Banks’ new strategy to fight ATM robbers

Bank Negara Malaysia had come out with a new guideline for banks to help deter ATM robbers. In its guidelines on 26 Aug, the central bank is calling banks and Cash in Transit companies to consider using Currency Protection Device (CPD) to help deter ATM theft. 

A dye pack or a dye bomb will be placed in the ATM and if someone tampers with the machines, the bomb will goes off, staining the notes inside with red and easily recognizable as stolen money. 

The central bank’s guidelines also state that the CPD would emit a bright color dye by smoke, liquid or any other agent to stain the notes in the event of a ATM is broken into. 

Among important points in the guideline:

> The ink has to be indelible by water, fuel, gas, bleach and detergent.

> It must be traceable to the ATM, to assist police investigations.

> It must stain at least 10% of each bank note.

> It can be detected and rejected by banknotes authentication machines used by banks such as Cash Deposit Machines.

> It must be non-hazardous and non-toxic.



BIBM Holdings to takes full control of Bank Islam Malaysia Berhad

BIMB Holdings Berhad will be taking full control of Bank Islam Malaysia Berhad after undertaking a MYR 6.7 billion exercise. 

BIBM, who currently owns 51% of Bank Islam, will be acquiring the remaining 49% from Dubai Financial Group LLC (DFG) and Lembaga Tabung Haji (LTH). Currently, DFG owns 30.5% or 690.196 million shares, and LTH owns 419.894 million shares or 18.5%. BIBM will be paying USD 550mil to DFG an USD 334.6mil to LTH for the shares.

Analysts said the acquisitions would allow BIMB to comply with the new Financial Services Act (FSA) and  Basel III rulings with more ease.

“The acquisitions would give BIMB the flexibility to restructure, in light of the FSA rulings. It would also help it optimise capital under the Basel III requirements. Moving forward, capital would be one of the key concerns.

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People’s Move on Debt Syndicate Front

RBS to expect more movement in people after Rogerio Bernardo resignation.

Previously based in Singapore, Rogerio Bernardo was director of the bond syndicate team. His departure followed months after previous Asia head of dept capital markets Augusto King, who joined Jefferies in March this year.

For the past few months, there had been a fair bit of movement on the debt syndicate front. This include Hitai Desai and Devesh Ashra who left Credit Suisse to join Bank of America Merrill Lynch, Ashish Malhotra who left Bank of America Merrill Lynch to join Standard Chartered, and Terence Chia who left Citi to join Credit Suisse.


Summarised from source:,rbs-loses-bond-syndicate-banker.aspx

Looks like CIMB Malaysia is not giving up on expanding to the Philippines. Group CEO Datuk Seri Nazir Razak had said that they will continue to look for opportunity there. This comes after they pull out from their plan to acquire a controlling stake in the Philippines’ Bank of Commerce. 

Nazir had shared this at the sidelines of CIMB-Universiti Tunku Abdul Razak Leadership Series and Asean Hall Launch, where he talked about the group growth from an investment bank into a leading Asean banking group. 

Nazir also commented on the Trans-Pacific Partnership Agreement, saying that the ability to enter into new markets would be good.

“We should try for it but we must be very careful about the conditions that come with it,” he said of the negotiations event which will are being held in Kota Kinabalu this month.

“Malaysia has unique ways of doing business and the terms should cater to our country’s needs.”

“We should not feel obligated to agree to new deals just because we are hosting the programme,” he told reporters.

“Parties should be willing to walk away if it isn’t right. That’s a fundamental prerequisite of good negotiation.”

He pointed out that the risks in the program were that there would be rules imposed on Malaysia and whether they would cater sufficiently for the unique necessities of the local market.

“That’s why it is very important for the Ministry of International Trade and Industry to negotiate properly at the event,” Nazir said.

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Maybank Islamic CEO wins Islamic Banker of the Year

Maybank Islamic CEO, Muzaffar Hisham, had won the Islamic Banker of the Year award at the Asset Triple A Islamic Finance Awards 2013.

His win was attributed to his outstanding contribution to developing Islamic finance regionally and instrumental play in growing of the group’s Islamic banking business.

Maybank Islamic also won 2 other awards – Best Islamic Retail Bank, Malaysia and Best Islamic Trade Finance Bank for the 3rd consecutive year. Beside, the group also won the best Islamic Equity Award, Best Islamic Equity Award (highly commended), Best Local Currency Sukuk Award (Maybank Investment Bank), and Best Islamic Project Finance Award.

Maybank Islamic is currently the leading Islamic Bank in Asean and the largest Islamic Bank in Malaysia securing a 26% domestic financing market share and accounting for 30.6% of the Maybank Group’s total domestic loans.

Muzaffar joined Maybank Islamic in 2011 with over 10 years’ experience in the industry.


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Bank Islam set sight on SEA market

Bank Islam Malaysia Berhad, currently with 130 branches in Malaysia, is looking to expand its presence to the South East Asia Region. 

Datuk Zukri Samat, Bank Islam’s managing director, said that they had not been able to identify suitable joint-venture partners to penetrate foreign partners. He also said that although they do not have the opportunity currently, they are determine to expand their business to Indonesia.

He was speaking at the bank’s business zakat of MYR 320,000 to the Johor Islamic Religious Department on 15th July 2013. Also present at the event was Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin. 

Bank Islam was previously reported to have held talks with an Islamic bank in Indonesia to acquire up to 40% stake in the latter. 

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SG Economy on the grow

Good News for Singapore Economy!

Advanced estimate shows that there is 3.7% on-year growth for 2013 2nd quarter. As for quarter-on-quarter (QOQ) basis, there is  growth of 15.2%.

The manufacturing and services industries displayed good performance with significant growth of 1.1% and 5% respectively on-year basis. Interestingly for manufacturing sector, it is a reverse of the 6.9% contraction in the previous quarter.

For the construction sector, performance is moderate, with 5.6% on-year growth, but a slight drop from 6.8% in the preceding quarter.


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SNB opens first office outside Switzerland

Swiss National Bank (SNB) opens its first office outside Switzerland!

As Asia Pacific region is gaining prominence in both global economy and finance areas, the currencies and assets become more important as well. This trend can be seen from the change in SNB’s foreign exchange investments.

Commented by MAS Managing Director Ravi Menon, and Chairman of SNB governing board Thomas J Jordan, the opening of SNB’s Singapore branch is significant as this reflects  the importance of Asian markets to long-term investors.


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Maybank goes to India

In line with their expansion plan, Malayan Banking Berhad, Maybank had ventured into a new country, India. They had done this through one of the main overseas subsidiary, Bank International Indonesia (BII).

Both the central banks of India and Indonesia, had approved the operations of BII Mumbai.

Datuk Khairussaleh Ramli, BII’s president director saied that the branch aims to enhance BII and Maybank’s presence in the extended region besides providing customers in India with their banking needs.

According to Khairussaleh, BII Mumbai will be focusing more on corporate and commercial banking segments, and would actively participate in buyers credit and external commercial borrowing arrangements for Indian customers.


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SG Banks not fined for rate rigging

It was asked if the Monetary Authority of Singapore (MAS) was too lenient after discovering there were clear attempts by traders to rig financial benchmark rates.

Well, it is, indeed, if you compare to the US$160 million fine imposed on Royal Bank of Scotland (RBS) by UK and US regulators.


The reason being?

Rate-setting activities are not regulated today, which seems to be the same for many other jurisdictions.


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