The Financial Market Commission (CMF) issued Circular No. 2,314, which amends the regulations that set liquidity requirements for banks in Chile. CMF also published a regulatory report and frequently asked questions (FAQ) related to the amendments to liquidity regulations.
The amendments are in line with the new Basel III standards and the modifications introduced by the Central Bank to Chapter III.B.2.1 of its Compendium of Financial Standards. Additionally, they address recommendations made by the International Monetary Fund mission that performed Chile's Financial Sector Assessment Program (FSAP). The key regulatory amendments introduced by Circular Letter No. 2,314 include the following:
- Compliance with the Net Stable Funding Ratio (NSFR) indicator, the value of which must reach at least 60% in June 2022 and 100% in 2026.
- Incorporation of an Internal Liquidity Adequacy Assessment Process (ILAAP), a counterpart to the supervisory process for capital adequacy established under Pillar II of the Basel III framework.
- Expedited compliance requirements for the Liquidity Coverage Ratio (LCR) indicator limit, reaching 100% in June 2022.
- Adjustment to the LCR calculation formula and the treatment of the indicator's technical reserves.
- Adjustments to reporting for NSFR and LCR computation through regulatory files, and incorporation of definitions consistent with capital framework standards.
- Press Release (in English)
- Circular (PDF in Spanish)
- Regulatory Report (PDF in Spanish)
- FAQs (PDF in Spanish)
Keywords: Americas, Chile, Banking, Basel, Liquidity Risk, LCR, NSFR, ILAAP, Reporting, FAQ, Liquidity Regulation, CMF
Previous ArticleAMF Announces Proposal on Climate Related Disclosure Requirements
The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.