AGP Executive Report

Pension Outsourcing: Pennsylvania’s PSERS, a $84bn teachers’ pension, voted to outsource $20bn of investments to BNY Investments Mellon, shifting $16bn into a passive S&P 1500–benchmarked portfolio while contract terms are still being negotiated. Banking Risk Appetite: Bangladesh Bank data shows banks boosted government securities holdings 35.5% in 2025 to Tk 4.05tn as defaults, weak recoveries and liquidity pressure pushed lenders away from credit. Payments & Settlement Modernization: Australia’s push toward real-time settlement is gaining momentum as BECS decommissioning nears, with NPP/PayTo positioned to absorb migrating volumes—an infrastructure shift that’s starting to reshape fintech investment narratives. Crypto Regulation: Ripple won preliminary MiCA approval in Luxembourg for a CASP license, paving the way to offer stablecoin payments across the EU. Central Banking & Inflation: Canada’s inflation jumped above the Bank of Canada target range in May, driven by fuel and food costs, while the central bank’s Macklem warned global imbalances could be fueling overinvestment and financial stability risks. Mortgage Rates: BNZ raised shorter fixed mortgage rates while cutting longer terms, signaling continued sensitivity to wholesale rate moves. Market Sentiment: Xero shares slid to a multi-year low as investors cooled on growth-stock valuations, despite revenue and cash flow strength. Public Finance & Labor: Bank of Canada security staff began a strike after talks failed over pay and leave terms.

AI in Asset Management: CFA Society Bahrain held “AI and Investments: The New Alpha,” spotlighting how AI is moving from theory to practical tools for analysis and risk in credit and investing. Industry AI Governance: FINOS launched a FINOS AI Fund backed by DTCC, Morgan Stanley, RBC and NatWest to set governance and standards for responsible agentic AI in regulated finance. Islamic Capital Markets: Qatar’s Dukhan Bank mandated leads for a $500m 5.5-year AT1 sukuk, targeting London listing and using Reg S issuance mechanics. SME Financing Push: Uganda’s Centenary Bank and the African Guarantee Fund kicked off an SME-focused partnership and summit aimed at expanding affordable lending, especially for women and youth. Central Banking & Liquidity: Oman’s central bank raised OMR43m via treasury bills across 91- and 182-day tenors, reinforcing short-term liquidity benchmarks. Investor Sentiment & Markets: Vedanta shares slid after reports of a promoter block sale plan worth about Rs 1,890 crore. Corporate Finance & Strategy: Kotak Mahindra Bank’s CEO said the lender has “high ambitions” for growth via acquisitions and alternative assets. Fed Watch: Former Fed economist Claudia Sahm warned that reduced Fed guidance could leave investors piecing together policy signals from scattered sources. Stablecoin Regulation: The Bank of England softened stablecoin rules in its final framework, signaling a more growth-friendly approach. Banking Transparency: Ghana’s Bank of Ghana ran journalist training to improve understanding of monetary policy, exchange rates and reserves. Risk & Crime: Nepal arrested former finance minister Bishnu Prasad Paudel over alleged money laundering. Debt & Inclusion: The World Bank flagged that limited finance and skills still constrain SMEs in Ghana, while also backing education reforms in Andhra Pradesh.

Japan Household Investing Push: Japan is aiming to lift the share of household financial assets invested in stocks, funds and bonds to 40% by 2040, up from 23%, as it tries to shift savers toward market-linked returns. Banking Probe in India: The National Housing Bank has launched an investigation into Aavas Financiers after preliminary findings pointed to loan-classification irregularities tied to refinancing schemes; Aavas disputes the claims. Corporate Finance & Fraud: India’s CBI arrested former Reliance Commercial Finance and Reliance Home Finance CEOs in a ₹7,623 crore bank fraud case, alleging improper lending via intermediary and conduit companies. Central Banking & Market Rules: Russia’s central bank outlined new approaches for regulating banks’ subordinated instruments, including changes to triggers and investor terms for AT1-style debt. Stablecoin/Fintech Expansion: FV Bank unveiled a unified regulated platform for stablecoins, payments and programmable finance, while MoonPay acquired Entendre to add AI agents for reconciliation and treasury workflows. Digital Banking Rebrand: LendingClub officially launched as Happen Bank and began trading on Nasdaq as HAPN. Energy-Crisis Stimulus: Indonesia announced a $1.48bn stimulus package for H2 2026 to support growth amid an energy crunch and currency weakness. Investment Climate in China: China released an action plan to stabilize and optimize foreign investment use, including expanded market access and streamlined procedures for cross-border deals. Sports Finance Signal: The PWHL reached a milestone with its first two investors—Ilitch Companies and Kilmer Sports Ventures—highlighting growing capital interest in women’s sports.

