AGP Executive Report

Banking Deal & Capital Markets: Bank of Montreal priced $1bn of NVCC AT1 Limited Recourse Capital Notes at a 7.375% coupon, with rates resetting every five years after 2036, as it taps investors for funding. M&A & Expansion: Chime agreed to buy Stride Bank for $590m in an all-cash deal aimed at bringing more banking infrastructure in-house and boosting lending; shares jumped. Regional Banking Moves: Legend Bank received approvals to acquire Graham Savings and Loan, targeting an Oct. 1 close; Federal Home Loan Bank of Des Moines named Wil Osborn president/CEO effective Oct. 1. Shareholder Activism: Two activist investors asked to join the board of United Bancorporation of Alabama, arguing the bank’s excess capital is underused and progress has stalled. Risk & Compliance: A GAO report says cannabis businesses still face costly, hard-to-navigate banking access due to compliance burdens and legal uncertainty. Geopolitics With Financial Spillovers: The UK, France and Canada moved to ban trade in goods from Israeli West Bank settlements, prompting Israel to retaliate by closing the UK consulate in East Jerusalem. Other Notables: Iraq’s CBI put Al-Taif Islamic Bank under guardianship for 18 months to protect depositors while withdrawals are handled gradually. Sports Finance Shock: LIV Golf filed for Chapter 11 bankruptcy after Saudi funding ended, with players reportedly free to leave.

UK-Israel Trade Curbs: Britain is set to ban goods from Israeli settlements in the occupied West Bank, with Foreign Secretary Ed Miliband framing it as support for a two-state solution; the move could trigger US and Israeli retaliation and may affect about £6bn of annual bilateral trade. Banking Sector Pressure: India’s government has temporarily paused a new Performance Linked Incentive scheme for public sector bank staff amid strike threats, while RBI-linked FX risk concerns persist as some Indian banks leave overseas deposit interest payments unhedged. Corporate Finance & Markets: Computacenter lifted guidance after interim profits surged, and Pernod Ricard has reportedly picked four banks to advise a potential 2027 IPO of its India business (no decision yet). Wealth & Payments: DBS and Citi completed a weekend cross-border USD payment using tokenised deposits, cutting settlement to minutes; Singapore’s MAS unveiled FSTI 4.0 with S$220m for fintech innovation. Legal & Governance: Deloitte faces a US lawsuit over alleged audit failures tied to a collapsed hedge fund; Swiss ex-banker Pierre Mirabaud was convicted of corruption and money laundering. Digital Banking Growth: Nigeria’s FairMoney says it has surpassed 30m registered users, highlighting continued momentum in mobile lending and payments.

Tokenisation Push in India: REC priced India’s first pilot tokenized corporate bond issue under SEBI’s sandbox, selling Rs 500 crore at 7.30% for 1 year 9 months and oversubscribed ~8x, with same-day pay-in, allotment and listing on NSE/BSE. Payments & Banking Tech: UK mobile wallet adoption hit 65% of adults in 2025 as Apple Pay/Google Pay keep shifting how people pay, not whether they pay. Crypto in Mainstream Banking: Brazil’s big banks (Itaú, Nubank, Banco do Brasil) are expanding token trading for retail clients under the new virtual-asset rules, while keeping crypto off their own balance sheets. Banking Stability & Capital: China plans a $54bn recapitalisation into state banks and insurers via special treasury bonds to sustain lending as growth slows. Consumer Protection: Poland’s regulator ordered major banks to revisit rejected fraud claims under the EU next-business-day refund rule. Geopolitics Meets Finance: US sanctions a Turkish bank tied to Iran oil revenue flows; UK and Israel-West Bank settlement moves raise further financial and trade pressure.

Gulf Payments Push: Qatar Central Bank joined the AFAQ Payments System, completing GCC central-bank participation; Doha Bank, Qatar International Islamic Bank and Dukhan Bank also joined, bringing participating banks to 74 and aiming to speed up cross-border transfers. AI in Banking Hiring: UBS will require all new junior bankers to demonstrate AI proficiency, adding AI questions to interviews and rolling out an “AI Fluency Pathway.” Banking Tech & Security: CIMB will drop password verification for SecureTAC approvals from 19 September, shifting web and online card payments to biometrics or an OCTO app passcode. Capital Markets: RBL Bank’s board approved a $€1bn EMTN bond programme, subject to regulatory approvals. Crypto Market Structure: US Senator Cynthia Lummis warned that if the CLARITY Act misses this Congressional window, crypto market-structure rules could be delayed until 2030. Crypto Disruption: Liquid Network halted operations after a reported $320m Bitcoin vulnerability exploit, with actors claiming they’ll return funds. UK Housing: UK annual house prices fell in August for the first time since Nov 2023, with Lloyds pointing to higher borrowing costs and fewer transactions.

