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RETAIL BANKING | Staff Reporter, Singapore
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Weekly Global News Wrap Up: US loan demand dips as SMEs turn to personal funds; Swiss lender BCP halts all business with Iran

And Bank of Nova Scotia’s Q2 earnings smashed analyst expectations.

From AP via CNBC: Fewer small employers sought loans and other financing toward the end of last year as many companies dealt with fiscal challenges.

That's the finding of a survey of more than 8,100 companies released last week by the 12 regional Federal Reserve Banks. The survey showed that demand for financing fell, with 40 percent of companies seeking funding, down from 45 percent a year earlier. Not surprisingly, many companies with financial challenges, 67 percent, turned to personal funds to help relieve a cash crunch — they likely believed they'd be rejected if they applied for loans.

From Reuters: Swiss lender Banque de Commerce et de Placements (BCP) has suspended new transactions with Iran and is winding down Iran-related activities after U.S. President Donald Trump pulled out of the nuclear deal with Tehran.

"We have suspended any new transaction related to Iran after May 8, 2018 and started the 'wind down period' within the framework of OFAC announcement," BCP said in a emailed statement to Reuters, referring to the U.S. Treasury's sanctions enforcement arm.

From Bloomberg: Canada’s most global bank, Bank of Nova Scotia saw profit from its overseas unit jump 13 percent to C$745 million ($573 million), extending its record for a second quarter. The contributions, along with gains in Canadian banking, helped the Toronto-based bank company post overall profit that beat analysts’ estimates. Latin America accounted for 60 percent of international banking earnings in the quarter ended April 30.

This month, Scotiabank agreed to buy 51 percent of the credit card and consumer loan business of Peruvian retailer Cencosud Peru for C$130 million, making Scotiabank the second-largest credit card issuer in the South American nation.

“Recently announced acquisitions in Chile, Colombia and Peru -- all expected to close in the second half of the year -- will further grow our customer base and improve our presence in the Pacific Alliance region," CEO Brian Porter said.

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