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Brazil targets Panama-based FPB Bank in corruption probe

* An investigation in Brazil found that was operating in thecountry without authorization from Banco Central do Brasil, G1 reported. The Panama-based bank was reportedly offeringfinancial services to 44 offshore companies registered by Mossack Fonseca, thelaw firm at the center of the Panama Papers leak. FPB Bank said it "does nothave any links to the 'Operation Car Wash' in Brazil and is not a client orintermediary of Mossack," Reuters reported.


*Fitch Ratings affirmed El Salvador's long-term foreign- andlocal-currency issuer default ratings at B+, with a stable outlook. The ratingsreflect the country's macroeconomic stability and its adequately capitalizedbanking system, but are constrained by its rising debt burden and growthunderperformance relative to peers, among other factors.

* Since thefunding base of most nonbank financial institutions in Mexico consists mainlyof floating-rate wholesale facilities, their funding costswill rise almost immediately as a result of Banco de México's recent decision to hike its benchmarkinterest rate by 50 basis points to 4.25%, according to Fitch Ratings.

* Mexicanfinancial consumer protection agency Condusef said the number of claimsfiled against local banks for possible credit and debit card fraud increased60% in the first quarter compared to a year ago, El Financiero reported.

*Banco Base SA Institución deBanca Múltiple Grupo Financiero Base has lowered its 2016 GDPgrowth forecastfor Mexico to between 1.9% and 2.3% from a previous range of 2.3% to 2.6%, El Economista reported. Capitaloutflows, upward pressure on the exchange rate, and rising borrowing costs areamong the risks the bank sees for the country.

* Biometricverification firm Biometría Aplicada is working with four Mexican banks to stema rise in cases of identitytheft, El Economista reported.According to the latest available official data, cases of identity theft inMexico's financial sector jumped 40% in the first half of 2015.


* TheBrazilian real is expected to rally further as Britain's decision to leave the EUspurs demand for emerging market assets, Bloomberg News reported, citingItaly-based MPS Capital ServicesBanca per le Imprese SpA.

* BrazilianFinance Minister Henrique Meirelles said the country is targetinga 2017 budget deficit of 139 billion Brazilian reais, compared to an estimatedbudget gap of 170.5 billion reais for 2016, Reuters reported. The governmentwill come to a decision on potential tax hikes by late August, the ministeradded.

* EduardoCunha, the suspended speaker of Brazil's lower house, resignedfrom the position July 7, Reuters reported. Cunha, who faces corruptioncharges, said he had been victimized for initiating impeachment proceedingsagainst suspended Brazilian President Dilma Rousseff.

* JoãoCarlos Figueiredo Neto, an adviser to Brazilian tax appeals board CARF, wasarrested July 4 following a complaintfrom Itaú Unibanco HoldingSA that he tried to solicit bribes from the bank in exchange fordelivering a favorable judgment in administrative proceedings involving thelender, Valor Econômico reported.

*JPMorgan Chase &Co. launched a fund in the Brazilian market to investin high-risk corporate securities, with protection against exchange ratefluctuations, Valor Econômicoreported.


* Chilean banking regulator SBIF said it is an application by to open abranch in the country. The application was presented in June by Yang Sen, whowill head the bank's local operations.

* Eric Parrado, the head of Chilean banking regulator SBIF, said the watchdogcould give its approval in the coming weeks for Mexican departmentstore operator El Puerto de Liverpool SAB de CV to acquire over 10% ofBanco Ripley'sshares, Pulso reported.

* At a forum organized by KPMG, regulators from Chile's financial sectoragreed that Britain's vote to leave the European Union will have a limitedimpact on the Latin American country, DiarioFinanciero reported. Chilean banks are well capitalized and benefit fromdiversified investments, the regulators said.


*Asia-Pacific: BOC applies forChilean branch license; Citi to merge EMEA, Asia consumer banking ops

* MiddleEast & Africa: African mobilebanking picks up; IMF critical of Israeli banking reforms

* Europe:5 US banks pledge support forLondon; curtain falls on AXA in Serbia

* NorthAmerica: Fed extends Volckerprovision compliance; Morgan Stanley faces probe over alleged loan salescontests

PaulaMejia contributed to this article.

TheDaily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans newssources published in English, Portuguese and Spanish. Some external links mayrequire a subscription.