Foreign news: PayPal buys Xoom, China warned by World Bank, and more 03 July 2015 4:11PM Banking Day staff Foreign news, Paypal is to acquire online international cash transfer business Xoom for US$25 a share. The deal is expected to be closed in the fourth quarter of 2015, a month after Paypal separates from eBay. The move will strengthen PayPal's international business, giving it access to Xoom's 1.3 million active US customers who, in the 12 months to March 31, sent about US$7 billion to people in 37 countries. The World Bank has urged China to accelerate reform of its state-dominated financial sector. The bank warned that failure to address the issue could end "three decades of stellar performance" for the world's second-largest economy. The Chinese government retains effective control over almost 95 per cent of bank assets, the Financial Times reports. This compares with 74 per cent state control in India and about 40 per cent in Russia and Brazil. The World Bank restated its forecast for China's economy to grow 7.1 per cent this year, before cooling to 7.0 per cent next year and to 6.9 per cent in 2017. The Central Bank of Indonesia has put into force a ban on the use of the US dollar and other foreign currencies in financial transactions. The International Business Times reports the move is aimed at decreasing dependence on the US dollar and other foreign currencies. The ban, effective from July 1, covers all transactions - from hotel accommodation payments to flights and rental fees. Exceptions include payment of wages to foreign employees in dollars by international companies and investing in energy facilities and infrastructure. Breaking the law can be punished with imprisonment of up to a year or a fine of US$15,000. Japan's Mitsubishi UFJ Financial Group is considering acquiring a bank in Indonesia, the Philippines or India. It would, ideally, be a player in consumer banking, according to the group's Asia-Oceania CEO, Go Watanabe. Bloomberg reports the company wants a majority stake in a "relatively big-sized bank" that is very strong in both corporate and retail consumer finance. Mitsubishi is among 12 firms that have expressed interest in buying United Planters Bank from the Philippine government.