AGP Executive Report

Philippines Banking Relief: The BSP let banks temporarily exclude net unrealized losses on peso government securities from capital calculations after Middle East conflict pressures yields, easing pressure on CAR and CET1. UK Crypto Rules Shift: The Bank of England backed off strict stablecoin consumer holding limits and moved to a £40bn systemic stablecoin issuance cap, while tightening reserve and reward rules. Stablecoin Infrastructure Deal: MoonPay acquired Entendre to add AI accounting agents for reconciliation, treasury and close workflows, extending stablecoin payments infrastructure into finance ops. CBI Crackdown on Bank Fraud: India’s CBI arrested former RCFL and RHFL CEOs over an alleged Rs 7,623 crore fraud tied to loans to intermediary and conduit firms, with losses to multiple public sector banks. AI Governance Warning: A Financial Stability Board consultation said banks can’t fully monitor agentic AI in real time as it may take hundreds of steps and errors can surface late. Payments Expansion: Revolut says its South Africa launch is targeted for 2028, with a waitlist nearing 100,000 registrations. Banking Access Push (UK): A fund will support “banking deserts” fixes in North Yorkshire, including a shared banking hub offering cash withdrawals, deposits and face-to-face services. Solana Validator Move: MoneyGram joined Solana as a validator and on the Solana Developer Platform, deepening its stablecoin and blockchain payments push.

Central Banking Relief: The Bangko Sentral ng Pilipinas (BSP) will temporarily waive mark-to-market rules for peso government securities held to maturity, giving banks time to absorb bond-yield shocks from the Middle East conflict without immediate capital hits. Retail Banking Access: Thatcham (UK) reopened a community Banking Hub with cash deposits/withdrawals and bill payments, staffed by multiple bank partners on rotating days. Digital Payments Security: Philippines’ GCash moved to in-app OTPs nationwide to replace SMS codes, aiming to cut interception and phishing risks. Egypt Lending Rules: Egypt’s central bank barred banks from financing company formation, capital increases, and dividend distributions, tightening oversight of lending purpose. Banking Expansion: Papua New Guinea’s Wau-Waria gained formal banking via a Mama Bank access point with eftpos and ATMs. Banking Tech & Platforms: PNB enabled Google Pay for its Mastercard credit cards, using tokenisation for safer tap-and-pay. Markets & Stocks: India’s banking stocks were mixed on June 22, with DCB Bank and IDBI Bank among top gainers. Crypto-Banking Friction: A US community-bank group asked the Kansas City Fed to review Kraken’s limited-purpose Fed account ahead of renewal, raising the stakes for crypto firms’ direct payment access.

RBI Policy Update: India’s central bank has issued revised Lead Bank Scheme guidelines after a public review, aiming to tighten district-level credit planning, boost priority-sector lending, and deepen financial inclusion. Cyber & Fraud Response: Telangana’s Lok Adalat helped refund Rs 45.21 crore to 6,303 cyber-fraud victims, highlighting faster restitution for UPI frauds and investment scams through coordination among banks, police, and courts. Crypto Derivatives Regulation: CME Group has sued the CFTC over its approval of competitor crypto perpetual futures, arguing the regulator exceeded its authority—while Kraken prepares to launch CFTC-regulated perpetuals in the US within 30 days. Stablecoin Oversight: US agencies proposed rules that would effectively treat stablecoin issuers like banks, adding AML/sanctions programs and reporting duties that could raise barriers for smaller players. Market Watch: Wells Fargo lifted its S&P 500 2026 target to 7,950, citing easing macro/geopolitical risks and improved earnings outlook. Banking Security Tip: Banks County Sheriff’s Office warned residents about rising mail check fraud and urged safer check mailing practices.

