Regulators supervising multilingual jurisdictions face challenges in applying machine learning in supervisory tasks, especially for tools requiring a high accuracy on linguistic capabilities, according to the Financial Stability Board (FSB) which has published a report on the use of supervisory technology (or suptech used by regulators) and regulatory technology (or regtech, used by regulated financial institutions). The report, which outlined […]

The post Hong Kong’s multilingual environment poses difficulties for regs looking to use supervisory tech appeared first on Asian Private Banker.

The combination of record sales of investment products in 1Q20 and a significant drop in WM fees in 2Q20 translated in a total income staying roughly flat YoY in 1H20 for DBS WM. On the other hand, AUM saw a 7% YoY increase, from S$234 billion to S$251 billion. DBS Group on Thursday announced its 1H20 results, recording a 26% […]

The post DBS WM 1H20 AUM up 7% YoY, income stays flat appeared first on Asian Private Banker.

UBS announced its 2Q20 results on Tuesday. Overall net profit dropped 11% YoY and the profit before tax was down 10% YoY due to the elevated credit loss expenses. On the other hand, the bank achieved two of the 2020-2022 targets it formulated at the end of last year. Its 2Q20 return on common equity tier 1 capital was 13.2%, […]

The post UBS has “higher conviction” to achieve three-year goals despite pandemic: CEO Sergio Ermotti appeared first on Asian Private Banker.

While the pandemic created a diverse impact on UHNW businesses, most family offices managed to make a profit in their investments after the market tumble in March, thanks to their well-diversified investment strategies. UBS Global Wealth Management launched the Global Family Office Report 2020 on Thursday, the first in-house UBS report on the activity of family offices. The report found […]

The post FOs saw increase in investible wealth despite market sell-off: UBS appeared first on Asian Private Banker.

Yi Gang, Governor of the People’s Bank of China (PBoC), provided a framework last Thursday at the Lujiazui Forum on how financial institutions could achieve the letting go of RMB 1.5 trillion of profits in order to support the country’s COVID-19 disrupted economy. Yi’s speech follows Premier Li Keqiang’s suggestion in May, in his annual work report for the National […]

The post PBoC outlines plan on how FIs can sacrifice RMB 1.5 trillion of profits to bolster real economy appeared first on Asian Private Banker.

Indosuez Wealth Management expects that most measures to contain the COVID-19 pandemic will be lifted in the second quarter and Asia assets will benefit as risk appetite recovers. For China, the worst quarter would be 1Q20, asserted Marie Owens Thomsen, global chief economist and head of intelligence research at Indosuez WM, in an online media roundtable on Tuesday. For Western […]

The post Indosuez WM: Asia assets attractive again as worst of COVID-19 has passed appeared first on Asian Private Banker.

Looming inter-generational wealth transfers, a rising next-gen, and the COVID-19 pandemic are combining to make Asia’s wealthy families rethink the way they approach wealth preservation. “Asia’s families and their businesses are on the cusp of one of the most significant inter-generational wealth transfers,” Peter Golovsky told Asian Private Banker. The managing director and head of private wealth for Asia at investor services provider IQ-EQ […]

The post Asian HNW families seek independent operating model to manage their wealth appeared first on Asian Private Banker.

Credit Suisse has reported resilient 1Q20 earnings, with its Asia-Pacific business delivering the strongest earnings growth to date, despite a downtick in its AUM. In its press release issued today, the group acknowledged wide-range challenges since the outbreak of the COVID-19 pandemic, but added that its 1Q20 results were “supported by a strong contribution from the private banking franchises, with […]

The post Credit Suisse 1Q20 earnings up 75%, strong growth in APAC net revenues appeared first on Asian Private Banker.

UBS’s latest tactical asset allocation strategy prefers credit and stays overweight on Asian stocks, while adding Asian investment grade credit to its APAC portfolio. “There is better risk reward trade-off in credit,” argues Tan Min Lan, head chief investment office APAC, UBS Global Wealth Management. The rationale for preferring credit is three-fold, Tan said. First, policy support from the government […]

The post Credit offers a better risk-reward trade-off: UBS’s Tan Min Lan appeared first on Asian Private Banker.