Stablecoin Regulation: The Bank of England published its final policy statement and draft rules for systemic stablecoin issuers, easing earlier proposals by scrapping individual holding caps and instead limiting total issuance per stablecoin. Central Banking Outlook: Deutsche Bank expects the Bangko Sentral ng Pilipinas to raise rates twice more to 5.25%, arguing the hiking cycle isn’t over amid inflation risks and El Niño. Foreign Investment Push (China): China rolled out a new action plan to stabilize and optimize foreign investment use, including expanded market access and streamlined procedures for cross-border deals and data flows. UK Financial Debate: Bank of England boss Andrew Bailey faced fresh scrutiny over a deep-fake video and the political fight around quantitative tightening and taxpayer losses. SME Lending (Ireland): Linked Finance said it has passed €400m in cumulative lending to Irish SMEs since 2013, supporting 5,000+ businesses and citing renewed confidence. Digital Payments (Kenya): KCB Bank and Airtel Money signed an interoperability deal letting Airtel Money users deposit and withdraw cash at 22,000+ KCB agents. Markets & IPOs (India): NSE filed DRHP for a major IPO via offer for sale, while investors also digested a three-day trading break for Muharram and ongoing deal momentum around Jio Platforms’ IPO filing. Energy & Infrastructure (UK/Global): BoE stablecoin rules and Japan’s planned $2.3tn public-private investment by 2040 both point to continued policy-driven capital formation. Project Finance (India): CERC cleared a ₹2,028 crore financing structure for Adani Energy’s Gujarat transmission project, enabling security interests for lenders.

US Markets Watch: Investors are looking to Micron Technology’s June 24 earnings as a “pulse check” on whether the AI-driven chip rally still has momentum, with the S&P 500 near highs and the Philadelphia semiconductor index at a record. Regulatory Overhaul: India’s RBI has overhauled the Lead Bank Scheme, tightening accountability and timelines to boost priority-sector lending and financial inclusion. Banking Compliance: India’s NHB is probing Aavas Financiers over loan classification lapses, including alleged misclassification of borrowers and properties to access preferential funding. Corporate Governance & Finance: Bangladesh is pushing a centralized online one-stop investment service to simplify licensing and approvals, while Sonali Bank rolled out biometric live verification for pensioners. Credit & Risk: Moody’s affirmed Gulf Bank’s A3 deposit rating with a stable outlook, citing capital, liquidity and provisioning buffers. Fraud & Enforcement: India’s CBI registered a case alleging a Mumbai firm inflated debtor figures to secure higher cash credit facilities, targeting about Rs62.42 crore in wrongful loss. Investment Climate Abroad: Napocor (Philippines) is seeking private investors for solar-diesel hybrid projects to cut diesel reliance in off-grid islands. ESG Debate: A Financial Times dispute over MSCI’s low ESG rating for SpaceX sparked renewed backlash against ESG scoring.

Fraud Crackdown: Delhi Police dismantled an online investment scam worth about Rs 80 lakh, arresting two suspects accused of luring victims with fake high-return schemes and routing funds via bank accounts. Digital Payments & Banking Access: Qatar Central Bank enabled cash withdrawals on tokenized HIMYAN cards via Apple Pay at ATMs, while Papua New Guinea’s TISA Bank opened a new Kavieng branch to expand banking access. Private Credit/PE Strategy: Private equity firms are reviving dividend recap deals, using leveraged loans to fund payouts as investors chase floating-rate debt. Energy Finance: Malaysia’s Tenaga Nasional sukuk issuances totaling RM2.5bn for solar and hydro were oversubscribed, signaling strong regional demand for bankable energy-transition projects. Policy & Markets: India’s finance committee begins a review of the 2025-26 economy with RBI and experts amid global shocks; Bosnia and Herzegovina faces FATF gray-list scrutiny, with local institutions stressing system stability. SME Lending Push: Malaysia’s TEKUN Nasional targets approvals under RM20,000 within 24 hours via a new portal. Infrastructure Investment: Prague Congress Centre broke ground on a CZK 1.35bn exhibition hall expansion to boost international congress capacity.

