SANTIAGO, June 12 Chile's government sent its
Congress a bill on Monday that aims to modernize the country's
banking system by adopting strict international bank capital
requirements known as Basel III.
The bill seeks to gradually implement Basel III rules, which
were designed to avoid a repetition of the 2008 financial crisis
and which demand that banks have sufficient capital to finance
their business and reduce risk.
"Adopting these standards in Chile is essential to ensure
our continued financial integration with the rest of the world,"
the central bank said in a statement welcoming the initiative.
The bill will also replace Chile's existing Banking
Supervisor with a new, more powerful Financial Markets
The central bank said earlier this month that the country's
financial system is able to withstand shocks, although credit
risks had risen and may worsen if the weak economic growth that
the top copper exporter has suffered in recent years becomes
Retail banks operating in Chile include Santander Chile
, Banco de Chile, Itau Corpbanca and
(Reporting by Felipe Iturrieta; Writing by Rosalba O'Brien;
Editing by Lisa Shumaker)