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Itaú CorpBanca decides it will not appeal fine with Chile financial regulator

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Itaú CorpBanca decides it will not appeal fine with Chile financial regulator

Itaú CorpBanca will not appeal a fine of 5.99 billion pesos with Chilean banking regulator SBIF in relation to loans granted to a group of companies linked to chemical firm Sociedad Quimica y Minera de Chile SA.

In a regulatory filing, the bank reiterated it had acted in accordance with legal rights in the said credit operations. However, taking into consideration the "best interests" of the company, Itaú CorpBanca's board unanimously decided not appeal the fine, which the regulator cut from 21.76 billion pesos earlier in January.

The decision puts an end to a yearslong legal dispute between the bank and regulators. In 2015, the regulator informed CorpBanca — which merged with Banco Itaú Chile in 2016 to form Itaú CorpBanca — that it would be fined for allegedly exceeding the limits on the loans given to Norte Grande SA, Potasios de Chile SA and Sociedad de Inversiones Pampa Calichera SA.

Chile's Court of Appeals later overturned the fine, saying that the regulator did not respect "due process" in its action. The decision was ratified by the Supreme Court of Chile in 2017. According to Itaú CorpBanca, SBIF maintained that it would continue with its sanctions despite the previous rulings.

Originally, SBIF informed CorpBanca in December 2015 that it would be fined 10% of its surplus credit margins. But in its latest resolution, the regulator rejected two of its three charges and came up with the reduced fine.

As of Jan. 14, US$1 was equivalent to 673.01 Chilean pesos.