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Banco do Brasil to close most foreign branches; Santander Río-Citi deal approved

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Banco do Brasil to close most foreign branches; Santander Río-Citi deal approved

* Banco do Brasil SA announced the closure of retail branches in most foreign markets to streamline operations in profitable areas, Reuters reported. Most of the 19 regions where the banks operate will have operations terminated, except for Miami and Japan.

* Argentina's ministry of commerce has approved Banco Santander Río SA's acquisition of Citibank NA Sucursal establecida en la República Argentina. The deal involves assets from Citibank Argentina's retail banking operations totaling $1.4 billion.

MEXICO AND CENTRAL AMERICA

* Netherlands-based AEGON NV and its Transamerica subsidiary joined with Administradora Akaan SA de CV to create Akaan Transamerica, a Mexico-based asset management company. The new entity has received formal approval to start operations from Mexico's banking and securities commission, the CNBV. Akaan Transamerica plans to offer both Mexican and international mutual funds.

* Banco Latinoamericano de Comercio Exterior SA announced the structuring of a $100 million syndicated loan, with a term of five years, for three companies under Costa Rican milk manufacturer Cooperativa de Productores de Leche Dos Pinos R.L, El Financiero reported.

BRAZIL

* The government of the Brazilian state of Rio Grande do Sul has expressed interest in a potential public offering in which it may sell a part of its stake in Banco do Estado do Rio Grande do Sul SA. The state government is considering selling all of the common shares it does not need to retain control of the bank, and could also sell preferred shares, the bank said in a filing.

* Brazil's lower house of Congress approved a bill that aims to allocate funds worth 1.7 billion reais for election campaign spending, Reuters reported. The fund, which will be fueled by taxpayer money, will be used to buy radio and TV airtime for parties.

* Brazilian watchdog Previc took over the management of Postalis Instituto de Previdência Complementar, the pension fund for post office workers, for 180 days, and suspended funds of executives while also freezing their assets, Reuters reported. Postalis also said the payment of benefits, loans and other services to nearly 140,000 participants in the Defined Benefit and PostalPrev plans remain guaranteed, Valor Econômico reported separately.

* The Brazilian Industry and Trade ministry announced that it will release 9 billion reais in credit to small businesses in a bid to stimulate economic growth, Reuters reported.

* Banco Nacional de Desenvolvimento Econômico e Social President Paulo Rabello said the bank is looking for external sources of funding to lessen its dependence on Brazil's Treasury, Reuters reported. For 2018, the development bank is expected to disburse from 110 billion reais to 120 billion reais in loans, 50% more than in 2017, the newswire said in a separate report.

* Brazil's finance minister, Henrique Meirelles, said a presidential veto to changes made by Congress to a tax renegotiation program "is very possible," Reuters reported. The proposed changes include discounts for taxpayers with arrears.

* BTG Pactual Group bought 211 million reais worth of bad debts from failed Banco BVA SA in an auction on Wednesday, Valor Econômico reported. The assets amounted to about 2.3 billion reais in face value.

* After winning last week's government bid, Banco Bradesco SA paid 200.5 million reais to manage the payroll of the 123 thousand servers in the state of Paraíba, Valor Econômico reported. Banco do Brasil SA formerly managed the state's payroll.

* The International Monetary Fund said it is showing support for reforms in the Brazilian pension system, and said it is the right time for Brazil to rebuild its fiscal space, Valor Econômico reported. It added a ceiling on spending approved by Congress needs to be complemented by new structural reforms to ensure effectiveness.

ANDEAN

* A judge in Ecuador ordered the arrest of Vice President Jorge Glas for allegedly accepting bribes from Brazilian construction company Odebrecht, Reuters reported.

* Arbitration between junior developer Minera IRL Ltd. and Corporación Financiera de Desarrollo SA is set to go ahead. It is not clear what is at stake in arbitration, but Minera IRL Ltd. and COFIDE are locked in a dispute over a loan the development bank had once promised the junior developer to help fund its Ollachea gold project.

* S&P Global Ratings assigned BBB- long- and A-3 short-term issuer credit ratings on Peru-based nonoperating holding company Intercorp Financial Services Inc. S&P believes Intercorp Financial has a prominent business position in the domestic financial system through its subsidiaries in the banking, insurance and wealth management businesses.

* The Kremlin spokesman Dmitry Peskov said Russia is willing to discuss the possibility of debt restructuring with Venezuela if the issue is raised in upcoming talks, Reuters reported. In a separate report by Bloomberg News, Venezuela reiterated it will pay its sovereign bond obligations despite sanctions imposed by the United States.

* The president of Colombia's financial regulator, Jorge Castaño, discussed the need to regulate the country's rapidly growing fintech sector, La República reported.

* Equity markets in Peru and emerging markets are expected to keep rising in 2018, Gestión reported, citing Miguel Ángelo Zapatero, president of Lima's BVL stock exchange.

SOUTHERN CONE

* Banco Patagonia SA named Juan Manuel Trejo as Superintendent of Finance, Admin & Public Sector following the resignation of Juan Domingo Mazzón, who stepped down from the position for "personal reasons." Trejo was previously the Argentine bank's General Manager of Planning, Brand and Communication.

* Banco Mariva SA plans to auction bonds worth up to 150 million Argentine pesos, expandable to 300 million pesos today, the bank said in a securities filing. The series VIII bonds will be issued on Oct. 12 and will have a term of 360 days.

* Banco de Chile filed an appeal before a court to push the Ministry of Labor to accept its original definition of minimum services, Diario Financiero reported. The bank demands to be able to count on 11% of its workforce in case of a strike, while the government determined that 9% of the bank's workforce is ideal.

* Banco de la República Oriental del Uruguay workers trying to resist the bank restructuring process will gather for a strike in Montevideo today, El País reported.

* Banco Central de la República Argentina said that despite its efforts to push for the use of electronic payments, the public's demand for banknotes and coins has grown, La Nación reported.

PAN LATIN AMERICA

* W. R. Berkley Corp. has initially estimated that it will see catastrophe losses of less than $110 million, before tax, or $72 million, after tax, from hurricanes Harvey, Irma and Maria and the earthquakes in Mexico.

IN OTHER PARTS OF THE WORLD

* Middle East & Africa: Qatar says reserves enough to boost banks; no bad loan concerns in Saudi

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Mariana Aldano contributed to this article.

The Daily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.