AGP Executive Report

Digital Payments Boom in Pakistan: Under the Cashless Pakistan push, Pakistan says active Raast QR merchants jumped from 500,000 to over 2 million, digital banking users rose to 135 million, and annual digital transactions climbed from 6.9 billion to 11.3 billion, with a goal to digitise 25 institutions by Dec 2026. Banking Reliability Watch: Abu Dhabi Commercial Bank (ADCB) said core banking and customer channels were fully stable after a disruption, while Europe’s ECB reported two T2 payments outages in a week tied to a software update. Central Bank Moves: Bank of Israel cut its rate to 3.5% citing a stronger shekel and easing inflation; the Bank of Canada said the Middle East conflict hit confidence and lifted inflation expectations. Fintech Banking Push: Klarna filed to establish a US-chartered bank, seeking Utah approval and FDIC backing as it aims to bring its buy-now/pay-later model into mainstream banking. SME Onboarding Pressure: UAE banking panels stressed that faster account opening now depends on transparency, compliance, and clear documentation—especially for SMEs. Bangladesh Leadership Changes: Bangladesh Bank appointed Anis Ur Rahman as Deputy Governor, while multiple banks marked anniversaries and expanded digital education and cardholder perks.

Banking Accountability: India’s bank staff union AIBEA is pushing the finance ministry for a national accountability policy so RBI penalties for KYC/AML and other lapses are recovered from responsible officials, not paid by banks and taxpayers. Market Impact: MCX shares slid about 1.7% after RBI’s new bank guarantee rules hit trading volumes, with margin funding dependence a key factor. Corporate/Enforcement: CBI arrested Reliance Capital ex-CFO Amit Bapna over alleged loan diversion tied to Reliance ADA group companies, with claims of breaches of RBI guidelines. Policy & Funding: Pakistan launched the InvestPak Portal to digitise government securities investing and gradually reduce reliance on commercial banks, aiming to broaden the investor base. Banking Growth (India): Bank of Maharashtra reported 27% YoY credit growth in the June quarter and total business crossing ₹6.5 lakh crore. Middle East Banking: QNB won ABF awards for open banking and cash management; Qatar’s commercial banks’ assets rose 6% YoY to QR2.2tn in May. Digital Finance: Egypt’s Klivvr says it has invested $10m since launch, now serving 700,000 users and rolling out an AI assistant for financial insights. Capital Markets (UK): Banks urged the Bank of England to tweak leverage rules so gilts don’t count toward leverage exposure, arguing it could boost bond demand and cut borrowing costs. Crypto Flows: U.S. spot Bitcoin ETFs saw about $527m net outflows for a week, extending withdrawals to eight straight weeks.

Credit Card Rules Shake-Up: Australia’s Reserve Bank move to ban surcharges from October is forcing banks to rethink credit card economics, with frequent flyer points like Qantas potentially taking a hit as rewards and sign-up bonuses are adjusted. Merchant Lending in Pakistan: LogiServe’s fintech unit partnered with Mobilink Microfinance Bank to offer digitally enabled working capital for merchants in the SLGTrax ecosystem, including financing up to PKR 250,000 plus added health coverage and vendor deals. Open Banking Recognition in Qatar: QNB won ABF Wholesale Banking Awards for its domestic open banking and cash management push, highlighting secure API access for transfers, bill payments and intraday reporting. Crypto Market Watch: CryptoQuant flagged rising exchange deposits across Bitcoin and other coins as a volatility risk signal, even as prices stabilize. Bangladesh Cashless Push: IFIC Bank, Pubali Bank and NRBC Bank rolled out Bangla QR awareness drives, while Southeast Bank held an AML/CFT compliance conference. Central Banks and Gold: New research says gold is strengthening as a reserve asset as central banks keep buying, even with higher rates weighing on spot prices. Banking in the Spotlight: A long-running legal fight ended with an Edinburgh couple winning permission to convert a former North Berwick bank into a home.

