Temasek creates Sbn private credit fund | FinanceAsia

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A wholly-owned personal funds platform has been established by Singapore’s state-owned investment company Temasek, according to a media release from December 6.

The platform’s initial portfolio will amount to around S$ 10 billion ($ 7.46 billion ), consisting of direct investments and credit funds. &nbsp,

According to the transfer, the investment will be managed by a group of around 15 record investment professionals across offices in New York, London, and Singapore, who have been transferred from Temasek’s credit &amp, cross solutions team. Nicolas Debetencourt, the CEO of Temasek, will be in charge of the world platform. He has been in charge of funds &amp and cross solutions at Temasek since 2016.

Temasek has invested in credit cards for more than ten years. Temasek established a credit &amp, cross solutions team in 2016 to develop its direct and indirect investments in order to exploit a wider range of opportunities in the personal credit market.

The new system will be in contrast to Seviora Group, Temasek property management company, which includes SeaTown Holdings International, which offers personal credit options in Asia.

When FinanceAsia reached out for more info, a Temasek director said that at this point the company had nothing to add to the media transfer. &nbsp,

The decision comes after BlackRock made the deal to purchase HPS Investment Partners, a worldwide record manager based in New York, for$ 12 billion earlier in the month. In the world, personal funds is rapidly expanding, with Asia Pacific not a case in point. &nbsp,

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HSBC confirms Asia, Middle East leadership under new structure | FinanceAsia

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HSBC has confirmed a number of top positions in Asia and the Middle East as a result of its global restructuring to four running products. &nbsp,

Luanne Lim and Diana Cesar will continue to lead HSBC Hong Kong and Hang Seng Bank, according to the London-based bank’s chief executive officer ( CEO ), Georges Elhedery. Maggie Ng, mind of wealth and personal finance, Hong Kong, and Frank Fang, mind of commercial finance, Hong Kong and Macau, did report directly to Lim covering financial &amp, money submission and the commercial banking businesses both. The Hang Seng Bank business leaders did report immediately to Cesar.

In a December 5 news, the banks also confirmed that Selim Kervanci, who is now chief executive of Turkey, may become CEO of the Middle East from January 1, 2025, pending regulatory acceptance. Stephn Moss, HSBC’s mind of Middle East, North Africa and Turkey, is leaving the business at the end of the time.

Mohammed Marzouqi will continue as CEO of the United Arab Emirates, Kee Joo Wong may be as CEO of India, Mark Wang may be as CEO of mainland China, and Hitendra Dave may be as CEO of the United Arab Emirates.

Co-chief professionals Surendra Rosha and David Liao, who oversee HSBC’s Asia and Middle East businesses, are in charge of the company’s Middle East and Asia Pacific operations. In his power as Asia and Middle East’s key business agent, Phillip Fellowes will continue to support Liao and Rosha with a focus on the Hong Kong company.

For the bank’s new arm, Corporate and Institutional Banking ( CIB ), Jo Miyake, interim CEO and chief commercial officer, HSBC Global Commercial Bamking, has been named head of banking, Asia and Middle East, overseeing client relationships and driving collaboration across regions and businesses. She may start in January.

Sir Danny Alexander will be based in London as the company’s CEO of equipment financing and conservation. &nbsp,

Even in Asia, Kai Zhang has been appointed&nbsp, as head of global success and top banks, Asia. Zhang is currently the head of South and Southeast Asia’s wealth and personal banking ( WPB).

Annabel Spring CEO, world private banks and riches, is leaving the bank at the end of the year to “pursue another possibilities”, while Nicola Moreau will remain as CEO, property management, and Ed Mocreiffe as CEO, plan. &nbsp,

For the complete list of changes at the London-headquartered banks made in the news, see below.

Click here for more FinanceAsia people movements. &nbsp,

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Ruble volatility exposes Russia’s emerging economic crisis – Asia Times

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On November 28, the Russian ruble dropped to 113 against the US dollars, which is its lowest level since the start of the conflict in Ukraine.

The ruble has since risen a little to 105 on December 4, but it has fallen back to 105 in the last quarter, or about 8 %, against the dollar. This is not a one-off function, it is part of a developing issue that is affecting Russia’s market.

Since its army invaded Ukraine in February 2022, Russia’s money has experienced extreme volatility. The ruble’s original decline, which saw it lose one-third of its value by March compared to the start of the year, was the result of the nation’s exodus of capital following the enactment of Western sanctions.

The ruble’s worth decreased as a result of money flowing out of Russia, which made it more readily accessible on the foreign exchange market.

