AGP Executive Report

Banking Reform Push (Bangladesh): Bangladesh’s banking sector needs a dedicated reform commission, with officials and industry leaders citing politically backed takeovers, weak oversight and eroded public confidence. Credit Growth (Philippines): BSP data shows universal and commercial bank lending rose 11.4% year-on-year in April to P14.75tn, the fastest in nine months, led by stronger business borrowing. Budget Pressure (Bangladesh): Ahead of the FY27 budget, analysts warn a revenue shortfall is forcing heavier reliance on bank borrowing, raising debt-trap concerns. FX Intervention (Israel): The Bank of Israel bought $801m in May to slow a sharp shekel gain, after exporters complained about damage to growth. Digital Banking (Bangladesh): Southeast Bank reopened its Motijheel Islamic branch after relocation, while Mutual Trust Bank launched MTB Trade X to digitise trade requests end-to-end. Compliance & Fraud (Bangladesh/UK): Prime Bank ran AML/CFT training; UK police warned Midlands residents about counterfeit £20 notes used in home purchases. Cross-border Islamic Banking (Middle East): Al Baraka Islamic launched a service letting customers open and manage accounts in Egypt. Airline Stress (Global): IATA warned higher jet fuel costs from the Middle East conflict could drive more airline bankruptcies and consolidation. Sanctions Watch (Israel/West Bank): UK and allies plan sanctions aimed at deterring companies from backing a proposed West Bank settlement plan.

Banking Crime & Enforcement: India’s CBI carried out searches at six locations across Chandigarh, Panchkula and Delhi-NCR in a ₹661 crore alleged Haryana government fund siphoning probe tied to IDFC First Bank and AU Finance Bank, with claims of collusion between public servants, bank officials and a Noida consultancy (Vipam Consultancy) and seizure of digital devices and documents. Governance & Markets: IndusInd Bank said it has not received any whistleblower complaint referenced in a report, while also noting prior examination of concerns and cooperation with authorities; the stock was nearly flat year-to-date. Digital Money & Payments: Russia’s central bank said 12 major banks are ready to offer digital ruble services from September 1 as the QR-based rollout expands. Regulation & Crypto: US regulators defended post-crisis bank reforms and the GENIUS Act stablecoin framework at a contentious congressional hearing, as lawmakers warned safeguards could weaken. Global Finance Diplomacy: France is coordinating national sanctions (asset freezes, travel bans) against individuals linked to West Bank violence as EU unanimity stalls. Banking Business Expansion: Hana Bank opened a Subic office in the Philippines to support Korean corporate financing and regional growth. Household Finance: Kansas food banks warned SNAP cuts after nearly 22,000 Kansans lost benefits under the “One Big Beautiful Bill.” Banking Operations: RBI holiday calendar shows Indian banks closed nationwide on June 13 (second Saturday) and June 14 (Sunday).

Regulation Watch: Fed Governor Michael Barr warned that recent US moves to loosen bank rules could “considerably weaken” supervision and raise financial stability risks, targeting changes to capital, liquidity and oversight. On-Chain Banking: JPMorgan, Bank of America and Citi plan a shared tokenized deposit network via The Clearing House by mid-2027, aiming to keep deposits from drifting to stablecoins. Stablecoin Update: PayPal’s PYUSD supply fell 31% from a March peak of $4.2bn to about $2.92bn, as volatility reduced minting and inflows. Central Banking (India): The RBI held the repo rate at 5.25% and unveiled measures to support the rupee via incentives for foreign investors and better terms for FX deposits. Banking Compliance (India): RBI fined Canara Bank ₹2.49 lakh for delayed currency chest reporting. Credit Concentration (Bangladesh): Bangladesh Bank data shows 85% of defaulted loans are concentrated in 15 banks, with Islami Bank Bangladesh the biggest share. Corporate Finance (India): Supra Pacific Financial Services approved a ₹20 crore secured NCD private placement; Moongipa Capital Finance signed deals to expand digital lending via MoneyAse and Quess.

