AGP Executive Report

Bank Earnings: Commonwealth Bank of Australia’s quarterly profit rose 8% to A$2.8 billion, but home-loan applications fell 16% and serious mortgage arrears reached a seven-year high, highlighting pressure on households. Rate Outlook: Bank of Canada minutes say uncertainty is no reason for inaction after October’s rate hike, as policymakers weigh rising energy costs against a weakening jobs picture. Deutsche Bank now expects three more US rate hikes by March. Paraguay Crisis: Authorities say nearly 95% of Ueno Bank depositors have been repaid after the lender’s collapse froze accounts for millions and triggered a political crisis. Digital Finance: A 21-institution consortium, including major US and European banks, is backing a planned stablecoin venture with $270 million for operating costs. Coinbase also won an OCC trust charter, allowing federally supervised custody and fiduciary services—but not regular deposit-taking or commercial lending. Mortgage Risk: New Zealand’s Westpac will factor flood and erosion risks into some lending decisions and share property risk information with prospective buyers. AI Controls: Financial firms face growing pressure to strengthen oversight as AI agents take on tasks; experts warn safeguards must be built in before deployment.

Liquidity: Nigeria’s central bank is offering N1.5 trillion in bills to absorb excess cash, with a further N2.45 trillion in inflows expected this week. Cyber Risk: French lender Crédit Mutuel Arkéa says attackers used a supplier platform to move $133 million from the bank before converting the funds to cryptocurrency. Reserve Management: Singapore launched a gold-vaulting service for foreign central banks, with capacity for up to 500 tonnes. IPO Watch: Anthropic retracted inaccurate IPO pricing details sent to banks; the draft had indicated a potential raise of up to $69.3 billion. Banking Charters: Coinbase secured full OCC approval for a national trust bank charter, subject to restrictions. Bank Failure Fallout: Paraguay’s Ueno Bank collapse has left millions facing frozen deposits and intensified political turmoil. Payments Leadership: Bank of Korea Governor Shin Hyun-song became the first Asian to chair the BIS payments committee, which sets global standards for payment systems and stablecoins.

Cybersecurity: Thailand’s central bank is pressing lenders to tighten defenses after attacks targeting third-party service providers, and has asked banks to report suspicious activity daily. AI Financing: Banks and credit investors are growing wary of AI infrastructure debt after a $2.5 trillion Nasdaq 100 selloff, scrutinizing project cash flows and customer commitments more closely. Banking Deals: First Abu Dhabi Bank is acquiring Bahrain-based Yasira, whose platform handles fund administration across public and private assets. Digital Finance: Coinbase secured OCC approval for a national trust bank charter, while PNC is piloting stablecoin payments for corporate clients. Russia will allow limited retail trading in Bitcoin, Ether and USDT from Nov. 17, with testing and a 300,000-ruble cap per intermediary. Bank Stability: Paraguay’s Ueno Bank collapse has left millions of customers locked out of accounts and triggered major political fallout; Nigeria’s deposit insurer says unpaid loans from failed banks are delaying depositor payments. Public Banking: San Francisco voters backed a measure to create a city-owned bank, though the result awaits certification in December.

Cybersecurity: Thailand’s central bank urged lenders to tighten defenses and share threat intelligence after overseas attacks; a separate breach at France’s Crédit Mutuel Arkéa reportedly diverted $133 million through an exploited service provider. Small-Business Finance: Qatar’s central bank will let lenders assess eligible MSME loans against verified electronic-payment revenue, with financing capped at 30% of average annual revenue and repayment of up to two years. Payments: Canada launched its Real-Time Rail, enabling round-the-clock instant payments and settlement through participating financial institutions and providers. Banking Consolidation: Crédit Agricole proposed merging its Italian subsidiary with Banco BPM, potentially creating Italy’s third-largest bank; the French lender would hold about 45% of the combined group. Digital Assets: Coinbase received final US approval for a national trust bank charter, allowing federally supervised institutional custody but not retail deposits or traditional lending. Banking Crisis: Paraguay’s Ueno collapse has frozen access to savings for millions and triggered a political upheaval, leaving volunteer firefighters among those struggling to reach their funds.

Bank Leadership: National Australia Bank named former Macquarie director Ian Saines chair-elect, succeeding Philip Chronican after 11 years on the board. Earnings: ANZ’s annual net profit rose 23% to A$7.27 billion, while Singapore’s three largest banks lifted nine-month profits despite a weaker third quarter, helped by fee growth and lower provisions. Banking Crisis: Paraguay’s Ueno Bank collapse froze savings for nearly 3 million customers and brought down President Santiago Peña, who has been charged; authorities say deposit repayments are under way. Regulation: FinCEN ordered US financial institutions to block transfers involving crypto exchange MEXC, citing at least $16 billion in alleged illicit flows. Separately, it withdrew a proposed expansion of crypto transfer reporting rules. Rates: The Bank of England raised its benchmark rate to 4% and warned inflation could prompt further increases, adding pressure for borrowers.

