July 3, 2023 - The Financial Market Commission published for discussion a policy document titled "Guidelines on Stress Testing in Banking Institutions." The document provides guidelines on processes and methodologies for banking stress testing in Chile as part of a risk management and capital and liquidity adequacy self-assessment process. It complements the provisions of Chapters 1-13, 12-20, 21-13 and 21-14 of the Updated Compilation of Rules for Banks but does not constitute a regulatory instruction by itself.

The paper is based on the updated set of stress testing principles of the Basel Committee on Banking Supervision and guidelines of the European Banking Authority applied to the local context. Covered topics include the principle of proportionality, development of scenarios, the use of inverse stress tests, and risk-based testing.

Interested parties can send their comments and clarification requests to guiapt@cmfchile.cl until August 18, 2023.