CMF Consults on Systemic Importance Index and Accounting Compendium
The Commission for the Financial Market (CMF) in Chile is consulting to adjust the description of sub-factors used to calculate the index of systemic importance of banks, in accordance with the Chapter 21-11 of the Updated Compilation of Rules for Banks (RAN). Such sub-factors are reported through File R11 of the Information Systems Manual for banks. The aim of this adjustment is to move toward better quality of information for determining systemically important banks. The aim of the proposed changes is to clarify the instruments that should be excluded from sub-factor 11 (Assets at fair value) as well as modify the definition of sub-factor 12 (third-party assets under management of the bank). CMF has published a regulatory report that assesses the impact of this proposal and this consultation is open until September 06, 2021.
CMF also published a consultation to update the December 2019 version of the Compendium of Accounting Standards for banks, in addition to the adjustments to certain files of the Information System Manual for banks. The Compendium of Accounting Standards, which was published in December 2019, is applicable from January 2022. The proposal under consultation incorporates the necessary accounting information to comply with full implementation of Basel III standards. The proposal addresses situations arising from internal analysis as well as feedback received from stakeholders in the banking system. The consultation was open until August 23, 2021.
Related Links (in Spanish)
- Press Release on Adjustment of Sub-Factors
- Resolution on Adjustment of Sub-Factors (PDF)
- Consultation on Adjustment of Sub-Factors
- Press Release on Updating Compendium of Accounting Standards
- Resolution on Updating Compendium of Accounting Standards
- Consultation on Compendium of Accounting Standards
Comment Due Date: September 06, 2021 (Adjustment of Sub-Factors)/August 23, 2021 (Compendium of Accounting Standards)
Keywords: Americas, Chile, Banking, Accounting, Systemic Risk, Systemic Importance Index, Basel, Sub Factors, Information System Manual, Systematically Important Bank, Compendium of Accounting Standards, CMF
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
BoM Consults on Guideline on Use of Cloud ServicesRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
HKMA Announces Launch of Data Repository on Sustainable Finance
The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
NGFS Report on Integration of G-Cubed Model into NGFS Scenarios
The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