Banking & Payments: The Clearing House says major US banks will launch a shared tokenized deposit network by mid-2027, aiming to keep deposits inside the banking system while giving them faster, programmable capabilities that could otherwise lure customers to stablecoins. Regulation & Risk: India’s RBI lets banks price bulk deposits with differential rates tied to liquidity risk under LCR run-off rates, with new daily transparency rules for deposit rate schedules. Fraud & Enforcement: US Treasury OFAC sanctioned an Iranian LPG smuggling and shadow-banking network using UAE/China front firms and vessels to disguise Iranian fuel as Omani shipments. Central Banking & Markets: Indonesia’s central bank and finance ministry agreed to boost yields on local assets to draw portfolio inflows and support the rupiah after recent lows. Consumer Finance: Nationwide will pay eligible members £100 from June 10 as part of its Fairer Share scheme. Banking Operations: RBI also confirmed banks are open on Saturday, June 6 (first Saturday), with closures mainly on second/fourth Saturdays and Sundays. Corporate Moves: Sigma Advanced Systems approved a large preferential share issue (~₹460 crore) and a stake increase in its defence subsidiary via share swap.

Banking Layoffs: SMBC is issuing WARN notices for a permanent layoff of about 90 workers as it winds down and closes its Missouri digital bank, JeniusBank, with terminations expected around Aug. 3, 2026. Payments & Fintech: Fifth Third’s Newline platform was named an American Banker “Innovation of the Year” honoree for next-gen payments and embedded finance, including agentic commerce infrastructure. Central Banking (India): The RBI will absorb hedging costs for banks’ foreign currency deposits until Sept. 30, 2026, and is also drafting rules to let banks price rupee bulk deposits more flexibly while keeping interest-rate disclosures transparent. Regulation & Compliance (US): Treasury’s FinCEN urged banks to watch for payroll and money-laundering schemes tied to hiring unauthorized workers, as part of the administration’s immigration crackdown. Fraud Liability (India): Karnataka High Court held BSNL liable for ₹55 lakh after SIM-swap fraud, stressing telecoms’ duty when issuing duplicate SIMs. Banking Network Changes (UK): NatWest confirmed nine more branch closures, saying no further closures until at least 2029. Capital Markets: RBC downgraded DiscoverIE to reflect valuation back in line with its history, despite improved growth outlook. Crypto & Policy: A new Fed chair, Kevin Warsh, is seen as unusually crypto-familiar, but markets reacted with a drop in Bitcoin after his appointment.

RBI Policy Watch: India’s central bank kept the repo rate at 5.25% and held a “neutral” stance, while flagging risks from crude prices, rupee weakness and supply-side pressures; it also cut its FY27 GDP growth forecast to 6.6% from 6.9%. Stablecoin vs Deposits: Major US banks, via The Clearing House, are building a tokenized deposit network aimed at 2027, positioning it as compliant with deposit rules rather than competing with stablecoins. AI in Banking: European banks face being sidelined in an AI IPO boom dominated by US lenders, as blockbuster listings from firms like SpaceX and OpenAI concentrate deal economics. China Banking Shift: China’s regulatory tweaks are squeezing small private banks’ online lending, pushing them to pull or cut high-coupon longer-term deposits. Payments & Remittances: GoTyme Bank added international transfers across 8 currencies using Wise’s network, while won-based stablecoin talks in Korea show banks and fintechs lining up partnerships. Branch Safety Upgrade: Nationwide will equip 605 branches with defibrillators and bleed control kits, partnering with Visa and St John Ambulance. EU Banking Rules: Brussels has issued Spain a formal notice over delays in transposing banking merger and supervision rules, raising the risk of infringement escalation. Market Pulse: Australia’s ASX 200 fell 0.73% as miners and banks dragged on the index amid weaker iron ore prices.

