CMF has designated six banks to be systemically important and these are Banco de Chile, Banco de Crédito e Inversiones, Banco del Estado de Chile, Banco Santander-Chile, Itaú Corpbanca, and Scotiabank Chile. CMF recently approved a resolution on the "qualification" of systemically important banks, as established by the General Banking Act (LGB) and its regulations for the identification of systemic banks contained in Chapter 21-11 of the Updated Compilation of Rules for Banks (RAN).
The CMF regulations for the implementation of Basel III standards in Chile require building a systemic importance index for each entity. The index is based on four factors that reflect the impact of the financial deterioration or eventual insolvency of each entity. These factors are the size of the bank, the interconnection of bank with other financial entities, the degree of substitution in provision of financial services, and the complexity of business model and operating structure. The identification of systemic banks and the determination of additional applicable requirements will be done annually, based on the information that banks must report. Considering the COVID-19 pandemic, the CMF Board had postponed implementation of some of the requirements associated with Basel III framework in Chile. The core capital requirements resulting from the identification of systemic banks were delayed by a year; these requirements are slated to gradually increase at a rate of an additional 25% per year between December 2022 and December 2025.
Keywords: Americas, Chile, Banking, Basel, Regulatory Capital, D-SIBs, Systemic Risk, 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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