Banking Regulations in Chile

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Overview of Key Points

To address your question about bank regulations in Chile, the following key points are outlined:

Capital Requirements

• The minimum required level of effective equity is 8% of risk-weighted assets.
• A conservation buffer of 2.5% of risk-weighted assets above the established minimum must be set.

Liquidity Requirements

• Banks must maintain an adequate liquidity position, in both local and foreign currency, to properly fulfill their payment obligations in regular conditions and stress scenarios.
• The board of directors is responsible for setting the bank’s liquidity risk tolerance, and a liquidity management policy (PAL) must be implemented.

Banking Activities

• The general rules applicable to each type of banking activity will apply in the relationship with clients.
• Banks need to follow the:
  • Money Lending Operations Act
  • Consumer Protection Act
  • Data Protection Act

Anti-Money Laundering Regulations

• Banks are required to report suspicious transactions they are aware of.
• Cash transactions exceeding US$10,000 on a semi-annual basis must be reported.
• Documents and antecedents required to examine a previously reported suspicious transaction must also be provided.

Note

Please note that this is not an exhaustive list, and there may be additional regulations or requirements not mentioned here. If you have any specific questions or need further clarification, please do not hesitate to ask.