Banking Regulation: Kuwait has amended its Bankruptcy Law to speed up proceedings, including new flexibility for setting up bankruptcy courts and changes to how the Bankruptcy Department is led. Digital Finance: Maldives’ central bank chief says payments are set to move toward an “invisible” model over the next five years, using APIs, biometrics and AI to automate transactions and support SME working capital. Bank Performance: Qatar’s commercial banks reported assets up 6% to QR2.2tn in May, with deposits up 7.1% and credit rising to QR1.36tn. Banking Security: Woori Bank said 17,551 customers’ data was leaked via an external developer’s retained files, though phone numbers and addresses were not compromised. Credit & Growth: HDFC Bank posted double-digit growth in deposits and advances in Q1 FY27, with deposits up 14.7% and gross advances up 15.4%. Policy & Welfare Oversight: The UK DWP outlined new eligibility verification powers that could require banks to flag accounts for benefit-related eligibility indicators. Remittances: Pakistan’s banks hit out after the State Bank ended remittance incentive schemes, raising concerns about banks absorbing costs. Corporate/Legal: India’s CBI arrested Reliance Capital ex-CFO Amit Bapna in a ₹9,280 crore fraud probe. Infrastructure & Jobs: World Bank urged Uganda to reform construction-sector rules to unlock more jobs, citing weak regulation and procurement delays. M&A/Structure: Bahrain’s SICO completed merging its funds unit into the parent bank, folding fund administration and custody under one licence.

Banking Growth Watch (South Asia): Kotak Mahindra Bank reported Q1 FY27 loan book growth of 15.1% YoY to ₹5.12 lakh crore, while Axis Bank said gross advances rose 18.8% YoY to ₹12.73 trillion and deposits climbed 18.2% YoY, with term deposits leading inflows. Bangladesh Digital Push: Dhaka Bank outlined a bid to reach the top tier via digital banking, green finance and AI-led lending, while Dutch-Bangla Bank promoted Bangla QR adoption through its NexusPay and Rocket apps. Islamic Banking Governance: Bangladesh Bank urged stronger Shariah compliance and governance to restore confidence in Islamic banking. UK Banking Transition: Lloyds confirmed Halifax customers will be moved onto the Lloyds app over coming months, with Halifax branches rebranded in 2027. Regulation & Payments: BSP said more banks are expected to cut or waive electronic transfer fees after BPI and RCBC made InstaPay transfers free. Fraud & Enforcement: CBI arrested former Reliance Capital CFO Amit Bapna in an alleged ₹9,280 crore bank fraud case. Crypto & Stablecoins: Revolut delisted Tether’s USDT in the EEA/UK from Aug 31, citing regulatory and risk concerns. Neobank Restructuring: Starling Bank cut about 130 jobs as it pushes AI deeper into operations.

Elderly-Focused Fraud Training: Trinidad & Tobago’s Bankers Association (BATT) ran a “Banking for Seniors” workshop, warning that AI is making scams harder to spot and urging people to pause, verify and never share OTPs or banking details. Regulation vs AI: Europe’s top bankers and regulators said financial rules are lagging behind fast-moving AI, calling for public support plus guardrails to protect market stability. Banking Growth Watch: HDFC Bank reported Q1FY27 momentum—gross advances up 15.4% to ₹30.61 lakh crore and deposits up 14.7% to ₹31.71 lakh crore—keeping its shares in focus. Credit Risk Tools: India’s RBI expanded credit derivatives, adding credit index derivatives and total return swaps to help banks and investors hedge corporate credit risk. Nigeria Development Push: The World Bank backed a 2026–2032 Nigeria Country Partnership Framework aimed at jobs and private-sector-led growth, including energy, broadband and farm support. Scam Alert (India): A Palghar cooperative bank official allegedly lost Rs 46.41 lakh to a WhatsApp-led fake stock trading scheme. Payments Market Change (Israel): Israel’s central bank will let licensed non-banks hold shekel balances overnight, aiming to widen access to supervised payment systems.

Digital Assets & Payments: Arival Bank said it has launched stablecoin payments for everyday transactions via its regulated bank network, positioning the service as compliant with KYC/KYB and AML monitoring. Regulation & Disclosure: Canada’s securities watchdog (CSA) finalized amendments to introduce an “access model” for annual and interim financial documents, with the change set to take effect Sept. 22, 2026. Banking Operations: New research from Aqua Global found real-time payments are still out of reach for many European banks, with 29% saying reconciliation exceptions take more than a day to resolve. AI in Finance: Singapore’s MAS proposed a safeguards framework for AI agents used in financial services, as regulators look to tighten safety checks around agent-led tasks. Banking Results (India): Central Bank of India reported strong Q1 FY27 growth, while IDFC FIRST Bank, Suryoday Small Finance Bank, RBL Bank, IndusInd Bank and Bandhan Bank all posted double-digit advances momentum alongside deposit shifts. Consumer & Fraud: The UK’s Co-operative Bank removed foreign transaction fees on debit cards used abroad, while separate reports highlighted ongoing scams and account losses. World Bank & Inclusion: Angola’s central bank and UNDP signed an MoU to expand financial education and inclusion, including digital programmes.

