Banks/Banking in Chile
The financial system of Chile ranks to be on the top among countries in Latin and South America. The system of banking in Chile is among the top ranks with industrialized markets namely Germany and Italy. The 1970s showed an average rate of 40% growth in domestic credit and thereby increased the GDP to 35% in 1980 from 8% in 1975.
The banking system was exclusive in Chile that only the opulent could manage to access banking services, but in 1990s banks widened its features and facilities to accommodate new account holders and also offered credit.
Today, even major banks in Chile provide online financial services to its customers. This is viewed as another regular service. The financial sector of Chile has grown faster in comparison to the last few years. The reformation of bank law in 1997 broadened the foreign activity and launched new financial tools comprising of home equity loans, factoring, debit cards, leasing and currency futures.
The banking sector is highly sophisticated and banks in Chile reflect relative strength in the economic environment. However, the competition is becoming tough owing to the increase in the number of foreign banks.
Top banks in Chile are Banco de Chile with market capital as on 2008, October is $3.5B, Corpbanca with market capital as on October 2008 is $843M, Banco Santander Chile with market capital as on October 2008 is $5.3B, besides Banco de Credito e Inversiones, Banco Santander Chile, Banco Santiago, Banco BHIF and Banco Sud Americano also rank among the top banks in Chile. Recntly, there were lots of bank mergers such that BSCH (Banco Santander Central Hispano) took control of Santander Chile and Banco Santiago. These are two large Chilean banks.
Recently, there are lots of bank mergers that it is a matter of concern. The takeover Spain Banco Santander Central Hispano controls Santander Chile and Banco Santiago. These two large Chilean banks give nearly 30%. Chile has strong democratic governments and its economy is concentrated on forestry, copper and fishing, mainly export-oriented. Banking in Chile is sound as it offers all the services required for trade and provides financial products such as mortgages, home equity loans, credit cards, and many more.