CMF Consults on Disclosure Requirements Under Basel Framework
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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ISDA Proposes Collaboration Between Derivatives and SFT MarketsRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.