closed on Sunday, 26 July, with online services and ATMs still operating.

Rate Watch: Bank of Maharashtra revised MCLR effective July 25, cutting overnight to 7.30% while nudging six-month to 8.90% and one-year to 9.00%, a key benchmark for home and auto loans. Earnings Pulse: IDFC FIRST Bank reported record Q1 FY27 PAT of ₹1,075 crore (+132% YoY) as NIM and efficiency improved, while AU Small Finance Bank posted ₹796 crore (+37% YoY) with advances up 23%. Wealth & Credit Growth: Prudent Corporate Advisory’s Q1 FY27 PAT jumped 44.4% to ₹74.8 crore, and SBFC Finance’s PAT rose 28.97% to ₹130.1 crore on stronger loan book momentum. Deposit & Risk Signals: Bangladesh Bank flagged a sharp rise in classified loan accounts to 45.83 lakh by March 2026, warning of retail-level deterioration. Fraud & Scams: An Ahmedabad CFO lost ₹81,700 to a crypto scam routed via a matrimonial app, and a separate report warned of SMS-based scams surging 146% as fraudsters target higher-value transactions. Tech in Banking: UK’s FCA said Anthropic will join its “supercharged sandbox” to help firms test AI for payments, fraud detection, and compliance.

US Crypto Policy Push: Fidelity, a ~$7T asset manager, urged the US Senate to pass the updated CLARITY Act to set clearer crypto market rules and boost institutional confidence. Regulatory Oversight: The CFTC warned prediction market platforms against “boilerplate” self-certifications that bundle unrelated event contracts, tightening how compliance is reviewed. UK Savings Competition: UK banks and fintechs are pushing savers with higher rates, with easy-access accounts now advertised up to ~8% as competition heats up. India Banking & Capital Markets: ICICI Bank’s inaugural $1B dollar bond sale via GIFT City was upsized from $500M and priced tighter after strong demand, signaling renewed appetite for overseas funding by Indian lenders. Bank Earnings Roundup (India): Bank of India reported Q1 FY27 net profit up 36% to ₹3,068 crore on improved asset quality; DCB Bank’s Q1 FY27 PAT rose 35.5% to ₹213 crore; SBI Cards’ Q1 FY27 profit grew 20% to ₹664 crore. Power Sector Finance: REC Limited posted Q1 FY27 consolidated PAT of ~₹4,193 crore, with total comprehensive income surging to ~₹7,440 crore.

UK Aid Cuts: The UK is set to slash aid spending by about £6.5bn from its 2023 peak to a historic low in 2027-28, with watchdog ICAI warning the government hasn’t shown a clear path back to 0.7% of GNI. Zimbabwe Energy Push: Zimbabwe is seeking over US$9bn for energy expansion, leaning on private capital to cut power shortages and speed grid and renewables upgrades. Mining Finance: Mutapa Gold secured a US$125m syndicated loan from local banks to fund expansion at Shamva Hill and Jena mines, a sign of renewed lender appetite. Banking Regulation & Deposits: The EU’s EBA opened consultations to strengthen depositor protection rules, while Wise was denied a US banking licence over anti-money laundering and legal-knowledge gaps. Crypto & Payments Infrastructure: Western Alliance Bank launched WA VenueX for 24/7 USD liquidity and regulated digital-asset settlement; Eurex Clearing is using DLT to mobilize collateral faster. Rates & Consumer Banking: Northern Nevada bankers say higher rates remain “sticky,” keeping borrowing costs elevated. Corporate Finance: ICICI priced a $1bn five-year dollar bond at a tighter spread than guided, reflecting demand for Indian bank funding. Fraud & Scams: Westpac warned AI is fueling an “arms race” in scams as banks ramp up fraud prevention.