This week in banking: PAO Bank assets surge, Malaysia upgraded by FATF, global bank values climb, HK deposits rise

A new cross-border payment partnership has also been formed.

The banking and finance industry from 5 to 9 January saw strong balance sheet growth, regulatory upgrades, rising deposits, and higher global bank valuations over the past week.

PAO Bank Limited said its total assets more than doubled year on year as of end-November 2025, supported by continued business expansion and a fresh capital injection from its shareholder, Lufax Holding Ltd. 

The digital bank received $64.2m (HK$500m) in new capital from Lufax, bringing Lufax’s total investment in PAObank to $89.9m (HK$700m) since 2025. 

Malaysia has been placed under Regular Follow-Up, the highest category in the Financial Action Task Force (FATF) mutual evaluation process, following the release of its latest Mutual Evaluation Report by FATF and the Asia/Pacific Group on Money Laundering. 

The upgrade from Malaysia’s 2015 assessment reflects stronger technical compliance and improved effectiveness in tackling money laundering, terrorism financing and proliferation financing. 

Deposits with authorised institutions in Hong Kong increased in November 2025, whilst lending remained broadly flat, according to monetary statistics released by the Hong Kong Monetary Authority (HKMA). 

The HKMA said total deposits rose 0.7% in November. Hong Kong dollar deposits increased 0.2%, whilst foreign currency deposits rose 1.1%. Over the 12 months to end-November, total deposits increased 10.5%, with Hong Kong dollar deposits up 3.4%. 

The combined market value of the world’s 25 biggest banks rose 35.8% year on year to $6.1t by the end of the fourth quarter on 31 December 2025 (Q4 2025), according to data from GlobalData. The increase was seen across North America, Europe and parts of Asia, supported by steady earnings, interest rates staying higher for longer and stronger investor demand for bank stocks. 

CIMB Bank Berhad and CIMB Islamic Bank Berhad have entered a strategic collaboration with Weixin Pay to enable Malaysian merchants to engage and transact with Chinese consumers through a dedicated Weixin Mini Program, strengthening cross-border payment capabilities ahead of peak inbound travel periods.