The opportunity to improve and enhance these tools based on their results should be considered, as well as the possibility of requiring higher capital and liquidity levels or more detailed contingency planning. Locally, we look forward to learning from other’s experience and improve our own work on impact evaluation and continuous assessment of the implementation of the Basel III reforms in Chile. In the near future, it is also relevant to note that part of the pending issues our country has in closing regulatory gaps relates to strengthening the local financial safety net through the development of a financial resolution framework (including a proper deposit insurance scheme) and implementation of Emergency Liquidity Assistance framework for the Chilean financial sector. Looking ahead, it is also important to bear in mind the challenges associated to digitalization and new business models in the financial sector. Modernizing financial regulation and risk management also entails identifying potential risks and defining a regulatory perimeter that addresses the increasing pressure of digital developments (such as those of new business models developed by Fintechs, stablecoins, Central Bank Digital Currencies, Decentralized Finance, among others). Linked to it, operational resilience and cybersecurity have become a relevant issue for the financial industry. 15  In this sense, regulation aim to set minimum standards that can guarantee the adequate functioning of financial services when it comes to face operational and cyber risks. Lastly, it is also key to assess the risks posed to and by financial institutions data infrastructure and data use.

Additionally, it incorporates a new policy tool for the Central Bank of Chile, which would be able to engage in repo operations with the Open Market Operations System member entities under exceptional circumstances where the stability of the financial system may be at risk. (iii)  A broader and more efficient large value payment systems that promotes market neutrality and financial stability  Payment systems are essential for the functioning of the economy and the financial system as they allow transactions of persons and companies to be undertaken. The contribution of payment systems to the economy is enhanced when there is adequate interoperability between different payment instruments and the infrastructures that process transactions. Currently, interoperability is somewhat restricted because non-banking institutions cannot participate directly in key financial infrastructures such as clearing houses and the RTGS system. Expanding the participation of the Central Bank of Chile’s RTGS system to nonbanking entities, so far almost exclusive for banking institutions, will encourage competition in the payment service provision markets, improving efficiency, market neutrality and financial stability. 11  In this context, the “Resilience Bill” beforementioned includes provisions that would allow the Central Bank to open settlement accounts and some liquidity facilities to Central counterparties, Clearing Houses, systemic Saving and Credit Cooperatives, and non-banking issuers and acquirers of payment cards. Having this access would, for instance, facilitate the provision of instant payment services for non-banking issuers of payment cards.