Banking Tech & Payments: Objectway agreed to buy FNZ Switzerland’s private banking technology business, adding 160 staff and tools used by 40+ private banks to expand core-to-digital capabilities across Europe and beyond. Fraud & Customer Controls: Global IME Bank rolled out instant account blocking via hotline or its “Global Smart Plus” app, aiming to curb phishing and scam losses in Nepal. Digital Fees: RCBC will waive most InstaPay transfer fees from July 4 (with monthly caps for Pulz users), following similar cuts by BPI and Landbank. Consumer Protection: Ireland is moving to require a real-person option for online financial services, with opt-out and withdrawal controls. Banking Sector Watch: RBI penalised three cooperative banks for KYC, unclaimed deposit handling, credit bureau membership, and exposure-limit breaches. Market/Corporate Finance: IIFL Finance raised $300m via a four-year social dollar bond; Union Bank of India shares fell 5% after its June quarter update. Banking in the Real World: National Bank of Canada sought receivership over a Vancouver coworking property tied to a $14m debt claim. Community Impact: Food banks in the US expanded hours as SNAP errors and delays left families without aid, while Taylor Swift and Travis Kelce donated $1m to a Pennsylvania food bank.

Retail Banking Awards: Bahrain’s National Bank of Bahrain (NBB) won “Best Retail Bank in Bahrain” for a fifth straight year, citing digital upgrades and social housing finance support. Core Banking Modernization: McClain Bank signed with Zelus to roll out SNAP for faster, guided new account opening across branches. Payments & AI Rails: Quant joined the x402 Foundation to connect agent-driven payments with regulated banking infrastructure using stablecoins or digital tokens. Capital Markets Expansion: Regions Financial closed its bolt-on purchase of Frazer Lanier to expand municipal and corporate securities capabilities. Banking Regulation (US): The Fed ordered Small Business Bank in Kansas to raise capital within 30 days after finding it “significantly undercapitalized.” Crypto Regulation (Brazil): Brazil’s central bank tightened prudential rules for virtual asset service providers starting Jan. 1, 2027. Stablecoin Banking (G-SIB): Standard Chartered and Circle launched USDC minting/redemption for institutions via traditional banking rails in Dubai. Consumer Support: Canada’s rebranded Canada Groceries and Essentials Benefit (CGEB) is set to land in eligible bank accounts Friday. Fraud & Security: Customers Bank integrated Qualia Shield to reduce wire fraud risk in title and escrow workflows. Community Banking & Inclusion: Ghana’s Anum Community Bank opened a new branch in Atimpoku with digital platforms for local customers.

ATM Fee Waiver Watch (Malaysia): Communications Minister Fahmi Fadzil urged customers still charged RM1 for interbank cash withdrawals at bank-owned ATMs to complain to Bank Negara Malaysia, saying the waiver covers about 84% of bank ATMs in the shared network while the rest are run by private operators. Central Banking Appointments (New Zealand): Reserve Bank of New Zealand confirmed Angus McGregor as assistant governor for financial stability, after an acting stint since last March. EU Crypto Enforcement (EBA): The European Banking Authority opened a consultation on how it will calculate fines for issuers of “significant” tokens that breach MiCA, ahead of the July 1 licensing deadline. Nigeria Microfinance Crackdown: Nigeria’s central bank revoked operating licences of 46 microfinance banks for regulatory and operational failures, effective July 1. World Bank Energy Push (Morocco): The World Bank approved a $265m loan for a 300MW pumped hydropower storage project to boost grid resilience and enable more solar and wind. Saudi Finance Deal: Amlak International Finance sold consumer finance contracts to Saudi National Bank for $35.6m to strengthen liquidity. Banking Sector Signals (Switzerland): The Swiss National Bank said UBS is well capitalised for tougher capital requirements after Credit Suisse’s collapse. Australia Banking Awards & Deals: Macquarie swept multiple Money awards (including Bank of the Year) while Kotak agreed to buy Deutsche Bank’s India retail and wealth business.

