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
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.
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