CMF has finalized its strategic plan for 2020-2022. The plan is to implement 32 initiatives in the areas of regulation, prudential and market conduct supervision, sanctioning procedures, and institutional development. The key initiatives in the plan involve the implementation of Basel III standards, a bill to strengthen the legal framework for bank resolution, and a definitive bill for fintech regulation in securities.
The strategic plan is intended to strengthen the regulatory and supervisory capacities of CMF to safeguard the solvency of institutions, propagate adequate market conduct and protection of financial customers, and address the challenges and opportunities resulting from technological breakthroughs in the financial markets. The following are the key highlights of the plan:
- Strengthening the solvency of financial institutions—The plan includes the development of nine initiatives that strengthen the regulations of CMF for the prudential supervision of solvency of banks, insurance companies, and financial intermediaries. These initiatives include implementation of Basel III standards for the banking system, design and presentation of a bank resolution bill, preparation of a bill proposal on financial conglomerates, and strengthening the regulatory framework for risk-based financial supervision in the insurance market. The plan also includes initiatives related to the generation of an integrated supervision policy and model, implementation of a macro-prudential risk management process, and development of a supervision scheme to support the implementation of Basel III standards.
- Safeguarding Market Conduct and Protecting Financial Customers—The plan provides for the development of nine initiatives that strengthen the regulations of CMF to promote proper market conduct and protect financial customers.
- Addressing Technological Challenges and Opportunities—The plan addresses opportunities and challenges of technological development in the financial system. The plan includes initiatives on a legal proposal to close gaps in capital markets in areas such as fintech and crowdfunding; implementation of an action plan to close gaps in the area of operational risks and cyber security; and the deployment of a data governance system.
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Keywords: Americas, Chile, Banking, Basel, Strategic Plan, Fintech, Operational Risk, Governance, Cyber Risk, CMF
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