CMF Sets Out Strategy for Addressing Climate Change Risk
CMF published a report on its strategy for addressing climate change. As part of its strategy, CMF aims to promote the disclosure of risks associated with climate change, facilitate the development of a green financial market, and integrate climate risks into prudential supervision. To achieve these objectives, CMF has set up a work plan that it will execute in the short, medium, and long term.
The work plan on climate change includes the following:
- Creation of a Working Group for Climate Change (GTCC) for the development of a strategic initiative for climate change
- Participation in the Green Public-Private Finance Committee of the Ministry of Finance and in the work carried out by IOSCO, IAIS and the Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
- A plan to promote the disclosure of information through regulatory amendments, as stated in the public consultation of General Rule No. 386
- Development of a plan to facilitate a green financial market, collaboration with other national authorities to develop a classification of economic activities consistent with international standards, and a study (by GTCC) on both international standards and the local market to detect potential gaps and trends
- Integration of climate risks into prudential supervision by identifying, in the short term, the international best practice framework for climate risk assessment, monitoring, and management based on the partnerships built by CMF, especially with its NGFS peers
Related Links
Keywords: Americas, Chile, Banking, Climate Change Risk, ESG, Sustainable Finance, NGFS, Disclosures, Taxonomy, Stress Testing, CMF
Featured Experts

Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.

Amnon Levy
Financial researcher; authority in credit portfolio management and AI/ML, risk-based pricing, climate and credit, CECL/IFRS 9; credit and ALM

Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
Related Articles
FED Proposes to Extend Data Collection Under Stress Testing Guidance
FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."
FCA Proposes Updates to Guidance on Mortgage Repossessions
FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.
FCA Announces Cessation Timeline for Certain LIBOR Benchmark Settings
FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.
EBA Publishes Reporting and Disclosures Framework for Investment Firms
EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.