XML 89 R88.htm IDEA: XBRL DOCUMENT v3.20.1

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about financial instruments [line items]

Schedule of valuation techniques and inputs

Type of Financial Instrument	Valuation Method	Description: Inputs and Sources
Local Bank and Corporate Bonds	Discounted cash flows model	Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market. Model is based on a Base Yield (Central Bank Bonds) and issuer spread. The model is based on daily prices and risk/maturity similarities between Instruments.
Offshore Bank and Corporate Bonds		Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market. Model is based on daily prices.
Local Central Bank and Treasury Bonds		Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market. Model is based on daily prices.
Mortgage Notes		Prices (internal rates of return) are provided by third party price providers that are widely used in the Chilean market. Model is based on a Base Yield (Central Bank Bonds) and issuer spread. The model takes into consideration daily prices and risk/maturity similarities between instruments.
Time Deposits		Prices are provided by third party price providers that are widely used in the Chilean market. Model is based on daily prices and considers risk/maturity similarities between instruments.
Cross Currency Swaps, Interest Rate Swaps, FX Forwards, Inflation Forwards		Forward Points, Inflation forecast and local swap rates are provided by market brokers that are widely used in the Chilean market Offshore rates and spreads are obtained from third party price providers that are widely used in the Chilean market. Zero Coupon rates are calculated by using the bootstrapping method over swap rates.
FX Options	Black-Scholes Model	Prices for volatility surface estimates are obtained from market brokers that are widely used in the Chilean market.

Schedule of fair value of Financial Assets/Liabilities on the balance sheet

		Level 1								Level 2								Level 3								Total
		2018				2019				2018				2019				2018				2019				2018				2019
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets
Financial assets held-for-trading
From the Chilean government and Central Bank			178,692				93,032				1,344,780				1,030,657				―				―				1,523,472				1,123,689
Other instruments issued in Chile			1,663				3,272				107,078				316,971				20,866				55,094				129,607				375,337
Instruments issued abroad			4,446				―				―				―				―				―				4,446				―
Mutual fund investments			87,841				373,329				―				―				―				―				87,841				373,329
Subtotal			272,642				469,633				1,451,858				1,347,628				20,866				55,094				1,745,366				1,872,355
Derivative contracts for trading purposes
Forwards			―				―				735,444				956,632				―				―				735,444				956,632
Swaps			―				―				738,130				1,761,952				―				―				738,130				1,761,952
Call options			―				―				4,839				4,961				―				―				4,839				4,961
Put options			―				―				120				1,076				―				―				120				1,076
Futures			―				―				―				―				―				―				―				―
Subtotal			―				―				1,478,533				2,724,621				―				―				1,478,533				2,724,621
Hedge derivative contracts
Fair value hedge (Swaps)			―				―				1,116				32				―				―				1,116				32
Cash flow hedge (Swaps)			―				―				34,298				61,562				―				―				34,298				61,562
Subtotal			―				―				35,414				61,594				―				―				35,414				61,594
Total			―				―				1,513,947				2,786,215				―				―				1,513,947				2,786,215
Financial assets at fair value through other comprehensive income
Debt instruments (1):
From the Chilean government and Central Bank			99,132				66,953				65,090				42,109				―				―				164,222				109,062
Instruments issued in Chile			―				―				747,653				1,221,862				23,021				7,069				770,674				1,228,931
Instruments issued abroad			―				―				108,544				19,853				―				―				108,544				19,853
Subtotal			99,132				66,953				921,287				1,283,824				23,021				7,069				1,043,440				1,357,846
Equity instruments:
Instruments issued in Chile			―				―				8,939				7,446				―				―				8,939				7,446
Instruments issued abroad			723				955				―				―				89				96				812				1,051
Subtotal			723				955				8,939				7,446				89				96				9,751				8,497
Total			99,855				67,908				930,226				1,291,270				23,110				7,165				1,053,191				1,366,343
Total			372,497				537,541				3,896,031				5,425,113				43,976				62,259				4,312,504				6,024,913
Financial liabilities
Derivative contracts for trading purposes
Forwards			―				―				631,089				673,932				―				―				631,089				673,932
Swaps			―				―				854,708				2,097,022				―				―				854,708				2,097,022
Call options			―				―				2,921				1,529				―				―				2,921				1,529
Put options			―				―				1,534				2,209				―				―				1,534				2,209
Futures			―				―				―				―				―				―				―				―
Subtotal			―				―				1,490,252				2,774,692				―				―				1,490,252				2,774,692
Hedge derivative contracts
Fair value hedge (Swaps)			―				―				6,164				9,286				―				―				6,164				9,286
Cash flow hedge (Swaps)			―				―				31,818				34,443				―				―				31,818				34,443
Subtotal			―				―				37,982				43,729				―				―				37,982				43,729
Total			―				―				1,528,234				2,818,421				―				―				1,528,234				2,818,421

(1) As of December 31, 2019, 98% of instruments of Level 3 have denomination "Investment Grade". Also, 100% of total of these financial instruments correspond to domestic issuers.

