The performance of China's sixteen largest banks in the first six months of this year showed better asset quality, although lower net interest margins put pressure on profitability, according to a recently released report by Moody's. "The banks' first half performance demonstrates that regulatory measures implemented since January this year have been successful in containing financial risks and unwinding some shadow banking and interbank activities," said Nicholas Zhu, Moody's vice president and senior analyst. The Xinhua news agency also reported average asset growth slowed markedly to 4.4 percent during the June half, due partly to general declines in their investment in loans and receivables. Loan growth also remained subdued, with mortgage loans under strain from tightened macro-prudential measures on property transactions. The Far Eastern International Bank in Taiwan has revealed that it was hacked earlier this month. Through the malware, hackers conducted virtual transactions to route funds totalling nearly US$60 million from Far Eastern clients' accounts to accounts in Cambodia, Sri Lanka and the United States, reports bankinfosecurity.com. The bank reportedly detected the suspicious transactions and has been able to recover much of the stolen funds with the help of its banking counterparts in other countries, with only US$500,000 still unaccounted for. Former European head of Barclays financial institutions group, Richard Boath, is no longer the subject of an investigation by the Financial Conduct Authority, reports the FT. Boath, along with three other former Barclay's top brass, is still facing criminal charges brought by the Serious Fraud Office over two 2008 fundraisings, when the bank raised emergency cash from Middle East investors in an attempt to stay out of UK government control. Although it has dropped the regulatory inquiry into Boath, the FCA said it could re-examine that decision if he is convicted of the fraud charge, the FT reports. The UK government is expected to wait to sell its 71 per cent stake in Royal Bank of Scotland until the bank has settled a potentially large fine with the US Department of Justice over mis-selling of mortgage-backed securities during the GFC, reports the FT. In an interview on the FT weekly banking podcast, RBS chief financial officer Ewen Stevenson said he thought the impending fine was "holding back the government's ability to privatise" the bank. Another person described by the FT as "close to the process" said once the bank had dealt with the US authorities, the UK government would look to quickly restart the sell-off, "off-loading large portions of about £3 billion to institutions using an overnight accelerated bookbuilding process." UK startup ScramCard, founded by a former Westpac security executive, will let people put all their cards onto one piece of plastic which generates one-time PINS for transactions, reports Finextra.  The "Da Vinci Choice" Mastercard has an e-ink display, touch keyboard and battery. The card will cost £75 and is expected to launch early next year. A gang of hackers has stolen at least US$40 million from banks in former