The Chile Financial Market Commission has issued amendments to the rules that prohibit banks from granting loans, directly or indirectly, to their directors and general representatives and to related parties. The changes clarify key definitions underpinning the ban and treat partners in Civil Union Partnerships as equivalent to spouses. The updated framework specifies the concept of a corporation captured by the prohibition and defines “indirectly” in line with Article 84, Number 4 of the General Banking Act. It retains the ability to exclude corporations from the ban where the collectively held participation of the persons subject to the restriction is below 5 percent, and it reiterates the sanction for breaches as an amount equal to the loan granted or any surplus value. Related reporting requirements were also updated through amendments to Chapter 12-4 of the Updated Compilation of Banking Regulations and the Information Systems Manual for Banks so that banks report civil partners as related parties. The amendments apply immediately, and loans granted in breach of the rules cannot be refinanced. The Commission also published a Regulatory Report setting out the core elements, impact assessment, and an analysis of potential cases.
Chile Financial Market Commission 2025-06-27
Chile Financial Market Commission tightens bank loan ban for directors by defining indirect lending and adding civil union partners
The Chile Financial Market Commission amended rules prohibiting banks from granting loans to directors, general representatives, and related parties, clarifying definitions and treating civil partners as spouses. The framework specifies corporations subject to the ban and defines "indirectly" per the General Banking Act, with exclusions for collective participation below 5%. Reporting requirements were updated, and breaches incur sanctions equal to the loan amount or surplus value.