Chile's central bank issues new bank liquidity rules
SANTIAGO Jan 26 (Reuters) - Chile's central bank on Monday introduced bank liquidity-management rules that would incorporate lessons learned from the 2008 international financial crisis and follow guidelines laid out by the Basel Committee on Banking Supervision.
Though Chilean banks emerged from the global financial crisis relatively unscathed, the central bank wants to remain ahead of the curve and safeguard the stability of the local market.
"The relatively ample solvency of some banks in different countries was not enough to avoid situations of financial instability due largely to deficiencies in the risk management of liquidity," the central bank said.
Among other things, the new rules will require banks to put in place a contingency plan in case of a liquidity shortage and increase the quality and quantity of information available for regulators and the market.
The local banking system is led by private lenders Banco de Chile, Santander Chile, CorpBanca and BCI, and state-run Banco del Estado de Chile . (Reporting by Anthony Esposito; editing by Matthew Lewis)
© Thomson Reuters 2016 All rights reserved.