Asia Pacific

The financial authorities said Thursday that they have decided to strengthen the qualification of major shareholders and executives at savings banks to the level similar to those applied to commercial banks, The Korea Times reported. The move came as part of efforts to help ensure transparency in their management after the savings bank fiasco in which more than 20 savings banks had their business operations suspended due to poor financial health in the past two years.

China's bank lending rose strongly in August to a new record level for the month, a clear sign the government is trying to reverse an economic slowdown that threatens to cost jobs and undermine support for the Communist Party, the Irish Times reported. New local currency lending was 703.9 billion yuan (€87 billion) last month, the People’s Bank of China said in Beijing. That was more than the 600 billion yuan (€73.8 billion) analysts had expected, and outstripped July’s 540 billion yuan (€66.4 billion) lent in July.

South Korea's government announced a $5.9 trillion won (about $5.23 billion) stimulus package for the economy Monday to combat stagnant growth. The program, formulated to inject 4.6 trillion won during the remaining months of this year and 1.3 trillion won next year, is designed around tax breaks on personal income and purchases of homes, automobiles and large electronics products such as televisions and refrigerators, The Korea Times reported.

Until a few years ago, Vietnam was one of the world's hottest emerging markets. Now it faces an urgent task: fix a beleaguered banking system or watch its economy continue to slip behind faster-growing neighbors, The Wall Street Journal reported. Piles of bad loans following the financial crisis have dragged down growth in Vietnam and left banks weakened and reluctant to lend.

Although Chinese lenders don't disclose how many loans they extend or modify, the practice is becoming increasingly popular, according to companies and banking executives. The strategy—called "extend and pretend" by critics—is raising alarms among analysts and bank investors, The Wall Street Journal reported. They warn that it could add to banks' increasing piles of bad loans and may restrict banks' ability to lend to bolster the slowing economy.

Bulgarian telecoms operator Vivacom obtained UK court approval to proceed with a 1.7 billion euro ($2.1 billion) debt restructuring, ending two years of wrangling with lenders and failed attempts to sell the company, Reuters reported. Under a deal approved by Mr Justice Vos in a hearing at the High Court in London, Russia's second-biggest bank VTB Capital and Bulgaria's Corporate Commercial Bank (CCB) are buying over 70 percent of Vivacom and existing lenders are writing off 1 billion euros of debts.

More than four out of every 10 construction firms here were found to have failed to make money in the first six months of the year, weighed down by the prolonged real estate market slump, The Korea Times reported. Most builders are expected to face an even bleaker outlook for the remainder of the year and beyond, with those focusing on the construction of apartments and other residential structures here facing growing risks of bankruptcy.

China Medical Technologies Inc., a maker of diagnostic products, filed for Chapter 15 foreign-firm bankruptcy protection in New York, listing as much as $500 million in assets and debts, Bloomberg Businessweek reported. China Medical, which makes products to monitor various diseases including cancer, also listed foreign bankruptcy proceedings pending in the Cayman Islands, according to a petition posted in U.S. Bankruptcy Court in Manhattan. Chapter 15 helps shield overseas companies from U.S. lawsuits and creditor claims while a company continues the process abroad.

Mumbai-based rating agency Crisil has sharply increased its estimate of restructured bank loans for this financial year, raising fresh concerns about the asset quality of banks, The Wall Street Journal Real Time India blog reported. Crisil estimates that the total loans to be restructured in this fiscal year will be 3.25 trillion rupees ($58.41 billion) compared to their earlier estimate of 2 trillion rupees. The rating agency said the revision is mainly because of the financial stress faced by state power companies and infrastructure sector.

China pledged to continue to buy European bonds in a bid to help the euro zone resolve its debt crisis, Chinese Premier Wen Jiabao said Thursday after meeting with visiting German Chancellor Angela Merkel, underscoring Europe's growing importance to the Chinese economy, The Wall Street Journal reported. But Mr. Wen stopped short of concrete pledges and noted that China's purchases would require "fully evaluating risk," suggesting that meaningful aid still can't be assured. Mr. Wen expressed worries over Europe's debt troubles at a news conference jointly held with Ms.