In answer, Russia’s central banks implemented strict capital-control steps to maintain its currency. The measures included requiring manufacturers to exchange 80 % of their international currency profits for francs and imposing a US$ 10,000 maximum for individual foreign currency withdrawals.

Russia had discovered a way to evade sanctions by exporting a lot of its oil and gas to nations like China and India by the middle of 2022, when electricity prices were rising.

The Russian benefited from robust export earnings, and the ruble’s price was briefly revived. The money controls deliberately increased the demand for the rubles, making it one of the year’s best-performing assets.

But, falling energy costs and tighter sanctions in 2023 caused a decline in Russia’s trade income. The G7 nations, the EU, and Australia placed a cover on the price of Russian crude, which resulted in a drop in foreign currency flows and a decline in the value of the rubles.

The November 2024 collapse is, at least in part, also the result of these factors. The main problems are the ongoing reduction in export earnings brought on by sanctions and the G7 oil price cover, as well as the looming end of the pipeline gas supply to Europe via Ukraine in 2025.

But new US restrictions, which came into effect on November 21, have worsened the position. Gazprombank, one of the few big Russian loans that had yet to be targeted, as well as 50 tiny- to medium-sized Russian businesses, 40 regional Russian clerks and some Russian central bank officials have all now been cut off from doing business with the US and its allies.

Customers of Russian oil and gas will once more have to find new ways to conduct company, as they did in 2022 due to this restriction. The business anticipates that these sanctions will lessen the flow of foreign money to Russia, leading to a decline in the rouble.

The Bank of Russia has taken an action by halting all private dollar payments through the end of the year. This will maintain the exchange level, albeit intentionally. However, trading may remain on the black business.

Signboard with the logo of Gazprombank against a blue sky.
The US has imposed sweeping sanctions on the Russian economic market, including on Gazprombank. Photo: FotograFFF / Shutterstock via The Talk

More instability away

Domestic and international funding will be stifled by a dangerous and weak franc, as investors prefer to trade in a robust and predictable currency.

The central bank will also be forced to use its reserves to support the franc because it encourages people to relocate their money out of the country, as it has since the start of the war. Russia’s current constraints are limited international money inflows and higher spending demands, creating a vicious cycle that will undermine its currency even more.

A poor franc even raises the cost of importing products or materials. If import-dependent businesses don’t pass the higher costs on to consumers, which is fairly simple in Russia, where there is little market competition, their profit margins may be slashed.

This drives prices for imported items like food, medical supplies, equipment and strength. Russia imported over$ 81 million price of energy in 2022, mostly from Lithuania, Kazakhstan, Latvia, Azerbaijan and Mongolia.

And it imports specific refined petroleum products, also. Russia’s annual inflation rate was estimated at 8.4 % in October, which is twice the goal of the central bank, and it is not anticipated to increase until the year’s end.

Russia’s leader, Vladimir Putin, and his economy minister, Maxim Reshetnikov, say there is no need for emergency measures to help the rubles. Reshetnikov has stated that the volatility of the ruble is brought on by the US dollar’s power globally, and that market concerns following the most recent sanctions should immediately settle.

However, failing to take a decisive course of action could lead to more depreciation, which will only increase investor confidence in the franc. According to experts, the main company’s current interest rate of 21 % is expected to rise in order to maintain the ruble and reduce inflation. However, raising the rates will definitely decrease the market.

There is a lot of things that concern Putin. Falling export earnings, prices and strained resources all weaken Russia’s macroeconomic stability. And it appears as though Western sanctions are now having a major impact on Russia’s ability to deal with its financial troubles.

The Putin’s regime’s administrators may say that a weaker franc will be more advantageous to them during the conflict. The Kremlin will have more local currency to help cover the government’s growing deficit if foreign currencies are converted to stronger ones from energy exports.

Despite this, Russia’s currency crises has exposed heavy issues in the economy. It has a poor economic sector, has limited economic expansion, and relies heavily on power exports.

Putin may have no choice but to conduct business with a few trading partners, including China and India, because sanctions will likewise isolate Russia more and entail its financial freedom.

Nasir Aminu is older teacher in economics and finance, Cardiff Metropolitan University

This content was republished from The Conversation under a Creative Commons license. Read the original post.

Asia Times Editor’s note: Franc charges were updated for latest available information.