Paraguay Banking Crisis: Prosecutors charged ousted President Santiago Peña and former central bank chief Carlos Carvallo over Ueno Bank’s collapse, which left millions unable to access savings. A judge ordered their pre-trial detention as authorities work to repay depositors. Cybersecurity: Crédit Mutuel Arkéa said attackers exploited a third-party provider to make fraudulent transactions worth about €100 million; the bank said customer funds were unaffected and it was working to recover the money. Gold Demand: Central banks bought 321 tonnes of gold in the third quarter, while ETFs added 211 tonnes, as investors sought protection from inflation and fiscal risks. Markets: Indian shares edged lower in a special Diwali session, with banking stocks among the biggest drags. AI Oversight: The UK’s FCA urged financial firms to build AI around customer needs, with stronger human oversight and operational safeguards.

Paraguay Banking Crisis: Prosecutors charged ousted president Santiago Peña and former central bank chief Carlos Carvallo over Ueno Bank’s collapse, alleging Peña used his office to steer public and pension funds to the lender. Peña denies wrongdoing. New president Pedro Alliana says payments have reached 1.196 million customer accounts and pension payments will proceed, but Ueno’s failure disrupted access to funds for millions. Crypto Compliance: The U.S. Treasury has ordered U.S. financial institutions to cut off crypto exchange MEXC, citing at least $16 billion in alleged illicit transactions since 2021. Bank Oversight: Senator Elizabeth Warren plans hearings on large banks and executives when she leads the Senate Banking Committee next year, though analysts see limited prospects for major new rules. Cybersecurity: Malaysia says a hack of Bank Rakyat’s third-party website was limited to defacement, with no reported data theft or disruption to online banking.

Paraguay Banking Crisis: The Senate impeached President Santiago Peña after Ueno Bank’s collapse froze accounts for nearly three million customers. Prosecutors ordered his detention, and he was placed under house arrest; the allegations are under investigation, not a conviction. Vice-President Pedro Alliana took over as some depositors began receiving advance payments. Cybersecurity: Pakistan’s National CERT warned that AI-enabled attacks could target banks’ core systems, apps and payment networks, urging stronger defences and monitoring. Bank Rakyat said a third-party technical issue disrupted only its corporate website; deposits and banking services remained safe. Development Finance: The World Bank approved an additional $500 million for Nigeria to restore degraded land, improve water management and support rural livelihoods. Central Banks: IMF chief Kristalina Georgieva warned that a slowdown in AI-led growth could complicate central banks’ efforts to manage inflation and financial stability.

Paraguay Banking Crisis: The Senate impeached President Santiago Peña after Ueno Bank’s collapse left nearly 3 million customers unable to access deposits. Prosecutors are investigating alleged links between the bank, public funds and Peña. Banking Operations: Laurentian Bank closed 55 branches as retail and small-business accounts move to National Bank; Bank Rakyat also reported a temporary corporate-portal outage. UK Interest Rates: The Bank of England raised its benchmark rate to 4% and warned further increases may follow if inflation persists. Canadian Policy: Ottawa plans to transfer anti-money-laundering supervision of major financial institutions from FINTRAC to OSFI. Weak October jobs data, meanwhile, has reduced expectations of a Bank of Canada hike. Bank Sector Strains: Blue Ridge Bank reported a $4.2 million third-quarter loss ahead of its planned HomeTrust acquisition, while Northpointe Bank’s mortgage-unit sale is set to affect more than 300 jobs. Digital Finance: Anthropic began rolling out a read-only Claude feature that lets some US subscribers link bank and credit-card accounts for spending analysis.

Paraguay Banking Crisis: Ueno Bank’s collapse froze access to savings for millions and triggered protests. President Santiago Peña offered to resign, but lawmakers rejected the move and pressed ahead with impeachment as prosecutors opened an investigation. Interest Rates: The Bank of England raised its rate to 4% for the first time since 2023, warning that inflation could bring further increases. Banking Rules: ECB supervisors urged EU lawmakers to strengthen deposit insurance and resolution funding, warning that simpler rules must not weaken resilience. Digital Finance: Nigeria’s central bank will require stablecoin issuers to obtain licenses and hold fully backed reserves, while banning algorithmic stablecoins. Sovereign Debt: Pakistan’s external debt nearly doubled over a decade, reaching $135.1 billion in 2025, according to the World Bank. Cybersecurity: A Malaysian expert warned that malicious files shared through messaging apps can steal banking credentials and intercept transaction codes.

Paraguay Banking Crisis: Ueno Bank’s collapse left about 2.8 million customers unable to access their money. President Santiago Peña resigned as lawmakers voted to impeach him and prosecutors opened investigations into the bank’s failure and oversight. UK Rates: The Bank of England raised its rate to 4% and signalled another increase may follow if inflation keeps climbing, adding pressure on borrowers. Central Banks: Norway held its rate at 4.5% but left the door open to another hike. Japan’s banks, meanwhile, face savers shifting some deposits into government bonds offering higher returns. Bank Cybersecurity: French lender Crédit Mutuel Arkéa reported a cyberattack, with reports of about €100 million missing. AI in Banking: Wealthsimple introduced an AI assistant that can handle tasks such as transfers and trades, highlighting the push to make financial services more automated.