Banking M&A: North Shore Bank is set to buy PyraMax Bank’s owner in a deal valued at about $95 million, signaling continued consolidation in regional banking. Central Banking & Markets: Azerbaijan is preparing its first sukuk issuance, a major step to broaden its capital markets and deepen Islamic finance. Household Credit: South Korea’s major banks saw household lending rise in Q2, driven by stock-investment credit and mortgage demand. Policy Pressure on Banks: Korea’s inclusive-finance push is driving a surge in debt restructurings, with lenders expanding support for long-delinquent borrowers. Payments & Data Rules: Nigeria’s telecom operators back CBN’s plan to localize payment transaction data onshore, aimed at tighter oversight of digital payments. Regulatory Crackdown: Sri Lanka tightens controls on import-related remittances, requiring real-time reporting to customs and pre-registration for advance payments. Operational Disruption: Bank of America customers reported a major digital outage, leaving some unable to access online/mobile banking. Inclusion at the Edge: J&K Bank commissioned a new Easy Banking Unit in Poonch to expand last-mile access to accounts and social schemes. Crypto & Liquidity Watch: Bitcoin traders eye key resistance around $64,100 as market momentum remains fragile.

RBI Crackdown on Mis-selling: India’s central bank tightened rules on how banks and other lenders market and sell products, pushing for clear consent and banning confusing add-ons and manipulative digital sales tactics, with new directions effective Jan 1, 2027. RBI Liquidity & Inclusion Moves: RBI exempted banks from reserve ratios on fresh NRE term deposits (3 years+), and finalized Lead Bank Scheme norms to strengthen district and block-level credit planning for priority sectors. RBI Farm Credit Update: Kisan Credit Card guidelines were finalized with standardized crop-season timelines and a delayed implementation to Jan 1, 2027. Nepal CEO Pay Caps: Nepal Rastra Bank set limits tying bank CEO salary and benefits to institution size and employee costs, aiming to curb excessive compensation. Bangladesh-Swiss Deposit Surge: Swiss National Bank data shows Bangladesh-linked deposits in Swiss banks jumped 41% to CHF 834.16m (about Tk 127.5b), renewing money-laundering concerns. Bangladesh Banking Supervision Boost: Bangladesh Bank, with IFC and FIAS, ran a risk-based supervision workshop to strengthen oversight capacity. Crypto Fraud Warning: FBI Director Kash Patel warned crypto scammers will be tracked and prosecuted as losses keep rising. Banking Sector Tech/Deals: Axis Solutions launched smart EV charging firmware with dynamic load sharing and remote monitoring, while Finastra’s core banking unit is set for acquisition by Pollen Street.

Crypto Enforcement: The CFTC permanently bans Celsius founder Alex Mashinsky from CFTC-regulated trading and registration, closing the regulator’s first crypto-lender case after a fraud guilty plea and a 12-year prison sentence. Capital Markets & Regulation: India’s SEBI reintroduces stock-exchange buybacks from Aug 1, caps the trading period at 66 working days, and tightens conflict-of-interest rules for senior officials. Banking Oversight (India): India’s Supreme Court issues notice on a PIL seeking a probe into alleged Rs 1,500 crore bank fraud and the role of asset reconstruction companies in steeply discounted settlements. Africa Expansion: Absa plans to raise its stake in Absa Bank Kenya to 85% in a R4bn deal, signaling continued South African bank push across East Africa. Cross-Border Funding (India): SBI, Axis Bank, Bank of Baroda and PFC are set to raise at least $2bn via ECBs using RBI swap incentives. Consumer Finance (NZ): A report warns a 6% KiwiSaver member contribution could be excessive for minimum wage earners, potentially worsening pre-retirement hardship. AI Infrastructure: MGX weighs a multibillion-dollar acquisition of Singapore data-center operator DayOne as Gulf-backed investors race to secure AI compute capacity. Retail Banking (US): Redemption Bank launches a debit card for single mothers, funding nonprofit donations from each new account opening.