Schedule of reconciliation between the beginning and ending balances of instruments classified as Level 3, whose fair value is reflected in the financial statements

		2018
		Balance as of January 1, 2018				Gain (Loss) Recognized in Income (1)				Gain (Loss) Recognized in Equity (2)				Purchases				Sales				Transfer from Level 1 and 2				Transfer to Level 1 and 2				Balance as of December 31, 2018
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets
Financial assets held-for-trading:
Other instruments issued in Chile			8,012				176				—				48,740				(36,062	)			—				—				20,866
Subtotal			8,012				176				—				48,740				(36,062	)			—				—				20,866
Financial assets at fair value through OCI:
Debt instruments:
Other instruments issued in Chile			46,265				2,539				(292	)			—				(20,520	)			—				(4,971	)			23,021
Equity instruments:
Instruments issued abroad			50				—				39				—				—				—				—				89
Subtotal			46,315				2,539				(253	)			—				(20,520	)			—				(4,971	)			23,110
Total			54,327				2,715				(253	)			48,740				(56,582	)			—				(4,971	)			43,976

		2019
		Balance as of January 1, 2019				Gain (Loss) Recognized in Income (1)				Gain (Loss) Recognized in Equity (2)				Purchases				Sales				Transfer from Level 1 and 2				Transfer to Level 1 and 2				Balance as of December 31, 2019
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Financial Assets
Financial assets held-for-trading:
Other instruments issued in Chile			20,866				(38	)			—				48,017				(26,504	)			13,368				(615	)			55,094
Subtotal			20,866				(38	)			—				48,017				(26,504	)			13,368				(615	)			55,094
Financial assets at fair value through OCI:
Debt instruments:
Other instruments issued in Chile			23,021				968				(517	)			—				(18,177	)			1,774				—				7,069
Equity instruments:
Instruments issued abroad			89				—				7				—				—				—				—				96
Subtotal			23,110				968				(510	)			—				(18,177	)			1,774				—				7,165
Total			43,976				930				(510	)			48,017				(44,681	)			15,142				(615	)			62,259

(1) It is recorded in the income statement under "Net financial operating income"

(2) It is recorded in Equity under "Other Comprehensive Income"

Schedule of transfers between levels for financial assets and liabilities whose fair value is recorded in the consolidated financial statements

		Transfers from level 1 to level 2
		2018
Financial assets		MCh$
Financial assets held-for-trading instruments
From the Chilean Government and Central Bank			496
Instruments issued abroad
From the Chilean Government and Central Bank			―

		Transfers from level 2 to level 1
		2018
Financial assets		MCh$
Financial assets held-for-trading instruments
From the Chilean Government and Central Bank			―
Instruments issued abroad
From the Chilean Government and Central Bank			―

		Transfers from level 1 to level 2
		2019
Financial assets		MCh$
Financial assets held-for-trading instruments
From the Chilean Government and Central Bank			84
Financial assets at fair value through OCI
From the Chilean Government and Central Bank			―

		Transfers from level 2 to level 1
		2019
Financial assets		MCh$
Financial assets held-for-trading instruments
From the Chilean Government and Central Bank			17
Financial assets at fair value through OCI
From the Chilean Government and Central Bank			―

Schedule of impact on the fair value of Level 3 financial instruments using alternative assumptions that are reasonably possible

		As of December 31, 2018								As of December 31, 2019
		Level 3				Sensitivity to changes in key assumptions of models				Level 3				Sensitivity to changes in key assumptions of models
Financial Assets		MCh$				MCh$				MCh$				MCh$
Financial assets held-for-trading
Other instruments issued in Chile			20,866				(26	)			55,094				(466	)
Subtotal			20,866				(26	)			55,094				(466	)
Financial assets at fair value through OCI
Debt instrument:
Other instruments issued in Chile			23,021				(195	)			7,069				(86	)
Equity instrument:
Instruments issued abroad			89				―				96				―
Subtotal			23,110				(195	)			7,165				(86	)
Total			43,976				(221	)			62,259				(552	)

Schedule of fair values of the financial assets and liabilities that are not recorded at fair value in the statement of financial position

