The Commission for the Financial Market (CMF) in Chile is seeking comments, until November 25, 2022, on establishing the general framework for the evaluation of liquidity adequacy of banks and the possibility of determining additional requirements for high-quality liquid assets. The regulation is based on the principles relating to liquidity risk management and the Internal Capital Adequacy Assessment Process (ICAAP) of the latest Basel Committee Agreement, in addition to the Internal Liquidity Adequacy Assessment Process (ILAAP) proposed by the European Banking Authority (EBA) and the guidelines published on this matter by the European Central Bank. The regulation will come into force as of April 2023, the date on which banks must send the first Liquidity Self-Assessment Report (IAL) in a simplified format and will be evaluated from the supervisory cycle beginning from January 2025. In addition, CMF also a normative report that evaluates the impact of these proposals and summarizes the central elements of this public consultation.
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Keywords: Americas, Chile, Banking, Basel, Liquidity Risk, ICAAP, ILAAP, Reporting, CMF
Previous ArticleUS Agencies Publish Multiple Regulatory Updates in October 2022
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.