Central Banking & Regulation: The Central Bank of Nigeria revoked the operating licences of 46 microfinance banks effective July 1, citing under-capitalisation, insolvency, inactivity, and operating without approvals, while also issuing guidance limiting suspensions of payment obligations involving troubled banks to two business days. Monetary Policy Outlook: Nepal Rastra Bank is urged to prioritise financial stability, credit classification and non-banking asset management to restore private-sector confidence as liquidity piles up and loan defaults rise. World Bank Financing: The World Bank approved a $1.25bn Nigeria package under its 2026–2032 framework to back reforms in power, digital, agriculture and revenue, and separately approved $100m for Uzbekistan’s primary education. Banking Sector Moves: Türkiye’s state-owned participation banks are set to merge, potentially reshaping the interest-free banking landscape; Ethiopia’s Awash Bank seeks approval to expand regionally. Payments & Banking Tech: Firelands FCU launched Mahalo’s Thoughtful Banking platform, while a new Qi2.2 MagSafe power bank highlights ongoing consumer device upgrades tied to charging ecosystems. Local Banking & Community: Halifax’s brand is being phased out in the UK after 173 years, and Sterling Bank awarded scholarships to area graduates.

Mortgage Policy Shock in Australia: After the Federal Budget, ING says it’s updating serviceability for negative gearing: for established investment properties bought after 12 May 2026, benefits will be limited to rental income for borrowing tests, with early estimates pointing to an 8%–12% hit to investor borrowing capacity. Fraud Watch: India’s “life certificate” pension scams are escalating, with criminals using fake bank links to harvest OTPs, CVVs and PINs. UK Banking Access: Lloyds will restore cheque deposits at post offices and banking hubs until end-2030 after pressure from MPs, aiming to help older customers who still rely on cheques. Central Banking & Regulation: The Bank of England warns agentic AI could outpace regulation and raise cybersecurity and market risks. Digital Banking Push: OCBC is launching an AI-avatar wealth app and plans to hire 600 relationship managers for its wealth push. World Bank Moves: The World Bank will phase out lending to China by 2031, shifting toward a “knowledge partner” role. Ghana Flood Funding: The World Bank blames Ghana’s Ministry of Finance fiscal controls for delays to the $350m GARID flood-resilience project.

Court Ruling: The Investment and Trade Court cleared a client of further liability in a long-running Murabaha financing dispute, ordering the Islamic bank to pay legal costs. UK Banking: The Court of Appeal rejected UK banks’ bid to halt mass motor-finance mis-selling litigation, keeping large claims in play. Central Banking/Reserves: Reuters reports the ECB is debating raising minimum cash reserve requirements to cut its own interest bill and drain excess liquidity. World Bank Climate Shift: The World Bank extended its climate framework but dropped key climate co-financing targets, citing a move from inputs to outcomes. World Bank Flood Risk: A new World Bank paper urges faster climate-proofing and energy-efficiency upgrades for Philippine firms facing recurrent flooding. Bangladesh Monetary Policy: Bangladesh Bank held its policy rate at 10% and reaffirmed a flexible exchange-rate regime to manage inflation and external shocks. Bank Holiday: Bangladesh banks and stock exchanges will suspend transactions on July 1 for half-year closing. Fraud/Payments: Javelin says identity fraud losses hit $27.3bn in 2025, with mid-market banks increasingly targeted. Crypto Banking: Binance integrated Anchorage Digital’s Atlas triparty platform, pledging collateral at Anchorage while trading on Binance. ECB/Banking Costs: ECB reserve debate could reshape liquidity economics for euro-area lenders. Corporate Finance: HDFC Bank approved Jigar Shah as general counsel-designate and general counsel later in 2026. Banking Dispute: A Sint Maarten court lifted Telem’s bank account seizures after they crippled operations. Regional Investment: EIB plans €700m financing in Morocco in 2026, including transport, private sector support and education. Auto Finance Deal: Attijariwafa Bank and AMICA signed a strategic partnership to back Morocco’s automotive ecosystem with financing, guarantees and training. Banking Sector Health (India): RBI said India’s gross NPAs hit a multi-decadal low of 1.8% at end-March 2026, with resilience supported by capital and liquidity buffers.

