News

HSBC will double its network in Hanoi to four outlets, in addition to its headquarters branch in Ho Chi Minh City.

Goldman Sachs Islamic Bank, anyone? It may seem the most unlikely of partners, but new banking liberalisation laws in Malaysia will let foreigners own up to 70 percent of an Islamic bank, up from 49 percent.

If the current economic environment isn’t challenging enough, nightmares of an impending strike from UOB workers in the Singaporean bank’s Indonesian arm UOB Buana have turned into a harsh reality. Not only has the strike affected the bank's operations nationwide, with at least 4,000 out of 5,800 staff taking part in the strike. Talk about biting the hand that feeds you.Thousands of workers of UOB Buana Bank, a local unit of Singapore-based United Overseas Bank Ltd, launched a three-day strike on Monday, disrupting the bank’s operations nationwide. UOB labor union secretary general Endang Sutisna said the strike was launched after the management and workers failed to make a deal during a meeting on Sunday night over the workers’ demands for a pay rise and annual bonus payment. "We have been demanding it since January, but there has not yet been any response from the management, and the last night’s meeting was the climax to the problem," Endang said.He said at least 4,000 workers from 23 branch offices were joining the strike, which was expected to last until Wednesday. Currently, UOB employs 5,800 workers and operates 35 branches nationally. The strike has disrupted the bank’s operation as most of its branches could only provide limited service to customers with a majority of workers going for the strike, reported The Jakarta Post.The management announced in a letter distributed to the bank’s branches on Monday that only some branches in Jakarta, Surabaya, Semarang, Batam, Medan, Bandung, and Palembang were able to provide full services for customers. UOB director for corporate services Safrullah Hadi Saleh said the company had not yet calculated the losses from the strike, but "it would try to minimise the level, while trying to renegotiate with the workers."He said the company had asked the Manpower and Transmigration Ministry to mediate in negotiations. "We will meet again with the workers tomorrow (today) at the ministry’s office," Safrullah said.The meeting will discuss four proposals from the workers, including demands that the management increase workers' salaries by 26 percent and pay the 2008 annual bonus at the same level as in 2007.

How does a cut in your interest rate from 20 percent to 9 percent sound? Not great if you are a Taiwanese bank, which may see the government cap interest rates for unsecured credit and wipeout a quarter of their profits this year.

If the current economic environment isn’t challenging enough, nightmares of an impending strike from UOB workers in the Singaporean bank’s Indonesian arm UOB Buana have turned into a harsh reality. Not only has the strike affected the bank's operations nationwide, with at least 4,000 out of 5,800 staff taking part in the strike. Talk about biting the hand that feeds you.

BNP Paribas Assurance has increased its equity interest in SHC&Life Insurance from 50 percent to 85 percent.

From the Middle East to London, to New York, and now to South Korea.

It may seem the most unlikely of partners, but new banking liberalisation laws in Malaysia will let foreigners own up to 70 percent of an Islamic bank, up from 49 percent. Goldman Sachs Islamic Bank, anyone?

And they almost got away with it. In yet a stunning development, the Hong Kong Monetary authority has identified 102 cases of banks selling anything to anyone, including elderly and mentally impaired. Great for commissions and fee income, not so good for the customers.

It has lost money for two straight months this year, yet Bank of Taiwan plans to start making money by increasing loans at higher interest rates to clients "prone to credit risk". It failed in America, but perhaps Taiwan is different?

The Employees Provident Fund has raised its stake in local banking stocks Alliance Financial Group Bhd, AMMB Holdings Bhd, Bumiputra-Commerce Holdings Bhd (BCHB), EON Capital Bhd, Malayan Banking Bhd, Public Bank Bhd and RHB Capital Bhd.

RBS Coutts launched a private banking initiative tailored specifically for high net worth women in Asia. It will assist women in managing their wealth, as well as a platform to bring like-minded women together to engage in their pursuits.

The Indonesian Banker's Association urged local banks to cut their interest rates to stimulate economic growth. The current central bank interest rate stood at 7.25 percent. A counter rate for a regular current account at Bank Mandiri was at 6.75 percent, while loan interest was over 4 percent higher than the regular account interest.

Bank Rakyat is prepared to extend the loan repayment period of borrowers who have been retrenched. The bank's objective is to ease borrowers' financial burden in these difficult times, but borrowers who have been laid off must make a written appeal, said Managing Director Datuk Kamarulzaman Che Mat.

Four Standard Chartered branches will open for business later and longer. This is part of the bank's overall approach to be available to customers when and where they want to bank through a variety of channels like branch banking, mobile and internet banking.

BNP Paribas Singapore branch was granted a wholesale banking license to widen the services offered locally. With this new license, BNP Paribas Securities Services is now able to offer local and global custody services in addition to the trustee, fund and investment administration services it already provides to its clients in Asia.