Sector: Banks

Greek political leaders said they had clinched a deal on economic reforms and spending cuts needed to secure a second bailout, but euro zone finance ministers demanded more measures and a parliamentary seal of approval before providing the aid.

Bank of Communications, China's fifth-largest bank by assets, plans to raise 50 billion yuan ($7.9 billion) through a private share placement to meet stricter bank capital requirements, IFR reported on Thursday. 

Greek leaders clinched a long-stalled deal on reforms and austerity measures needed to secure a bailout and avoid a messy default just hours before the country's financial backers were to meet in Brussels on Thursday.

France's AXA  and U.S. insurer ACE are the final two suitors in the hunt to buy HSBC's $1 billion general insurance business, people familiar with the matter said.

After the U.S. and Europe, China's economy is going to be next in line for a major credit crisis and Chinese policymakers must allow a hard landing to "cleanse" the economy, Bill Smead, CEO and Chief Investment Officer at Smead Capital Management told CNBC on Wednesday.

Beyond the reach of regulators, and about half the size of the world's banking industry, a thriving breed of "shadow banks" is emerging that could trigger the next chapter in the global financial crisis.

The Swiss bank predicted further weakness in investment banking after a restructuring of the business failed to prevent an earnings hit from the euro zone debt crisis and worries about the global economy.

National Australia Bank, the country's top lender, finally moved to review its underperforming UK operations and said conditions were challenging as it reported a 7.7 percent rise in first-quarter cash profit, just shy of market forecasts. That news sent its shares down over 3 percent.

Macquarie Group, Australia's top investment bank, tipped a 25 percent drop in net profit for the year, double the fall analysts were expecting, as weak markets hit its trading and investment banking businesses. Its shares sank as much as 5 percent after it warned that its full year profit would slide.

JPMorgan Chase has agreed to pay $110 million to settle consumer litigation accusing it of charging excessive overdraft fees.

The European Banking Authority (EBA) said on Monday it was impressed with banks' willingness to take all the necessary measures to meet new capital requirements, refuting earlier press reports which claimed that the EU’s banking regulator would not accept the banks’ suggested changes.

Julius Baer announced a share buyback of up to 500 million Swiss francs as the pure play Swiss private bank cut profit margin goals and hiked its cost-income ratio target.

China’s Central Huijin Investment Co.’s plans to cut the dividend payout ratio for three of its “Big Four” lenders, is a sign that Beijing is waking up to capital constraints facing the banking sector, Fraser Howie, Managing Director at CLSA Singapore, said.

The European Banking Authority is to challenge a significant proportion of the capital restructuring plans put forward by the continent’s leading banks to meet tough new capital requirements, say three people familiar with the process. The FT reports.

China's Central Huijin Investment Co, the state parent of the country's "Big Four" state banks, said it would cut the dividend payout ratio for three lenders to help relieve their capital strains.