In response to a request by the Swiss regulatory body, Julius Baer has become the new addition to a list of Swiss banks to split its dividend distribution into two payments. Also, it will postpone its annual general meeting for a month. The Swiss bank originally planned to hold the annual general meeting to its shareholders today (16 April), but […]

The post Julius Baer amends dividend proposal and postpones annual general meeting appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) expects PBs to notify it immediately when a member of staff has been confirmed to be infected by COVID-19 — if such infection may affect operations. This is one of the changes the SFC has announced in response to the evolving COVID-19 pandemic. In a set of FAQs on licensing related matters […]

The post LCs must promptly report major operational changes caused by COVID-19: SFC appeared first on Asian Private Banker.

Although China seem to have turned a corner in its battle against COVID-19, economic risks are still looming – not so much from a potential second wave of infections, but from global disruptions to the supply chains. China’s economic activities and production are normalising. “Taking all the compiled data together, China’s economy is now operating at about 65% to 70% […]

The post Counteracting trends at play as China slowly recovers from COVID-19: UBP appeared first on Asian Private Banker.

The global market faces a duality between an unprecedented amount of liquidity injected by central banks and COVID-19’s tremendous impact on the real economy, asserted David Gaud. The Pictet Wealth Management Asia CIO and head of DPM urged investors to be “pragmatic” while staying in the market. At a media conference call on Tuesday, Gaud highlighted that because of the […]

The post “No sector is entirely safe” in current crisis: Pictet WM’s Gaud appeared first on Asian Private Banker.

Private banks in Asia should look beyond the marketing hype generated by digitalisation and artificial intelligence (AI), and instead focus on how technology can magnify their existing capabilities, shared Will Lawton, head of QUO, the cloud-based ‘software-as-a-service’ investment management platform of TradingScreen, a US-based order and execution management systems provider. “In private banking, digitalisation predominantly happens behind the scenes around […]

The post COVID-19 piles pressure on PBs to digitalise — without losing human touch appeared first on Asian Private Banker.

As the coronavirus pandemic expanded its footprint in March, regulators from different countries were rolling out measures to ensure the orderly and fair operation of the financial markets. Private banks were grappling with the increased volume of transactions under less optimal working conditions with quarantine requirements in place while price disclosures remained under regulatory scrutiny. Regulators mitigating the impact of […]

The post March Regulatory Round-up: SFC postpones regulatory deadlines; Asian banks eager to close gap in AML compliance; <i>Force majeure</i> clause may affect PB trading contracts; Regulators scrutinise price transparency at PBs appeared first on Asian Private Banker.

The Financial Action Task Force (FATF) has alerted governments and financial institutions (FIs) of novel challenges in the fight against money laundering (ML) and the financing of terrorism (TF), while the Hong Kong Securities and Futures Commission (SFC) has delayed deadlines for intermediaries to meet regulatory expectations. In a statement issued on 1 April, the global watchdog for combating ML, […]

The post Watchdog, regulator pledge support for FIs, highlight risks linked to pandemic appeared first on Asian Private Banker.

Social distancing orders by governments around the globe are making it “almost impossible” for private banks to be fully operational remotely using current technology. With the rapid spread of the COVID-19 pandemic over the last few weeks, private banks have been under pressure to devise operational guidelines for staff working from home (WFH) or from back-offices. At its most basic, […]

The post Coronavirus outbreak exposes gaps in business continuity plans at private banks appeared first on Asian Private Banker.

COVID-19 and the associated economic pain may be good news for gold. As central banks around the world prepare for major rounds of quantitative easing, gold prices could easily strengthen in the coming months, according to Peter Kinsella, global head of Forex strategy at UBP. Whenever the global economic outlook dampens, there usually is an increase in gold positions, Kinsella […]

The post Gold to trade significantly higher in medium term: UBP’s Kinsella appeared first on Asian Private Banker.

The rising and steepening curves of the COVID-19 pandemic and its economic fallout have triggered a nearly month-long risk asset sell-off. How this will close out depends on what happens in the next few weeks, Michael Strobaek at Credit Suisse argued. This past weekend, Italy has reported the largest spike in new infections and death tolls, and a large part […]

The post Next two to four weeks crucial for financial markets: Credit Suisse’s Strobaek appeared first on Asian Private Banker.

The Hong Kong Monetary Authority (HKMA) announced on Monday that it has reduced the countercyclical capital buffer (CCyB) by a percentage point from 2.0% to 1.0% with immediate effect and has adjusted the base rate down to 0.86%, following the rate cut by the US Federal Reserve. The decisions came as central banks around the world started taking measures to […]

The post HKMA halves countercyclical capital buffer to encourage lending to SMEs appeared first on Asian Private Banker.