Monetary Policy: Russia’s central bank cut its key rate to 14.25% from 14.5%, warning inflation risks remain elevated amid war-linked spending and fuel-price pressure. Regulatory & Risk: Algeria was removed from the FATF grey list after reforms, a move expected to improve investor confidence and banking transparency. Banking & Payments: Victoria’s myki upgrade now lets full-fare tram and rail riders “tap and go” with bank cards, phones, or smartwatches, reducing reliance on loaded transit cards. Cross-Border Investment: Dubai Chambers met Ontario institutions in Toronto to deepen trade and investment ties, including AI and innovation cooperation. Corporate Finance & Markets: India’s REIT/InvIT sector is scaling fast, with portfolios now topping 195m sq ft and a pipeline of 37m sq ft as institutional participation grows. Fraud & Enforcement: Lebanon faces a wave of fraudulent trading firms targeting investors; authorities urge checks against the Capital Markets Authority’s licensed-company list. Investor Protection: India’s NEET-UG re-exam ramps up security with CCTV and jammers after the earlier exam was cancelled over a leak. Dealmaking: Fenchurch Advisory Partners agreed to merge with Broadhaven Capital Partners to form a larger international investment bank focused on financial services.

Central Banking Watch: The Bank of England held Bank Rate at 3.75% as inflation eased to 2.8%, but energy-price volatility and the risk of second-round effects still worry policymakers. Policy & Markets: India’s finance panel cleared a ₹19,700 crore carbon capture and storage plan aimed at cutting up to 7 million tons of CO2 annually, while Kenya’s MPs passed Finance Bill 2026 amendments that dropped VAT on person-to-person mobile money transfers. Banking & Credit: Access Bank launched “Access Auto Fest,” offering up to 90% vehicle financing with digital approvals in 72 hours; Karur Vysya Bank raised lending benchmarks effective June 22. Investment & Capital Flows: Singapore’s Temasek appointed Wendy Koh as CFO-designate; Abu Dhabi’s ADIA portfolio gained 30% in CY26 so far; Kenya’s TRIFIC Green USD I-REIT offer oversubscribed 103.3%. Fraud & Enforcement: Kelantan police flagged investment scams driving RM5.18m losses in early 2026; West Bengal police moved to probe TMC-linked bank accounts; Kathmandu police arrested two people with Rs 2.2m tied to crypto trading. Deals & Expansion: Oman approved $1bn+ salt industry projects and unveiled a Duqm waterfront master plan targeting major tourism and investment growth.

Regulatory Overhaul (India): SEBI streamlined succession transfers for deceased investors, adding Quick Transmission Processing for small claims and raising simplified transfer limits (physical ₹10L; demat ₹30L), while dropping PAN and probate requirements for claims. China Financial Stability: China’s top regulators signaled risk control and stability measures at the Lujiazui Forum, reinforcing a push to curb financial headwinds. Wealth & Markets (Investments): M&G launched an actively managed European CLO ETF (UCITS) to give investors targeted fixed-income exposure. Tech Capital for Startups: An investor urged China to lean more on private capital and multi-tier markets to bridge the “valley of death” for tech commercialization. Banking Appointments: CNB Bank promoted Justin R. Maney to senior VP/director of accounting operations; Bodcaw Bank named R.J. Norris vice president of community banking. Anti-Financial Crime (Iraq): FATF returned Iraq to its grey list over gaps in AML/CTF investigations and cash-risk controls. Fraud & Litigation: A U.S. jury convicted a man in crypto-related fraud schemes; multiple investor class-action deadlines and investigations were announced across several public companies.

Japan Industrial Push: Japan is drafting plans for about ¥370 trillion (over $2tn) in AI and strategic-sector investment by FY2040, with a council set to meet next week. AI Governance in Finance: China’s NFRA issued new guidelines for safe AI development and use in banking and insurance, stressing risk-based governance and lifecycle controls. FX and Rates Shock: Japan’s core inflation held steady in May as the BoJ lifted rates to a 31-year high, while “decisive” action against currency speculation was flagged by Japan’s finance chief. Emerging-Market Investment Tensions: Mozambique’s new mining law requiring a 15% state stake and tighter rules on raw mineral exports could deter foreign capital, according to its chamber of mines. Africa Dealmaking & Infrastructure: Ghana launched a Green Project Preparation Facility with UK support to build bankable climate projects, while FAB won an IsDB-linked award for a $626m Murabaha financing backing Nigeria’s Lagos-Calabar highway. Banking Sector Moves: India’s RBI cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank and moved to wind it up; RBL Bank approved Emirates NBD’s 60% promoter stake via a Rs 26,015 crore share allotment. Policy & Markets: Nepal’s finance minister blamed stock-market declines on “psychological fear” and legal actions tied to large claims. Corporate Finance Oversight: Saint Kitts and Nevis passed a package of bills to strengthen its financial sector, including virtual asset and anti-terror financing amendments.

