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2 Bradesco execs face charges; bankruptcy filings in Brazil down 26.1% YOY

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2 Bradesco execs face charges; bankruptcy filings in Brazil down 26.1% YOY

* Banco Bradesco SA executives Luiz Carlos Angelotti and Domingos Abreu, along with other Brazilian tax officials, face corruption charges related to the Operação Zelotes tax evasion probe, the Financial Times reported.

* Bankruptcy filings in Brazil declined 26.1% in January compared to the same month in the previous year, according to data from credit research firm Boa Vista SCPC. Applications for judicial recovery, where debtors must present creditors with a recovery plan to repay debt, also decreased 20.2% during the 12-month period through January.

MEXICO AND CENTRAL AMERICA

* With 68% of the votes counted, Costa Rican conservative candidate Fabricio Alvarado is seen leading in the first round of presidential polls held Feb. 4, with 25.2% of votes as of press time, according to an Associated Press report carried by The Wall Street Journal. His opponent, Carlos Alvarado, who is not related to the former, has 21.1%. Should no one gain 40% of the votes, another round of voting will be done on April 1.

* The profits of Mexico's banks increased by around 28% in 2017 to reach 137.7 billion pesos, partly due to increases in the central bank's benchmark interest rate, El Economista reported, citing data from the CNBV banking industry regulator. The industry’s total credit portfolio rose 9.4% last year to 4.7 billion pesos.

* Mexican banks will face possibly volatility this year due to a presidential election and the renegotiation of the North American Free Trade Agreement, El Economista reported, citing investment bank UBS' briefing note on the outlook for regional banks.

BRAZIL

* Caixa Econômica Federal will need around 6 billion reais this year to meet tougher new capital requirements in line with Basel III standards, Folha de S.Paulo reported. It said the bank's contingency plan to recapitalize the bank involved cutting dividends, selling off attractive credit portfolios and issuing foreign debt.

* Competition is increasing in Brazil's card payment market as dominant players and new fintech entrants seek to take advantage of an improving economic outlook, Diário Comércio Indústria & Serviços reported.

* Banco Bradesco SA will announce the name of its next CEO this week following the previously announced retirement of Luiz Carlos Trabuco Cappi, Valor Econômico reported.

* Caixa de Previdencia dos Funcionarios do Banco do Brasil, known as Previ, the pension fund for staff at Banco do Brasil SA, should recover a fiscal balance within the first quarter, Valor Econômico reported, citing the foundation's president, Gueitiro Genso. He added the next step should be to reduce its actuarial targets as the benchmark Selic rate is falling.

* Banco Inter SA is planning to issue a new bond designed for the real estate market called a Letra Imobiliária Garantida, or LIGs, Valor Econômico reported. The central bank created the new instrument as a way to finance the construction sector.

ANDEAN

* Two out of three Ecuadorean voters approved a referendum on Feb. 4 that seeks to limit presidents to only two terms, The Wall Street Journal reported, citing the country's National Electoral Council. The vote effectively blocks plans of former President Rafael Correa, who has run the country for two terms, to return to power.

* Peru's government will launch a new lower interest rate program for mortgage loans for environmentally sustainable homes called Mivivienda Verde at the end of the month, El Comercio reported, citing Housing Minister Carlos Bruce. Loans will be granted with rates several percentage points lower than the current 10% rate for normal Mivivienda credits.

* Peru's Banco Interamericano de Finanzas SA expects lending to medium-sized companies to increase in 2018 as the economy benefits from an improved international outlook, General Manager Juan Carlos García Vizcaíno told Gestión in an interview. He said consumer and mortgage credit had also started to grow more strongly in the second half of 2017.

* The foreign debt of Colombia's seven leading banks increased 3.9% in 2017 to reach almost $15.17 billion, Portafolio reported, citing the latest central bank data. The report said about a third of the debts had short-term maturities, with the remainder maturing in the long term.

* The use of mobile banking is expected to increase 45% in Colombia this year, according to industry estimates, La República reported. To boost digital banking further, banks are using strategies such as reduced commissions for mobile operations and increased surcharges on the use of cash.

SOUTHERN CONE

* A consortium made up of Banco Industrial SA and Napoli Investments won the bidding for Caja de Valores SA's Garantía de Valores with an offer of $2.3 million, El Cronista reported. Under the terms of the deal, they will pay 20% in cash and the rest in six twice-yearly installments.

* Paraguay's state development bank Agencia Financiera de Desarrollo (AFD) aims to disburse $290.0 million in mortgage loans in 2018, slightly less than the $309.0 million in loan approvals made during 2017, 5días reported, citing bank President José Maciel.

* Banco de Chile is focused on raising its market share, with the transformation of its digital products and services at the center of a strategy that also aims to maintain lower income segments, Diario Financiero reported.

* Five private Chilean banks that have filed an antitrust complaint against their state-owned rival Banco del Estado de Chile over its interbank transaction fees have agreed to put the case on hold until Feb. 28, Diario Financiero reported. One of the complainants, Banco BICE, presented documents including letters from BancoEstado in which the latter offered to make some changes to its charges in 2016.

* Managers at Uruguay's Banco de Seguros del Estado have agreed on a series of reforms to labor terms at the state-run insurance company, Guillermo Porras, company vice president, told El País. The changes include setting the maximum age for entry to the company at 55, introducing a new policy for promotions and advertising all vacancies, among others. The company also plans to overhaul procedures in dealing with alleged staff irregularities.

PAN LATIN AMERICA

* Itaú Unibanco Holding SA is not fully satisfied with the results of Chilean unit Itaú CorpBanca since it took control of the bank in 2015, Itaú CorpBanca CEO Milton Maluhy told Diário Comércio Indústria & Serviços. He said the Brazilian bank wanted to strengthen the Chilean unit’s balance sheet and take advantage of the improved economy in the Andean country to boost credit and earnings from banking services as well as focus on digital channels.

IN OTHER PARTS OF THE WORLD

* Europe: Deutsche's Postbank lawsuit drags on; Allianz bets on Sri Lanka

* Middle East & Africa: CI Ratings downgrades Oman; South Africa fines Chinese bank branch

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.