Featured Product

    CMF Announces More Measures to Mitigate Impact of COVID-19 Outbreak

    May 13, 2020

    CMF published a circular (No. 2.252) that contains instructions for banking entities regarding COVID-19 loans from the Guarantee Fund for Small and Medium-Size Entrepreneurs (FOGAPE). The instructions will be in force until October 31, 2021. CMF has reported the progress in granting of loans under the FOGAPE COVID-19 program. CMF also released progress in loan installment rescheduling within supervised banks and cooperatives. Additionally, CMF extended the transitional treatment, applicable to provisions required for rescheduling commercial loans, from four to six months. CMF is also consulting on a regulatory amendment to simplify the registration process of long-term debt securities, with the consultation closing on May 22, 2020.

    Instructions for FOGAPE 

    The key topics covered in the circular include exceptional measures for the treatment of provisions for loans in installments of the commercial portfolio, classification of debtors and calculation of arrears, establishment of procedures for checking debtor eligibility, and regular submissions of information to CMF. The circular details the information that the institutions must submit to CMF to adequately monitor the evolution of loan granting, rates registration, and the main features of these operations. For loans granted under the FOGAPE COVID-19 program, the provisions of the debtor's rescheduled installment loans, which meet the established conditions, may remain unchanged during the grace or rescheduling period granted by the financial institution. The maximum period is six months. This measure facilitates the conditions for providing financing and safeguards compliance with the prudential aspects of credit risk, by all financial institutions participating in the FOGAPE COVID-19 program.

    Consultation on Long-Term Debt Securities

    The amendment aims to facilitate financing options for companies in the context of the COVID-19 pandemic by easing the registration process of long-term debt securities. CMF also published a regulatory report evaluating the impact of the proposal, along with a regulatory brochure, frequently asked questions, and presentations on the proposal. The consultation process will be open until May 22, 2020. This eliminates the obligation to send for registration the copies of notices and communications that must be sent to shareholders on the occasion of a capital increase or the issue of convertible bonds and the prospectus. The proposal streamlines the requirements for registration of long-term debt securities, temporarily eliminating the obligation to include the certain records in the application for registration.

     

    Related Links

    Comment Due Date: May 22, 2020

    Keywords: Americas, Chile, Banking, COVID-19, SME, FOGAPE, Credit Risk, Long-term Debt, Loan Guarantee, CMF

    Related Articles
    News

    HKMA Consults on Supervisory Policy for OTC Derivatives Transactions

    HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.

    May 25, 2020 WebPage Regulatory News
    News

    PRA on Regulatory Capital and IFRS 9 Requirements for Payment Holidays

    PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.

    May 22, 2020 WebPage Regulatory News
    News

    HKMA on Fintech Adoption and Innovation by Banks in Hong Kong

    HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.

    May 20, 2020 WebPage Regulatory News
    News

    BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk

    BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guide for Managing Climate and Environmental Risks

    ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis

    ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.

    May 20, 2020 WebPage Regulatory News
    News

    EBA Assesses Interlinkages Between Recovery and Resolution Planning

    EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).

    May 20, 2020 WebPage Regulatory News
    News

    SRB Publishes Final MREL Policy Under the Banking Package

    SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.

    May 20, 2020 WebPage Regulatory News
    News

    US Agencies Amend Interim Final Rule on Transition Period for CECL

    US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.

    May 19, 2020 WebPage Regulatory News
    News

    ECB Releases Results of March Survey on Credit Terms and Conditions

    ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.

    May 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5208