Acquiring Shareholdings and Control of Banks in Chile

Regulatory Requirements for Bank Acquisitions

Chile has established specific regulations to govern the acquisition of shareholdings and control of banks within its territory. The following requirements must be met:

CMF Authorisation

• The Commission for the Financial Market (CMF) authorisation is required to acquire more than 10% of a bank’s equity.
• This ensures that any significant stake in a Chilean bank is subject to regulatory scrutiny and oversight.

Article 28 Requirements

• Founding shareholders of new banks must meet specific ownership and behavioral requirements established by Article 28 of the General Banking Act to obtain authorization and a subsequent banking license.
• These requirements aim to ensure that banks are managed and owned by entities with strong financial positions and good governance practices.

Significant Shareholdings

• Foreign investors acquiring significant shareholdings in a bank must comply with the requirements outlined in Article 32 of the General Banking Act for foreign institutions or entities planning to set up a bank in Chile or a subsidiary of a foreign bank in Chile.
• This regulation ensures that foreign involvement in Chilean banking is subject to regulatory approval and oversight.

Article 29 Definition

• A significant shareholding is defined as one that requires CMF authorization, as per Article 29 of the General Banking Act.
• This definition serves as a benchmark for determining when a stake in a bank constitutes a significant holding and triggers the need for regulatory approval.

Purpose of these Requirements

These regulations aim to maintain stability in the Chilean financial system by ensuring that banks are managed and owned by entities with strong financial positions and good governance practices. By subjecting significant shareholdings and control acquisitions to regulatory scrutiny, the CMF can prevent potential risks and ensure the overall integrity of the banking sector.