Markets are so far not convinced that the US Fed’s measures will be sufficient to prevent a sharp rise in bankruptcies and unemployment, argued UBS CIO Mark Haefele, as he shared strategies for keeping up the search for yield in today’s volatile markets, and themes to exploit in the long term. Commenting on the Fed’s emergency rate cuts, he said […]

The post Continue searching for yield and reposition into long term themes: UBS CIO Mark Haefele appeared first on Asian Private Banker.

The Fed’s emergency cut of interest rates by 1.0% to a new range of 0.0% — 0.25% on Sunday has considerably risen the odds of a technical recession, according to Eli Lee, Bank of Singapore’s head of investment strategy. The Fed’s action to “initiate a fresh programme of quantitative easing is clearly intended to calm financial markets and mitigate the […]

The post Investment managers interpret US Fed rate cut, positive on public equity and HY appeared first on Asian Private Banker.

On Thursday, global equity markets experienced another steep drawdown, with the US market trading down 9.5% in their worst day since the 1987 crash. There is no end in sight for the market rout triggered by COVID-19, contended UBS and Bank of Singapore. Both highlighted vast uncertainties and UBS advised on protective measures. “The equity markets have by now priced in […]

The post UBS, Bank of Singapore on how to navigate volatility appeared first on Asian Private Banker.

Stick to base case asset allocations amid uncertain markets, capitalise on volatility, and don’t shun investing in China, advised Bhaskar Laxminarayan, Asia CIO and head of investment management of Julius Baer, in a media briefing on Wednesday. Sharing his insights on the impact of the novel coronavirus on Asian markets, Laxminarayan expects that “the volatility [brought on by COVID-19] is […]

The post Stick to the base case, capitalise on volatility, stay positive on China: JB’s Laxminarayan appeared first on Asian Private Banker.

At Monday’s US market open, Wall Street suffered the greatest one-day loss since the 2008 financial crisis. While investors were gripped by a sell-off frenzy that caused heightened market volatility, Credit Suisse warned it is still too early to know whether the situation has created a trading opportunity. Very high volatility in the equity market is likely to persist in […]

The post Current market dislocations not yet a trading opportunity, PBs say appeared first on Asian Private Banker.

HSBC in Hong Kong has rolled out a pilot video conferencing service today for its HNW Jade clients so they can communicate remotely with their relationship managers. With video conferencing facilities powered by ZOOM, investment specialists and relationship managers are able to utilise a screen-sharing facility to conduct activities including providing financial advice, reviewing investment portfolios and strategies, and placing […]

The post HSBC introduces video conferencing service for HK Jade clients amid COVID-19 disruptions appeared first on Asian Private Banker.

The coronavirus is not likely to quell the hiring activities in private banking, though some contended that a relatively quiet start of the year has stretched into February. With bonus payout announcements and a few heavyweight moves in boutique banks this month, recruiters are generally in a “wait-and-see” attitude. Headhunters of the PB industry reacted differently to the disruptions brought […]

The post Movers & Shakers – February 2020 appeared first on Asian Private Banker.

The “culprit” for the recent and sharp downturn in financial markets may well be COVID-19, but beneath the surface, there are other factors at play that explain the current sell-off, according to Mike Wilson, Morgan Stanley’s CIO and chief equity strategist. “Equity markets have had a tremendous rally over the past year and we were due for some kind of […]

The post Morgan Stanley’s Mike Wilson: More than meets the eye to COVID-19 stock slump appeared first on Asian Private Banker.

The measures implemented to contain COVID-19 may cause a disproportionate negative economic and investment impact on China and, by extension, the world, said GlobalData in a release today. “China’s response to the COVID-19 outbreak in Wuhan risks being worse than the impact of the original outbreak,” said Andrew Haslip, head of financial services content for Asia-Pacific at the data and […]

The post COVID-19 containment measures may cost China’s wealth growth: GlobalData appeared first on Asian Private Banker.

98% of fund managers surveyed by the Investment Management Association of Singapore (IMAS) have suspended all employee business travel to China and nearly three-fourths have cancelled or deferred their events. Despite this, many remain divided about the impact that COVID-19 will have on their China-related businesses. In addition to the China travel freeze, an additional 37% of fund managers have […]

The post Nearly all AMs suspend China travel, but no consensus about COVID-19 impact on China-related business: IMAS appeared first on Asian Private Banker.

