{ "title": "Chile: Technical Assistance Report-Strengthening Systemic Liquidity Management", "publication": "Technical Assistance Reports, May 7, 2025", "sourceUrl": "https://www.imf.org/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717", "canonical": "https://www.imf.org/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717", "overlayPath": "/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/index.md", "summary": "This report evaluates four key areas that significantly impact the efficiency and resilience of Chile's financial sector, offering targeted recommendations for improvement.", "sections": [ { "heading": "Executive summary", "content": "- Evaluates four key areas impacting the efficiency and resilience of Chile's financial sector: central bank collateral policy, emergency liquidity assistance (ELA), systemwide market support programs, and repo market development.\n- Recommends targeted reforms and coordination to strengthen preparedness, decision-making, and market functioning.\n- Notes effective BCCh operations during social unrest and the COVID-19 pandemic of 2019–20 to stabilize core markets." }, { "heading": "Central bank collateral policy", "content": "- Introduce a collateral framework with:\n - eligibility criteria,\n - valuation procedures,\n - risk mitigation measures.\n- Differentiate collateral practices for:\n - monetary policy operations, and\n - ELA/systemwide support." }, { "heading": "Emergency Liquidity Assistance (ELA) framework and internal preparedness", "content": "- Establish an ELA framework that includes:\n - internal procedures,\n - transparency measures.\n- Create an internal ELA Working Group to standardize and ensure preparedness and efficient decision-making by developing:\n - a request letter,\n - an ELA master agreement,\n - funding templates.\n- Develop ELA policy parameters, including:\n - duration,\n - interest rate,\n - potential conditionality." }, { "heading": "Institutional coordination and crisis governance", "content": "- BCCh, CMF, and MoF should establish a Crisis Management Group to ensure clarity about their respective roles." }, { "heading": "Systemwide market support programs: design principles", "content": "- Future programs should adhere to key principles:\n - use discretionary intervention triggers based on market indicators,\n - price operations to encourage initial take-up and facilitate exit,\n - prefer temporary operations to limit risks,\n - ensure transparency to promote effectiveness and accountability." }, { "heading": "Repo market development: constraints and strategy", "content": "- Identifies legal, regulatory, taxation, accounting, and infrastructure issues constraining repo market activity.\n- Issues span multiple government agencies and the private sector.\n- BCCh should coordinate with relevant stakeholders to formulate a comprehensive medium-term market development strategy to address these challenges." }, { "heading": "Historical experience informing recommendations", "content": "- During the social unrest and COVID-19 pandemic of 2019–20, the BCCh implemented effective measures to stabilize core markets—lessons from these episodes inform recommended frameworks and principles." }, { "heading": "Publication and key statistics", "content": "- Pages: 61\n- Volume: 2025\n- Issue: 048\n- Series: Technical Assistance Report No. 2025/048\n- Stock No: TAREA2025048\n- DOI: https://doi.org/10.5089/9798229009126.019\n- ISBN: 9798229009126\n- ISSN: 3005-4575\n\nInternational Monetary Fund. Monetary and Capital Markets Department \"Chile: Technical Assistance Report-Strengthening Systemic Liquidity Management\", Technical Assistance Reports 2025, 048 (2025).\n\n---\n\n Content in this bundle\n\n- Preface — Mission, context, and sector snapshot\n - Preface — Mission, context, and sector snapshot (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Preface — Mission, context, and sector snapshot (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717" } ], "bullets": [ "[Markdown version](/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/index.md)", "[Structured JSON version](/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/index.json)", "[Bundle manifest](/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/bundle-manifest.json)", "Published: May 7, 2025", "Series: Technical Assistance Reports", "DOI: https://doi.org/10.5089/9798229009126.019", "Evaluates four key areas impacting the efficiency and resilience of Chile's financial sector: central bank collateral policy, emergency liquidity assistance (ELA), systemwide market support programs, and repo market development.", "Recommends targeted reforms and coordination to strengthen preparedness, decision-making, and market functioning.", "Notes effective BCCh operations during social unrest and the COVID-19 pandemic of 2019–20 to stabilize core markets.", "Introduce a collateral framework with:", "Differentiate collateral practices for:", "Establish an ELA framework that includes:", "Create an internal ELA Working Group to standardize and ensure preparedness and efficient decision-making by developing:", "Develop ELA policy parameters, including:", "BCCh, CMF, and MoF should establish a Crisis Management Group to ensure clarity about their respective roles.", "Future programs should adhere to key principles:", "Identifies legal, regulatory, taxation, accounting, and infrastructure issues constraining repo market activity.", "Issues span multiple government agencies and the private sector.", "BCCh should coordinate with relevant stakeholders to formulate a comprehensive medium-term market development strategy to address these challenges.", "During the social unrest and COVID-19 pandemic of 2019–20, the BCCh implemented effective measures to stabilize core markets—lessons from these episodes inform recommended frameworks and principles.", "Pages: 61", "Volume: 2025", "Issue: 048", "Series: Technical Assistance Report No. 2025/048", "Stock No: TAREA2025048", "DOI: https://doi.org/10.5089/9798229009126.019", "ISBN: 9798229009126", "ISSN: 3005-4575", "**Preface — Mission, context, and sector snapshot**" ], "related": [ { "title": "Preface — Mission, context, and sector snapshot", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/tar/2025/english/tarea2025048-print-pdf.pdf", "summary": { "path": "/-/media/files/publications/tar/2025/english/tarea2025048-print-pdf.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/tar/2025/english/tarea2025048-print-pdf.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/index.md", "json": "/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/index.json", "bundleManifest": "/en/publications/technical-assistance-reports/issues/2025/05/07/chile-technical-assistance-report-strengthening-systemic-liquidity-management-566717/bundle-manifest.json" }, "generatedAtUtc": "2026-09-19T05:36:06.272Z" }