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Brazil's PMDB party splits with Rousseff's ruling coalition

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Brazil's PMDB party splits with Rousseff's ruling coalition

* In a meeting that lasted only a few minutes, the Brazilian DemocraticMovement Party decided to splitwith Brazilian President Dilma Rousseff's ruling coalition in a move that makesher impeachment much more likely, Reuters reported. The Progressive Party,which is currently allied with the government, will meet on March 30 to decideon its future with the governing coalition. Jaques Wagner, Rousseff's chief ofstaff, said the president will form a new coalitionbefore the end of the week, the newswire reported separately.

MEXICO ANDCENTRAL AMERICA

* Mexicanpension fund manager Afore Sura is working on a technological transformationthat has the potential to expandthe company's presence to 500 virtual locations from 60 offices currently, CEOEnrique Solorzano told BNamericas in an interview.

* The number ofbanks operating in Mexico could reach 50 by the end of 2016 from 46 currently, El Economista reported. Mexican bankingand securities commission CNBV is in the processof granting final approval to four banks in order for them to begin operatingin the country.

* Mexican financialconsumer protection agency Condusef recorded more than 5,720 complaintsagainst loan collection firms hired by local banks during the first quarter of2016, El Economista reported. Thefigure is equivalent to 30% of the total complaints registered against theseentities in full-year 2015.

BRAZIL

* Less than3% of the 83 billion Brazilian reais credit package that was announced by Brazil's governmentin January has been used so far, O Estadode S. Paulo reported, citing figures from state-run banks and employeeindemnity guarantee fund FGTS.

* The ratio of loansover 90 days in arrears in Brazil stayed at 5.5% in February, the same as in January,according to data from BancoCentral do Brasil. Total lending operations in the country amountedto 3.18 trillion Brazilian reais in February, a decline of 50 basis points fromthe previous month, but up 5.3% year over year.

* The Braziliancentral government recorded a primary budget deficitof 25.07 billion Brazilian reais in February, compared to a surplus of about14.84 billion reais in the previous month, Reuters reported.

* Brazilianinsurance firm Tokio MarineSeguradora SA has launchedD&O insurance coverage, industry website Segs reported.

* Research firmCapital Economics said it expects Banco Central do Brasil to shift its biastoward looser policyover the coming months, but the timing and size of any interest rate cuts willbe determined by the performance of the Brazilian real.

* Banco Central doBrasil lowered its 2016 forecast for loangrowth in Brazil to 5% from 7%, ValorEconômico reported. The revision comes amid rising interest rates in thecountry and reduced lending appetite among banks.

* Leading financialanalysts believe that profits for Brazil's banking industry will fall in 2016and 2017, while the sector's default rate will peakin the middle of next year, ValorEconômico reported. Analysts at Goldman Sachs Group Inc. said in a report that in 2017,they expect Brazilian banks to post their lowest return on equity in the last15 years.

* Brazilian assetmanagers saw AUM rise17.3% annually in 2015 to about 74.67 billion Brazilian reais, Diário Comércio Indústria & Serviçosreported, citing local financial and capital markets association Anbima.

* Lending byBrazilian credit unions grew at a faster ratethan the local banking industry in 2015 as the former offered more competitiveinterest rates, Reuters reported. Credit unions have expanded their range offinancial services at a time when the banking sector is experiencingdifficulties, according to the report.

ANDEAN

* FitchRatings withdrew itslong- and short-term national ratings on BTG Pactual Group unit BTG Pactual Colombia SA. Fitchsaid the ratings are no longer valid and the corresponding ratings contract hasbeen terminated.

* Peruvian bankingregulator SBS has raised concerns over a lack of supervision for the financialsystem's savings and credit cooperatives, Gestiónreported. The country has 322 savings and credit co-ops, but only 27% of themare affiliated with Fenacrep, the national federation charged with managing thesector. Peru's congress has been asked to approve a proposal to designate theSBS as the sector's regulator.

* The VenezuelanCongress approved a law to release77 political prisoners who were jailed by President Nicolás Maduro and formerPresident Hugo Chávez for alleged treason, TheWall Street Journal reported. Maduro has reportedly vowed to block the law.

* After and complete their mergeron April 1, the merged entity will be the secondlargest bank operating in Colombia in terms of assets, La República reported.

SOUTHERN CONE

* Banco FinansurSA said Nicolás Cevela has submitted his as a director of the companydue to personal reasons.

* Banco Central deChile Governor Rodrigo Vergara said Chile has the necessarymacroeconomic environment to maintainits investment-grade rating, but the country must ensure that its public debtdoesn't swell, Reuters reported.

* BBVA Banco FrancésSA said its board accepted the resignation of director Mario Luis Vicens, which was dueto personal reasons. The resignation will be effective when his replacement isselected at the bank's next shareholder meeting.

PAN LATIN AMERICA

* The strength of the U.S. dollar is the single most importantissue facing emerging-market economies, and it is critical to consider nominaldollar incomes in assessing countries' relative economic performance andprospects, according to Fitch Ratings. The agency estimates that dollar GDP forthe 30 largest emerging economies contractedby 6.6% in 2015.

* Moody's said accident avoidance technologies applied in cars couldboost insurers' profits in the medium term, but self-driving cars coulddramatically reduceauto insurers' profits in the long term as fewer accidents will translate tolower premiums. Latin America could be slow to embrace self-driving vehicles,the rating agency noted.

IN OTHER PARTSOF THE WORLD

* TheCentral Bank of SriLanka decided to hold its key rates. The central bank the standing depositfacility rate and the standing lending facility rate at 6.50% and 8.00%,respectively.

* The Securitiesand Exchange Commission of Pakistan said that it initiated enforcement actions against the country's 28 modarabaswith unsatisfactory track records, Reuters reported. Modarabas are smallequity-like financing vehicles unique to countries with Islamic finance.

* The ECB is incontact with Irish banks to ensure that they are adequately assessing the riskssurrounding the planned referendum on the U.K.'s membership in the EU and areprepared for all possible outcomes, according to The Irish Times. The ECB is also examining banks in Germany,France, Italy, Spain and the Netherlands as part of a eurozone-wide assessmentof the potential impact of a Brexit on banking systems highly exposed to theU.K. market.

* has warned senioremployees against saying "Brexit" during conversations with clientsand bannedmanagers from providing opinions and influencing referendum voters in anattempt to avoid wading into the debate regarding whether the U.K. shouldremain in the EU, the Financial Timesreports. The American bank also scrapped plans to donate money to the campaignfor Britain to stay in the union.

Paula Mejiacontributed to this article.

TheDaily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scansnews sources published in English, Portuguese and Spanish. Some external linksmay require a subscription.