The Commission for the Financial Market (CMF) in Chile has issued two regulations that improve information of debtors in the financial system. The first regulation increases the frequency and reduces the timeframes for financial institutions (supervised banks, support companies, and savings and credit cooperatives) to submit reports (or "debt files") associated with the list of debtors to CMF. This is to ensure more updated data, which improves the timeliness of the Debt Report compiled by CMF. The second regulation defines the data to be submitted by non-bank credit card issuers, the control measures for its preparation, and how these issuers will manage their lists of debtors. The first weekly files must be submitted beginning in the second week of December 2021, starting a trial run that will last until March 2022 for banks, support companies, and savings and credit cooperatives and until June 2022 for non-bank payment card issuers.
Both regulations were subject to public consultation; the feedback received mostly focused on timeframes to submit debt files and their implementation periods. Based on the feedback, the timeframes to implement and submit the files were adjusted to allow supervised institutions to perform any required technological developments. The key highlights of the regulations include the following:
- The new regulations increase the frequency for financial institutions to submit their list of debtors from monthly to weekly. The changes represent a significant reduction in the delay of debtor information, from a maximum of 50 calendar days to approximately 16 days.
- Financial institutions authorized by law to access consolidated lists of debtors through File R04 will also receive consolidated weekly information as well as that referring to the end of each month (unless the last business day of said month is a Friday)
- Non-bank credit card issuers have been added to the list of entities that must report information on their debtors, fulfilling the provisions of the General Banking Act.
- Information in consolidated debtor lists is confidential and subject to the provisions of Article 154 of the General Banking Act, which states that such information is strictly reserved. Likewise, its scope is also limited to Article 14 of said Act, both in terms of the lists' content and their recipients, that is the same financial entities that submit information.
Related Links (in Spanish)
- Press Release (in English)
- Regulation for Financial Institutions (PDF)
- Regulation for Non-Bank Credit Issuers (PDF)
Keywords: Americas, Chile, Banking, Credit Risk, Debt Files, General Banking Act, Reporting, Statistical Reporting, CMF
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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