Chilean banking industry regulator SBIF authorized the integration of Banco Falabella with its sister unit, CMR Falabella SA, Diario Financiero reported.

The integration will result in the creation of Chile's largest credit card issuer, the units' ultimate parent, S.A.C.I. Falabella, previously said.

Under the reorganization, CMR Falabella will become a Sociedad de Apoyo de Giro under Banco Falabella. In order to do this, Banco Falabella will acquire a majority shareholding in Promotora CMR Falabella SA. Both are subsidiaries of Falabella's Falabella Inversiones Financieras SA.

The restructuring will see Banco Falabella take over around 3 million CMR credit card accounts along with Falabella loyalty program cards, which has about 1.2 million customers. Both entities will retain their separate brand identities, the company said.