Banking Holiday Watch (US): Labor Day 2026 is a mixed day for services in Tennessee—most major retailers and restaurants stay open (hours vary), while banks and the stock market are closed and government offices/post services shut. Nigeria Monetary Signals: CBN data show banks’ deposits with the central bank fell 1.14% month-on-month to N82.99tn in August, the third-lowest SDF placement of 2026, as liquidity and returns shift. Middle East Banking & Capital: Saudi credit growth accelerated—Saudi banks’ loans to the private sector and non-financial government institutions rose 7% to over SR3.54tn by end-July. GCC Cooperation: Central banks in the Gulf reviewed joint work on payments, supervision, fintech and cybersecurity. Sanctions & Shadow Banking: US enforcement targets Iranian-linked shadow-banking flows—FinCEN flagged about $9bn in potential activity through US correspondent accounts in 2024, while OFAC sanctioned a Turkish bank network tied to IRGC-linked transfers. Cybercrime at the Branch: A fake security pop-up scam nearly drained an 85-year-old retiree of nearly $110,000, but bank staff stopped the transfer.

Banking Compliance Crackdown: UK banks will start sharing details of benefit claimants with the DWP from October, with powers that can even allow cash withdrawals as part of a fraud and overpayment crackdown. Central Banking & FX: Zimbabwe’s push to phase out the US dollar by 2030 faces a World Bank warning that “premature de-dollarisation” could trigger capital flight; separately, Zimbabwe signals cheaper, longer-term loans as inflation falls to 2.9%. Banking Sector Moves: Indian Bank gets approval to open a Dubai representative office to expand overseas operations, while SBI plans to hire about 12,000 staff and add 250 branches in FY27. Capital & Markets: China’s ABC and ICBC plan A-share placements to replenish core Tier-1 capital, and Indonesia’s OJK sets a 5% ownership cap for IDX after demutualisation. Regulation & Risk: PwC finds financial firms are modelling AI job impacts but are still underprepared for workforce changes. Deposit Stress in Iraq: Depositors protest after Al-Taif Islamic Bank is placed under guardianship and withdrawals are suspended.

UAE Banking Compliance: UAE banks warn customers to update personal data via mobile apps or face service suspension, citing Central Bank directives and requiring Emirates ID, passport copies, and W9 for US-linked clients. India Banking Funding: Strong FCNR(B) inflows are expected to cut banks’ funding costs by up to 50 bps and ease liquidity pressure, with CD issuance and rates falling after RBI’s FCNR(B) swap facility. Kuwait Capital Raise: Burgan Bank launches a rights issue of up to KD50m to strengthen capital and fund digital transformation, priced at 180 fils per share. US Sanctions on Iran Links: The US Treasury sanctions Turkey’s Golden Global Investment Bank and affiliates under “Operation Economic Outcast,” alleging oil-revenue transfers routed through gold and cash. Crypto-Market Signal: Bitcoin’s 90-day correlation with gold jumps to +0.50, while its link to the Nasdaq 100 slips to about 0.30, pointing to a shift toward scarce-asset behavior. Corporate Banking Tech: BRAC Bank rolls out CORPnet, adding secure mobile approvals, bulk transaction authorization, and real-time corporate visibility. West Bank Security: US envoy Mike Huckabee again calls settler violence an “act of terror” during visits to Palestinian-American families, while UN officials urge urgent protection for civilians in Gaza and the West Bank.

RBI Approvals: LIC has won RBI clearance to buy up to a 9.99% stake in ICICI Bank, with the deal capped by regulatory conditions and a one-year window. Banking Competition: Large private banks are ramping up gold loan lending, aiming to grab more higher-ticket business as customer acceptance grows. Cross-Border Funding: India’s FCNR(B) deposit drive is reshaping the banking race, with ICICI Bank and foreign lenders emerging as key winners as inflows total about $136.4bn. Stablecoin Politics: A US CLARITY Act stablecoin loophole is drawing fire for potentially diverting over $1tn from bank deposits, with lawmakers warning of knock-on effects for rural lenders and borrowers. Scam Watch: UK banks are warning customers about impersonation scams where “bank” is the scammer, citing rising losses. Liquidity Management: India’s RBI is moving to mop up a record cash glut by locking away excess liquidity for 30 days. Digital Payments: Macao has joined the mBridge central bank digital currency platform, bringing more banks into cross-border testing.

