...Economic Slowdown: A change in the Outlook for the financial industry could be triggered by a stronger than expected slowdown in the local economy that would lead to a significant deterioration in the system's portfolio quality and operating profitability. However, this is not Fitch's base case scenario for 2015. Stable Business Model: The Chilean banking system has historically focused on traditional commercial banking, with corporate and retail clients as well as a stable and diversified local funding base. However, over the past few years, local banks have initiated an internationalization process, primarily in Colombia. Stable Results a Major Plus: Chilean banks have a proven track record of stable results through the cycles, showing resilience to international volatility, with more predictable profitability, internal generation of capital and portfolio quality than their regional peers. However, the economic slowdown could put some pressure on portfolio quality, which, together with...
