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Case vs. Banco Original closed; BNDES loan disbursements fall 20%

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Case vs. Banco Original closed; BNDES loan disbursements fall 20%

* Brazilian market regulator CVM said it has closed a lawsuit against Banco Original SA for allegedly operating in the derivatives market using insider information prior to bribery claims made by businessmen Joesley and Wesley Batista against several politicians. In a statement, CVM said there was no sufficient evidence that the bank was aware it had access to confidential information.

* Banco Nacional de Desenvolvimento Econômico e Social disbursed 50 billion reais between January and September 2017, down 20% from the same period of the previous year, the bank said in a statement on its website. Despite the decrease, BNDES said the "reduction in the pace of decline in credit applications shows signs of a resumption of investment."

MEXICO AND CENTRAL AMERICA

* Top Canadian and Mexican trade negotiators will meet with U.S. Trade Representative Robert Lighthizer on Tuesday and reject the latest proposals made by the U.S. in the current round of talks aimed at renegotiating the NAFTA, CNBC reported. However, Canada and Mexico will not abandon the negotiations despite their rejection of the U.S. demands, according to the report, which cited two people briefed on the countries' positions.

* Mexican Economy Minister Ildefonso Guajardo said the country is considering new laws to provide investors security in case NAFTA disintegrates, Reuters reported.

BRAZIL

* As the first semester of 2017 in Brazil is marked by a return to GDP growth, lowering inflation, reduced interest rates and less unemployment, "the effects of the recovering economy are perceived, albeit slowly, in the cooling of the credit risk to the families," Banco Central do Brasil said in its latest financial stability report.

* Brazil's four largest financial institutions — Banco do Brasil SA, Itaú Unibanco Holding SA, Banco Bradesco SA and Caixa Econômica Federal— hold 78.65% of the country's credit operations, or equivalent to 138 billion reais, Diário Comércio Indústria & Serviços reported, citing the central bank's quarterly financial stability report. In December 2016, they had 79.16% of market control.

* Banco Central do Brasil has asked the government to find ways to strengthen Caixa's capital base, amid fears that the institution might not meet Basel III capital requirements by January 2019, Valor Econômico reported. The government is said to be evaluating a possible transfer of 10 billion reais in assets to BNDES to secure a capital buffer.

* Amid a financial shortage scenario, Caixa faces criticism for holding pre-approved mortgage credit, as customer complaints also increase sharply due to delays and exceedingly bureaucratic processes, Folha de S. Paulo reported.

* The Brazilian Congress has approved a request for urgency for the vote on the bill to institute leniency agreements between financial institutions, including the stock exchange, the central bank and market regulator CVM, Valor Econômico reported.

* Brazil's central bank observed an improvement in the amount of credit granted for small and medium enterprises and noted that the availability of loans will increase, as companies are expected to reduce default risks, Folha de S. Paulo reported.

ANDEAN

* Peruvian pension fund administrator AFP Integra has proposed to market regulator SBS the payment of commissions for profit performance, Gestión reported.

* Bancolombia SA expects to have ATM machines equipped with facial recognition technology at the beginning of 2019, La República reported. In the first quarter of 2018, digital tests will start being conducted and customers will start being able to perform operations with the use of their mobile phones.

SOUTHERN CONE

* Fitch Ratings upgraded Banco Santander Río SA's local currency long-term issuer default rating to B+ from B, while maintaining the outlook at stable. The rating agency also upgraded the long-term local currency issuer default ratings of BBVA Banco Francés SA to B+ from B.

* The director of Argentina's CNV securities commission, Carlos Hourbeigt, criticized plans from banks to create a second national depository to compete against Caja de Valores, El Cronista reported. The official said that 95% of the markets worldwide have only one depository and it makes no technical sense to have a new one.

* Argentina managed to comply with the government fiscal targets in the third quarter of 2017, with a deficit of 3.2% of GDP, according to anticipated data obtained by El Cronista. The official announcement is expected Oct. 19.

* Banco Bilbao Vizcaya Argentaria Uruguay SA, Banco Itaú Uruguay SA, Banco Santander SA, Scotiabank Uruguay SA and Citibank NA - Sucursal Uruguay are adopting a new system that integrates the internal electronic billing program with the collection processes, allowing debtors to visualize debts and make a direct payment, eliminating a series of steps, El País reported.

* Benefiting from improvements in global conditions, Argentine securities observed a 21% increase in the first nine months of the year, El Cronista reported.

* Chilean market regulators and financial institutions agree with the International Monetary Fund regarding the growing household debts in Chile, Pulso reported. They note, however, that root of the problem is the mortgage credit, and therefore there is no risk to the financial stability of the country.

IN OTHER PARTS OF THE WORLD

* Middle East & Africa: Commercial Bank posts profit drop; South Africa 'cautious' about monetary policy

* Europe: No MiFID II delay; Catalonia not backing down; Handelsbanken Q3 profit slips

Mariana Aldano 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.