Rate Watch: The Bank of England is widely expected to lift its key rate to 4% today, its first increase in more than three years. The pound has climbed to its strongest level against a currency basket since the Brexit vote, while millions of UK homeowners face higher refinancing costs. Cyber Risk: US regulators have contacted banks to check for vulnerabilities after a major Binance hack. Separately, a cyberattack on French lender Crédit Mutuel Arkéa was reported to have triggered fraudulent transfers, while attacks on blood-bank refrigeration systems in France left supplies unaffected. Paraguay Crisis: The central bank’s takeover of Ueno Bank has left millions of customers unable to access funds and prompted an impeachment bid against President Santiago Peña over alleged links to the lender. Bank Results: Bank of Cyprus reported nine-month profit up 9% to €383 million; New Zealand’s BNZ grew home lending but reported lower profit, partly due to an accounting charge.

Banking Cybersecurity: French regional lender Crédit Mutuel Arkéa said hackers made about €100 million in unauthorized transfers, converted some funds to cryptocurrency and caused no customer losses; prosecutors have opened an investigation. Paraguay Crisis: The central bank’s takeover of digital lender Ueno has left millions unable to access deposits and sparked an opposition impeachment push against President Santiago Peña. Rates and Mortgages: Australia’s CBA, Westpac and ING will raise variable home-loan rates by 0.25% from Nov. 13, passing on the Reserve Bank’s latest increase. Sweden’s central bank also lifted its key rate for the first time since 2023 and signaled further hikes. Bank Earnings: National Australia Bank reported a 9.1% fall in annual profit to A$6.14 billion, with higher loan-loss provisions weighing on results. Markets and Regulation: JPMorgan’s China revenue grew 20% in each of the past two years as investment banking rebounds. A Canadian court certified an investor class action against TD Bank over alleged misrepresentations about anti-money-laundering controls; the bank denies the allegations. The US banking regulator issued its first AI guidance for examiners, emphasizing oversight based on how tools are used and the risks they pose.

Banking Oversight: The U.S. OCC issued its first AI guidance for bank examiners, urging them to assess the consequences of AI errors in context rather than treat the technology as a separate risk category. Cyber Risk: French regional lender Crédit Mutuel Arkéa said a cyberattack that reportedly triggered $133 million in fraudulent transactions was under control, with no financial impact expected for clients. Bank Failure: Paraguay took over Ueno Bank after its solvency ratio fell below half the legal minimum, freezing services for about 3 million customers and putting more than $800 million in public funds under review. Interest Rates: Global central banks mostly held rates in October after September’s wave of hikes, but officials warned persistent inflation could bring further tightening; the Bank of Canada was the only major G10 central bank to raise rates. China’s Markets: Chinese banks sought more than $30 billion in central-bank loan quotas to finance listed-company share purchases, as Beijing stepped up support for a struggling stock market. Gold Reserves: Central banks bought 321 tonnes of gold in the third quarter, up 42% year on year, while gold ETFs returned to inflows.

Paraguay Banking Crisis: The central bank chief resigned at President Santiago Peña’s request as regulators began resolution proceedings for digital lender ueno. Customers were left seeking access to savings, while prosecutors requested a criminal investigation. Rate Pressure: Australia raised rates to an 18-year high, Armenia lifted its benchmark to 7%, and ECB officials left the door open to a December move if inflation stays stubborn. China’s Currency: The central bank will raise banks’ foreign-currency reserve requirement from 4% to 6% on Nov. 15, aiming to temper yuan gains and stabilize market expectations. Lending and Profits: Tanzania’s 16 largest banks expanded lending by Sh4.14 trillion in the third quarter, while combined nine-month profits climbed to more than Sh2 trillion. Ghana’s GCB Bank, meanwhile, announced collateral-free business loans of up to GH¢5 million. Market Signals: Central-bank gold buying surged 42% in the third quarter, helping keep global demand near record levels.

Rates: Australia’s central bank raised its cash rate to 4.85%, an 18-year high, in a split vote; its governor signalled a possible pause as policymakers weigh persistent inflation against further pressure on borrowers. Banking: Paraguay’s central bank began resolution proceedings for digital lender ueno after finding a solvency shortfall, saying the move aims to protect depositors and financial stability. New Entrant: Revolut secured New Zealand banking registration, opening the way to savings accounts and credit cards; its introductory savings rate is 3.5% for four months on balances up to NZ$50,000, with eligible deposits protected up to NZ$100,000. China Markets: The central bank conducted a 100-billion-yuan liquidity swap to support capital markets and will raise banks’ foreign-exchange reserve ratio to 6% from Nov. 15. Separately, a report says regulators have urged investment banks to pause IPOs amid market weakness. Gold: Central banks bought 321 tonnes in the third quarter, the fastest pace since late 2024, bringing year-to-date purchases to 675 tonnes and reinforcing a key source of support for bullion.