Front Matter Page
IMF Country Report No. 20/56
CHILE
TECHNICAL ASSISTANCE REPORT—FORMING AN INTEGRATED SUPERVISORY AUTHORITY
February 2020
This Technical Assistance Report paper on Chile was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in February 2019.
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Front Matter Page
INTERNATIONAL MONETARY FUND
Legal and Monetary and Capital Markets Departments
Chile
Forming an Integrated Supervisory Authority
Dirk Jan Grolleman (MCM), Karla Vásquez (LEG), and John Laker and Jean-Pierre Deguée (IMF Short-Term Experts)
February 2020
Contents
Glossary
Preface
Executive Summary
I Introduction
II Existing Supervisory Architecture
III Legal Mandate, Objectives, and Powers of the New CMF
A Legal Mandate and Objectives
B Powers
C Autonomy
IV Governance Structure of the New CMF
V Blueprint for the Organizational Structure
A Internal Twin Peaks
B Internal Decision-Making and Coordination
C Conglomerate Supervision
VI Inter-institutional Cooperation Arrangements
A Microprudential and Conduct Cooperation Arrangements
B Financial Stability and Macroprudential Cooperation Arrangements
VII Transition
Table
1 Chile: Key Recommendations—Forming an Integrated Supervisory Authority
Annexes
I Drafting Suggestion for Legal Amendments
II Legal Reform on Banking Resolution
III Legal Reform on Consolidated Supervision
IV Internal Peaks Model
III Internal Twin Peaks Model
V Strengthening the Autonomy of the CMF
VI Allocation of Responsibilities between the Board and the President of the CMF
VII Implementing a System of Delegation
VIII Governance Model For The Transition Process
Glossary
| BCCh |
Banco Central de Chile (Central Bank of Chile) |
| CSF |
Comité de Supervision Financiera (Financial Sector Supervision Committee) |
| CEF |
Consejo de Estabilidad Financiera (Financial Stability Council) |
| CMF |
Comisión para el Mercado Financiero (Financial Markets Commission) |
| EGM |
Executive General Manager |
| FSAP |
Financial Stability Assessment Program |
| IMF |
International Monetary Fund |
| MCM |
Monetary and Capital Markets Department |
| MoF |
Ministry of Finance |
| SBIF |
Superintendencia de Bancos y Instituciones Financieras (Superintendence of Banks and Financial Institutions) |
| TA |
Technical Assistance |
| SVS |
Superintendencia de Valores y Seguros (Superintendence of Capital Markets and Insurance Companies) |
| UAF |
Unidad de Analisis Financiero (Financial Integrity Unit) |
Preface
At the request of the securities markets and insurance supervision commission, the Comisión para el Mercado Financiero (CMF), a joint IMF Legal (LEG) and Monetary and Capital Markets (MCM) Department mission visited Santiago de Chile during September 27–October 10, 2018, to advise on the planned integration of the superintendency for banking supervision, Superintendencia de Bancos y Instituciones Financieras (SBIF), into the CMF.
In carrying out its work, the mission met with the President, Mr. Joaquin Cortez Huerta, the Board and other senior staff of the CMF as well as with the Superintendent, Mr. Mario Farren, and other senior staff of the SBIF. The mission also met the Superintendent of Pensions, Mr. Osvaldo MacÃas; the Director of the Financial Integrity Unit (Unidad de Analisis Financiero – UAF), Mr. Javier Cruz; the Capital Markets Coordinator of the Ministry of Finance, Ms. Catherine Tornel; and the Director of the Financial Policy Division of the Central Bank of Chile (BCCh), Ms. Solange Bernstein.
In its final meeting, the mission presented its main observations and recommendations to the Board of the CMF and the Superintendent and Deputy-Superintendents of the SBIF.
The mission would like to express its gratitude to the CMF and SBIF and its staff for the excellent arrangements made to facilitate its work and for their openness and cooperation.
