Overseas briefs: Citi's withdrawal from retail banking in Japan on schedule, Singapore tightens lend

Banking Day staff
  • Sumitomo Mitsui Banking Corp's subsidiary SMBC Trust Bank will absorb Citigroup's consumer banking business in Japan on November 1. The Japan Times reports SMBC had previously said SMBC Trust Bank would complete the consolidation with Citibank Japan Ltd's retail operations in October, but it pushed back the schedule to ensure a smooth shift to a new system. After the integration, Citigroup will pull out of the consumer banking business in Japan.
  • The Monetary Authority of Singapore will tighten rules restricting financial institutions from granting further unsecured credit facilities or new credit cards to stressed borrowers, News Asia reports. There are 32,000 borrowers that hold debts exceeding 24 times their monthly income - owing a total of S$4 billion.
  • China Banking Corp is investing P500 million in a Philippines subsidiary investment-banking unit to be called China Bank Capital Corp.  A roster of commercial lenders in the Philippines has invested in subsidiary investment houses to widen financial products choices.
  • Taisho Bank, a second-tier regional bank based in the city of Osaka, and Tomony Holdings Inc, which owns similar sized banks in the Shikoku region, are looking at merging, reports the Japan Times. Mitsubishi UFJ Financial Group Inc, Taisho Bank's largest shareholder, is in the final stage of talks on a plan for Tomony Holdings to take the bank under its wing. Tomony Holdings, which was established in 2010, owns Kagawa Bank and Tokushima Bank in Tokushima Prefecture. The integration would create a regional banking group serving customers in Kansai and Shikoku.