Regulatory Capital Relief (Canada): OSFI cut the domestic stability buffer to 3% from 3.5%, giving Canada’s six largest banks more room to deploy capital. Digital Banking Rules (Philippines): BSP cleared banks to run digital marketplaces under a new Type A framework, requiring at least three non-affiliated providers and banning gambling services. Fraud/Crime Crackdown (Nigeria): CBN ordered banks and fintechs to disclose ultimate beneficial owners, tightening controls against money laundering, terrorism financing, and hidden ownership. Cyber Disruption (Iran): A limited cyberattack on shared communications hit four Iranian banks, causing simultaneous outages across POS, ATMs, and online/mobile banking. Payments Modernization (Europe): CBI extended Request to Pay to corporates across Italy and SEPA via EBA CLEARING and Nexi, enabling structured payment requests in a few clicks. Stablecoin/Programmable Finance (FV Bank): FV Bank expanded its platform with stablecoin settlement, custody, programmable payments, and cross-border rails, starting with stablecoin invoicing. Holiday Ops (US): Juneteenth closed US stock exchanges and most banks/USPS, while FedEx and UPS kept operating. Market/Tech Finance: ESMA reported on a global CCP fire drill and flagged next steps to reduce fragmentation in procedures and stress testing.

Digital Payments Pricing: The Bangko Sentral ng Pilipinas lifted its fee-hike moratorium for InstaPay and PESONet and ordered cost-based pricing for electronic fund transfers, aiming to make person-to-person transfers cheaper and more transparent. Scam Controls Under Fire: Australia’s ASIC backed a $35m penalty against HSBC over systemic failures in handling customer scams, including slow investigations and weak account-recovery support. India Banking Fraud Probe: India’s CBI arrested a suspended IAS officer in a Rs 79.46 crore case tied to Panchkula Municipal Corporation accounts at IDFC First Bank, alleging siphoning via forged fixed deposits. NSE IPO Push: India’s National Stock Exchange filed draft papers for a roughly ₹30,000 crore IPO via offer-for-sale, with major sellers including SBI and other banks/insurers. Banking Tech & UX: Wing Bank launched “Jib Jib” and refreshed its app/website, while major financial groups keep racing toward all-in-one mobile platforms. Market Liquidity: India’s banking system liquidity fell to a fiscal-year low, pushing money market rates higher. Crypto Regulation & Compliance: Malta’s regulator is exploring how DeFi fits under MiCA, focusing on governance and what “full decentralization” really means.

Monetary Policy Shock: A Reuters report says Iran-war inflation is forcing central banks to tighten, with the Fed under new Chair Kevin Warsh signaling possible rate moves and the BoE debating hikes as credibility risks grow. Basel Capital Rules: Banks are pushing back on a Basel III endgame tweak to the definition of “commitment,” warning it could reshape how wholesale lending books are treated and raise capital and reporting burdens. Cyber & Fraud Alerts: Tripoli authorities warn of fake Facebook pages impersonating banks to steal PINs and OTPs, while the Pontotoc County Sheriff flags pop-up scams spoofing Apple and redirecting victims’ transfers. Banking Sector Reform (Ghana): The Bank of Ghana orders all Rural Banks to transition into Community Banks by Dec. 31, 2026, including rebranding and regulatory alignment. Bangladesh–Switzerland Flows: Bangladeshi deposits in Swiss banks jumped 41% to 834.16m francs (about Tk 12,751cr), raising concerns about capital flight and laundering. Deal & Expansion: MidFirst Bank agreed to buy Dallas Capital Bank, betting on Dallas’ growth and deepening out-of-state bank presence in Texas. Crypto/Stablecoins: Tether will shut down Alloy by Tether and discontinue aUSDT, with redemptions allowed until Sept. 17, 2026.