HDFC Bank Leadership Shake-up: India’s HDFC Bank named former Finance Secretary and ex-Chief Election Commissioner Rajiv Kumar as part-time chairman for three years (RBI approval pending) and approved Puneet Sharma as CFO from Dec 1, 2026, after the abrupt March resignation of Atanu Chakraborty. Banking Oversight & Cybersecurity: Australia’s Treasurer called alleged access to PM Anthony Albanese’s bank details “incredibly concerning” as two Sydney men face charges after an EY graduate allegedly accessed Commonwealth Bank data. Court Orders & Frozen Accounts: A St. Maarten court ordered Flow to lift conservatory attachments on TELEM’s accounts at multiple banks, saying the freeze crippled operations. World Bank Climate Pivot: The World Bank will retire its 45% climate-lending target and shift to “smart development,” while still reporting climate indicators. Payments Modernisation: Singapore’s MAS and ABS plan PayNow Generation 2 enhancements, including QR interoperability and smoother online checkout. Regional Finance Moves: Saudi’s Bidaya Finance renewed an $80m shariah loan with Al Jazira Bank; Qatar’s Lesha Bank deployed $85m via a PE fund. Inclusion & Lending Access: Papua New Guinea’s Wau Waria reopened formal banking via a Mama Bank access point; Sri Lanka’s Seylan Bank launched “Seylan Athwela” farm financing at 5% interest. Banking Sector Risk Watch: Nuvama said new India measures like FCNR(B) relaxations and ECLGS should help banks manage West Asia and El Nino risks.

Cannabis Banking Reform: U.S. lawmakers reintroduced the Secure and Fair Enforcement Banking Act of 2026 after medical cannabis was reclassified, aiming to give banks legal clarity to serve state-legal cannabis businesses. Stablecoin Regulation: Thailand’s central bank is nearing completion of a 1:1 baht-backed stablecoin framework, with pilots shaping rules and public consultation expected before end-2026. FX Pressure in Pakistan: Pakistan’s State Bank said foreign exchange reserves fell $1.305bn in the week to June 19 due to heavy external debt repayments, though it expects inflows by month-end. Bank Lending Costs in Bangladesh: Bangladesh Bank ordered banks to cap the weighted lending-deposit intermediation spread at 4 percentage points (with exceptions), to curb borrowing costs. Stablecoin Risk Warning: The BIS said dollar-pegged stablecoins fail key “money” tests and can create FX risk, likening them more to ETFs than cash. Digital Assets in Traditional Finance: BNY expanded its digital asset custody to add USDC minting, redemption, custody and transfers for institutional clients. South Africa Fraud Alert: Capitec warned of a scam using fake fraud alerts to trick customers into approving actions in banking apps. Corporate Banking Moves: Home Bancorp separated CEO and president roles at Home Bank, while Catalyst Bank’s acquisition of Lakeside Bank won shareholder approval.

HDFC Bank Leadership Shake-up: HDFC Bank is set to pick a new chairman next week, with interim chair Keki Mistry staying on until mid-September; CEO Sashidhar Jagdishan is also expected to be reappointed after an external legal review found no substance in former chair Atanu Chakraborty’s allegations. Kotak Mahindra CEO Exit: Kotak Mahindra Bank shares slid after CEO Ashok Vaswani said he won’t seek reappointment at year-end, triggering a succession search even as Nomura and Jefferies kept “Buy” calls. Regulator Watch: APRA framed proposed bank capital settings as a “calibration” to better match risk, aiming for safety without choking efficiency. Capital Markets: RAKBANK mandated a syndicate of major banks to arrange meetings ahead of a planned 5-year USD bond. Digital Lending Expansion: RoCapital IFN launched the Wonga brand in Romania, bringing a Poland-developed consumer lending model to the market. Policy & Consumer Costs: India’s July 1 changes include an Aadhaar email update fee waiver and new RBI rules on mis-selling, alongside ITR deadline reminders. AI Boom Caution: The BIS warned that AI investment exuberance could end like past booms, with reversals that hit the wider economy. Ukraine Risk Insurance: The US DFC and World Bank’s MIGA agreed a political risk insurance framework for a US-Ukraine reconstruction fund.