presentation of the central bank of chile annual report before the honorable senate of the republic * rosanna costa governor central bank of chile 7 september 2022 * the september 2022 monetary policy report can be found in full at http : / / www. bcentral. cl. introduction mr. president of the honorable senate, senator alvaro elizalde, honorable senators, on behalf of the board of the central bank of chile, i thank you for your invitation to present this year ’ s annual report in accordance with the bank ’ s constitutional organic law. in compliance with this mandate, in what follows i will share with you our view of recent macroeconomic and financial developments in the chilean and international economies, as well as their outlook and implications for monetary policy conduct, as contained in our september 2022 monetary policy report. as is customary at this time of the year, the report features a more detailed review of the bank's balance sheet, an account of the main decisions adopted by the board in 2022 to date, and information on the management of international reserves. just three days ago, chilean voters rejected the proposal for a new political constitution drafted by the constitutional convention. it has been a long and intense process of deeply reflecting on chile and how each one of us can contribute to its development and the wellbeing of its people. with respect to the central bank, and as we have done on previous occasions, we value the widespread recognition expressed during this process in terms of its autonomy, its objectives and functions, and its eminently technical nature. the commitment of all of us who are part of this institution has been and will continue to be to contribute to the welfare of our country and achieving the objectives of ensuring price stability and the normal functioning of internal and external payments. throughout the constitutional debate, important issues arose. elements such as employment and financial stability have always been present in our decisions, but we believe it is pertinent to be more explicit about how they influence them. at this point, i should mention that the evolution of the bank's strategic planning process for the period 2023 - 2027, on which we are already working, will provide us with an adequate framework to address this task and other medium - term challenges. some examples of this advancement are our agenda on environmental issues, means of payment, and the compilation of regional statistics with a gender perspective, which will provide more basic information for the formulation of public policies aimed at overcoming existing gaps and barriers. clearly, the outcome of

“ financial contagion ”, journal of political economy, 108 ( 1 ). benmelech e. and j. dlugosz ( 2009 ). “ the credit rating crisis ”, nber working paper, 15045. freixas x., parigi b. and j. rochet ( 2000 ). “ systemic risk, inter - bank realtions and liquidity provision by the central bank ”, journal of money and credit banking, 32 ( 2 ). morgan d. ( 2002 ). “ rating banks : risk and uncertainty in an opaque industry ”, american economic review, 92 ( 4 ). rochet j. ( 2008 ). “ liquidity regulation and the lender of last resort ”, financial stability review, banque de france, february.