Fed Watch: The Federal Reserve held rates steady at 3.50%-3.75% under new Chair Kevin Warsh, but revised forecasts higher and signaled inflation risks are still live, nudging risk assets lower and keeping bitcoin under pressure. Crypto Liquidity & Volatility: Ahead of the decision, bitcoin slipped toward $65K while options positioning left much of the market out-of-the-money, raising the odds of sharp swings; XRP also gave back breakout gains below $1.23 on heavy selling. Stablecoin & Exchange Stress: Fidelity and State Street moved deeper into stablecoin reserve management under the GENIUS Act, while CryptoQuant flagged that nearly half of stablecoin supply sits idle on exchanges—suggesting weak market rotation. Banking Tech & Hiring: Major banks are replacing lower-value roles with AI and using automated screening, reshaping entry-level hiring. Regulatory Push in Asia-Pacific: APRA warned banks, insurers and super funds to prepare for geopolitical shocks, while RBI injected Rs 72,300 crore via VRR auctions to ease liquidity strain. AI in Banking Ops: HSBC teamed with Google Cloud to deploy AI across wealth management and financial-crime risk monitoring, aiming to act faster on suspicious activity. Legal/Consumer Protection: In St. Kitts and Nevis, a Privy Council path is opening in a dispute over whether unpaid Social Security contributions can outrank a bank’s secured mortgage interest.

Banking AI & hiring: Bloomberg reports major banks are cutting junior analyst intake and shifting to AI-driven screening, raising concerns for entry-level finance jobs. Bangladesh credit stress: Bangladesh Bank says “distress assets” topped Tk 11 lakh crore by end-2025, with gross NPLs at 30.6% and capital ratios deteriorating sharply. Bangladesh media guidance: The central bank urged responsible reporting, warning that “distressed loan” calculations vary and can fuel unnecessary panic. Digital payments expansion: Huntington Bancshares joined The Clearing House’s CHIPS to modernize high-value dollar payments as its merger conversions continue. Central bank digital yuan push: PBOC onboarded 26 institutions to CBETS, a 24/7 cross-border e-CNY network, with Standard Chartered among the first participants. AI compliance tooling: Vivox AI says it’s building AI agents for financial crime compliance to reduce manual review bottlenecks and costs. UK branch strategy: Nationwide confirmed it will keep 696 branches open through 2030, as rivals accelerate closures. MiCA deadline pressure (crypto): BitGo Europe launched BaFin-regulated Crypto-as-a-Service to help firms meet MiCA transition requirements before end-June.

AI Hiring Shift: Bloomberg reports major banks are cutting junior analyst intake and using AI for screening, leaving graduates to prepare for automated interviews instead of human recruiters. EU Banking Rules: The EBA published a plan to simplify the EU banking capital framework, aiming for less complexity without a full redesign. RBI Mis-selling Clampdown: India’s RBI rules bar banks from incentive structures and forced bundling/dark patterns that push unwanted products. Court Limits Account Freezes: Karnataka High Court ruled banks can’t freeze entire accounts beyond the exact amount ordered by investigators. NRI Deposit Push: AU Small Finance Bank and Motilal Oswal upgraded their 3-in-1 account to reduce fund transfers for trading, while banks keep courting FCNR(B) inflows. Crypto Market Moves: Coinbase rolled out a major “System Update” adding an SEC-regulated AI advisor and unified cross-asset trading; Binance faced regulatory scrutiny in Europe. Corporate Finance: Symrise upsized and refinanced its €750m revolving credit facility; Bandhan Bank approved sale of identified housing NPA to ARCs via bidding.

AI Hiring Shift: Bloomberg reports major banks are cutting junior analyst intake while leaning on AI-driven screening, leaving graduates spending hours on automated interviews instead of meeting recruiters. Fraud Response Upgrade (NZ): New Zealand banks recovered about $10m in stolen funds using a Fraud Intelligence Exchange that helps spot mule accounts and freeze money faster. Digital Yuan Expansion: Standard Chartered China joined China’s CBETS cross-border e-CNY transfer services, aiming for 24/7 compliant digital yuan settlement. Nigeria Payments Data Rules: Nigeria’s central bank ordered banks and PSPs to store and manage payment transaction data locally from Jan 1, 2027, and to disclose beneficial ownership. RBI Mis-selling Crackdown (India): RBI tightened rules on mis-selling, banning incentive structures that push aggressive sales and requiring explicit consent before product sales. Oregon Interest-Rate Lawsuit: Trade groups sued to block Oregon’s opt-out of federal interest-rate limits, arguing states can’t set caps on out-of-state bank loans. Juneteenth Bank Closures (US): In Florida, many banks will close for Juneteenth on June 19.