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BRI’s recent award triumphs point to its focus on becoming a champion of financial inclusion | FinanceAsia

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According to Sunarso, leader director, Bank Rakyat Indonesia ( BRI),” Tr I will continue to focus on the MSME section to realize its dreams of becoming the most important banks group in Southeast Asia and a champion of financial inclusion by 2025.” He continued,” As the nationwide economic structure is dominated by Enterprises, providing loans to MSME people is anticipated to have a significant positive impact on the Indonesian business.”

The 130-year-old company’s outstanding achievement in FinanceAsia Asia’s Best Businesses Poll 2024 and the FinanceAsia Awards demonstrate how focused this perspective is on BRI’s peers in the industry.

In FinanceAsia Asia’s Best Companies ballot, the banks won silver in the following categories: Best Director for Sunarso, leader director, BRI, Best Managed Company – Indonesia, and Best Investor Relations – Indonesia.

Additionally, BRI won bronze in the types of Best Big Cap Company in Indonesia and Best CFO in Indonesia for Viviana Dyah Ayu Retno K, Most Committed to DEI – Indonesia, Most Committed to ESG – Indonesia, and Best Big Cap Company – Indonesia.

The bank had a stellar run at the FinanceAsia Awards 2023-2024 winning Best Bank for Financial Inclusion ( Domestic ) and Best Commercial Bank- SMEs ( Domestic ), apart from securing commendations for Best Sustainable Bank ( Domestic ), Most Innovative Use of Technology – Banks ( Domestic )

View Sunarso, the president’s director ,’s acceptance speech, below.

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Capital Group appoints Apac MD for global financial institutions | FinanceAsia

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Capital Group, an active asset manager with over US$2.8 trillion in assets under management (AUM), has appointed Marketa Dvorak as managing director, global financial institutions (GFI) in Asia Pacific (Apac).

Dvorak (pictured) will continue to be based in Singapore and reports to London-based Nick Shaw, head of client group, GFI, who oversees GFI operations in both Asia and Europe.

Dvorak started earlier this month on November 11 and was previously managing director, global wealth management, Apac, at Wellington Management, according to her LinkedIn prodiles.

The aim is for Dvorak to deepen and expand Capital Group’s relationships with major financial institutions based across Apac, according to a media release. Her responsibilities will include working with local client groups, including global and regional distributors, supoporting strategic objectives and support clients in the region with value-added services beyond investing, according to the release.

Shaw said in the release: “We hear from global financial institutions that they want fewer partners and expect more from their asset manager. We’re committed to supporting our partners across the region to meet their needs and their clients’ financial goals. Apac is a key growth market for Capital Group where we have been serving investors for more than 40 years.”

Dvorak commented, “I’m excited to join Capital Group in this role, dedicated to growing and establishing strategic relationships with global financial institutions in the Apac region. I look forward to collaborating with our team around the world to further build upon the momentum with GFI partners both globally and locally, and support more investors in the region.”

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DBS’ chief data and transformation officer on ‘human’ AI in banking | FinanceAsia

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Speaking to FinanceAsia at the 2024 Singapore Fintech Festival, Nimish Panchmatia, chief data and transformation officer at DBS, described how artificial intelligence (AI) could evolve beyond optimising individual tasks in banking,

Panchmatia noted: “Today, a lot of people are focusing on what I would call user-centered AI, but if you lift this up to the next level, is human-centred AI.”

This shift, Panchmatia explained, isn’t just about streamlining processes, but about building AI models that actively support customer well-being, financial literacy, and a positive societal impact

Going deeper into this human-centred AI (HCAI), IBM in a recent paper explained, “adhering to the core value that “human + AI” is better than either one individually, novel user experiences can be.  developed that foster human-AI collaboration”.

HCAI is an emerging discipline and Panchmatia believes it is increasingly important for the banking sector. With AI-driven tools like virtual financial advisors and personalised education modules becoming more common, banks can reduce the transactional feel of interactions and establish themselves as partners in their customers’ financial journeys — a shift expected to drive stronger customer retention than models based solely on service speed or product sales.

Panchmatia also discussed adaptive feedback loops, which refine customer insights to continuously improve AI models.

For example, if a customer is given a “nudge” (such as an instalment option for a large purchase) and chooses not to engage, that feedback helps adjust future interactions.

“If you got a nudge and didn’t act, this went back into the model to say, ‘Okay, why didn’t this customer engage?’” he explained. By continuously learning from customer behaviour, banks can anticipate needs more accurately, aligning with the industry-wide shift toward hyper-personalised services.

According to a 2023 report by S&P Global, the potential for the new AI to reshape banking is vast with below being some common AI applications in banking.