Iran Sanctions: The US Treasury sanctioned Turkey’s Golden Global Yatirim Bankasi and two subsidiaries, alleging they helped move Iranian oil proceeds via shadow-banking channels, cutting them off from the dollar system. Banking & Identity Security: A reported dark-web sale of driver’s license scans—matching the images banks use to verify IDs—has triggered new class-action filings against IDScan.net. Banking Expansion & Deals: Georgia investors shelved a de novo plan and will recapitalize a Virginia bank to launch in the Atlanta market; Equity Bank agreed to buy Lincoln Savings Bank in a $123.8m merger. Regulatory/Market Signals: IDFC FIRST Bank won an S&P investment-grade rating (BBB-/A-3), while Deutsche Bank said August US auto sales beat forecasts but incentives remain a factor. Community Finance: Food banks across the US pushed Hunger Action Month drives, including home-delivery launches and local fundraisers, as banks and regulators also faced ongoing fraud and operational scrutiny.

Banking Liquidity & Funding: India’s FCNR-B deposits surged, with USD 127.23bn mobilised via RBI’s swap facility, lifting system liquidity and helping ease funding costs; Jefferies flags surplus liquidity could rise further into the festive season. Banking Returns Outlook: Anand Rathi says FCNR-B can be RoE-accretive even if NIM faces mild pressure, helped by reserve exemptions and lending against pledged deposits. CEO Succession Watch: HDFC Bank and Kotak Mahindra CEO exits are raising investor questions about succession planning and leadership continuity. Regulation & New Entrants: Revolut cleared a key hurdle with conditional OCC approval for a US national bank charter, while OpenReserve received preliminary conditional approval to charter a national bank. Digital Banking Push: Axis Bank rolled out 19 automation features at Global Fintech Fest, and Raiz Federal Credit Union expanded its digital sales and service platform with Alkami. Labor & Industry Pressure: Unionized workers in South Korea rallied against a possible relocation of state-run banks out of Seoul. Consumer/Operations: Labor Day closures: most US banks and post offices shut on Sept. 7.

Banking & Regulation: Federal regulators flagged weaknesses in some BaaS setups, focusing on fragmented operations and limited access to records, while banks keep reshaping deposit and fee strategies around these partnerships. Embedded Finance: FIS launched a new embedded banking platform, with M&T among early users, as banks chase more deposits and fee income through software distribution. US Charter Push: OpenReserve won conditional OCC approval for a “bank that never closes,” backed by a $25M seed round led by a16z. Canada Currency: The Bank of Canada unveiled a new vertical $20 note featuring King Charles III and added security features, with rollout early next year. M&A in Community Banking: Equity Bancshares agreed to buy Lincoln Savings Bank’s parent, expanding Equity’s Iowa presence ahead of a Q4 2026 close. Market/Policy Reality Check: A fact-check challenged Trump’s claim that US banks can’t operate in Canada, noting 15 US-based banks already operate there. Crypto/Stablecoins: Multiple banks are moving toward stablecoin plans, including a push involving 21 banks. Security & Crime: Police reported a string of bank robberies in Colorado Springs and a WSFS Bank robbery suspect identified in Delaware.

Central Banking & FX Liquidity: The RBI said India mobilised a record $136.38bn via its special USD-INR swap window, sparking a broad banking-stock rally. Monetary Policy Watch: Bank Negara Malaysia held its OPR at 2.75%, while the Bank of Canada kept rates steady at 2.25%. Banking Sector Flows: India’s FCNR(B) inflows hit an all-time high, lifting liquidity surplus to a record ₹9.7 lakh crore and raising near-term margin questions. Corporate & Deal News: ICICI Bank bought an extra 2% stake in ICICI Prudential Life for ₹1,470 crore; Bank of Hope received approvals to acquire SMBC MANUBANK’s commercial unit. Regulation & Consumer Costs: Albania’s central bank requires banks to show card and online transfer exchange fees upfront. Governance & Fraud: Lebanon’s central bank ordered a forensic audit of past foreign-asset transactions; India’s ED continued raids in a ₹290 crore bank fraud case. World Bank Debate: Neelkanth Mishra hit back at GDP-growth critics, calling claims “ill-educated” and “egregiously wrong.” Islamic Finance & FinTech: QFC signed an MoU with AlRayan Bank to expand Islamic finance and capital-market access.

