Chile: Technical Assistance Report-Central Bank Services to Non-bank Financial Institutions

May 13, 2020

Preview Citation

Format: Chicago

Chile: Technical Assistance Report-Central Bank Services to Non-bank Financial Institutions, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

This Technical Assistance report on Chile constitute technical advice provided by the staff of the IMF to the Banco Central de Chile (BCCh) in response to their request for technical assistance. The BCCh is considering broadening access to its services beyond commercial banks and some Financial Market Infrastructures. The mission emphasized the overarching requirement for all central bank counterparts to be adequately regulated and supervised, to mitigate the central bank’s operational, financial, and reputational risks. Recent changes to the banking law facilitate consolidation of the banking supervisor into the nonbank supervisor. This move should facilitate equal treatment across participants and reduce the prospect of regulatory arbitrage. The new architecture should ease, though not eliminate, coordination efforts between BCCh and authorities when it comes to maintaining financial stability. By applying the assessment framework to Chile, the mission recommended some minor broadening of Nonbank Financial Institutions access to BCCh services, while noting that it should have the power to provide liquidity to any nonbank financial sector to contain spillovers that may otherwise threaten financial stability more generally.

Subject: Asset and liability management, Banking, Brokers and dealers, Financial markets, Financial sector policy and analysis, Financial sector stability, Liquidity, Payment systems, Real time gross settlement systems, Standing facilities

Keywords: Brokers and dealers, Central bank facility, Central bank money, Central bank service, CR, Financial sector stability, Global, ISCR, Liquidity, Liquidity risk, Monetary policy implementation, Oversight unit, Payment systems, Real time gross settlement systems, Settlement account

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/160
Stock No:

1CHLEA2020002
ISBN:

9781513543604
ISSN:

1934-7685

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