Banking & Payments Tech: Lloyds Banking Group signed a multi-year Microsoft deal to roll out agentic AI across its 28m customers, building on Copilot licensing and aiming to speed up colleague support. Open Banking Push: GoCardless-backed “Recurring Pay by Bank” went live in the UK via a new industry scheme, positioning account-to-account payments as a lower-cost alternative to card dominance. Central Bank Infrastructure: Georgia’s National Bank upgraded its RTGS/ATS with Montran, adding ISO 20022 support and 24/7 real-time processing, alongside an instant payments system. Crypto & Stablecoins: Bybit became the first major exchange to integrate Western Union’s USDPT stablecoin network, while US Senate Republicans pressed regulators for clearer bank capital rules for digital assets. Banking Sector Finance: Nigeria’s banks earned N209.18bn in account maintenance charges in Q1 2026, up 14% year-on-year. Corporate/Deal News: EIB partnered with Ireland to accelerate EV charging rollout with nationwide implementation tools. Security & Crime: Ventura County arrested suspects in a “bank jugging” case targeting a victim right after leaving a bank. Settlement Politics (Finance Angle): Israel approved plans for 2,162 new West Bank settlement homes, a move likely to keep financial and geopolitical risk in focus.

California Banking Crisis: An FBI-led operation ended a Bakersfield Chase Bank hostage standoff after a suspect was shot dead; all 10 hostages were found unharmed. Central Banking & Gold: World Gold Council data shows central banks resumed net gold buying in April after March’s selloff, with Poland and China leading. RBI & Consumer Finance: India’s RBI denied reports of a $12bn gold sale, saying physical holdings remain unchanged at 880.52 tonnes. RBI Loan Recovery Rules: Draft RBI directions would let banks use technology to restrict or disable certain phone functions for loan recovery after default, with notice requirements. Banking Competition Labels: New Zealand’s Reserve Bank will expand the legal use of “bank” terms so all licensed deposit takers can call themselves banks from Dec 1, 2028. Payments & Welfare: India’s Annapurna Bhandar rollout is underway, with guidance for beneficiaries to check ₹3,000 credits via DBT-linked accounts and an online status portal. Banking Tech Risk: A new analysis warns AI and banking infrastructure are becoming too concentrated among a few third-party providers, raising stability concerns. Housing Finance Spotlight: Pakistan’s Punjab “Apni Chhat Apna Ghar” draws World Bank and foreign interest as a model for interest-free affordable housing finance.

Banking Risks Watch: The Fed’s latest supervision report says US banks look healthy on paper, but flags at least eight risks, with private credit singled out as a growing pressure point. Hostage Crisis in US Banking: A 15-hour Chase Bank standoff in Bakersfield, California, ended early Wednesday after an FBI officer-involved shooting; hostages were found unharmed. Bangladesh Banking Unrest: Protests at Islami Bank Bangladesh entered a third day as depositors and shareholders demand the removal of chairman Md Khurshid Alam, warning any takeover could destabilize the banking sector. Regulators & App Outages: UK customers reported widespread Lloyds, Halifax and Bank of Scotland app and online banking disruptions, prompting apologies and service restoration updates. Central Banking & Gold: India’s finance ministry and RBI denied claims the central bank sold $12bn in gold, saying holdings actually rose to 880.52 tonnes. Africa Finance & Inclusion: Ecobank launched a $450m Nature Bond to fund biodiversity and sustainable agriculture, while Ghana’s central bank highlighted falling inflation and lower rates as it pushes price stability. Middle East Banking Ties: UAE and Bahrain central bank governors met to deepen financial and monetary cooperation.