Fed Oversight: The U.S. Federal Reserve will tighten how it screens and hires presidents and directors at its 12 reserve banks after an inspector general review flagged inconsistent processes and conflicts of interest. Central Banking & Gold: The Dutch central bank moved 86 tonnes of gold from the U.S. and Canada to London to boost crisis readiness and make reserves easier to trade. Rates Watch (Canada): The Bank of Canada held its policy rate at 2.25% as it weighs tariff and Middle East risks. Banking Security & Crime: A Bank of America VP, Erin Piacenti, was killed in a Times Square stabbing; separately, an armed customer stopped a Chase robbery in Texas, and police are probing a U.S. Bank robbery on Chicago’s South Side. Scams: Authorities warned of fake bank calls, bogus toll texts, and Zoom-based scams targeting account details. Corporate/Markets: Zerodha won SEBI approval for a merchant banking licence; Golden Pet Brands is reportedly lining up banks for a New York IPO. Credit & Ratings: JCR upgraded India’s sovereign rating to A- on improving banking asset quality; ESAF Small Finance Bank’s outlook was revised to stable.

Banking App & Payments: Razorpay and IndusInd Bank rolled out an AI account manager on WhatsApp, while Axis Bank added personal UPI transaction limits and separate controls for P2P and domestic payments. Central Banking Watch: The Bank of Canada is set for its sixth rate decision of the year, with markets leaning toward a hold as tariff risks and inflation collide. India Banking Flows: ICICI Bank mobilised $17.88bn via RBI’s FCNR(B) swap facility, and banks cut FCNR rates after the window closed, reshaping dollar deposit returns. Banking Disruption & Fees: Unions are pushing for nationwide strike dates that could disrupt services, and a letter to the editor renewed complaints about bank processing fees. Corporate & Credit: Homeplus won court approval for its rehabilitation plan, avoiding bankruptcy, and private credit’s rise is putting pressure on legacy bank lending processes. Aid & Risk in the Middle East: WFP is halving West Bank food assistance to 200,000 people amid funding shortfalls, as needs rise. Security & Banking Crime: A Copiague man was charged over about $66,000 in fraudulent checks deposited at two Nassau banks.

Stablecoin Push: 21 major financial institutions, including Bank of America, Citi, Goldman Sachs and Wells Fargo, plan to launch a U.S.-dollar stablecoin in H1 2027, backed by a new company by year-end. Banking Security & Crime: Bank of America VP Erin Piacenti was killed in a Times Square stabbing; police say the attacker was shot dead after stabbing two people. In Atlanta, a man was arrested after an attempted Wells Fargo robbery, captured by body-cam. Capital Markets: California’s Farmers & Merchants sold a $1bn low-yield municipal bond block after nearly four-and-a-half years, taking an $85m loss but citing strong capital buildup. M&A/Restructuring: United Community Banks completed the $2.0bn sale of its equipment finance unit Navitas to Wafra. Regulation & Risk: Central bankers at Jackson Hole warned AI could disrupt trust and markets, urging regulators to assess major models before release. Geopolitics & Finance: Israel’s banks agreed to keep correspondent services with Palestinian counterparts through 2026, while the UN World Food Programme cut West Bank aid amid funding shortfalls.

HDFC Bank Leadership Shock: India’s HDFC Bank shares and dollar bonds slid after CEO Sashidhar Jagdishan opted out of reappointment, raising governance and succession-transition risk as investors await the next MD/CEO. AI in Banking Risk: Regulators and industry voices warn that AI credit decision tools can still create unfair rejection patterns tied to sensitive traits, pushing banks to operationalise AI governance. Blockchain for Deposits: US state bankers’ groups formed the BankChain Alliance to build an industry-run blockchain network for stablecoins and tokenised bank deposits, targeting a 2027 launch. Cybercrime Fallout: Mumbai police opened an FIR after a credit manager’s email was allegedly hacked, with stolen customer data and gold-loan documents linked to a wider share-investment scam network. Food Aid Cut in West Bank: The World Food Programme is halving assistance in the West Bank due to funding shortfalls, as food insecurity has surged since 2023. Digital Lending Push: Philippines digital lender JuanHand rolled out top-up loans within existing credit limits, using AI underwriting to speed approvals. Central Banking Appointments: Indonesia confirmed Destry Damayanti as central bank governor, while Mozambique named Waldemar de Sousa as Bank of Mozambique governor. Regulatory Sandbox Moves (Ghana): One Africa Securities gained entry to Ghana’s SEC virtual asset sandbox to explore tokenisation, building on its earlier Bank of Ghana sandbox work.