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Demand for D&O insurance up in Brazil; Banco Comafi completes Deutsche Bank buy

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Demand for D&O insurance up in Brazil; Banco Comafi completes Deutsche Bank buy

* Brazil's massive, ongoing corruption investigation has raised demand for directors and officers liability insurance in the country, Valor Econômico reported. Premiums in the D&O segment rose 62% to 381.6 million Brazilian reais between 2014, when the investigation was launched, and 2016, according to regulatory data.

* Banco Comafi SA closed its acquisition of Argentina-based Deutsche Bank SA on June 2, according to a regulatory filing.

MEXICO AND CENTRAL AMERICA

* S&P Global Ratings downgraded Consubanco SA Institución de Banca Múltiple's long-term global scale issuer credit rating to BB- from BB and its national scale issuer credit rating to mxBBB+ from mxA, while placing them on CreditWatch negative. The rating agency pointed to the bank's underperforming liquidity ratios that result in higher refinancing risk.

* Mexico's ruling PRI party narrowly defeated the leftist MORENA party in state elections for the state of Mexico, Reuters reported, citing preliminary projections of voting results. However, Andres Manuel Lopez Obrador, who heads the MORENA party, rejected the initial results and called them "a farce."

* Javier Guzman, the Mexican central bank's deputy governor, said it is "impossible to say" whether the bank has ended its cycle of interest rate hikes, Reuters reported. "We are watching the evolution of demand pressures, and if necessary we will be reacting," he said, adding that the economy may need more rate increases in 2017.

* Banco Ve por Más SA Institución de Banca Múltiple Grupo Financiero Ve por Más said it appointed Gilberto Romero Galindo as the bank's new markets director, replacing Javier Domenech Macías.

* Moody's withdrew all of its ratings on Mexico's Asigna, Compensación y Liquidación for the rating agency's own business reasons.

* Banco Nacional de Panamá plans to launch a new electronic wallet service by the end of 2017, El Capital Financiero reported. The new service will be in line with the government's plan to boost financial inclusion in Panama.

* Costa Rica's Banco Crédito Agrícola de Cartago will sell its commercial loan portfolio to the highest bidder as part of the government's plan to end the lender's financial intermediation activities and eventually transform it into a development bank, El Financiero reported. Only 20% of the bank's profits have come from activities not connected to commercial operations, the publication reported separately.

* Financing granted by commercial banks to Mexican states and municipalities fell 3.1% year over year in April amid a slowdown in economic activity and higher interest rates, El Economista reported, citing central bank data.

* Mexican central bank Gov. Agustín Carstens said inflation in the country could rise in the coming months before it starts falling to the central bank's 3.0% target by the end of the year, Reuters reported.

* HSBC México SA Institución de Banca Múltiple Grupo Financiero HSBC has increased the number of its branches that will open on Saturdays to 294 from 211 previously to facilitate clients who require banking services over the weekend, El Economista reported.

CARIBBEAN

* Argentine prosecutors have requested information from Antiguan authorities about bank accounts at Meinl Bank (Antigua) Ltd., which allegedly facilitated bribe payments by Odebrecht SA in a construction project in Argentina, Bloomberg News reported.

BRAZIL

* Bankruptcy filings in Brazil fell 8.4% year over year in the first five months of 2017, according to data from credit research firm Boa Vista SCPC. For May alone, however, bankruptcy requests increased 14.5% from a year earlier and rose 76.8% from the previous month.

* Banco Nacional de Desenvolvimento Econômico e Social's new CEO, Paulo Rabello de Castro, said the state-run development bank will focus on areas where the private sector still doesn't have much appetite, acknowledging that the bank has neglected some sectors in the past, Diário Comércio Indústria & Serviços reported.

* Rodrigo Rocha Loures, a former Brazilian congressman and advisor to embattled President Michel Temer, was arrested after video evidence allegedly showed him taking a suitcase that held 500,000 Brazilian reais from a businessman, Bloomberg News reported.

ANDEAN

* Banco de Desarrollo del Ecuador B.P. said it appointed Wilson Mayorga Benalcázar as its new general manager. Mayorga Benalcázar has served as chairman of the bank's risk committee.

* The U.S. government is "concerned" about any decisions by local firms that offer financial support to the cash-strapped government of Venezuelan President Nicolas Maduro, who has been accused of human rights violations, senior White House officials told Reuters. The development comes after Goldman Sachs Group Inc. was strongly criticized for buying $2.8 billion of Venezuelan state oil company bonds, a move that one Venezuelan opposition politician said showed the bank "aiding and abetting the country's dictatorial regime."

* Sura Asset Management SA's recently announced sale of its Peruvian unit, Seguros SURA Peru, will not have any immediate impact on the parent company's ratings, Fitch Ratings said. Fitch believes any potential impact on Sura Asset Management's future profitability would not be significant given the company's wide, stable and recurrent profits.

* Colombia's government announced plans to reduce interest rates on mortgage loans worth between 100 million Colombian pesos and 300 million pesos by up to four percentage points as part of a strategy to boost economic growth, La República reported.

* The Venezuelan government plans to hold elections for the creation of a new constituent assembly on July 30, Reuters reported. President Nicolas Maduro announced plans to create the new body, which will have the power to rewrite the country's constitution, in May.

SOUTHERN CONE

* Moody's downgraded Argentina-based Deutsche Bank SA's global and national scale local currency deposit ratings to B3 and Baa1.ar from B1 and Aa2.ar, respectively, following regulatory approval for the bank's sale to Banco Comafi SA. Moody's also revised the global scale rating outlook to positive, in line with the positive outlook on the ratings of Banco Comafi.

* Paraguay's financial sector cut 3% of its total workforce in the 12 months through April, with low-ranking employees accounting for most of the layoffs, 5días reported. Local banks are looking for ways to become more efficient and reduce costs, the report noted.

* The Chilean central bank's May 18 decision to cut its benchmark interest rate by 25 basis points to 2.5% was not unanimous, as one board member voted to leave the rate unchanged, Diario Financiero reported, citing the minutes of that meeting.

PAN LATIN AMERICA

* Stefan Ingves, the chairman of the Basel Committee on Banking Supervision, suggested a two-year extension of the phase-in period for banks to adopt a new output floor for risk-weighted assets, but he remains adamant on maintaining the floor at 75%, Börsen-Zeitung reported, citing an internal memo from Ingves.

* In its latest Global Economic Prospects report, the World Bank said economic growth in Latin America and the Caribbean is projected to strengthen to 0.8% in 2017 as Brazil and Argentina emerge from recession and higher commodity prices support agricultural and energy exporters. Growth in Mexico is expected to moderate to 1.8% in 2017, mainly due to lower investments, before picking up to 2.2% in 2018.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: CIC, Blackstone ink deal; NAB, Israeli equity platform to collaborate

* Middle East & Africa: S&P acts on Bahrain, South Africa; Kuwait values bourse for potential IPO

* Europe: RBS settlement stalemate; SocGen launches ALD IPO; BNP Paribas fined

* North America: JPMorgan's Dimon seeking new China venture structure with 100% control

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

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.