The purpose of this work is to present the challenges to the regulation of the banking activity, which can range from the different phases of a national economy to non-financial factors that cannot be controlled by the respective national legislation, and that affect the decision-making underlying the banking regulation. These challenges will be illustrated by presenting the legislative reactions in Chile to two specific economic junctures: (i) the Chilean debt crisis of 1982; and (ii) the world financial crisis of 2008, which ultimately led to the incorporation into Chilean banking regulation of the Basel III proposals. In this context, this paper will focus in the new banking regulator, the Financial Market Commission, and the amendments to the General Banking Act.


banking law Financial Market Commission financial crisis Basel III capital requirements systemically important banks