 

The McKinsey Global Institute (MGI) estimates that across the global banking sector, generative AI (Gen AI) could add between $200 billion and $340 billion in value annually, or 2.8% to 4.7% of total industry revenues, largely through increased productivity.

In terms of commercial priorities, Panchmatia explained how DBS builds its AI models around customer understanding. The bank uses a variety of methods, including surveys and sophisticated anthropology studies, to gather insights. “We sit down with client groups and observe,” Panchmatia said. By understanding customer needs before making decisions, the bank can ensure that AI-driven offers are relevant and beneficial.

The human angle of transformation

A successful transformation requires looking at all the components—technology, people, and processes—and understanding their collective impact, according to Panchmatia.

“What does this mean for the people in the organisation? What does it mean for the tech stack? What does it mean for the customers, the regulators, and any other stakeholders?” Panchmatia emphasised the importance of stakeholder mapping, assessing both potential successes and failures.

It’s through this holistic approach that banks can find the right balance between technology and people.

He stated, “If you change your branch system… is it a big tech project? Yes. Is it a bigger people project? For sure.”

Data responsibility

With AI becoming a standard feature of banking, the question of data ethics has risen to the forefront. Banks are increasingly tasked with managing not only structured data but also unstructured information.

In the finance industry, unstructured data can be found in various forms such as emails, social media posts, news articles, customer reviews, legal documents, and multimedia files. Unlike structured data, which is neatly organised in tables with a predefined format, unstructured data is not systematically arranged. It often consists of large amounts of text or multimedia content, making it more challenging to analyse and interpret.

With the rise of unstructured data comes an increased risk of misinterpretation, requiring clear guidelines to ensure responsible use.

At DBS, a protocol known as “P.U.R.E” governs this process. This structure reflects a growing industry-wide movement toward transparency, especially as more countries tighten their data regulations.

“Whatever you do must fit all these (P.U.R.E) parameters,” Panchmatia explained, emphasising that “the unsurprising and easy-to-explain part (in P.U.R.E) became a little more dynamic” when working with unstructured data.

Globally, banks are establishing similar frameworks to foster transparency and accountability in AI applications, aligning with regulatory shifts that prioritise customer privacy.

In Singapore, where DBS is headquartered, stringent data privacy laws require financial institutions to be meticulous about data governance. In June 2023, the Monetary Authority of Singapore released a toolkit for the responsible use of AI in the financial system called the Veritas Toolkit version 2.0 that will help financial institutions (FIs) carry out the assessment methodologies for the Fairness, Ethics, Accountability and Transparency (FEAT) principles.

Implementation of data integrity

In terms of data, Panchmatia explained that it is unsurprising for both the users who are handling it and the customers who are receiving it. Customers don’t have to question why they’re receiving certain information. “If you come to me and say, – why did you send me this notification – I need to be able to explain this to you.”

From a technical perspective, having the right tools and infrastructure in place for data is crucial, shared Panchmatia.

“If you’re going to build the model right, you’ve got to register it first.” This ensures accountability and traceability, allowing data management to kick into the workflow efficiently. If the necessary steps aren’t followed, such as completing a proper assessment, data cannot be used effectively for model training or testing.

The importance of oversight cannot be understated, either. “We have a senior committee in the bank that ensures that data initiatives align with the company’s strategic objectives and risk appetite. It’s not just about purchasing the latest tools—it’s about being thoughtful and deliberate in how data is handled across the organisation.”

Pace of change and societal impact

Looking to the future, AI’s rapid pace of development requires banks to build flexibility into their systems.

Panchmatia noted, “What was really novel eight months ago is now old school,” illustrating the speed with which AI advancements are transforming the landscape. This ongoing evolution is prompting banks to make continuous updates to their AI frameworks.

Statista predicts the banking sector’s spending on generative artificial intelligence (AI) to surge to $85 billion by 2030, with a remarkable 55.6% compound annual growth rate.

Elaborating on the scale of AI in DBS, Panchmatia shared some numbers.

For example, DBS has delivered over 370 AI/machine learning use cases spanning customer-facing businesses and support functions, and 1,500 AI/ML models to date (as of November 2024). It has also managed to compress time to value from 12 to 15 months down to two to three months, with the  goal is to bring it down further to two to three weeks over the next few years; the bank said it has delivered a tangible economic impact of over S$370 million ($276.5 million) in 2023, S$700 – 800 million in 2024, and projected S$1 billion in 2025, working on its AI industrialisation approach.

Beyond technical agility, banks are grappling with the societal impacts of AI, particularly in terms of workforce transformation. While automation may streamline certain functions, new roles requiring specialised skills in AI and data analytics are emerging.

