Banking regulator opens rules for foreign banks
01 Jan 2010
The Chilean banking regulator (SBIF) has published new rules after Congress approved the third stage of the ongoing capital market reform, known as MKIII, in August, aiming to give more flexibility to foreign banks with representative offices and boost competition for bank-related insurance. One of the new rules authorizes foreign banks' representative offices to advertise their credit lines, indicating the credit conditions in terms of interests, expenses and commissions, as well as clearly stating that the representative's office will act as "coordinator" between the borrower and the foreign bank. The measure will impact the more than 20 representative offices of foreign banks that are established in Chile, including Germany's Commerzbank AG, Swiss bank's Credit Suisse and UBS, France's BNP Paribas and Societe Generale, among others. A second rule issued by the banking regulator will allow borrowers to freely choose the insurance company they want when buying insurance related to a loan from a bank, increasing competition in the insurance market.
Type:
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Treatment and operation (Operational conditions )
Industry:
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Services (Financial and insurance activities)
Inward FDI:
No
Outward FDI:
No
Sources:
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Superintendencia de Bancos e Instituciones Financieras, Circular No. 3.509, 07 Oct 2010
