Chile’s Financial Market Commission (CMF) has decided to apply Pillar 2 capital requirements to Banco Santander-Chile, citing rectifications the bank made to information previously reported to the supervisor. The measure is adopted under Article 66 Quinquies of the General Banking Act and Chapter 21-13 of the Updated Compilation of Banking Regulations. CMF noted the bank already incorporated headroom above minimum regulatory requirements in its internal capital target, so the Pillar 2 requirement is not expected to entail a new capital contribution and can be met through a reallocation of existing equity components. As this is the second year of a gradual implementation process, Banco Santander-Chile must constitute 50% of the requirement by June 30, 2025, with the remainder to be constituted in line with CMF instructions and the annual capital adequacy assessment process.
Chile Financial Market Commission 2025-04-14
Chile Financial Market Commission applies Pillar 2 capital requirements to Banco Santander-Chile with 50% to be constituted by June 30, 2025
Chile's Financial Market Commission (CMF) will apply Pillar 2 capital requirements to Banco Santander-Chile due to rectifications in previously reported information. The bank can meet these requirements through reallocating existing equity, as it already maintains headroom above minimum regulatory standards. Banco Santander-Chile must constitute 50% of the requirement by June 30, 2025, as part of a gradual implementation process.