Chile
Banking sector profile — Americas
Data as of October 2026 • TGB Intelligence Unit
Policy rate as of 7 October 2026: 4.50% (source: Banco Central de Chile)
Banking sector at a glance
Structure and performance
Chile's banking system comprised 17 institutions at end-July 2026, including three branches of foreign banks, with consolidated assets of CLP432.5tn. The market is concentrated: Bci, Santander Chile, state-owned BancoEstado and Banco de Chile held 63.5% of system assets, and the six largest, adding Itaú Chile and Scotiabank Chile, 85.2%. Foreign-controlled groups are prominent alongside domestic conglomerates and the state bank. Banco BICE, which absorbed Banco Security on 1 November 2025, is the seventh-largest bank with about 5% of assets, followed by a tier of smaller specialist, retail-affiliated and investment-banking institutions.
Loans of CLP284.0tn account for about two-thirds of system assets; at July 2026 commercial credit represented 53% of the amortised-cost portfolio, housing loans 35% and consumer credit 12%. Deposits funded 76.9% of loans at end-2025, supplemented by CLP59.6tn of issued debt securities. Indexation income on assets linked to the Unidad de Fomento contributed CLP1.4tn of the CLP8.2tn net interest and indexation margin in January–July 2026. Credit activity is subdued: total loans fell 0.18% in real terms year on year in July 2026, as a 1.4% decline in commercial lending outweighed growth of 1.6–1.7% in consumer and housing credit.
Solvency and liquidity are sound. The CMF reported a capital adequacy ratio of 17.2% of risk-weighted assets at December 2025, a CET1 ratio of 12.3% and a leverage ratio of 8.3%, with all banks comfortably meeting Basel III minima and LCR and NSFR limits. In July 2026 the 90-day delinquency ratio was 2.34% and the impaired portfolio 5.89% of loans, with provisions at 2.53% of loans. Profitability is solid: return on average equity was 15.5% after tax and return on average assets 1.38% in the year to July 2026, with operating expenses at 43.1% of operating income.
The main risks are weak loan demand, particularly from companies, and external shocks: the Banco Central de Chile has cited uncertainty linked to the Middle East conflict, higher oil prices and soft domestic activity in holding its policy rate at 4.50% since December 2025. Supervisory priorities include foreign subsidiaries of Chilean banks, such as Itaú Colombia, and the consolidated oversight of financial conglomerates. The CMF is also supporting legislation to add a bank resolution regime with bail-in and bridge-bank tools and a deposit insurance scheme to the existing framework.
Structural trends
The shifts shaping banking in Chile.
Credit stagnation: system loans fell 0.18% in real terms year on year in July 2026, as a 1.4% drop in commercial lending offset 1.6–1.7% growth in consumer and housing credit.
Consolidation: Banco BICE absorbed Banco Security on 1 November 2025, creating the seventh-largest bank with about 5% of system assets in July 2026.
New licences under the Fintec Law: Tanner Banco Digital received operating authorisation in February 2025 and Tenpo Bank Chile in January 2026; 212 firms were on the CMF fintech registry at end-2025.
Basel III fully phased in: capital adequacy was 17.2% and CET1 12.3% at December 2025, with conservation and countercyclical buffers of 2.5% and 0.5% of risk-weighted assets.
Leading institutions
Largest banks in Chile by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | Bci | US$89.5bn | Universal |
| 2 | Banco Santander ChileSubsidiary of Banco Santander | US$74.8bn | Universal |
| 3 | BancoEstado | US$66.1bn | State-owned |
| 4 | Banco de Chile | US$59.4bn | Universal |
| 5 | Itaú ChileSubsidiary of Itaú Unibanco | US$48.2bn | Commercial |
| 6 | Scotiabank ChileSubsidiary of Scotiabank | US$47.8bn | Commercial |
| 7 | Banco BICE | US$23.3bn | Commercial |
| 8 | Banco Consorcio | US$10.8bn | Commercial |
Largest banks in Chile by total assets, FY2025 audited accounts. Domestic groups as in the TGB Bank Rankings; subsidiaries of foreign groups shown with their own accounts and marked. Not a ranking table. Converted at official central-bank rates for each fiscal year-end.
Supervision and capital rules
The Comisión para el Mercado Financiero (CMF) supervises banks under the General Banking Law, whose 2019 reform introduced Basel III capital standards; the Banco Central de Chile sets liquidity, foreign-exchange and macroprudential rules. Implementation is complete: the 2.5% conservation buffer and 0.5% countercyclical buffer are in force, systemically important banks carry additional charges, and Pillar 2 add-ons imposed on seven banks for 2025 must be 75% constituted in 2026. LCR and NSFR requirements apply. Deposits are covered by a state guarantee rather than a pre-funded insurance fund; the CMF is supporting legislation for deposit insurance and a resolution regime. Open finance under the Fintec Law and a Consolidated Debt Register are being implemented in 2026.
What changed in 2026
- January 2026: the CMF granted Tenpo Bank Chile authorisation to begin operations, completing a licensing process started in October 2024.
- July 2026: the CMF's 2025 annual report put system capital adequacy at 17.2% and named bank resolution and deposit insurance legislation among its 2026 priorities.
- July 2026: CMF data showed the 90-day delinquency ratio easing to 2.34% from 2.41% in June, while total loans fell 0.18% in real terms year on year.
- September 2026: the Banco Central de Chile held the policy rate at 4.50% on 8 September, citing Middle East-related uncertainty, higher oil prices and weak domestic activity.
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