Daily Dispatches – Chinese banks’ Rmb100 billion equity bonanza
Return on equity, which measures profit generated with shareholders’ funds, may fall below 10% in the year to March for banks from last year’s 12.8%, according to said Vibha Batra, co-head of financial-sector ratings in New Delhi at a unit of Moody’s Investors Service. India’s banking index, which tracks lenders including State Bank of India, has lost 20% since July 15 following liquidity tightening measures from the central bank, which caused interbank rates to surge to a 17-month high last week. Those steps may drive up the risk of defaults in an economy that expanded last year at the weakest pace in a decade. Goldman four put on ‘administrative leave’
The Financial Times reports that Goldman Sachs has put four senior technology specialists on leave after a trading glitch last week, that sent markets into turmoil, is likely to cost the bank tens of millions of dollars.
The trading problem has been blamed on a systems upgrade going awry. Foreign banks review hiring in China Finance Asia says that at least two foreign banks have started reviewing their hiring policies following the Securities and Exchange Commission’s probe into JPMorgan’s hiring of two employees from powerful Chinese families. Two Europe-based banks, not named by Finance Asia, are drawing up lists of staff who may have significant connections following a request from top management. New SocGen sukuk for Malaysia Societe Generale is planning a 1-billion ringgit (US$300 million) Islamic bond program in Malaysia, according to a Reuters report published by Ahram Online. The first tranche of the sukuk is set to be issued by the year end. Global sukuk issuance grew 54% to US$131.2 billion last year, with Malaysia accounting for 74% of primary market issuances. New capital markets head for OCBC
The Asset says that OCBC Bank has appointed Tan Kee Phong as head of capital markets. Prior to joining OCBC Bank, he was the head of capital markets, Singapore, at Standard Chartered Bank. He also worked at Citicorp Investment Bank (Singapore) for 16 years providing debt capital market and corporate finance advice and solutions.