CMF has finalized its strategic plan for 2020-2022. The plan is to implement 32 initiatives in the areas of regulation, prudential and market conduct supervision, sanctioning procedures, and institutional development. The key initiatives in the plan involve the implementation of Basel III standards, a bill to strengthen the legal framework for bank resolution, and a definitive bill for fintech regulation in securities.
The strategic plan is intended to strengthen the regulatory and supervisory capacities of CMF to safeguard the solvency of institutions, propagate adequate market conduct and protection of financial customers, and address the challenges and opportunities resulting from technological breakthroughs in the financial markets. The following are the key highlights of the plan:
- Strengthening the solvency of financial institutions—The plan includes the development of nine initiatives that strengthen the regulations of CMF for the prudential supervision of solvency of banks, insurance companies, and financial intermediaries. These initiatives include implementation of Basel III standards for the banking system, design and presentation of a bank resolution bill, preparation of a bill proposal on financial conglomerates, and strengthening the regulatory framework for risk-based financial supervision in the insurance market. The plan also includes initiatives related to the generation of an integrated supervision policy and model, implementation of a macro-prudential risk management process, and development of a supervision scheme to support the implementation of Basel III standards.
- Safeguarding Market Conduct and Protecting Financial Customers—The plan provides for the development of nine initiatives that strengthen the regulations of CMF to promote proper market conduct and protect financial customers.
- Addressing Technological Challenges and Opportunities—The plan addresses opportunities and challenges of technological development in the financial system. The plan includes initiatives on a legal proposal to close gaps in capital markets in areas such as fintech and crowdfunding; implementation of an action plan to close gaps in the area of operational risks and cyber security; and the deployment of a data governance system.
Related Links (in Spanish)
Keywords: Americas, Chile, Banking, Basel, Strategic Plan, Fintech, Operational Risk, Governance, Cyber Risk, CMF
Previous ArticleRBI Consults on Variation Margin Requirements for OTC Derivatives
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.