Banking Crisis in California: A man barricaded himself inside a Chase Bank in downtown Bakersfield after a confirmed bomb threat, with police reporting that some hostages escaped and others were in “good health” as negotiators and FBI resources worked through the standoff. Banking Scrutiny in India: IndusInd Bank shares slid after a whistleblower complaint was sent to India’s Prime Minister’s Office and multiple regulators alleging insider trading, governance lapses, and audit/forensic review shortcomings. UK Housing Finance: The Bank of England reported 65,945 mortgage approvals in April, the highest in 15 months, while unsecured consumer credit grew faster than expected—suggesting households may have pulled demand forward ahead of higher rates. Stablecoins & Institutional Lending: Ethena Labs said it is partnering with Anchorage Digital to expand off-chain institutional lending, with Anchorage Digital handling collateral management and serving as the U.S. issuer for USDtb. Banking Sector Valuations: An ECB analysis linked euro-area bank valuation gains in 2025–early 2026 to higher payouts, buybacks, and improving profitability expectations. World Bank on AI in Health: The World Bank set a goal to reach 1.5 billion people with quality, affordable healthcare by 2030, banking on AI and digital tools to close access gaps.

Banking Sector Watch: Philippine banks’ bad-loan pressure rose again in April, with the gross NPL ratio climbing to an eight-month high of 3.37% as soured loans grew faster than lending. Regulatory Moves: US regulators removed “reputational risk” references from supervisory guidance, extending efforts to reshape how banks are monitored. Banking Stability: Bangladesh’s finance minister said the path to calmer conditions runs through recapitalising banks and restoring depositor confidence. SME Credit Push: Bangladesh’s ONE Bank signed deals with Bangladesh Bank for Tk 4,500 crore in refinancing to support cottage and MSMEs at a concessional 7% rate. M&A in US Banking: First National Bank of Omaha agreed to buy Blue Ridge Bancshares to expand in the Kansas City area, pending regulatory approval. Digital Assets & Payments: Falcon Finance launched fUSD, a regulated institutional stablecoin backed 1:1 by safe assets, while tokenisation firms warn that layering tokenisation on legacy systems can fragment custody and add regulatory complexity. AI for Finance: Experian unveiled an “Agent Operating System” to help financial firms scale agentic AI with controls and oversight.

Banking M&A: Heartland Bank has signed a conditional merger deal with the Toi Foundation to buy TSB for $620m, then combine the two banks in a regional push against Australia’s Big Four rivals. Digital Finance & AI: Huawei’s HiFS 2026 in Shanghai unveiled new financial AI and core banking upgrades aimed at scaling “agentic banking” for institutions. Crypto Dealmaking: Keyrock is set to acquire bankrupt Blockfills for $3.25m, pending court and regulatory approvals. Regulation & Payments: Saudi Central Bank licensed two new finance companies, while Australia’s APRA moved to clarify liquidity treatment for deposits tied to settlement services. Fraud & Enforcement: India’s ED alleged a Rs 645-crore IDFC First Bank fraud involving siphoned government and school funds, and CBI arrested Amitabh Jhunjhunwala in an SBI-linked RCom loan fraud case. Cross-border CBDC: Macau’s 11 banks joined Project mBridge for central bank digital currency settlement. Banking Risk Watch: A Kenya central bank survey says NPLs rose to 15.6% and banks plan tougher recovery, especially in trade and personal loans.

Banking Activism: An interfaith coalition in Boston is withdrawing $1m at a time from Citizens Bank, pressing it to stop financing ICE jail operators CoreCivic and GEO Group. Branch Reshuffle: Lloyds plans to decommission a Cheltenham High Street branch, remove its branding and cash points from a Grade II-listed building, and relocate nearby. Banking Stress Tests: Bangladesh’s banking troubles look structural, with NPL and capital buffers worsening as rescheduling delays problem recognition; foreign banks also warn inflation may overshoot after price freezes fade. MSME Lending Boost: BRAC Bank signed Bangladesh Bank deals to expand low-cost CMSME financing via cluster refinance and the Financial Sector Fund. Enforcement Spotlight (India): India’s ED arrested real estate businessman Vikram Wadhwa in the ₹645 crore IDFC First Bank fraud probe; CBI also moved in major RCom-related bank fraud cases. Central Banking Watch: The Bank of Canada urged caution on GDP recession signals, while Ghana’s BoG held its policy rate at 14% citing Middle East-driven oil risks. Tech in Finance: Finastra launched Data Insights 2.0 to help mortgage lenders cut application drop-off; Fino Payments Bank and Ezee.ai rolled out AI lending tools. Crypto & Markets: Bitmine slowed ETH purchases as it nears a 5% supply target; Strategy sold part of its Bitcoin holdings, rattling BTC and its stock.

