Fair Finance
Watch is a Non-Governmental Organization Focused on the Fairness of the Financial Services
Industries - Banking, Insurance and Securities - to Local Communities, Urban and Rural,
North and (Global) South, including under Human
Rights Laws
FFW researches, documents and advocates around financial firms' activities, and how
they affect local communities. The profiles below are in-process -- For or with more
information, contact us.
Asia
Indonesia Pakistan
Philippines Singapore
Vietnam
(lack of transparency)
Indonesia
Indonesian banking law with respect to “Merger, Consolidation, and Acquisition” --
Indonesia requires prior approval, under a
standard that includes not only antitrust but also that “the interest of the Customers” not be
harmed. See, Law Concerning the Banking System, Article 28
-- (1) Merger, Consolidation, and Acquisition shall be subject to prior approval from the
Chairmen of Bank Indonesia. (2) Provisions concerning merger, consolidation, and
acquisition shall be stipulated in a Government Regulation.
As Amended By : The Act Of The Republic of Indonesia Number 10 of 1998. Paragraph (1) In
conducting Merger, Consolidation, and Acquisition, the parties shall prevent a
concentration of economic power within one group in the form of a monopoly detrimental to
the public interest. A Merger, Consolidation, and Acquisition shall not harm the interest
of the Customers.
Regulatory contact:
Bank Indonesia
Jl. MH. Thamrin 2 Jakarta 10110 Indonesia
Tel: (62-21) 381-7187
Fax: (62-21) 350-1867
Web: www.bi.go.id/web/en/Tentang+BI/Kontak+BI/
E-mail : humasbi@bi.go.id
Agency self-description: “In conducting
banking regulatory and supervisory task, Bank Indonesia issues regulation, grants and
revokes bank's license or certain banking activities permit, conducts banking supervisory
and imposes sanction to bank in accordance to the law of the land. In conducting these
tasks, Bank Indonesia, with utmost prudence, is authorized to enact banking regulations.
In the context of the Bank's authority in
bank licensing, asides from granting and revoking business license of the banking
institutions, Bank Indonesia may grant permit in opening, closing and moving of bank's
branch office, grant approval of bank's ownership and management, also grant permit to
bank concerning particular business activities.
The Bank's supervisory authority takes the
form of direct and indirect monitoring. Direct supervision is conducted through on-site
examination regularly or randomly as needed. Indirect supervision is conducted through
research, analysis and evaluation of submitted banks report.”
Pakistan
Regulator and central bank:
State Bank of Pakistan
I.I. Chundrigar Road, Karachi, Pakistan.
Phone: (+92-21)-24450298, Fax: (+92-21) 9212440
www.sbp.org.pk
Regarding service to "unbanked area," the State Bank of Pakistan in October
2004 "decided that, henceforth, every bank should open at least 20% of branches
planned to be opened, under its annual branch expansion plan, in unbanked areas. Banks are
advised to keep this in view while submitting their annual branch expansion plan for year
2005 and onwards. The above instructions will not be applicable to Microfinance Banks,
Islamic Banks, Islamic Banking subsidiaries of existing commercial banks and stand alone
Islamic Banking branches of commercial banks."
The next month, a second exemption was added: the "condition of opening 20%
branches in unbanked areas shall not be applicable in case of bank having 100 or less
branches."
Even with these exemptions, the IMF / World Bank in a subsequent 18-page
Technical Note opined that "the newly privatised banks still face several challenges,
including... the maintenance of loss-making branches in the 'unbanked' areas." See,
Business Recorder of May 12, 2005.
Philippines
Bangko Sentral ng Pilipinas
A. Mabini St. cor. P. Ocampo St.,
Malate Manila, Philippines 1004
Tel. No. : (632) 524-7011
Fax No. : (632) 523-1252
E-mail: bspmail@bsp.gov.ph
Manual of Regulations for
Banks (in PDF)
Singapore
Singapore’s banking law with respect to acquiring 20% or more of
another institution:
Singapore requires prior approval for a bank to acquire 20% or more of another
institution, and provides that the Monetary Authority of Singapore does not have to give
any reasons for approving (or denying) such an application.
When MAS was commented to an a cross-border acquisition there, approval was granted
without any reason being given (see below). For
the law, see, Banking Act, Section 32 (1) --
No bank shall enter into an agreement to acquire the share capital of
any company by virtue of which the bank would, if the agreement is carried out, acquire or
hold, directly or indirectly, an interest of 20% or more of the share capital of that
company, without first notifying the Authority of its intention to enter into the
agreement and obtaining the approval of the Authority to its entering into the agreement.
Section 32 (2) The Authority may approve the
entering into the agreement with or without conditions or may disapprove it without giving
any reasons.
Regulatory contact
Monetary Authority of Singapore
Financial Supervision Group
10 Senton Way
MAS Building
PO Box 52
Singapore 079117
Tel: 65 2 255 577
Fax: 65 2 299 229
Web: http://www.mas.gov.sg
E-mail: webmaster [at] mas.gov.sg
"MAS oversees the banking, securities, futures and insurance industries."
Banking law: see,
http://www.gbld.org/intermediate.aspx?targ=country_details.aspx&mode=country&countryid=32
Some experience: In a message dated 2/17/03 4:03:51 AM Eastern Standard
Time, pblim@mas.gov.sg writes:
Dear Mr Lee,
Thank you for your email and fax.
We noted the information provided in your email and have given them due
consideration in our deliberations on the acquisition of Keppel Insurance
by HSBC Holdings Plc. We thank you for your interest in the subject.
Yours truly,
Hauw Soo Hoon
Executive Director
Insurance Supervision Department
Monetary Authority of Singapore
and see http://investmentsmagazine.com/managearticle.asp?c=120&a=963
(Challenges to
HSBC's "Takeover Bids For Us Finance Firm And Keppel Insurance")
Vietnam
FFW: In Vietnam,
transparency is lacking. In the last week of 2005, after the fact,
HSBC announced that it has finagled regulatory approval to buy 10%
of Vietnam Technological and Commercial Joint Stock Bank (known as
Techcombank) for $17.3 million. Hanoi-based Techcombank is Vietnam's
third largest joint stock bank, with total assets of $482 million in
45 branches in 10 provinces and cities in Vietnam. HSBC's Alain Cany
bragged that regulatory approval has already been received - before
HSBC
made any public announcement or disclosure of the proposal…
and see HumanRightsEnforcement.org
Continue navigating on the map below:
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United States
FFW Campaigns In Other Media
Non-USA/Global
FFW
researches, documents and advocates around financial firms' activities, and how they
affect local communities. FFW files its findings with tribunals, regulatory agencies, and
elsewhere, including on this Web site . Click here to view analyses of several
multinational financial institutions' effects on consumers and the environment, worldwide:
for two examples, Citigroup and HSBC. Click here for some initial brainstorming on the application
of human rights and international law to the global financial services companies, and for
citations (where possible, links)
to resource material. Click here for some September 2004 campaigns -- PNC/Riggs (Finance Watch Reports of August 16,
2004, onwards), J.P. Morgan Chase,
etc.. Click here for an
ongoing report on the campaign to reform anti-money laundering, tax haven, and bank
secrecy laws. Click here for
the Human Rights Enforcement project,
including its new (9/04) criminal
justice and local human rights project. For or with more information, contact us.
For More information, see:
Human Rights & Finance:
Predatory Lending in a Deregulated Network Economy
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