CMF Issues FAQs on Rule for Incorporating ESG Considerations at Banks
The Commission for the Financial Market (CMF) in Chile published multiple regulatory updates, including frequently asked questions (FAQs) on the recently issued General Rule No. 461, which incorporates sustainability and corporate governance aspects in the annual reports of supervised financial institutions. The rule aims to ensure that supervised entities report their policies, practices, and goals adopted with respect to the environmental, social, and governance (ESG) considerations. The rule applies to entities such as banks, insurance companies, issuers of publicly offered securities, general fund managers, and stock exchanges.
Additionally, CMF published consultation on the norm that establishes the requirements regarding commissions charged in money credit operations. The regulatory proposal establishes that any payment (direct or indirect) received or entitled to receive by the creditor, will be considered as interest in a money credit operation. However, in cases of payments that fall under certain specific conditions; these payments will be considered as commission and not as interest. The regulatory proposal will be in consultation until January 23, 2022. CMF also published a regulatory report that evaluates the impact of the proposal, along with the frequently asked questions (FAQ), a brochure, and a presentation on the proposal.
Press Release (in English and Spanish)
Comment Due Date: January 23, 2022
Keywords: Americas, Chile, Banking, Insurance, Securities, ESG, FAQ, Credit Risk, CMF
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleBCB Publishes Regulatory and Technology Updates in December 2021
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting