Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Investor Day (October 2018)
17 slides from Banco De Credito E Inversiones's investor day presentation, Oct 11, 2018
Slide 1: Chilean Banks to Basel III
Chilean Banks to Basel III Abraham Martinez Latin America Financial Institutions Fitch Ratings October 11th, 2018
Slide 2: Contenido
Contenido 1 Banking Law Reform Framework 2 2 Fitch Ratings Opinion 8 1
Slide 3: Banking Law Reform Framework
1 Banking Law Reform Framework 2
Slide 4: Banks Prudential Regulations
Banks Prudential Regulations Pilar Problem Solution Capital Requirements In a crisis context, the costs By requiring that the bank's derived from the investment activities be financed with a decisions of the banks are greater proportion of capital, the absorbed by the depositors and owners of the ba
Slide 5: Basel Committee Standards
Basel Committee Standards Basel I (1988) Basel II (2004) Basel III (2010) First international standard on Introduced three pillars: More and better capital: capital adequacy for banks: • Pillar I: Minimum capital • Increase in the proportion of • A minimum capital ratio to risk- requirements, incorp
Slide 6: Chilean Banking Act Reform Highlights
Chilean Banking Act Reform Highlights Main Objectives Change Proposal 1. Improve capital requirements 1. Basel III gradual implementation 2. Strengthen financial supervision 2. Integrate banking regulation and and regulators attributions supervision within the FMC 3. Provide the regulator with tools
Slide 7: Basel III Capital Requirement vs Basel I
Basel III Capital Requirement vs Basel I 6
Slide 8: Capital Adequacy Benchmark – Financial Stability Report
Capital Adequacy Benchmark – Financial Stability Report 100 30 Suecia Irlanda 90 26 Luxemburgo Nueva Zelanda 80 22 Noruega Reino Unido Dinamarca EE.UU. 2017 Alemania 70 Francia Rep.Checa Bélgica 18 Brasil Colombia Hungría Japón 60 México Suiza Perú Turquía Israel Canadá 14 50 Chile 10 40 10 12 14 16
Slide 9: Fitch Ratings Opinion
{ om | | UN RS | Lom 2 1 ) Fitch Ratings Opinion
Slide 10: General Banking Law Reform Will Strengthen System
General Banking Law Reform Will Strengthen System Proposed changes to the Chilean General Banking Law will bring it in line with Basel III recommendations and is supportive of banking system stability. The reforms would raise regulatory capital requirements and strengthen the regulatory and resoluti
Slide 11: Banking Act Reform
Banking Act Reform • Total minimum regulatory capital will be 10.5% of Changes of Capital Requirement RWA, up from the current 8%. Current Law Basel III Common Equity Tier 1 (CET1) 4.5% 4.5% • New 2.5% conservation buffer of common equity. Additional Tier 1 (AT1) _ 1.5% Tier 2 (CET2) 3.5% 2.0% • Cha
Slide 12: Banking Act Reform
Banking Act Reform • The current definition of RWAs will extend to FCC/FCC-Adjusted RWA include market and operational risk and capital FCC/RWA Chile FCC/RWA LatAm Median Regulatory Capital (Chile) deductions would include those stated in Basel III (%) definitions (goodwill, intangibles, DTA, etc.).
Slide 13: Transition Period
Transition Period • Banks will have six years to comply with the new Regulatory Capital Disclosure capital standards, once the FMC has absorbed Tier 1 ratio Tier 2 ratio BIS II capital SBIF. (%) 15.0 • The regulator estimates that USD2.800 million- 13.0 USD4.000 million of additional capital will ne
Slide 14: Transition Period
Transition Period Basel III: Progressive Implementation (2019-2024) T0 (1) T1 (2) T1 + 1 T1 + 2 T1 + 3 T1 + 4 Regulatory Capital (floors) CET1 (3) 4.5 4.5 4.5 4.5 4.5 4.5 CET1+AT1 (4) 4.5 - - 5.0 5.5 6.0 CET1+AT1+T2 8.0 8.0 8.0 8.0 8.0 8.0 Buffers (top limit) Conservation 0.625 1.25 1.875 2.5 Counte
Slide 15: Transition Period
Transition Period Transicion hacia requisitos de capital de Basilea III. 12% (Asumiendo que PDL entra en vigencia en dic - 17) [CELLRANGE] 10% 8% 6% 4% 2% 0% dic-17 jun-18 dic-18 jun-19 dic-19 jun-20 dic-20 jun-21 dic-21 jun-22 dic-22 jun-23 dic-23 jun-24 dic-24 jun-25 @ Capital Basico art 66 Capita
Slide 16: Fitch Ratings’ credit ratings rely on factual information received from issuers and other sources.
Fitch Ratings’ credit ratings rely on factual information received from issuers and other sources. Fitch Ratings cannot ensure that all such information will be accurate and complete. Further, ratings are inherently forward- looking, embody assumptions and predictions that by their nature cannot be
Slide 17: fitchratings.com New York London
New York London 33 Whitehall Street 30 North Colonnade New York, NY 10004 Canary Wharf London, E14 5GN fitchratings.com @fitchratings
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