7  orientation of future monetary policy, (ii) The publication of the document The Financial Policy of the Central Bank of Chile, the first of its kind in the country, which presents the conceptual framework and institutional context in which financial policy is carried out to achieve the objective of safeguarding the normal functioning of internal and external payments. The first of these initiatives takes on special relevance in light of the similar exercise carried out by the US Federal Reserve, announced by its Governor last week. Meanwhile, the financial policy framework has been especially relevant in framing the Bank’s decisions in light of the various volatility episodes experienced in Chile since last November. From the agenda emanating from the Evaluation Panel’s report, I would also like to highlight the Constitutional and LOC Reform that entitles the Bank to acquire fiscal instruments in the secondary market to contain risks to financial stability, especially because of the broad understanding and support we received from this Senate during their discussion. As it was then pointed out, this power will allow the Bank to prepare itself to address future episodes of volatility in the markets that may jeopardize financial stability and, thus, the welfare of the population. As for the recommendations that are nearing completion, preparing a framework agreement with the Financial Market Commission (CMF) stands out, which includes specific areas and objectives of coordination, exchange, information utilization and confidentiality, and reciprocal technical assistance.

The Bank has recently commenced a multi-year Renewal Programme of the RTGS service, to enhance resilience and drive innovation.4  1  https://www.bankofengland.co.uk/research/fintech https://www.bankofengland.co.uk/research/future-finance 3 https://www.bankofengland.co.uk/news/2018/april/non-bank-psp-access-to-the-payments-system-announcement 4 See https://www.bankofengland.co.uk/payment-and-settlement/rtgs-renewal-programme and https://www.bankofengland.co.uk//media/boe/files/speech/2018/real-time-gross-settlement-rtgs-renewal-enabling-the-next-generation-ofpayments.pdf?la=en&hash=49E47B8951F6FD8D24E6307B36EDAFB7D214B4F5 for further details 2  2  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  2  CHAPS (Clearing House Automated Payment System) is one of the payment systems which settles over RTGS. It is the UK’s high-value payment system, used for wholesale payments and known to many of you for making house purchases, but also for a range of time-sensitive or cross-border corporate payments. Origins and use of CHAPS This month marks the first anniversary of the operation of the CHAPS payment scheme being brought into the Bank. But CHAPS is rooted in centuries of payments history. Payments systems in the UK grew out of the 1770s arrangement of clerks meeting at a tavern in the City of London and exchanging paper cheques over lunch. This was more efficient than each clerk walking around the city visiting other banks. By the end of the 19th century, around 200 years after the creation of the Bank, the operation of payment systems was formalised, with the establishment of the Bankers’ Clearing House, which was owned and controlled by the major retail banks. In 1985 following a series of reviews the Association of Payments Clearing Services (APACS) was created as an umbrella organisation for three clearing companies, including the CHAPS & Town Clearing Company.