CMF is consulting on amendments to the general rules applied to the savings and credit cooperatives it supervises. The proposal states that cooperatives should comply with the same operational risk management standards applied to banks, support companies of banking activities, and payment card issuers. CMF has requested feedback by May 31, 2021.
Savings and credit cooperatives can perform a wide range of financial operations and services as stated in the General Law on Cooperatives. These include vista accounts, savings accounts, term deposits, and issuance of credit and payment cards, among others. Therefore, it is essential that they have a regulatory framework allowing them to develop adequate security levels in accordance with the scale and complexity of each entity's operations. According to the proposal, cooperatives are required to comply with the operational risk and cybersecurity framework that CMF has established for supervised financial institutions pursuant to the General Banking Act; the applicable frameworks include the following aspects:
- Electronic fund and information transfers
- Outsourcing of services (especially data processing services and additional safeguards in the case of cloud-based services)
- Business continuity management, including the operation of data processing sites
- Information security and cybersecurity
Along with these aspects, a regulation on reporting operational incidents to CMF also applies to the cooperatives. Moreover, any application of the regulatory framework must consider the nature, volume, and complexity of the operations of each cooperative.
Comment Due Date: May 31, 2021
Keywords: Americas, Chile, Banking, Operational Risk, General Banking Act, Cyber Risk, Savings and Credit Cooperatives, CMF
Previous ArticleCBB Outlines Progress in Implementing Open Banking Services
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.