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Banking industry

Banking Crisis in Asia: Key Developments and Implications

Strategic Insights

— 2 min read

The Asian banking sector is facing a significant crisis, with several major banks struggling to cope with the aftermath of a severe financial downturn. In the Philippines, the PNB Capital and Investment Corporation has declared a cash dividend of 130 million pesos, while in Korea, Hanaro Investment Bank is set to be placed under a state-initiated financial holding company. Meanwhile, in Vietnam, Asia Commercial Bank has launched the country's first domestic credit cards, and in Japan, the Bank of Japan has reduced the number of 2,000 yen bills to be printed this fiscal year.

Key Takeaways:

  • The Philippine National Bank has declared a cash dividend of 130 million pesos, translating to 26 pesos per share.
  • Hanaro Investment Bank in Korea is set to be placed under a state-initiated financial holding company, which will control four weak banks.
  • Asia Commercial Bank has launched Vietnam's first domestic credit cards, with plans to issue 10,000 cards in the next 12 months.
  • The Bank of Japan will reduce the number of 2,000 yen bills to be printed this fiscal year to 770 million from an initially planned 1 billion bills.
  • The Bangko Sentral ng Pilipinas (BSP) has stepped up its drive against money laundering activities in the Philippines.
  • Kookmin and Housing and Commercial Banks in Korea have been paralyzed for four days due to a strike, with customers withdrawing an estimated 1.37 trillion won (US$1.11 billion) worth of deposits.
  • China's H-share firms and red chips raised a record US$60.15 billion from overseas financial markets in 2000.
  • Korea Development Bank plans to sell its 26.2-percent stake in Korea Investment Trust Management and Securities (KITMS) before the year is out.
  • Striking bank employees from Kookmin and Housing & Commercial Banks in Korea will rally at Korea University.

Statistics:

  • 1.37 trillion won (US$1.11 billion) worth of deposits were withdrawn from Kookmin Bank and 620 billion won from H&CB during the past four days.
  • China's H-share firms and red chips raised a record US$60.15 billion from overseas financial markets in 2000.
  • The Bank of Japan will reduce the number of 2,000 yen bills to be printed this fiscal year to 770 million from an initially planned 1 billion bills.
  • The Financial Supervisory Service (FSS) estimated that a total of 2.77 trillion won (US$2.2 billion) in deposit withdrawals was taken out of Kookmin Bank and Housing and Commercial Bank (H&CB) in the seven days since their labor unions began strike.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Philippine National Bank (PNB)
  • Hanaro Investment Bank (Korea)
  • Asia Commercial Bank (Vietnam)
  • Bank of Japan (Japan)
  • Bangko Sentral ng Pilipinas (BSP) (Philippines)
  • Korea Development Bank (KDB)
  • Financial Supervisory Service (FSS) (Korea)
  • China Securities Regulatory Commission (CSRC)

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