Charity Sector Watch: The UK Charity Commission has issued updated guidance on conflicts of interest after a 23% rise in compliance cases involving alleged abuse of charitable status for private benefit, while legacy income recognition rules under SORP 2026 keep scrutiny on how charities judge entitlement. Fraud & Skills: Allianz UK is helping shape a new fraud NVQ-style qualification aimed at closing a skills gap in fraud risk management and horizon scanning. Central Banking & Digital Money: India’s RBI is looking to broaden digital rupee use for welfare payments and cross-border pilots, and the Bank of England/ECB debate continues on whether stablecoins could deepen dollar dominance. Banking Tech & Operations: SIX is modernising sluggish legacy telephony and compliance recording by deploying Luware Nimbus and cloud-native recording for Teams-based contact centre needs. Crypto Derivatives: Kraken is moving to launch CFTC-regulated Bitcoin perpetual futures in the US within 30 days, intensifying competition with Coinbase and Kalshi. Payments Security: Fiji’s BSP has tightened mobile transfers by requiring customers to enter the recipient’s name for domestic account-to-account payments. Market Pulse: The dollar steadied as traders weigh Iran war signals and central bank moves, while ASX 200 bank shares slid in May on property-tax fears and higher-rate worries.

Central Banks & Inflation: The Fed’s preferred PCE gauge stayed hot in April, with core inflation holding at 3.3% y/y, keeping the “rates higher for longer” mood alive as energy costs and Middle East risks pressure prices. Nigeria Banking: Nigeria’s banks boosted lending to the government by N15.66tn in a year, while credit to the private sector barely grew, underscoring how public borrowing is driving domestic credit expansion. Digital Money & Regulation: The Bank of England is pushing “tokenized deposits” to compete with stablecoins, outlining a multi-money retail payments plan and draft rules for systemic stablecoins due by June. Mortgage Rules (Netherlands): ING tightened interest-only mortgage limits from July 23, capping the interest-only portion at 30% of a home’s value and following similar moves by other Dutch lenders. Crypto Market Watch: Euroclear filed to block immediate enforcement of a $256bn Russian central bank ruling, while in crypto, XRP Ledger activity jumped 35% despite XRP price weakness and BlackRock stepped up crypto ETF selling with over $1.2bn in outflows. Consumer Finance: US Bank is offering new customers up to $450 for opening a Smartly Checking account with a $25 deposit by June 18. Fraud & Scams: Coast Electric warned of phone scams asking for bank details for fake “refunds,” and authorities reported arrests of cybercriminals targeting bank customers.

Central Bank Independence Under Strain: IMF officials warn political pressure is rising as inflation shocks from the Iran war push governments to demand unpopular rate moves, risking long-term trust in central banks. Banking & Payments: SoFi becomes the first US national bank to launch a stablecoin inside a consumer app, with SoFiUSD redeemable 1:1 for dollars under OCC oversight. UK Banking Rules: The Bank of England prepares a major banking rule shake-up, including potential leverage-ratio and ring-fencing changes aimed at freeing up more lending for households and firms. Data Breach Payouts: Cadence Bank faces a $5.25m settlement over MOVEit-related breach exposure, with eligible Americans able to claim up to $10,000 automatically. Banking Expansion: Bank of Commerce opens a new Starkville Highway 12 branch, adding locations across Mississippi’s Golden Triangle. Supervision & Compliance: Moldova hosts a regional banking supervisors conference focused on harmonising standards, AI in supervision, and tougher anti-money-laundering and sanctions monitoring. Corporate Finance Risk: Euroclear files to block immediate enforcement of a Russia-linked Central Bank ruling seeking recovery of $256bn. Local Banking Access: Wales council blocks Nationwide Building Society from installing defibrillator and bleed-kit cabinets on a listed branch building.