* ICBC Peru Bank said its Chinese parent had injected $50 million in new capital into the bank as part of a strategy to make the Andean country a regional hub for developing business links between China and Latin America, Gestión reported, citing a stock market filing. The capital boost follows an $18 million subordinated debt sale by ICBC Peru Bank at the start of 2017.
* Grupo Supervielle SA reported attributable net income of 722.6 million Argentine pesos, sharply up 147.6% from 291.8 million pesos a year earlier. Net interest income grew to 2.81 billion pesos from 1.93 billion pesos a year earlier, helping offset personnel and administrative expenses, which rose 26.4% to 2.45 billion pesos.
MEXICO AND CENTRAL AMERICA
* Banco Panameño de la Vivienda SA on May 24 will offer six-month series CO notes worth about $2.1 million, yielding at a 3.375% interest rate. The bonds will be issued May 26.
* Panama's banking sector has called for the creation of an emergency liquidity fund and the idea is currently being studied by financial regulator SBP, El Capital Financiero reported. According to the report, state-run Banco Nacional de Panamá has agreed to provide $500 million to the fund, in the form of a central bank discount window, which allows institutions to borrow money from the central bank to meet temporary liquidity shortages.
* Moody's raised Banco del Bajío SA Institución de Banca Múltiple's long-term global local and foreign currency deposit ratings to Baa2 from Baa3, short-term global local and foreign currency deposit ratings to Prime-2 from Prime-3, long-term Mexican national scale deposit rating to Aa2.mx from Aa3.mx, its long-term counterparty risk assessment to Baa1(cr) from Baa2(cr), and its baseline credit assessment and adjusted BCA to "baa3" from "ba1."
* Mexican authorities are working to determine the prerequisites for fintech companies to operate in the country, the first stage of secondary regulations stemming from the fintech law passed in March, El Economista reported. Carlos Orta Tejada, vice president for regulatory policy at the CNBV, said the first draft of regulations would specify minimum capital levels needed by companies operating payment and crowdfunding sites.
* Demand for bank credit in Mexico remained practically unchanged in the first quarter of the year compared to the same period a year ago, though auto financing decreased, El Economista reported, citing a central bank survey. It said a similar pattern was expected in the second quarter of the year, though borrowing from large companies was seen to decline.
* An online platform for savers affected by Brazil's economic plans of the 1980s and 1990s seeking compensation under a recent accord with banks is due to start operating today, Diário Comércio Indústria & Serviços reported, citing the Febrapo federation representing account holders. The deal signed in December 2017 ended a multi-billion-dollar dispute that has dragged on for decades.
* Demand for consumer credit in Brazil was almost unchanged in April from March, dipping just 0.3%, Diário Comércio Indústria & Serviços reported, citing credit research firm Serasa Experian. However, the number of borrowers rose 15.2% year over year in the first four months of 2018.
* Banco Central do Brasil has approved the extrajudicial liquidation of Gradual - Corretora de Câmbio Títulos e Valores Mobiliários SA, citing "serious violations of the legal and regulatory rules" governing the company's activity, among others.
ANDEAN
* Venezuelan President Nicolas Maduro's win in recent elections reinforces the view of both Fitch Ratings and research company Capital Economics that the country will continue to experience economic and political troubles, and will continue to have a long and complicated debt restructuring process amid legal and political challenges.
* The Trump administration issued additional sanctions against the Venezuelan government by restricting U.S. citizens and those within the U.S. from purchasing any debt owed to the Venezuelan government, including accounts receivable, following last Sunday's polls. A senior administration official said the order "restricts the regime's ability to liquidate state assets at fire sale prices at the expense of the Venezuelan people."
* Colombia's financial regulation unit has published a draft decree for new capital criteria following Basel III recommendations for entities in the financial system. The decree outlines requirements for the implementation of capital cushions, the alignment with Basel III solvency ratio definitions and the updating of the measurement of assets weighted by credit risk level. It is open for comments until June 18.
* Private bank credit in Peru rose 7.69% year over year in April to reach around 251.73 billion soles as the economy rebounded, marking its biggest annual increase for two years, El Comercio reported, citing the Asbanc banking industry association.
SOUTHERN CONE
* The World Bank approved a $300-million loan to Argentina to support a project to increase public health care coverage, La Nacion reported. The government will contribute a further $350 million for the program.
* The stock exchange in the Argentine grains port city of Rosario plans to invest 300 million pesos to establish a bank dedicated to granting credit to small and medium-sized agricultural companies in the region, El Cronista reported. The project, which could be launched next year pending central bank approval, envisions launching an IPO of shares in the bank to attract new investors.
* The founders of online Argentine travel agency Despegar have bought a 51% stake in CashOnline, a digital financing company founded by Federico Tomasevich, head of the Puente financial services firm, El Cronista reported, citing a company statement. It did not give a figure for the investment, which will be used to enhance technology and raise the company's profile.
* Argentina's Banco de Inversión y Comercio Exterior SA is repurchasing promissory notes in the secondary market in a bid to avert cash-flow shortages among local companies, El Cronista reported, citing two people with direct knowledge of the matter interviewed by Bloomberg News. The government-endorsed strategy aims to inject liquidity into the local market for promissory notes to reduce interest rates paid by small and medium-sized companies.
PAN LATIN AMERICA
* Generali CEO Philippe Donnet said the Italian insurer is aiming to expand its operations in parts of Asia and Latin America, particularly Argentina and Brazil, Reuters reported. Donnet told Italian newspaper Affari & Finanza that the bulk of the company's growth will be organic but that it would evaluate "acquisition opportunities that allow us to speed up growth."
* Banco De Desarrollo De América Latina said it placed international green bonds worth 150 billion Colombian pesos. The bonds have a term of 10 years and a coupon of 6.75%. The offering will help finance environmental and social projects across Latin America.
IN OTHER PARTS OF THE WORLD
* Asia-Pacific: Warburg Pincus front-runner for IndiaFirst stake; ANZ postpones UDC Finance IPO
* Middle East & Africa: US funds vying for Abraaj unit; Ghana steps up bank consolidation efforts
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.
