CMF held a meeting on the supervision and regulation of banking and financial institutions, in accordance with the provisions of Law 21.130, which modernizes banking legislation, and announced integration of SBIF into CMF. Implementation of the Basel III rules is one of the main challenges that CMF will face when adding banks within its supervisory perimeter. Additionally, CMF informed that it will start a new process for the hiring of a consultancy for the design and implementation of the Phase II of administrative integration, after the incorporation of the SBIF to CMF.
CMF will supervise 73% of the financial assets of the country and will have under its control perimeter almost eight thousand entities belonging to the securities markets, insurance, banks, and other financial institutions. The integration of banking supervision into CMF will have the following advantages:
- Extend the advantages of an autonomous and collegial corporate governance toward supervision of banks and of other financial institutions supervised by SBIF
- Expand the regulatory perimeter facilitating a systemic vision of the market and the supervision of financial conglomerates
- Ensure consistency in the regulation of risks between different entities and expand regulatory transparency through public consultation of standards, regulatory impact reports, and better regulatory coordination
- Expand the base for development and efficient use of specialized knowledge
- Leverage available resources to strengthen the scope of supervision and take advantage of synergies, in addition to reducing costs of coordination and information exchange among regulators
- Improve the process of accountability, with a clear mandate to the market and with a clear assignment of functions within the entity
Related Links (in Spanish)
- Press Release by CMF on Integration of SBIF to CMF
- Press Release by SBIF on its Integration
- Press Release on Hiring a Consultancy
Keywords: Americas, Chile, Banking, Insurance, Securities, Basel III, Modernized Banking Legislation, SBIF, CMF
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