Chile adopts Basel III under international pressure

Author: Zoe Thomas | Published: 24 Dec 2014
International 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 of Basel III in an effort meet the demands of international financial bodies.

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. "If we...



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