Chile Watch: Itaú fine appeal decision, fintech regulations plea

Chilean lender Itaú Corpbanca said it would not appeal a 5.99bn-peso (US$8.8mn) fine handed down by banking watchdog Sbif.

The fine relates to one of three charges filed by Sbif connected to loans awarded to local companies Norte Grande, Potasios de Chile and Sociedad de Inversiones Pampa Calichera.

The other two charges were withdrawn.

Sbif alleges Itaú breached loan limit regulations. Itaú, in a regulatory filing to securities and insurance commission CMF announcing its decision not to appeal, said it had adhered to sector rules.

"This decision was adopted in the best interests of the bank and its shareholders, since it was estimated that starting proceedings would involve various relevant expenses for the bank, in spite of the fact there exist solid grounds to appeal," Itaú CEO Manuel Olivares said.

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Chile's banking association Abif has called for a level playing field in the regulations space.

The plea comes as authorities draw up draft rules for the fintech sector.

Abif's head of research, Luis Opazo, said greater competition was good but that parity should prevail, local paper Diario Financiero reported.

"One thing we want when we talk about competition is that it is fair, and with symmetrical regulations for the different players that offer similar services, fintech or otherwise," Opazo was quoted as saying. "That is to say, there should be a level playing field in terms of regulations."

Rules should relate to the inherent risk associated with each activity, he added.

The fintech sector is liaising with CMF on a white paper which this year is due to be submitted to the finance ministry - which may opt to draw up a bill or propose existing regulatory powers are employed instead.

In October, Chile-headquartered regional crowdfunding leader Cumplo's CEO, Gonzalo Kirberg, said he was not against regulation but that he was concerned about the influence banks could have in the rulemaking process and barriers that could be erected for newcomers in areas such as capital requirements.