RIO DE JANEIRO, BRAZIL - The continuing coronavirus pandemic poses the most significant risk to Chile’s financial system as institutions’ capacity to take mitigating action diminishes, the country’s Central Bank warned in a report on Wednesday, November 11th.
The bank said it had already expended 40 percent of its assets up to August to maintain liquidity and bolster credit markets.
Institutions’ dwindling capacity to take extraordinary measures, and low growth that could deepen the effects of the health crisis, risked transforming “liquidity problems into solvency complications,” it said.
“These measures were designed to deal with liquidity problems temporarily,” it . . .