Vigorous economic growth in recent years has strengthened bank profits, but restrictions remain on banks' ability to enter some rapidly growing areas of business, especially pension fund management. A new banking law promulgated in late 1997 has relaxed some of the restrictions by allowing banks to provide factoring and leasing services. The new law theoretically provides objective criteria by which to judge applications for new banking licenses, but the Government reserves the right to limit such licenses based on economic needs in the marketplace. The sector is regulated by the Superintendent of Banks and Financial Institutions, an agency that reports to the Finance Minister. The Central Bank, which is autonomous from the government in conducting monetary and exchange rate policy and regulating international capital movements, also regulates bank operations.
Private banks handle nearly all corporate business.
The only Chilean banks with a direct presence in the U.S. as of June 1999 are the Banco de Chile, which has branch offices in New York and Miami, and Banco Santiago, which has a representative office in New York. The banking sector has entered a period of consolidation as banks combine to achieve economies of scale necessary to compete internationally. The largest Chilean private banks are the Banco Santiago and the Banco de Chile. The largest foreign bank is the Spanish Banco Santander. Enter a company name or a portion of the name.