Featured Product

    CMF Updates Compendium of Accounting Standards for Banks

    November 03, 2021

    The Commission for the Financial Market (CMF) in Chile published an updated version of the Compendium of Accounting Standards for banks, in addition to the adjustments to certain files of the Information System Manual for banks. The updated Compendium of Accounting Standards will be applicable from January 01, 2022. The updated version of the Compendium incorporates accounting information necessary to comply with the full implementation of Basel III standards and addresses situations arising from internal analysis as well as feedback received from stakeholders in the banking system.

    After processing comments and suggestions received during the consultation period, CMF has adjusted the original regulatory proposal, mainly with respect to the application of the following International Financial Reporting Standards (IFRS):

    • IFRS 9 on the accounting treatment of instruments eligible for additional tier 1 (AT1) and tier 2 (T2) capital
    • IAS 8 on errors associated to operational risk events
    • IAS 37 on determining operational risk provisions

    Chapter B-1 of the Compendium of Accounting Standards on aggregate exposure for the group commercial portfolio has also been amended and a longer period has been proposed for its adoption independent of the first enforcement date of the new Compendium. Additionally, CMF issued a regulation on the limit control of loans that banks may grant to finance corporate groups. The last amendment to the General Banking Act, in force since January 12, 2019, originally set a limit of 30% of the effective assets of the creditor bank for the total of loans granted to individuals or entities belonging to the same corporate group. These amendments are contained in the new Chapter 12-16 of the Updated Compilation of Rules for Banks (RAN), which establishes the scope and exceptions for the application of loan limits to corporate groups. Also, a new file has been added to the Information Systems Manual for Banks to report monthly information on daily transactions carried out with entities belonging to the same corporate group, in addition to their identification and the amounts owed. CMF analyzed various concerns from different interested parties received during the regulation's public consultation period. The original regulatory proposal has been amended accordingly, with CMF also publishing a set of frequently asked questions to clarify these queries.

     

    Related Links 

    Effective Date: January 01, 2022

    Keywords: Americas, Chile, Banking, Credit Risk, Compendium of Accounting Standards, IFRS 9, Accounting, Operational Risk, Lending, Reporting, Basel, Regulatory Capital, CMF 

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267