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ABA Newsletter August 2020 Table of Contents ABA Announcements ....................................................................................................................................................... 3 New Dates for the 37th ABA General Meeting and Conference ABA Policy Advocacy Committee to Meet Online in November 2020 Training and Education .................................................................................................................................................. 4 ABA successfully holds first-ever webinar Webinar on Fine-tuning AML Transaction Monitoring draws record-breaking attendance Fintelekt webinar on “Optimising AML Screening” scheduled for September 9 ABA to conduct webinar on “Strengthening Cybersecurity Preparedness for Banks” News Updates ..................................................................................................................................................................... 7 Global Banks Look to Taiwan Expansion in Shift Away from Hong Kong Riyadh hosts G20 talks on debt crisis, virus recovery Taiwan President vows to liberalize finance rules Asia-Pacific region banks at crossroads: Moody’s Financial Services Industry sees Silver Lining of COVID-19: Survey RBNZ Expands Bond Purchases to Aid Recovery as COVID Returns Aging Economies May Benefit Less from Fiscal Stimulus: IMF COVID-19 highlights need for digitizing and automating trade in South Asia Special Features ............................................................................................................................................................... 15 The Credit Risk Systems of Most Banks Are Not Fit for Purpose How Well Have Central Banks Performed in This Crisis? Among Member Banks ................................................................................................................................................... 19 BEA China Appoints Montgomery Ho Shun-wah as Executive Director & Chief Executive State Bank of India Profit Surges 81% In June Quarter MUFG Bank and Liquidity Capital Establish Joint Venture Debt Fund in Singapore Mizuho signs a business cooperation agreement with Thailand-based TISCO Financial Group SMBC joins blockchain platforms Contour, Komgo for trade finance Korea Development Bank to open venture capital in Silicon Valley to back Korean startups KEB Hana Bank & Korea Expressway to Facilitate Blockchain Powered Toll Payments Maybank offers repayment aid package via three easy channels 1 ABA Newsletter August 2020 Table of Contents PNB sustains strong core income growth in first half of 2020, continues to boost loan reserves RCBC posts P800-M net income in 2nd quarter Doha Bank Donates QAR 300,000 to Help Victims of Beirut Explosion IBEC Supports Development of Insurance Business in the Markets of Member States DBS supports IRAS in digital payment implementation 39th UOB Painting of the Year launched in solidarity with ASEAN artists HNB partners with Browns Agriculture for offers on agricultural equipment Bank SinoPac says profit at HK branch down 10% CTBC video tells story of Taiwan Hua Nan eyeing renewal projects Mega says profitability at HK branch may decrease Taishin to buy Prudential Life Insurance for NT$5.5 billion Bangkok Bank and Thammasat University to develop app for a cashless campus Banking and Finance Newsbriefs .............................................................................................................................. 29 Digital yuan to be tested in HK’s Greater Bay Area RBI bans routing of term loans via current accounts Iran Considers Allowing Public to Invest in Oil Japan’s economy shrinks at same pace in first quarter as capital expenditures hold up South Korea enters recession as exports plunge by most since 1963 Malaysian Banks have enough capacity to extend moratorium Banks to mobilize staff on rotational basis as govt tightens containment measures Philippine central bank joins global central banking group promoting ‘green’ finance Singapore warns of more banking job losses in H2 Taiwan central bank raises SME loan program cap Thailand Picks Ex-Banker as Finance Chief to Fight Crisis Uzbekistan to cut budget spending to create reserve fund for combating COVID-19 Vietnam commercial banks cut home loan interest rates Publications ..................................................................................................................................................................... 