International Capital Flows in the Post-crisis World, September 2019 CENTRAL BANK OF CHILE  The Chilean banking industry  Main changes in the Chilean banking industry Change  Concept  Characteristics  Advantages  Challenges  New GBL  New solvency requirements (B3)  Reduces gaps with international standards  Bank’s capacity to comply with new standards  Regulatory environment  Revision of Compendium of Accounting Regulations  Changes if financial statement reporting requirements  Greater importance to the financial statement; reduces asymmetries in financial statement reporting  Maintaining the quality and timelines of financial information; measures for mitigating operational risk  Emerging risks  Cybersecurity events  Vulnerability of digital platforms; temporaray suspensión of services  Mitigation strategies at the industry level  Greater investment cybersecurity  Integration of retail financing  Parent banks absorb nonbank card issuers  Wider coverage of consolidated debtor information  Incorporation of new debtors in credit risk models  Oversear bank subsidies  Acquisition of Banks overseas  Diversification of business models  Different regulatory framework; large overseas investment by local parent banks  Expansion into new business areas  Source: Financial Stability Report, first half 2019, Central Bank of Chile. Let me add one more thing regarding the use of CBM by several EMEs, which have targeted the banking system, rather than the general resident-non-resident relationship, as is usually done by capital controls. The Figure below, for example, based on De Crescenzio et al.

Yet in the decade since LIBOR’s age really began to show, some have clung to the hope that it might just push on. After all, how could such a well-known colleague ever leave? Few can still harbour that illusion after the announcements of recent weeks.3 Subject to the outcome of IBA’s consultation launched last Friday,4 the LIBOR panels for sterling, yen, Swiss Franc, euro and the less heavily traded dollar tenors will cease at the end of 2021. And, although the panels for more heavily used US dollar settings will stick around for a short while longer, to support legacy business, the US and UK authorities have been absolutely clear that new use of these rates must stop at the end of 2021,5 in line with everywhere else. LIBOR’s long career is drawing to an end. It’s time to bow out gracefully. Of course, as with any departure, there’s lots to do to ensure a smooth transition – and I want to highlight three key actions for market participants in the months ahead. 1  https://www.bankofengland.co.uk/speech/2019/andrew-hauser-speech-at-risk-live-2019-london https://www.bankofengland.co.uk/bank-overground/2020/why-do-firms-need-to-accelerate-the-transition-from-libor-benchmarks See ‘The Future of LIBOR’ section at https://www.theice.com/iba/libor and https://www.fca.org.uk/news/statements/fca-consults-onnew-benchmark-powers 4 https://www.theice.com/publicdocs/ICE_LIBOR_Consultation_on_Potential_Cessation.pdf 5 https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20201130a1.pdf and https://www.fca.org.uk/news/statements/fca-response-iba-proposed-consultation-intention-cease-us-dollar-libor 2 3  2  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  2  1. Moving all new business off LIBOR  The first priority is to break the remaining grip of LIBOR on new lending and other business as soon as possible before the end of 2021.