“It’s important to consider societal impact,” Panchmatia emphasised, adding that while AI might replace some roles, it will create others requiring upskilling and reskilling.

Beyond AI

Meanwhile, emerging technologies such as quantum computing and blockchain interoperability are also poised to expand the capabilities of banking AI. Quantum computing, with its potential to enhance complex risk assessments and fraud detection, is being tested through proof-of-concept initiatives in leading banks.

“We are doing some POCs with quantum,” Panchmatia explained, though he noted that large-scale banking applications may still be a few years away.

Blockchain’s progress hinges on interoperability; should these issues be resolved, decentralised finance (DeFi) could become a viable option for more banks, according to him.


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Eza Hill expands into Indonesia with deals for three logistics hubs | FinanceAsia

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Eza Hill Property Management, a Singapore-based real asset business backed by Rava Partners, the real assets strategy of Hillhouse, has acquired three Indonesian logistics hubs from LILV Portfolio, a fund managed by ESR Group for $148 million.

The investment comprises a portfolio of three logistics assets in Greater Jakarta totaling 137,000 sqm of built-up net lettable area (NLA). In addition, two of the properties also have 274,000 sqm of developable NLA which Eza Hill could develop to further grow the portfolio.

The properties are in the industrial and logistics sub-markets of Cikarang, Cibitung and Cileungsi which cater to different stages of the supply chain from production to last-mile delivery. The asset in Cikarang is located within a manufacturing cluster with strong warehouse demand from factories and assembly, while the assets in Cibitung and Cileungsi are connected via toll roads and demand from e-commerce, fast moving consumer goods and last-mile delivery tenants, according to a media release. 

The deals are Eza Hill’s maiden acquisition in Indonesia as it looks to grow beyond Singapore into the Southeast Asia (SEA) region.

Frank Ng Tze Wei, co-founder and chief investment officer at Eza Hill, said, “We had envisioned for Eza Hill to be a regional player, and this strategic acquisition marks an important step in that direction.”

Wei continued: “Expanding into Indonesia, as the largest economy in SEA and the fourth most populous country in the world, is strategic because it is key to riding the medium-term demographic and economic trends in the region in the next five to 10 years. Furthermore, the portfolio has significant scale, and the acquisition provides a sizeable presence in the Jakarta market.” 

Joe Gagnon, co-head of Rava Partners, said: “We see great potential for growth in the SEA market. We are building our expertise to operate in these markets and are excited to create value for our investors and take advantage of these opportunities.”


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FinanceAsia Achievement Awards 2024: the winners | FinanceAsia

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FinanceAsia ‘s&nbsp, annual Achievement Awards recognise excellence across the divers financial markets of Asia Pacific ( Apac ) and the Middle East.

The Achievement Awards, which span five distinct categories, include Deal Honors for Apac and the Middle East, House Awards for Apac and the Middle East, and our Dealmaker Poll, show the achievements of major players in these areas as well as those who have shown commitment to their industry.

We’re pleased to announce that the judging process for this year’s awards has now come to an end after receiving almost 1, 000 submissions from our Advisory Board of external specialists and the help of our editorial staff.

Below are the types and winners’ respective links. &nbsp,

The logic behind success collection will get published in our upcoming&nbsp, FinanceAsia&nbsp, reports. Please call the&nbsp, FinanceAsia staff if you have any concerns. &nbsp,

You see all the winners below: &nbsp,

FinanceAsia Achievement Awards 2024: Apac’s best talks

FinanceAsia Achievement Awards 2024: Middle East’s best offers

FinanceAsia Achievement Awards 2024: Dealmaker Poll finalists

FinanceAsia&nbsp, Achievement Awards 2024: Apac’s best funding homes

FinanceAsia&nbsp, Achievement Awards 2024: Middle East’s best funding houses

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Strong dollar paradox trolling Donald Trump – Asia Times

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The economy’s march since Donald Trump’s election defeat on November 5 is destined to have a run-in with the US president-elect himself, and quickly. Trump’s programs to implement massive tariffs on products entering the US while lowering local taxes are the underlying cause of the greenback’s boom. That’s why, in the days after the election, the dollar ]… ]

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BRICS+ nations determined to trade in their own currencies – Asia Times

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Instead of relying solely on a few major economies, notably the US dollar and the euro, the BRICS countries are looking into ways to encourage greater use of native economies in business. The forum for cooperation among nine leading emerging economies – Brazil, China, Egypt, Ethiopia, India, Iran, Russian Federation, South Africa, United Arab Emirates ]… ]

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