{
  "title": "Chile: Financial System Stability Assessment",
  "publication": "IMF Staff Country Reports, December 9, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2021/12/09/chile-financial-systems-stability-assessment-510866",
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  "summary": "The financial system in Chile functions well overall within a sound regulatory framework. It features large and deep financial markets in a sector dominated by conglomerates, six systemic banks, and pension funds.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- The financial system in Chile functions well overall within a sound regulatory framework.\n- The sector features large and deep financial markets, is dominated by conglomerates, includes six systemic banks, and has pension funds.\n- The twin shocks of social unrest in late 2019 and COVID-19 were adeptly managed thanks to massive and well-coordinated supervisory and fiscal policy responses, as well as unprecedented liquidity support from the Central Bank of Chile (BCCh).\n- Banks have remained profitable through the crisis, partially supported by central bank financing and government-guaranteed SME lending.\n- The funded pension system is under threat in part due to a series of withdrawals; Congress has also authorized life annuity liquidations.\n- A major reorganization of the financial regulatory authorities has been finalized.\n- Basel III will be implemented starting in December 2021."
    },
    {
      "heading": "Shocks and policy response",
      "content": "- Shocks:\n  - Social unrest in late 2019.\n  - COVID-19 pandemic.\n- Policy response:\n  - Massive and well-coordinated supervisory and fiscal policy responses.\n  - Unprecedented liquidity support from the Central Bank of Chile (BCCh).\n  - Central bank financing and government-guaranteed SME lending that partially supported bank profitability."
    },
    {
      "heading": "Financial sector structure and vulnerabilities",
      "content": "- Structure:\n  - Large and deep financial markets.\n  - Sector dominated by conglomerates.\n  - Six systemic banks.\n  - Funded pension system and pension funds important for market deepening.\n- Vulnerabilities:\n  - Funded pension system threatened by a series of withdrawals.\n  - Life annuity liquidations authorized by Congress pose additional pressures."
    },
    {
      "heading": "Regulatory developments",
      "content": "- A major reorganization of the financial regulatory authorities has been finalized.\n- Basel III implementation scheduled to start in December 2021."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Publication title: Chile: Financial System Stability Assessment\n- Date: December 9, 2021\n- Pages: 111\n- Volume: 2021\n- Issue: 262\n- Series: Country Report No. 2021/262\n- DOI: https://doi.org/10.5089/9781616356958.002\n- Stock No: 1CHLEA2021006\n- ISBN: 9781616356958\n- ISSN: 1934-7685\n- Subjects: Expenditure; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial sector stability; International organization; Monetary policy; Mutual funds; Pension spending; Stress testing\n- Keywords include: bank funding dynamics; bank resolution arrangement; bank resolution mechanism; bank solvency stress test result; bank stress test scenario; Caribbean; Financial Sector Assessment Program; Financial sector stability; Global; IMF mission chief; Mutual funds; Pension spending; Stress testing\n\nIMF Staff Country Report: \"Chile: Financial System Stability Assessment\", Country Report No. 2021/262 (December 9, 2021).\n\n---\n\n Content in this bundle\n\n- Chile: Financial Systems Stability Assessment; IMF Country Report No. 21/262; November 17, 2021\n  - Chile: Financial Systems Stability Assessment; IMF Country Report No. 21/262; November 17, 2021 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Chile: Financial Systems Stability Assessment; IMF Country Report No. 21/262; November 17, 2021 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: December 9, 2021",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781616356958.002",
    "The financial system in Chile functions well overall within a sound regulatory framework.",
    "The sector features large and deep financial markets, is dominated by conglomerates, includes six systemic banks, and has pension funds.",
    "The twin shocks of social unrest in late 2019 and COVID-19 were adeptly managed thanks to massive and well-coordinated supervisory and fiscal policy responses, as well as unprecedented liquidity support from the Central Bank of Chile (BCCh).",
    "Banks have remained profitable through the crisis, partially supported by central bank financing and government-guaranteed SME lending.",
    "The funded pension system is under threat in part due to a series of withdrawals; Congress has also authorized life annuity liquidations.",
    "A major reorganization of the financial regulatory authorities has been finalized.",
    "Basel III will be implemented starting in December 2021.",
    "Shocks:",
    "Policy response:",
    "Structure:",
    "Vulnerabilities:",
    "A major reorganization of the financial regulatory authorities has been finalized.",
    "Basel III implementation scheduled to start in December 2021.",
    "Publication title: Chile: Financial System Stability Assessment",
    "Date: December 9, 2021",
    "Pages: 111",
    "Volume: 2021",
    "Issue: 262",
    "Series: Country Report No. 2021/262",
    "DOI: https://doi.org/10.5089/9781616356958.002",
    "Stock No: 1CHLEA2021006",
    "ISBN: 9781616356958",
    "ISSN: 1934-7685",
    "Subjects: Expenditure; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial sector stability; International organization; Monetary policy; Mutual funds; Pension spending; Stress testing",
    "Keywords include: bank funding dynamics; bank resolution arrangement; bank resolution mechanism; bank solvency stress test result; bank stress test scenario; Caribbean; Financial Sector Assessment Program; Financial sector stability; Global; IMF mission chief; Mutual funds; Pension spending; Stress testing",
    "**Chile: Financial Systems Stability Assessment; IMF Country Report No. 21/262; November 17, 2021**"
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