CMF Consults on Disclosure Requirements Under Basel Framework
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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Previous Article
ISDA Proposes Collaboration Between Derivatives and SFT MarketsRelated Articles
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
SRB Chair Outlines Work Priorities for 2021
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC Selects Companies to Compete in Final Phase of Tech Sprint
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.