Featured Product

    CMF Consults on Disclosure Requirements Under Basel Framework

    October 05, 2020

    CMF proposed a regulation on the disclosure requirements for banks under Pillar 3 of the Basel III framework. The proposed regulation establishes, among other aspects, the type and criteria of information to be disclosed, adoption of principles of disclosure of Basel III, the forms and tables to be used (presented in Annex), and periodicity of the information for each of the established requirements. CMF also published a regulatory report that evaluates the impact of the proposal, along with the draft Chapter 21-20 of the Updated Compilation of Rules for Banks (RAN), the frequently asked questions (FAQ) about the consultation, and a presentation on the regulatory proposal. The consultation will close on November 05, 2020 and the regulation will be published no later than December 01, 2020. As explained in the FAQ document, the regulation will become effective in December 2022, in accordance with the provisions of CMF.

    In accordance with the standards and the provisions of the General Banking Act, the new Chapter 21-20 of the Updated Compilation of Rules for Banks (RAN) sets out the principles and type of information to be disclosed as well as the periodicity of publication of the Pillar 3 document. Chapter 21-20 of RAN establishes that banking institutions must publish the Pillar 3 reports quarterly. Banks must publish the Pillar 3 document, for the first time, in April 2023, with information corresponding to the January-March quarter of the same year. Subsequent publications will be made with quarterly information and in the same frequency, being published on the dates defined in the standard under consultation. CMF, through the regulations in this consultation, will require the publication of a Pillar 3 document, offering users a single publication with all available information related to the risk profile and capital structure, published on an easily accessible website. This disclosure will complement the public information currently available, thus reducing information asymmetries and encouraging standardization of the frequency of dissemination and better comparability between national and international banking institutions. This will allow the market and information users to know risk profiles of local banking institutions, including their position and capital structure—at local consolidated and global consolidated levels—in a single format. 

    The Pillar 3 standard provides a comprehensive package of all disclosure requirements that have been proposed by BCBS and are applicable in the local market, beyond the regulatory capital requirements, such as disclosures related to liquidity and remuneration. Banking entities must publish their Pillar 3 document independently or along with their financial statements, reporting each of the tables and forms established in the regulation under consultation. The requirements established in the said regulation will apply to all banks incorporated in Chile and branches of foreign banks operating in the local market. These entities must provide information at both the local and global consolidated levels. 

     

    Related Links

    Comment Due Date: November 05, 2020

    Keywords: Americas, Chile, Banking, Pillar 3, Basel, Regulatory Capital, Disclosures, Reporting, CMF

    Featured Experts
    Related Articles
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.

    November 30, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on LIBOR Transition

    US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.

    November 30, 2020 WebPage Regulatory News
    News

    GHOS Endorses Coordinated Approach to Mitigate COVID Risks for Banks

    The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.

    November 30, 2020 WebPage Regulatory News
    News

    HM Treasury Extends Consultation Dates for FRF and Solvency II Reviews

    HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.

    November 30, 2020 WebPage Regulatory News
    News

    ECB Publishes Guide on Management of Climate and Environmental Risks

    ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.

    November 27, 2020 WebPage Regulatory News
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    PRA Policy on Stressed VaR and RNIV Calculations Under Market Risk

    PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6179