Fed Messaging Shift: Investors are bracing for a less predictable Federal Reserve under Kevin Warsh after the central bank trimmed forward guidance, sparking renewed rate-hike chatter and market volatility. Private Credit Stress: MA Financial will shutter its $80m high-yield private credit fund after regulator scrutiny over lagging valuations, while Swiss-listed Partners Group is moving to a dual share-class setup to manage redemption pressure. Banking & Regulation: Kenya’s MPs passed Finance Bill 2026, clearing the way for President William Ruto’s assent, as lawmakers debated tax changes and amendments. Fraud & Enforcement: India’s ED seized Rs 50 lakh cash and 10 kg of silver in the HDIL–Yes Bank money-laundering probe, linked to alleged loan diversion. Cross-Border Finance: Trace Finance raised $32m Series A to expand regulated stablecoin and cross-border payment infrastructure, as rules push more institutional flows onto bank rails. Markets Watch: SpaceX shares slid again after its $60bn Cursor acquisition deal raised dilution concerns. Crypto & Compliance: Swiss data showed Bangladeshi deposits in Swiss banks jumped 41% in 2025, while multiple jurisdictions tightened scrutiny on digital finance and fraud.

Banking & Regulation: The Philippines’ SEC fined HC Consumer Finance Philippines Inc. P50,000 for unfair debt collection, including contacting non-guarantors and continuing collections after objections. Monetary Policy: The Philippines’ BSP hiked its key rate 25 bps to 4.75% to anchor inflation expectations. Market & Rates: The Bank of England is expected to hold rates as investors weigh Iran-linked inflation risks; in the US, Fed forecasts shifted toward more hikes. FX Watch: Nigeria’s naira slipped slightly on NAFEX to about N1,360/$ amid tighter inflows and reduced CBN interventions. Banking Expansion: Egypt’s Commercial International Bank targets tripling its Kenya unit’s market share in two years, pushing retail deposits, trade finance and SME lending. Dealmaking: Emirates NBD completed its $2.75bn majority-stake acquisition of RBL Bank, taking 60% of the expanded capital. Cyber & Operational Risk: Japan’s banking lobby warned AI-enabled cyber threats could force banks to suspend services like ATMs. Scams & Consumer Protection: Australia’s ASIC fined HSBC $35m for failing to protect customers from impersonation scams. Development Finance: New Development Bank approved up to $1bn for South Africa urban infrastructure upgrades. Geopolitics & Investment: A US-Iran framework outlines a $300bn private fund to spur investment, while drone attacks and renewed threats keep risk elevated.

Central Banking & Markets: Qatar’s central bank kept deposit, lending and repo rates unchanged, signaling a steady hand as it watches domestic and global conditions. China Finance: China’s regulators unveiled measures to boost Shanghai’s push as an international financial center, while the PBOC governor outlined six new policy moves aimed at improving monetary management and expanding offshore renminbi activity. IMF Lending: The IMF approved Jordan’s fifth review under its reform programme, unlocking $188m to support stability amid regional security pressures. Banking & Payments: Axis Bank moved to reassure customers about its digital security posture amid “Mythos” gap claims, and it also announced a ₹100cr CSR research and innovation park with BITS Pilani. Investment & Capital Flows: CPP Investments committed about $741m to scale India data centers via a CtrlS partnership and JV, reflecting continued investor appetite for AI and infrastructure. Corporate Finance: PayPal is exploring strategic options for PayPal Ventures, including a potential wind-down/spin-off, as it restructures to cut costs and refocus. Real Assets & Deals: PwC says U.S. real estate in 2026 is shifting toward data centers, logistics and other infrastructure-heavy plays driven by AI-enabled operating models. Public Finance & Governance: Volusia County Schools earned a Certificate of Excellence in financial reporting, highlighting ongoing scrutiny of how public money is tracked. Risk & Fraud: A Guyana court awarded damages over an unlawful arrest tied to a dispute that was deemed civil, not criminal—another reminder of how financial complaints can spiral into legal exposure.