Amid the uncertainties surrounding the COVID-19 outbreak, investors had better brace for an economic downturn and market slump, before the economy eventually recovers and the situation brightens up, UBP said in a media conference call today. Fears escalated this past weekend that the virus would further cripple the global economy as the number of infections surged in South Korea, Japan, […]

The post UBP favours defensive strategy, warns of market correction before rebound appeared first on Asian Private Banker.

As the COVID-19 outbreak is gaining a wider footprint across the world, there are employers who prefer their staff to return to the office, out of concern that extending the work from home (WFH) arrangements may impede productivity. Employees for their part — reluctant to expose themselves to a potentially hazardous commute and office environment — are unsure what rights […]

The post Banks grapple with employment issues in COVID-19 crisis appeared first on Asian Private Banker.

Bank of Singapore has recorded an AUM growth of 15% YoY, while 4Q19 net profit at its parent group OCBC jumped 34% YoY, according to FY19 results released today. Despite a slight drop in its AUM in Q319, BoS made a leap in 4Q19, growing its AUM from US$110 billion to US$117 billion. The resilient performance was driven by sustained net […]

The post Bank of Singapore AUM expands 15% YoY as OCBC books record full-year profit appeared first on Asian Private Banker.

Banks in the region shouldn’t be severely affected if the coronavirus situation can be contained into a “one to two-month event”, according to Credit Suisse’s equity strategy team. “We can look at the Global Financial Crisis as a template on how this plays out. Banks in most places in Asia will be providing support to troubled borrowers,” said Dan Fineman, […]

The post Limited impact on banks if COVID-19 is contained in “one to two months”: CS appeared first on Asian Private Banker.

Asia’s wealthy are shrugging off concerns about the impact of COVID-19. Most of them are holding on to their current portfolios and some have even been buying on dips after the Lunar New Year (LNY) sell-off, according to private banks and wealth managers in Asia. “Despite the fears around the COVID-19 situation in Hong Kong after LNY, the transaction volume […]

The post Ongoing “decent” transactions show that COVID-19 has not dented Asia’s HNWIs’ risk appetite: Asian WMs appeared first on Asian Private Banker.

Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA) said the regulator will “keep a watchful eye” on the COVID-19 outbreak and economic development, reiterating that the city’s solid monetary and banking systems can weather the storm. Yue described the public health crisis as “adding fuel to the fire” of the recession-hit Hong Kong economy. He granted that […]

The post Hong Kong’s monetary and banking system can weather COVID-19 outbreak: HKMA appeared first on Asian Private Banker.

DBS has evacuated an entire floor of its premises at Marina Bay Financial Centre Tower 3 in Singapore after one member of staff was confirmed to be infected with COVID-19. The employee had been tested yesterday, DBS communicated in a press release on Wednesday afternoon. When the bank was informed of the confirmation this morning, it asked all 300 employees […]

The post DBS evacuates 300 staff in Singapore as one tests positive for COVID-19 appeared first on Asian Private Banker.

The Monetary Authority of Singapore (MAS) has asked FIs to have effective internal controls in place across operations when implementing business continuity plans. It also urged vigilance against cyber scammers impersonating the health ministry to obtain financial information from individuals. Last Friday, Singapore’s Ministry of Health (MOH) raised the Disease Outbreak Response System Condition (DORSCON) Alert Level from yellow to orange after four […]

The post MAS asks FIs to step up business continuity plans in corona crisis appeared first on Asian Private Banker.

UBS has pledged US$1 million to charities in China to help with the local response to the novel coronavirus that has paralysed cities on the mainland and drummed up fears of a global pandemic. The bank said on Monday that the money would go towards supporting frontline responders. UBS added that it was already working with domestic charity partners to […]

The post UBS donates US$1 million to aid coronavirus fight in China appeared first on Asian Private Banker.

In view of the coronavirus outbreak, the People’s Bank of China (PBoC) and other Chinese financial regulators have announced measures to ensure the resilience of the banking system. Banks have been urged to meet the liquidity needs of the healthcare sector in its fight against the spread of the disease. The PBoC published a notice earlier this week to extend […]

The post PBoC pledges sufficient liquidity to maintain the smooth operation of China’s banking system appeared first on Asian Private Banker.

As employees return to work after the lunar new year holiday, private banks’ Hong Kong branches have imposed temperature checks for staff and visitors following a new coronavirus outbreak. Since the Hong Kong SAR government declared an “emergency” response level for last week’s coronavirus outbreak, multiple banks have restricted business travel to mainland China and all are recommending that staff […]

The post Hong Kong PBs impose temperature checks and travel bans in view of coronavirus outbreak appeared first on Asian Private Banker.