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Argentina raises deposit reserve requirements; Credicorp plans Bolivia expansion


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Argentina raises deposit reserve requirements; Credicorp plans Bolivia expansion

* Argentina's central bank raised banks' deposit reserve requirements in pesos by 3 percentage points for both demand and time deposits. The new rules will result in the absorption of liquidity amounting to 60.00 billion pesos and are also aimed at fighting inflation, which hit 26.3% in May.

* Dionisio Romero Paoletti, executive chairman of Credicorp Ltd., said the company plans to enter Bolivia's insurance and investment fund business, SEMANAeconómica reported, citing his comments in Bolivian publication El Deber. Credicorp already operates in Bolivia through its Banco de Crédito de Bolivia SA, Crediseguro S.A. Seguros Personales and other subsidiaries.


* Mexico's MORENA party founded by Andrés Manuel López Obrador, who recently won the presidential vote, together with its allies won 29 seats in the Senate, with 64 out of 96 seats accounted for. The results may lead to the party falling short of a majority in the upper house, potentially restricting López Obrador's ability to pass big-spending policies.

* Moody's warned of potential market volatility following Andrés Manuel López Obrador's victory in the presidential election, citing uncertainty due to "Mexico's lengthy political transition process and the influence of the outgoing administration on the country's near-term fiscal outlook." Fitch Ratings also warned that "protracted uncertainty over energy policy could affect [foreign direct investment], economic growth, and oil production over time."

* Carlos Urzua, Mexico's finance minister-delegate, said that the new administration would respect the independence of the central bank and maintain a floating exchange rate regime, Reuters reported. The incoming administration will also plan reforms for the pension system and state oil company Pemex, though details were not given.

* Remittance payments sent to Mexico reached a new record of about $3.10 billion in May, exceeding the previous record of nearly $2.72 billion set a month earlier, El Economista reported, citing central bank data.

* S&P Global Ratings revised its outlook on Panama to positive from stable, while affirming the long- and short-term sovereign credit ratings at BBB and A-2. The rating agency said rising prosperity, further economic diversification, and effective oversight of Panama's financial system should further strengthen its economic resilience.


* Price changes for property businesses in the Caribbean where there had been no catastrophe claims ranged from increases of 5% to increases of 15%, according to Willis Re's report June 1 and July 1 reinsurance renewals. Meanwhile, rates were up by between 10% and 40% for loss-hit businesses.

* Greenlight Capital Re Ltd. on July 2 filed a shelf registration for the potential sale of certain securities with a proposed maximum aggregate offering price of $200.0 million. Net proceeds from the sales will be used for working capital, capital expenditure, acquisitions and other general corporate purposes.


* The number of Brazilian companies that defaulted on their debts rose 9.37% in May annually, Diário Comércio Indústria & Serviços reported, citing the latest survey by the CNDL national shopkeepers' federation and credit research firm SPC Brasil.

* Brazil's government and the central bank are lobbying senators to make changes to draft legislation to protect personal data, fearing that it could interfere with another bill that outlines the creation of a credit record register aimed at bringing down the cost of credit, Folha de S. Paulo reported. The personal data bill is currently being considered by the Senate while the credit register bill is still with the lower house.

* The first issuance of securities for bank financing that include insurance cover for investors is expected to take place in Brazil by September, and is expected to raise between 3 billion to 4 billion reais, Valor Econômico reported.

* Creditas Soluções Financeiras Ltda., a Brazilian fintech specializing in secured consumer loans, raised 23 million reais with its first issuance of certificates of real estate receivables backed by real estate financing agreements, Valor Econômico reported.


* Credicorp Capital Peru S.A.A. and Banco GNB Sudameris SA, which both have operations in Colombia, will have to move their corporate registrations to jurisdictions recognized by the country before a new law governing conglomerates comes into force on Sept. 21, Financial Superintendent Jorge Castaño Gutiérrez told El Tiempo. The holding companies are registered in Bermuda and Luxembourg, respectively.


* Argentina's government will announce new measures to boost the supply of credit to small and medium-sized companies being hard hit by a slowdown in sales and soaring interest rates, El Cronista reported. The government had met with bankers from 12 public lenders to agree on an initiative that will give small businesses a 29% interest rate on presentation of checks.

* An expert on ATM computer systems, Hector Moyano, warned during a Senate hearing in Chile that the system in place in the country since 2014 is obsolete and represents the banking sector's weakest link in its cybersecurity, Diario Financiero reported. However, Redbanc, an ATM network, said its system operated according to international security standards.


* Asia-Pacific: Anbang steps up units' asset transfers; Goldman Sachs Australia penalized

* Middle East & Africa: Delek's Phoenix stake sale collapses; firms vie to run Abraaj's healthcare fund

* Europe: SocGen to buy Commerzbank's EMC unit; Swedbank issues Q2 profit guidance

* Global Markets: New York markets pre-open: Stocks up; yuan stronger after reported intervention

Helen Popper contributed to this article.

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