AI Hiring Shake-Up: Major banks are cutting back on junior analyst intake and leaning on AI-driven screening, leaving graduates spending hours on automated interviews instead of human recruiter chats. Regulatory Guardrails: India’s RBI issued final rules tightening incentives and marketing for financial products, banning third-party incentive payments to regulated-entity employees while allowing banks/NBFCs to incentivize their own sales staff; rules take effect from Jan 1, 2027. Mis-selling & Product Sales: RBI also clarified limits on banks’ sale of third-party products and how suitability and customer acknowledgements should work, aiming to curb aggressive sales. NRI Funding Push: India’s Finance Minister said more steps may follow to boost capital inflows, with FCNR(B) deposits and bond-market measures in focus. Banking Sector Moves: Mixed June 16 trading saw Yes Bank up and others gaining modestly. Bangladesh Banking Stability: Bangladesh’s bankers’ association welcomed Bangladesh Bank’s move to dissolve Islami Bank’s board, calling it a stability reset. Community Banking: F&M Bank relaunched its Great Briefcase Hunt, awarding $10,000 total with charity support. Crypto/Payments Watch: FinCEN says banks may share fraud alerts in real time, while RBI tightens mis-selling and marketing incentives.

AI Hiring Shift: Major banks are cutting back on junior analyst intake and leaning on AI screening, leaving graduates to spend hours preparing for automated interviews instead of speaking with recruiters. Regulatory Scrutiny: US lenders face an OCC review over alleged “debanking” tied to religious or political grounds, with potential disciplinary action looming. Crypto Compliance Crackdown: Ghana’s BoG ordered banks and financial firms to stop supporting unauthorised USD wallet services linked to crypto platforms, while Japan’s Bitbank warned it will suspend accounts tied to prediction markets like Polymarket. Gold Reserves: Central banks added 4,335 tonnes of gold since 2022, extending a major accumulation wave that’s reshaping bullion demand. Branch Network Pressure: Lloyds confirmed more UK closures (including Essex sites), as customers keep shifting to mobile and online banking. Fraud & Scams: Nepal Telecom warned of fraudulent SMS impersonating banks and payment systems, urging users not to share OTPs or passwords. Cross-Border Payments: Asia-Pacific cross-border flows could near $24T by 2032, but correspondent rails are shrinking, leaving settlement delays and higher costs. Leadership Moves: Truist named Fiserv CEO Mike Lyons as next president and CEO, starting Sept. 1.

AI Hiring Race: Major banks are cutting junior intake and hiring for senior chief AI officer roles, with leaders warning the job may not last as AI becomes embedded in everyday work. EU Stress Testing: The EBA unveiled a simplified 2027 EU-wide bank stress test, cutting required data points by 55% and adding climate risk for the first time. Nigeria Ring-Fencing: Nigeria’s CBN proposed ring-fencing rules to isolate risks across banks and fintechs, with analysts warning it could force capital raises and restructures. Payments & Cards (Philippines): MariBank launched its first credit card, while UnionBank issued 2 million Visa credit cards and reported strong Visa payment volumes. Scam Fallout (NZ): New Zealand flagged 5,000+ “mule” bank accounts used by scammers, often targeting international students. Crypto & Markets: Bitcoin and Ethereum rebounded on US-Iran peace deal hopes, while traders also weighed a potential BTC crash pattern. Cyber Risk (Iran): A limited cyberattack disrupted services at four Iranian banks, with no data leakage reported. Singapore Gold Push: Singapore plans a dedicated gold-clearing system with major banks and JPMorgan to boost OTC settlement capacity.