36 COVID-19 Impact on International Migration, Remittances, and Recipient Households in Developing Asia Azerbaijan: Moving Toward More Diversified, Resilient, and Inclusive Development The Political Economy of the G20 Agenda on Financial Regulation Financing SMEs and Entrepreneurs 2020 2 ABA Newsletter August 2020 ABA Announcements New Dates for the 37th ABA General Meeting and Conference ABA was advised by Hatton National Bank, the host organization, that the proposed Conference venue - Jetwing Blue Hotel (www.jetwinghotels.com/ jetwingblue/) is not available on those dates. As such, the dates have been moved oneABA weekoffers later its in ordersincerest to accommodate the venue’s availability. apologies for any inconvenience this (ABA) has announced new dates for may have caused. the 37thThe ABA Asian General Bankers Meeting Association and relevant Regularinformation updates as they onbecome the Conference preparations and other Conference, which will now be held available. In the meantime, questions from August 26 to 27, 2021 in Negombo, may be directed to the ABA Secretariat. Sri Lanka. The conference was originally scheduled for August 19 to 20, but ABA Policy Advocacy Committee to Meet Online in November 2020 An online meeting of the ABA Policy Advocacy 2020Committee even willas thestill 37thtake ABAplace onGeneral November Meeting 13, and Conference has been managing challenges associated with digital transformation postponed to August ABA Conferences, the Policy Advocacy 2021 due to the ongoing Covid-19 Committee will take up a number of duringpandemic. his This earlier was thevideoconference decision made position papers focusing on specific b. Paper on promoting cooperation by ABA Chairman Mr. Jonathan Alles policy issues to be presented by in crisis and disaster preparedness selected member banks for discussion. and recovery. with Mr. Dilshan Rodrigo, Chairman of A total of six position papers have been c. institutionsPaper on promoting in achieving cooperation the UN the ABA Policy Advocacy Committee, lined up for consideration, including among banks and financial and the ABA Secretariat the following: As in its previous meetings a. Paper on promoting cooperation Sustainable Development Goals held in conjunction with the annual among member banks in (SDGs) 3 ABA Newsletter August 2020 ABA Announcements efforts in collaborating with Detailed agenda and d. Paper on promoting cooperation f. Paper on promoting cooperation otheronline meetingrelevant ininformation November. on the in cyber security management. Fintech companies Copies of the above-mentioned sent to all members as soon as these e. Paper exploring the LIBOR papers will be circulated to members Committee’s online meeting will be transition after 2021 and its in advance for preliminary review and implications for member banks comments prior to the Committee’s are available. Training and Education ABA successfully holds first-ever webinar ChairmanDirector ofand the ABACEO of Hatton • National Bank from Sri Lanka and Mr. Mostafa Beheshti Rouy, Board • member of Bank Pasargad from Iran, and ABA Board member Dr. Lin Chien-Fu, Chief Economist • of CTBC Financial Holding from Taiwan Mr. Oliver Hoffmann, Managing AustriaDirector, and Head ABA of Board Asia, Erste member Group Bank AG, Hong Kong Branch, from Clockwise from top left: Mr. Oliver Hoffman, Mr. Dilshan Rodrigo, Mr. Mostafa Beheshti Rouy, Dr. Lin Chien-Fu, and Mr. Jonathan Alles The presentations by the speakers aimed to provide participants with the opportunity to explore what The Asian Bankers Association discussed the negative impact of the the new normal might look like and (ABA) successfully held its first-ever COVID-19 pandemic on their respective prepare for it; specifically, how to better webinar last July 29, 2020, with over byeconomies their governments and organizations, to mitigate along the understand the current landscape they 450 registered participants from 15 with the actions taken by them and are operating in, and what must be countries joining the virtual conference the measures that are currently being done to resumeFor those operations who missedand achieve the on “Managing Business Continuity and business disruption. They also shared business recovery. Recovery During Covid-19 and Beyond.” Moderated by Dilshan Rodrigo, set in place as part of efforts to put onwebinar the orABA simply website wish to revisit it, the Chief Operating Officer of Hatton the economy and the banking industry complete video recording is available National Bank and Chairman of the back on the road to recovery. , along with a ABA Policy Advocacy Committee, the • The four webinar speakers forsummary download report. here Presentation PDFs for webinar featured representatives were: two of the speakers are also available from four ABA member banks who Mr. Jonathan Alles, Managing . 4 ABA Newsletter August 2020 Training and Education Webinar on Fine-tuning AML Transaction Monitoring draws record- breaking attendance of the survey in The use of technology August 5 webinar is2016). correlatedGreater