The Chile Financial Market Commission has amended its guidance to give banks a one-year window before the prohibition on granting loans to directors, general representatives and their related parties takes effect, citing the operational adjustments required. The underlying prohibition is set out in the General Banking Act and Chapter 12-12 of the Updated Compilation of Banking Regulations and covers direct or indirect lending to directors and anyone acting as a bank’s general representative, as well as spouses, young children and corporations in which these persons participate or hold shares. Circular Letter No. 2,364, issued on June 26, 2025, clarified which corporations fall within the scope under Article 84, Number 4 of the General Banking Act and added civil partners as related parties equivalent to spouses. Circular Letter No. 2,366 introduces the one-year timeframe before Circular Letter No. 2,364 enters into force.
Chile Financial Market Commission 2025-07-28
Chile Financial Market Commission grants banks a one-year implementation period for ban on loans to directors, representatives and related parties
The Chile Financial Market Commission has amended its guidance to allow banks a one-year transition period before prohibiting loans to directors, general representatives, and related parties. This prohibition, outlined in the General Banking Act and Chapter 12-12 of the Updated Compilation of Banking Regulations, includes direct or indirect lending to these individuals and their close associates. Circular Letter No. 2,366 establishes this timeframe, following clarifications in Circular Letter No. 2,364 regarding the scope of related parties.