Rosanna Costa: Presentation of the Financial Stability Report First Half 2025

Presentation by Ms Rosanna Costa, Governor of the Central Bank of Chile, of Central Bank of Chile's Financial Stability Report First Half 2025 before the Finance Commission of the Honorable Senate of the Republic, Santiago de Chile, 19 May 2025.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Mr. President of the Finance Commission, senators members of this Commission,

As is usual in the months of May and November, we attend this Committee to present the view of the Board of the Central Bank of Chile on recent financial sector developments and their implications for financial stability, which are detailed in the Financial Stability Report (IEF) that we published this morning.

On Thursday and Friday last week we held our Financial Policy Meeting, where the Central Bank Board decided to maintain the Countercyclical Capital Buffer (CCyB) for the banking system at a level of 0.5% of risk-weighted assets. This requirement is a precautionary macro-prudential measure whose main objective is to strengthen the resilience of the banking system.

As we are usually reminded at the beginning of these presentations, the IEF is part of the mandate given to us by the Law to ensure the normal functioning of internal and external payments. Its objective is to analyze the vulnerabilities, potential risks and mitigators of our financial system and its capacity to absorb severe shocks. It is, therefore, a Report which, unlike the Monetary Policy Report, does not present projection scenarios, but, on the contrary, focuses on risk scenarios which, though unlikely, are a possibility.