Featured Product

    CMF Consults on Disclosure Requirements Under Basel Framework

    October 05, 2020

    CMF proposed a regulation on the disclosure requirements for banks under Pillar 3 of the Basel III framework. The proposed regulation establishes, among other aspects, the type and criteria of information to be disclosed, adoption of principles of disclosure of Basel III, the forms and tables to be used (presented in Annex), and periodicity of the information for each of the established requirements. CMF also published a regulatory report that evaluates the impact of the proposal, along with the draft Chapter 21-20 of the Updated Compilation of Rules for Banks (RAN), the frequently asked questions (FAQ) about the consultation, and a presentation on the regulatory proposal. The consultation will close on November 05, 2020 and the regulation will be published no later than December 01, 2020. As explained in the FAQ document, the regulation will become effective in December 2022, in accordance with the provisions of CMF.

    In accordance with the standards and the provisions of the General Banking Act, the new Chapter 21-20 of the Updated Compilation of Rules for Banks (RAN) sets out the principles and type of information to be disclosed as well as the periodicity of publication of the Pillar 3 document. Chapter 21-20 of RAN establishes that banking institutions must publish the Pillar 3 reports quarterly. Banks must publish the Pillar 3 document, for the first time, in April 2023, with information corresponding to the January-March quarter of the same year. Subsequent publications will be made with quarterly information and in the same frequency, being published on the dates defined in the standard under consultation. CMF, through the regulations in this consultation, will require the publication of a Pillar 3 document, offering users a single publication with all available information related to the risk profile and capital structure, published on an easily accessible website. This disclosure will complement the public information currently available, thus reducing information asymmetries and encouraging standardization of the frequency of dissemination and better comparability between national and international banking institutions. This will allow the market and information users to know risk profiles of local banking institutions, including their position and capital structure—at local consolidated and global consolidated levels—in a single format. 

    The Pillar 3 standard provides a comprehensive package of all disclosure requirements that have been proposed by BCBS and are applicable in the local market, beyond the regulatory capital requirements, such as disclosures related to liquidity and remuneration. Banking entities must publish their Pillar 3 document independently or along with their financial statements, reporting each of the tables and forms established in the regulation under consultation. The requirements established in the said regulation will apply to all banks incorporated in Chile and branches of foreign banks operating in the local market. These entities must provide information at both the local and global consolidated levels. 

     

    Related Links

    Comment Due Date: November 05, 2020

    Keywords: Americas, Chile, Banking, Pillar 3, Basel, Regulatory Capital, Disclosures, Reporting, CMF

    Featured Experts
    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281