* Banco do Brasil SA and Switzerland-based UBS Group AG signed a nonbinding memorandum of understanding for a strategic partnership to provide investment banking and institutional securities brokerage services in select South American countries. If a final agreement is executed, UBS would be the majority shareholder in the partnership with a 50.01% stake. The two banks plan to jointly provide investment banking services in Brazil, Argentina, Chile, Paraguay, Peru and Uruguay.
* Policymakers at Paraguay's central bank unanimously voted to lower its benchmark interest rate by 25 basis points to 4.00%. The bank pointed to a lower growth outlook for the global economy and to the complex economic situation in neighboring Argentina.
MEXICO AND CENTRAL AMERICA
* Mexico's mandatory private pension funds have grown their assets under management, but continue to face a lack of diversification as "increased market volatility and relatively high interest rates have led to a concentration in safe-haven assets like government securities," Moody's said.
* Ricardo Monreal, the Mexican Senate's majority leader, said the chamber plans to approve by December a revised bill to reduce fees in the country's banking sector, Bloomberg News reported. Monreal will meet with local banks and regulators in the coming weeks to reach a consensus on the bill, which has been watered down compared to an earlier proposal in 2018. "It's undeniable that the costs for users of financial services should be reduced," Monreal said.
* All but two of 16 analysts polled by Reuters expect Mexico's central bank to cut its benchmark interest rate by 25 basis points to 7.75% on Sept. 26. The two other economists foresee a rate cut of 50 basis points.
* The credit portfolio of Mexican savings and loan cooperatives grew 8.1% in the first half of 2019 from the year-ago period, while the sector's delinquency ratio remained almost unchanged at 4.4%, El Economista reported, citing data from the CNBV banking and securities commission.
BRAZIL
* Insurer Porto Seguro SA has stepped into the investment market through a new platform called Conquista, Brazil's insurance and reinsurance companies union SindsegSP reported, citing newspaper Valor Econômico. The new platform will offer financing, insurance, credit card, pension and investment services.
* Demand for consumer credit in Brazil rose 5.4% in August from the previous month following three consecutive months of decline, Estadão reported, citing data from credit research firm Boa Vista.
* CNP Assurances SA, BB Seguridade Participações SA and IRB-Brasil Resseguros SA are among the finalists in the race to become partners in Caixa Econômica Federal's home insurance business, according to a report in Estadão's Broadcast column. The companies have until Nov. 11 to submit binding proposals.
ANDEAN
* Colombia's central bank kept its benchmark interest rate unchanged at 4.25% and raised its GDP growth forecast for 2019 to 3.2% from 3%. "Core inflation indicators continue to stand around 3.0%," the bank said. "Supply shocks are expected to begin fading by the end of 2019, and inflation is expected to resume its convergence to the target."
* Mortgage credit in Peru rose 9.1% year over year in August, accelerating from July's growth rate of 8.6%, despite heightened political uncertainty triggered by President Martín Vizcarra's call for early elections, Gestión reported, citing central bank data.
* Latin American countries have agreed to place sanctions on certain members of Venezuelan President Nicolas Maduro's administration, but said they do not support the use of force to remove Maduro from office, Reuters reported.
SOUTHERN CONE
* Argentina's government issued a decree encouraging exporters to sell dollars in the local market by granting tax rebate incentives when they complete the exchange operation, Clarín reported.
* Argentina's government will likely struggle to renew Letes treasury notes following its debt rescheduling announcement, and as a result, it may have to repay US$12 billion by August 2020, El Cronista reported.
* Board members at Chile's central bank considered reducing the monetary policy rate by as much as 75 basis points before deciding on a cut of 50 basis points, according to the minutes of their most recent policy meeting on Sept. 3.
PAN LATIN AMERICA
* A group of 130 global banks, including Brazil's Banco Bradesco SA, adopted the United Nations-backed Principles for Responsible Banking, which require companies to assess their impact on the environment and set targets to improve. The framework is designed to encourage banks to bring their strategies in line with the Paris Agreement on climate change.
IN OTHER PARTS OF THE WORLD
* Asia-Pacific: Chinese bank gets Hong Kong IPO approval; Japan mulls further easing in October
* Middle East & Africa: Tanzania fines 5 banks for anti-money laundering breach; Kenya holds rate
Helen Popper contributed to this article.
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