pressure on Chilean banks has forced the country to
implement Basel III
Chile’s banking regulator has announced that
the country, which never took up Basel II, will implement parts
Basel III in an effort meet the demands of international
The country’s already high capital requirements
have made its
banking system one of the world’s strongest.
It withstood the global financial crisis better than most, with
none of its local banks taking advantage of a $5 billion
liquidity line made available by the Chilean central bank.
Despite this strength – and its economic growth
– pressure from foreign regulators and financers has
raised concerns that Chilean banks could face high charges when
raising funds from overseas.
"Chile is under pressure from the World Bank, OECD members
and big international regulators to implement Basel III," said
Sebastian Vivanco, a partner with Baker McKenzie in Santiago.