Banking Stress Test: Bangladesh Bank warns risky loans are now 59.73% of total lending, with non-performing loans at Tk 5.88tn and risky loans rising to about Tk 10.88tn. Regulatory Simplification: Australia’s APRA and ASIC move to cut upfront reporting under the Financial Accountability Regime, shifting to accountability statements/maps on request. Islamic Finance & AI: The 12th Doha Islamic Finance Conference spotlights “agentic systems,” urging governance and Shariah-compliant frameworks for autonomous finance tools. Big Investment Deal: Reuters reports a US-Iran framework for a $300bn private investment fund, with more than half already committed, focused on energy, logistics, manufacturing and transport. China Offshore Finance: China’s central bank outlines an offshore finance push from Shanghai, targeting rules by end-2027 and offshore yuan development via pilots and digital yuan use. Egypt Tax Digitisation: Egypt launches a mobile real estate tax app and raises the family home exemption threshold to EGP 8m, aiming to boost compliance and streamline filings. Corporate Banking Launch: UAE fintech Alaan debuts an AI-native business bank account with corporate cards, supplier payments and invoice automation. Investor Access & Markets: China says overseas investors hold about $600bn in Chinese equities as it pushes yuan internationalisation; Korea reviews extra income tax cuts for young SME workers outside Seoul. Local Finance Governance: Eastern Visayas LGUs expand their DILG Good Financial Housekeeping wins, with 147 units recognised for 2025.

Central Banking: The Bank of Japan lifted its policy rate to a 31-year high of 1.0%, warning that higher crude prices tied to the West Asia conflict and a weak yen could push inflation above target. Corporate Finance & Markets: SpaceX, fresh off its IPO, agreed to acquire Cursor in a $60 billion all-stock deal, with Bill Ackman pointing to the high valuation as a way to reduce dilution. Banking & Regulation: The UAE and Kosovo central banks signed an MoU to deepen supervisory and FinTech cooperation, covering areas from payment systems oversight to AML/CFT. Investment & Jobs: Nokia’s $30 million expansion in Pennsylvania’s Lehigh Valley will add 250+ jobs, with the state investing $3 million alongside the company. Public Finance & Governance: Togo’s World Bank-backed capacity session focused on fraud and corruption risks in development project spending, stressing accountability in procurement and contract management. Development & Growth Outlook: The World Bank cut its Sub-Saharan Africa growth forecast for 2026, citing energy shocks and weaker external demand. Local Finance: Manitoba’s rural Lakeshore council held a public meeting on borrowing about $2.5 million to cover long-running deficits, with residents pressing for clarity. Investor Protection: Uganda’s SHIPU said it has handled 1,500+ investor complaints and protected about $147 million in investments via an electronic protection portal.

Central Banking Shock: The Bank of Japan lifted rates to a 31-year high (1.0%), citing faster oil-price pass-through and rising inflation expectations, pushing the Nikkei above 70,000 and reshaping global rate expectations. Monetary Policy Watch: Australia’s RBA held the cash rate at 4.35% but warned it could hike again if inflation stays too hot, leaving mortgage relief “some way off.” India Capital Flows: India’s finance minister said measures to boost foreign inflows are only a first step, while the RBI moved to tighten mis-selling rules and issued final guidance on marketing/sales incentives for financial products. Banking Moves: NatWest began closing branches as it leans further into digital, while Ghana International Bank named Ian Greenstreet as CEO (pending UK regulatory approval). Infrastructure & Risk Transfer: Abu Dhabi launched an AED 55bn PPP pipeline to diversify funding and shift project risk, with global investors like GIP and Temasek involved. Emerging-Market Funding Stress: The World Bank rejected Kenya’s emergency loan request (about $750m), as reserves face pressure from the Middle East shock. Markets & Deals: Fox agreed to buy Roku for $22bn, sparking investor skepticism; Saudi Bank AlJazira lined up a potential USD AT1 capital certificates issue. Crypto & Tech Finance: Investors pushed major cryptocurrencies higher, while SpaceX’s $2.1tn valuation debate reignited after Musk engaged with a $30–$50tn thesis.