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Venezuela's Banco Occidental under state intervention; Peru retains key rate

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Venezuela's Banco Occidental under state intervention; Peru retains key rate

* Venezuela's Sudeban banking regulator announced state intervention at private bank Banco Occidental de Descuento Banco Universal C. A. for 120 days, though the term can be extended, Reuters reported, citing a document seen by the newswire. According to the regulator, the decision follows the suspension meted by the Curaçao government in the first week of September on Banco Occidental Descuento affiliate Banco del Orinoco.

* The Peruvian central bank held the benchmark rate at 2.50%. Annual inflation was in line with the regulator's target range, and is further expected to converge towards 2.0%. Meanwhile, inflation in August was recorded at 0.06%.

MEXICO AND CENTRAL AMERICA

* Mexico-based Crédito Real SAB de CV Sociedad Financiera de Objeto Múltiple ER launched a cash tender offer for up to $300.0 million of its outstanding 7.250% senior notes due 2023, with the offer expiring on Oct. 9. The consideration for the notes tendered is $1,036.25 for each $1,000 principal amount of the notes.

* The Mexican government's plans to streamline the slow and uncertain process of collateral recovery, collection and bankruptcy resolution would reduce high credit costs in the country, a credit positive for local banks, according to Moody's. The country has some of the highest credit costs in Latin America, consuming roughly 39% of the Mexican banking sector's core earnings as of June.

* The Mexican central bank ruled out signs that the economy will weaken more than expected, El Financiero reported. As of the end of August, the central bank forecasts growth of between 0.2% and 0.7% for 2019, and between 1.5% and 2.5% in 2020.

BRAZIL

* The Brazilian central bank will hold public consultations on the open-banking self-regulation system before the end of the year, Diário Comércio Indústria & Serviços reported. Among the topics that will be discussed include technology, legal and compliance issues. The system should be in place before November 2020.

* The Brazilian central bank is considering releasing part of the banks' compulsory reserves so that financial institutions will be able to use them as reserves for the instant payment system that is currently under development, Valor Econômico reported.

ANDEAN

* Banco de Crédito del Perú cut its growth forecast for Peru's 2019 GDP to 2.5% from 3%, and to 3% from 3.5% in 2020, Gestión reported.

SOUTHERN CONE

* The Inter-American Development Bank approved a $250 million loan to Uruguay to support investment and international trade in the Southern Cone country. The loan carries a 20-year term and an interest rate tied to the London interbank offered rate.

* Fitch Ratings downgraded the insurer financial strength ratings of Argentine insurers Nación Seguros S.A., Nación Reaseguros SA and Nación Seguros de Retiro SA to CC from CCC. The downgrade considers the rating agency's updated view of the operating environment for Argentine financial institutions following its recent actions on the country's sovereign ratings.

* Moody's warned that the Argentine government's decision to reintroduce capital controls to help stem the local currency's decline might fail to contain reserve losses as foreign currency deposits continue to fall. Moody's also noted uncertainty regarding the International Monetary Fund's plans with the next disbursement of $5.4 billion to Argentina. Canceling the payment would be unlikely though, since Argentina has continuously met its fiscal targets set in the agreement. IMF spokesman Gerry Rice said the organization is still in touch with Argentina's government to keep working on the country's economic scenario, Reuters reported separately.

* JPMorgan reduced the growth estimate for the Chilean economy for this year to 2.4% from 2.6% and by 2020 to 2.3% from the previous 2.8%, Diario Financiero reported, citing data from the investment bank.

* Chilean insurer Renta Nacional Cia. de Seguros Generales SA appointed Pablo Iturrieta Pinto as general manager following the resignation of Jorge Sims San Román. At the same time, Genaro Laymuns Heilmaier will replace Sims San Román as general manager of Renta Nacional Compañia de Seguros de Vida SA.

PAN LATIN AMERICA

* American Agricultural Insurance Co. Inc. was authorized to operate as a reinsurer in both Argentina and Colombia, Reinsurance News reported.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: HKEX open to up LSE bid; Malaysia keeps key rate; Salesforce funds open bankin

* Middle East & Africa: KFH seeks to buy AUB in $8.8B deal; Japan's MUFG to build MEA banking network

* Europe: ECB cuts rate, rolls out new stimulus package; HKEX open to sweetening LSE offer

Pablo Jiménez Arandia contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.