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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of transactions between related parties [abstract]

Schedule of loans and accounts receivable and contingent loans to related parties

		Productive and Services Companies (*)								Investment Companies (**)								Individuals (***)								Total
		2018				2019				2018				2019				2018				2019				2018				2019
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$

Loans and accounts receivable:
Commercial loans			221,351				174,370				132,366				130,237				13,183				13,563				366,900				318,170
Residential mortgage loans			—				—				—				—				44,756				58,477				44,756				58,477
Consumer loans			—				—				—				—				10,074				9,862				10,074				9,862
Gross loans			221,351				174,370				132,366				130,237				68,013				81,902				421,730				386,509
Allowance for loan losses			(962	)			(782	)			(242	)			(243	)			(379	)			(889	)			(1,583	)			(1,914	)
Net loans			220,389				173,588				132,124				129,994				67,634				81,013				420,147				384,595

Contingent loans:
Guarantees and sureties			5,102				5,531				14,963				9,470				—				—				20,065				15,001
Letters of credits			5,310				2,365				2,776				328				—				—				8,086				2,693
Foreign letters of credits			—				—				—				—				—				—				—				—
Banks guarantees			45,842				32,650				30,122				43,478				—				57				75,964				76,185
Undrawn credit lines			58,041				52,916				14,674				14,364				19,160				21,519				91,875				88,799
Other contingencies loans			—				—				—				—				—				—				—				—
Total contingent loans			114,295				93,462				62,535				67,640				19,160				21,576				195,990				182,678
Provision for contingencies loans			(258	)			(214	)			(99	)			(52	)			(30	)			(37	)			(387	)			(303	)
Contingent loans, net			114,037				93,248				62,436				67,588				19,130				21,539				195,603				182,375

Amount covered by guarantee:
Mortgage			28,208				30,807				52,108				57,456				69,292				69,165				149,608				157,428
Warrant			—				—				—				—				—				—				—				—
Pledge			—				—				—				—				—				—				—				—
Others (****)			47,135				37,794				13,219				12,921				3,694				5,250				64,048				55,965
Total collateral			75,343				68,601				65,327				70,377				72,986				74,415				213,656				213,393

(*)

For these effects are considered productive companies, those that meet the following conditions:

(i)

They engage in operating activities and generate a separable flow of income;

(ii)

Less than 50% of their assets are trading securities or investments.

Service companies are considered entities whose main purpose is oriented to rendering services to third parties.

(**)

Investment companies include those legal entities that do not comply with the conditions for operating companies and are profit-oriented.

(***)

Individuals include key members of the management and correspond to those who directly or indirectly have authority and responsibility for planning, administrating and controlling the activities of the organization, including directors. This category also includes their family members who influence or are influenced by such individuals in their interactions with the organization.

(****)

These guarantees correspond mainly to shares and other financial guarantees.

Schedule of other assets and liabilities with related parties

		2018				2019
		MCh$				MCh$
Assets
Cash and due from banks			23,086				99,802
Transactions in the course of collection			35,469				63,969
Financial assets held-for-trading			205				880
Derivative instruments			415,683				495,378
Investment instruments			14,690				12,141
Other assets			80,569				76,548
Total			569,702				748,718

Liabilities
Demand deposits			169,607				227,377
Transactions in the course of payment			58,987				16,202
Obligations under repurchase agreements			84,465				54,030
Savings accounts and time deposits			219,322				396,028
Derivative instruments			337,299				432,669
Borrowings from financial institutions			228,269				292,172
Lease liabilities			―				5,138
Other liabilities			115,145				151,335
Total			1,213,094				1,574,951

Schedule of income and expenses from related party transactions

		2017								2018								2019
Type of income or expense recognized		Income MCh$				Expense MCh$				Income MCh$				Expense MCh$				Income MCh$				Expense MCh$

Interest and revenue expenses			26,485				9,332				21,736				7,196				19,039				2,619
Fees and commission income			65,995				69,843				70,286				74,205				72,931				65,383
Net financial operating income
Derivative instruments (*)			33,540				97,416				85,500				42,365				124,967				73,252
Other financial operations			1				―				―				―				87				119
Release or established of provision for credit risk			―				252				―				34				―				106
Operating expenses			―				100,389				―				105,734				―				120,559
Other income and expenses			3,723				56				446				45				542				26

(*)

The outcome of derivative operations is presented net at each related counterparty level. Additionally, this line includes operations with local counterpart banks (unrelated) which have been novated by Comder Contraparte Central S.A. (Related entity) for centralized clearing purposes, which generated a net gain of Ch$123,461 million as of December 31, 2019 (net gain of Ch$71,297 million as of December 31, 2018 and net loss of Ch$96,075 as of December 31, 2017).

Schedule of payments and composition of key management personnel

		2017				2018				2019
		MCh$				MCh$				MCh$
Personnel remunerations			4,149				3,926				4,148
Short-term benefits			3,302				3,476				3,255
Severance pay			276				1,037				1,264
Directors' remunerations and fees (*)			2,505				2,511				2,509
Total			10,232				10,950				11,176

(*)

It includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda, of Ch$13 million (Ch$12 million in December 2018 and Ch$18 in December 2017).

		N° of executives
Position		2018				2019
CEO			1				1
CEOs of subsidiaries			6				6
Division Managers			13				13
Directors Bank and subsidiaries			20				21
Total			40				41