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Banco do Brasil may IPO asset management arm; Itaú Corpbanca fine reduced

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Banco do Brasil may IPO asset management arm; Itaú Corpbanca fine reduced

* Banco do Brasil SA could sell off part of asset management arm BB Gestão de Recursos-Distribuidora de Títulos e Valores Mobiliários SA in an initial public offering under the new government of Brazilian President Jair Bolsonaro, Valor Econômico reported. The state-run bank could also opt for a strategic partnership deal involving the subsidiary, which manages about 948 billion reais in assets, the business daily said.

* Chilean banking regulator SBIF reduced a fine imposed on Itaú CorpBanca to 5.99 billion pesos from 21.76 billion pesos in relation to allegations that the bank exceeded limits on loans that had been granted to a group of companies linked to chemical firm Sociedad Quimica y Minera de Chile SA. Although Chile's Court of Appeals later overturned the fine, the SBIF maintained that it would continue with its sanctions.

MEXICO AND CENTRAL AMERICA

* Mexican Finance Minister Carlos Urzua said the government will lower the rate on returns from IPOs in the country to 10% from 30%, "to try to promote initial public offerings," Reuters reported. Urzua said that the number of companies in Mexico that have gone public is lower compared to other Latin American countries.

* Mexico's ABM banking industry association wants a further 30 million people to be brought into the financial system over the next six years, El Economista reported, citing the entity's president, Marcos Martínez Gavica. It also wants credit to increase to the equivalent of 50% of GDP over the same period.

BRAZIL

* Many Banco do Brasil SA executives are assessing the new management under CEO Rubem Novaes as they consider whether to quit their jobs at the state-owned bank or join the Alternatives for Transition Executives program, which grants additional bonuses to employees opting to leave, Valor Econômico reported.

* Banco do Brasil CEO Rubem Novaes has defended the appointment of the son of Vice President Hamilton Mourão as a special advisor at the state-run lender, citing his 18 years of experience at the bank, Reuters reported. The appointment has reportedly caused anger among staff at the bank, who fear government interference in its management.

* Joaquim Levy, the new president of Banco Nacional de Desenvolvimento Econômico e Social, said the sale of assets by holding company BNDES Participações S.A. - BNDESPAR should play a part in the bank's plans to change its capital structure, but he said the possible market impact of any divestments would be considered, Diário Comércio Indústria & Serviços reported. A report by Banco BTG Pactual SA released this week said the company is believed to have total assets of some 100 billion reais, mainly split between energy firm Petrobras and miner Vale.

ANDEAN

* Peruvian Finance Minister Carlos Oliva said the country's GDP should expand by "more than" 4% in the first quarter, following an expansion of about 5% in the last two months of 2018, Gestión reported.

* Peru's SBS financial industry regulator issued new guidelines allowing pension fund affiliates to boost their savings via promotions with retailers and other service providers, SEMANAeconómica reported. The measure aims to encourage voluntary retirement saving.

SOUTHERN CONE

* Argentina's government auctioned off $950 million of dollar-denominated "Letes" treasury notes on Jan. 8, with an annual rate of 4.75% and maturing in August later this year, Reuters reported.

* Argentina's CMV securities commission has issued new regulations that will allow small and medium-sized companies to access financing in the capital market through the issue of electronic invoices, El Cronista reported. The norm will allow the invoices to trade in the secondary market.

* Banco del Estado de Chile, responding to calls from some lawmakers for it to scrap commissions on its CuentaRUT basic bank accounts, said it lost nearly 10 billion pesos in 2018 by providing the service, La Tercera reported. The bank warned late last year that any reduction in current commissions would make the service nonviable.

* Chile's central bank prosecutor Juan Pablo Araya has warned that a recent Supreme Court ruling related to the country's new banking law raised questions about the legislation's approach to bank resolutions, Diario Financiero reported. He said the court's ruling would affect the way in which banks can be subject to intervention and highlighted the need for legal alternatives to a bank's liquidation in cases of financial difficulties.

* Chile's pensions regulator has fined the private retirement fund administrator AFP Provida SA 5,000 UF for irregularities, Diario Financiero reported. Pensions superintendent Osvaldo Macías said the company had been informed of regulatory breaches but had failed to address them.

PAN LATIN AMERICA

* A survey by the Bank for International Settlements of 63 central banks around the world found that most of them have no immediate plans to issue digital versions of their own currencies, having previously stressed caution over private cryptocurrencies, Reuters reported. On the other hand, five banks have started electronic payment pilot projects, and only one bank considered it "very likely" to issue a digital currency sometime in the next six years.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: Citigroup to exit China securities JV; Australia proposes superannuation reforms

* Middle East & Africa: UAE lender to swap Abraaj debt for fund stakes; PE firms invest in Prime Bank

* Europe: UK faces new hard Brexit hurdle; Deutsche eyes bonus cut; Carige taps state aid

Helen Popper 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.