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Credit trends; capital action


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Credit trends; capital action

S&P Global Market Intelligence presents the week's latest news and trends in Latin American banking.

Credit trends

* Argentine banks have started to improve rates offered to depositors as the country observes a credit boom, according to a central bank survey.

* Meanwhile, the stock of UVA-indexed loans grew by 10 billion Argentine pesos in September, but the amount of UVA-adjusted deposits contracted 16% during the month.

* Credit tied to consumer product purchases in Chile fell 4.7% in the first half of 2017, banking association SBIF said.

* Credit recovery in Brazil for the period from January through September declined 2.5% compared to the year-ago period, according to credit research firm Boa Vista SCPC.

Capital action

* Intercorp Financial Services Inc. said it will issue up to $300 million in bonds in order to finance its pending acquisition of Seguros Sura SA and Hipotecaria Sura Empresa Administradora Hipotecaria SA.

* Banco La Hipotecaria SA plans to offer $1 million in two-year bonds Oct. 17 carrying an interest rate of 4.25%. The issuance is part of a rotating negotiable commercial securities program worth up to $100 million.

* Multibank Inc. plans to offer $2 million in one-year bonds carrying an interest rate of 3.0%. The Panamanian bank plans to use the proceeds from the series C notes to finance the growth of its own credit activities.

* Tanner Servicios Financieros SA placed in the Swiss market a bond worth CHF100 million.

* Banco Comafi SA raised 350 million pesos from an offering of 36-month bonds.

* Banco Interamericano de Finanzas SA placed $7.4 million in bonds.

* Banco de Occidente SA looks to raise up to 250 billion Colombian pesos from a subordinated bond offering.

* PSA Finance Argentina Compañía Financiera SA will issue nonconvertible, negotiable bonds for up to 300.0 million pesos, expandable by up to 450.0 million pesos.

* Banco W SA will issue ordinary bonds of up to 100.00 billion pesos.

* Banco Panamá SA plans to offer negotiable bonds worth about $1.4 million.

* Banco Internacional de Costa Rica SA looks to raise up to $2.0 million from an offering of one-year negotiable commercial bonds.

* Banco Mariva SA raised about 195.6 million pesos in a placement of series VIII bonds.

* Bancolombia SA priced a $750.0 million public offering of subordinated notes.

* Banco do Brasil SA hired several banks as it prepares for a possible U.S. dollar-denominated bond issuance.

* Banco de Chile and Banco Santander Chile are analyzing the possibility of issuing perpetual bonds.

Central bank views

* Banco Central de Reserva del Perú left its benchmark interest rate unchanged at 3.50%, as inflation returned to the target range and the economy is expected to recover from a slowdown.

* Argentina's inflation rate accelerated to 1.9% during the month of September as the cost of food, clothing and school jumped higher, data from Indec, the country's national statistics agency, showed. The result, which came days after Banco Central de la República Argentina left its benchmark interest rate unchanged at 26.25%, renewed questions over the central bank's ability to control Argentina's rampant inflationary issues.

* Members of Banco de México's monetary policy committee believe that risks to the country's economic growth have increased amid ongoing tension with NAFTA negotiations and an impending presidential election, minutes from the monetary body's September meeting showed.

In other news

* Banco Comafi received approval from the Argentine central bank to absorb Banco BC SA, formerly known as Deutsche Bank SA.

* Banco Bradesco Argentina SA's board decided to apply for a license with banking regulator CNV as a settlement agent and compensation bank.

* Panama's banking regulator has extended the reorganization period of Balboa Bank & Trust Corp. by eight days to Oct. 20, providing more time to finalize the troubled lender's sale.The extension comes just days after Superintendencia de Bancos de Panamá, or SBP, approved Balboa Bank's sale to Costa Rica-based Corporación BCT SA.

* The U.S. Treasury Department's Office of Foreign Assets Control removed Strategic Investors Group Inc. and Balboa Bank & Trust Corp. from its special designations list for narcotics.

* Mexican banks will absorb mortgage loans from earthquake victims in cases where the funds paid by insurance companies are insufficient, said Mario Di Constanzo, the president of financial consumer protection agency Condusef.

* Banco do Nordeste do Brasil SA said 234 employees joined its voluntary redundancy program.

* A Chilean labor court ruled that it has no jurisdiction on Banco de Chile's claim which seeks to overrule the resolution of minimum services issued by the country's labor directorate.

Featured this week on S&P Global Market Intelligence:

* Most LatAm banking majors bolstered capital ratios: Capital ratios at a majority of large Latin American banks showed improvements in 2017 compared to a year-ago, an analysis of S&P Global Market Intelligence shows.

* Hires and Fires: A weekly rundown of executive management, board and other personnel moves at Latin American financial institutions.

* Ratings Roundup: A summary of various ratings actions on Latin American financial institutions and economies.