Provisions for Contingent Loans Credit Risk

12 Months Ended

Dec. 31, 2023

Provisions for Contingent Loans Credit Risk Disclosure [Abstract]

Provisions for contingent loans credit risk

23. Provisions for contingent loans credit risk:

As of December 31, 2023 and 2022, for credit risk for contingent loans is composed as follows: 

	Outstanding exposure				ECL
	2023		2022		2023		2022
	MCh$		MCh$		MCh$		MCh$
Warranty by endorsement and sureties		351,531		348,774		1,576		8,690
Confirmed foreign letters of credit		83,392		120,971		43		107
Issued foreign letters of credit		267,212		303,224		285		468
Performance guarantees		2,640,297		2,697,608		20,565		24,205
Undrawn credit lines		10,084,458		9,347,863		66,747		109,849
Other commitments		120,545		72,355		424		170
Total		13,547,435		12,890,795		89,640		143,489

a) The changes of provisions for credit risk for contingent loans is as follows:

	Provisions for credit risk for contingent loans			Total
	MCh$			MCh$
Balances as of January 1, 2022		93,049			93,049
Provisions established		51,218			51,218
Provisions used		—			—
Provisions released		—			—
Foreign exchange adjustments		(778	)		(778	)
Balances as of December 31, 2022		143,489			143,489
Provisions established		—			—
Provisions used		—			—
Provisions released		(53,875	)		(53,875	)
Foreign exchange adjustments		26			26
Balances as of December 31, 2023		89,640			89,640

(b) Impairment losses on contingent loan risks:

An analysis of changes in the gross carrying amount and the corresponding provision for ECL of contingent loans credit risk is as follow:

The table below shows the credit quality and the maximum exposure to credit risk based on the Bank’s internal credit rating system and year-end stage classification as of December 31, 2023 and 2022.

	As of December 31, 2023														As of December 31, 2022
	Stage 1				Stage 2				Stage 3						Stage 1				Stage 2				Stage 3
	Individual MCh$		Group MCh$		Individual MCh$		Group MCh$		Individual MCh$		Group MCh$		Total MCh$		Individual MCh$		Group MCh$		Individual MCh$		Group MCh$		Individual MCh$		Group MCh$		Total MCh$
Normal		4,775,026		8,422,110		16,665		254,564		—		—		13,468,365		4,622,212		7,908,219		7,494		223,861		—		—		12,761,786
Substandard		—		—		51,625		—		—		—		51,625		—		—		99,058		—		—		—		99,058
Non-complying		—		—		—		—		18,861		8,584		27,445		—		—		—		—		17,709		12,242		29,951
Total		4,775,026		8,422,110		68,290		254,564		18,861		8,584		13,547,435		4,622,212		7,908,219		106,552		223,861		17,709		12,242		12,890,795

An analysis of changes in the outstanding exposures and corresponding provision for ECL during the 2023 and 2022 periods are as follows:

	Stage 1												Stage 2												Stage 3
	Individual						Group						Individual						Group						Individual						Group						Total
	Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$			ECL MCh$			Gross carrying amount MCh$		ECL MCh$
Outstanding exposure as of January 1, 2023		4,622,212			13,964			7,908,219			101,406			106,552			16,785			223,861			1,724			17,709			3,654			12,242			5,956			12,890,795		143,489
Net change on exposures		134,675			(3,390	)		532,694			(36,053	)		(37,786	)		(4,364	)		(67,851	)		(1,166	)		(6,624	)		(3,062	)		(6,297	)		(1,003	)		548,811		(49,038	)
Transfer to Stage 1		125,611			6,860			724,027			8,188			(125,550	)		(6,811	)		(719,174	)		(5,503	)		(61	)		(49	)		(4,853	)		(2,685	)		—		—
Transfer to Stage 2		(134,046	)		(381	)		(819,344	)		(8,505	)		134,146			450			819,755			8,712			(100	)		(69	)		(411	)		(207	)		—		—
Transfer to Stage 3		(505	)		(1	)		(3,613	)		(46	)		(7,409	)		(1,161	)		(4,232	)		(385	)		7,914			1,162			7,845			431			—		—
Impact on year-end ECL of exposures transferred between stages during the year		—			(6,476	)		—			(2,110	)		—			1,382			—			(2,001	)		—			3,769			—			1,482			—		(3,954	)
Refinements to models used for calculation		—			1,862			—			(4,016	)		—			231			—			979			—			—			—			61			—		(883	)
Foreign exchange adjustments		27,079			26			80,127			229			(1,663	)		(270	)		2,205			4			23			12			58			25			107,829		26
Total		4,775,026			12,464			8,422,110			59,093			68,290			6,242			254,564			2,364			18,861			5,417			8,584			4,060			13,547,435		89,640
Outstanding exposure as of January 1, 2022		3,748,426			2,436			7,177,851			70,191			853,725			8,326			180,356			1,133			2,460			1,443			23,973			9,520			11,986,791		93,049
Net change on exposures		214,479			1,128			839,792			40,319			(78,696	)		11,478			(55,865	)		(6	)		(7,945	)		(5,607	)		(8,117	)		329			903,648		47,641
Transfer to Stage 1		925,857			6,118			645,325			6,910			(925,839	)		(6,111	)		(641,386	)		(4,671	)		(18	)		(7	)		(3,939	)		(2,239	)		—		—
Transfer to Stage 2		(276,330	)		(144	)		(734,821	)		(9,417	)		276,428			190			744,092			12,982			(98	)		(46	)		(9,271	)		(3,565	)		—		—
Transfer to Stage 3		(227	)		—			(5,741	)		(76	)		(23,096	)		(1,359	)		(3,933	)		(30	)		23,323			1,359			9,674			106			—		—
Impact on year-end ECL of exposures transferred between stages during the year		—			(2,576	)		—			588			—			411			—			(7,573	)		—			6,649			—			1,749			—		(752	)
Refinements to models used for calculation		—			7,231			—			(7,029	)		—			4,365			—			(105	)		—			(133	)		—			—			—		4,329
Foreign exchange adjustments		10,007			(229	)		(14,187	)		(80	)		4,030			(515	)		597			(6	)		(13	)		(4	)		(78	)		56			356		(778	)
Total		4,622,212			13,964			7,908,219			101,406			106,552			16,785			223,861			1,724			17,709			3,654			12,242			5,956			12,890,795		143,489