Rosanna Costa: Presentation of the Financial Stability Report First Half 2026
Presentation by Ms Rosanna Costa, Governor of the Central Bank of Chile, of Central Bank of Chile's Financial Stability Report First Half 2026 before the Finance Commission of the Honorable Senate of the Republic, Santiago de Chile, 19 May 2026.
Introduction
Mr President of the Finance Commission and members of the Commission.
Good morning. Before beginning my presentation of our Financial Stability Report (IEF), I would like to make a brief introduction about the objective and scope of this Report.
The Bank's Organic Constitutional Law entrusts us with two mandates. One is to safeguard monetary stability, in other words to control inflation. The other is to ensure the normal functioning of domestic and international payments, meaning to protect the stability of our financial system. We conduct the analysis related to the fulfillment of the first mandate through our Monetary Policy Report (IPoM), which we present in March, June, September, and December of each year. We conduct an analysis related to the fulfillment of the second mandate in our semiannual Financial Stability Report, which is published in May and November.
The objective of the IEF is to analyze the vulnerabilities, potential risks, and mitigating factors of our financial system, as well as its capacity to absorb severe shocks. Therefore, unlike the IPoM, it does not present projection scenarios but instead focuses on risk scenarios that, while less likely, are still possible.
This focus on risks-which inherently carries a negative bias and a tone of caution-may lead less familiar readers to perceive an overly adverse outlook. We want to make it clear that this is not our intention. Our goal is to explain how the Chilean economy in general, and the financial system in particular, are prepared to address severe scenarios.
It is also important to explain why ensuring the stability of the financial system is so important. I will start by explaining the concept of "financial system". In simple terms, it is the set of institutions, markets, and instruments that allow savings from households and firms to be channeled into investment, ensure that payments are made smoothly, and allow households and businesses to access financing for everyday projects such as buying a home, investing, creating jobs, or dealing with unforeseen circumstances.