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Banco do Brasil eyes asset sales to boost capital


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Banco do Brasil eyes asset sales to boost capital

* isconsidering sellingoff assets in an effort to strengthen its capital and postpone the need fora capital injection, O Estado de S.Pauloreported. The state-run bank is reportedly eyeing the potential divestment ofits cards business and its third-party asset management operations. It may lookto sell off between 5% and 10% of the businesses, according to the report'ssources.


*During a conference call, Citigroup Inc. CEO Michael Corbat maintained that thecompany is notconsidering a sale of its Mexican operations. Citi CFO JohnGerspach, meanwhile, noted that the bank saw "improved momentum" inits Mexican retail banking operations during the final month of the secondquarter, leading to a recorded 4% annual rise in consumer revenues.

*Grupo Financiero BBVA Bancomer SAde CV recently launcheda campaign to increase their business in Mexico's payroll loan market, El Economista reported. The bankcurrently has 7 million payroll accounts, but it hopes to add another 1 millionaccounts to its portfolio this year.

* Mexico'scentral bank has found that only 22 banks in the country meet the securityrequirements to participate in the Interbanking Dollar Payment System, known asSPID, El Economista reported.None of the country's development banks were among the 22 institutions.

*Banco Inbursa SA, aunit of Grupo Financiero InbursaSAB de CV, raised$163 million through the sale of two- and three-year bonds, according toReuters.

*Fovissste, Mexico's housing fund, has issuedapproximately 35,000 loans worth 22 billion pesos so far this year, El Economista reported citing aFovissste executive. The fund reportedly plans to issue 76,000 loans forhousing and 45,000 loans for other activities in total.

* The capitalizationof Mexican banks stood at 14.88% at the end of May, down slightly from 14.89% amonth earlier, El Economistareported, citing data from Mexico's CNBV. All financial institutions inoperations met with the required 8% capital minimum as well as the supplementalcapitalization of 2.5%.


* Themajority of small and medium-sized banks in Brazil have suspendednew payroll loans to civil servants in three of the country's states, Diário Comércio Indústria & Serviçosreported. The move comes as banks plan to take the Brazilian states of Rio deJaneiro, Tocantins and Amapá to court over missed payments on payroll loansalready in force. The banks reportedly believe that the three cash-strappedstates are using their employees' payroll loan payments to balance their ownbooks.

*Banco Nacional de DesenvolvimentoEconômico e Social allegedly received 17 billion Brazilian reais froma public investment in transactions that violated the fund's own rules, O Globo reportedover the weekend. The fund, FI-FGTS , reportedly bowed to pressure frompolitical and banking leaders in transferring the funds to bolster the BNDES'capital base, according to the newspaper, which cites plea deal testimony froma former Caixa EconômicaFederal executive.

* CaixaEconômica Federal CEO Gilberto Occhi confirmed that the bank is in talks with Brazil'snational treasury in hopes of lowering the percentage of profits it pays to thegovernment to 25% as part of an effort to shore up its capital position. Thestate-owned bank has paid 50% of its profits to the government in 2015, and100% in prior years.

* BrazilianForeign Minister Jose Serra warned that a continued rise in the Brazilianreal could hurt the country's exporters and exacerbate Brazil's economicrecession, according to Reuters. The real has risen by about 30% since mid-January,the report noted.

* A recent poll found that 50% of Brazilians want interimPresident Michel Temer to remain in the position until the 2018 elections,compared to 32% who favor Dilma Rousseff retaking the position, Reuters reported,citing Folha de S.Paulo. Temer'sapproval rating currently stands at 31%.

* Moody's placed several of 's ratings on review for downgrade, citing the potential impact of thebank's plans to provide payroll services for state employees.

* In the wake of its sovereign downgrade of Brazil inFebruary, S&P Global Ratings downgraded the national scale ratings of ,Austral Resseguradora SAand Terra BrasisResseguros.

* Complaintsagainst banks and other financial institutions in Brazil declined to 2,792 inJune from 2,881 in the previous month, ValorEconômico reported citing Brazil's central bank. Among banks with more than2 million customers, Banco BMGSA had the most claims, followed by and .


*Credicorp Capital plans to leverage its regional financial platform inColombia, Chile and Peru in order to strengthen its presence across Colombiancities outside of the capital, CEO Christian Laub told Portafolio in an interview. 

*Colombia's financial supervisory authority has found 17 financial institutionsthat have questionable practices so far, LaRepublica reported.Of those institutions, 12 were found to be operating without regulation, whilefive others were deemed to be pyramid schemes.


* Banco ContinentalSAECA said that $54.5 million worth of its outstanding 8.875%senior notes due 2017 were validly tendered by the closing date of its cash offer. Thetendered notes represent 30.9% of the total aggregate principal amountoutstanding.


*Asia-Pacific: Korea Eximbankissues NZ$350M bonds; Deutsche Bank eyes Asia growth

* MiddleEast & Africa: National Bankof Kenya ex-CEO arrested; Saudi's NCB, Riyad Bank report Q2 profits

S&PRatings and S&P Global Market Intelligence are owned by S&P Global Inc.

PaulaMejia contributed to this article.

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