The Financial Stability Council (CEF) met on Thursday to analyze the volatility scenario that international financial markets have presented in light of recent events in the United States and Switzerland, with the fall of SVB and Credit Suisse. In this regard, the Ministry of Finance reported that “no disruptions are observed in the local capital and financial markets.”
At the meeting, the CEF gave an account of the monitoring carried out by its member entities of the sources of financial tension observed in international markets, and the actions of the financial authorities in said countries aimed at strengthening access to liquidity by banks and in In the case of the United States, protect depositors.
These episodes have had effects on international markets, which has been reflected in greater volatility of various financial assets and general increases in risk premiums.
In the local market, “although to date there have been adjustments in some share prices, the Chilean financial system has operated normally and there are no disruptions in the local capital and financial markets,” the Ministry of Finance said in a release.
The Treasury highlighted some characteristics of the regulation and supervision of the banking system in Chile:
The meeting also highlighted the importance of Chile’s macroeconomic and financial policy framework to face periods of greater global financial stress, including a floating exchange rate, a credible inflation targeting regime, a prudent fiscal policy framework, and an institutional framework. of robust financial regulation and supervision.
“Finally, the CEF highlighted the continuous advancement of policies aimed at strengthening the financial system through the improvement of financial regulation and tools of the Central Bank, including the draft Law on Resilience in the Financial System, currently under discussion in Congress” said the Treasury.