		Book Value								Fair Value
		2018				2019				2018				2019
		MCh$				MCh$				MCh$				MCh$
Assets
Cash and due from banks			880,081				2,392,166				880,081				2,392,166
Transactions in the course of collection			289,194				331,420				289,194				331,420
Investments under resale agreements			97,289				142,329				97,289				142,329
Subtotal			1,266,564				2,865,915				1,266,564				2,865,915
Loans and advances to banks
Domestic banks			99,776				149,974				99,776				149,974
Chilean Central Bank			1,100,831				630,053				1,100,831				630,053
Foreign banks			293,777				360,054				286,063				358,542
Subtotal			1,494,384				1,140,081				1,486,670				1,138,569
Loans to Customers at amortized cost
Commercial loans			15,209,534				16,039,411				14,949,852				15,988,330
Residential mortgage loans			8,017,743				9,163,019				8,451,099				9,888,506
Consumer loans			4,113,977				4,181,609				4,116,261				4,215,509
Subtotal			27,341,254				29,384,039				27,517,212				30,092,345
Total			30,102,202				33,390,035				30,270,446				34,096,829
Liabilities
Current accounts and other demand deposits			9,584,488				11,326,133				9,584,488				11,326,133
Transactions in the course of payment			44,436				98,869				44,436				98,869
Obligations under repurchase agreements			303,820				308,734				303,820				308,734
Saving accounts and time deposits			10,656,174				10,856,618				10,632,350				10,795,125
Borrowings from financial institutions			1,516,759				1,563,277				1,506,940				1,555,129
Other financial obligations			118,014				156,229				119,024				160,361
Subtotal			22,223,691				24,309,860				22,191,058				24,244,351
Debt issued
Letters of credit for residential purposes			15,040				10,229				15,982				11,081
Letters of credit for general purposes			1,328				669				1,411				725
Bonds			6,772,990				7,912,621				6,897,317				8,340,272
Subordinated bonds			686,194				889,895				732,611				1,004,621
Subtotal			7,475,552				8,813,414				7,647,321				9,356,699
Total			29,699,243				33,123,274				29,838,379				33,601,050

Schedule of figures by hierarchy, for financial assets/liabilities not measured at fair value on the balance sheet

		Level 1								Level 2								Level 3								Total
		Estimated Fair Value								Estimated Fair Value								Estimated Fair Value								Estimated Fair Value
		2018				2019				2018				2019				2018				2019				2018				2019
		MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$				MCh$
Assets
Cash and due from banks			880,081				2,392,166				―				―				―				―				880,081				2,392,166
Transactions in the course of collection			289,194				331,420				―				―				―				―				289,194				331,420
Investments under resale agreements			97,289				142,329				―				―				―				―				97,289				142,329
Subtotal			1,266,564				2,865,915				―				―				―				―				1,266,564				2,865,915
Loans and advances to banks
Domestic banks			99,776				149,974				―				―				―				―				99,776				149,974
Central bank			1,100,831				630,053				―				―				―				―				1,100,831				630,053
Foreign banks			―				―				―				―				286,063				358,542				286,063				358,542
Subtotal			1,200,607				780,027				―				―				286,063				358,542				1,486,670				1,138,569
Loans to Customers at amortized cost
Commercial loans			―				―				―				―				14,949,852				15,988,330				14,949,852				15,988,330
Residential mortgage loans			―				―				―				―				8,451,099				9,888,506				8,451,099				9,888,506
Consumer loans			―				―				―				―				4,116,261				4,215,509				4,116,261				4,215,509
Subtotal			―				―				―				―				27,517,212				30,092,345				27,517,212				30,092,345
Total			2,467,171				3,645,942				―				―				27,803,275				30,450,887				30,270,446				34,096,829
Liabilities
Current accounts and other demand deposits			9,584,488				11,326,133				―				―				―				―				9,584,488				11,326,133
Transactions in the course of payment			44,436				98,869				―				―				―				―				44,436				98,869
Obligations under repurchase agreements			303,820				308,734				―				―				―				―				303,820				308,734
Savings accounts and time deposits			―				―				―				―				10,632,350				10,795,125				10,632,350				10,795,125
Borrowings from financial institutions			―				―				―				―				1,506,940				1,555,129				1,506,940				1,555,129
Other financial obligations			―				―				―				―				119,024				160,361				119,024				160,361
Subtotal			9,932,744				11,733,736				―				―				12,258,314				12,510,615				22,191,058				24,244,351
Debt Issued
Letters of credit for residential purposes			―				―				15,982				11,081				―				―				15,982				11,081
Letters of credit for general purposes			―				―				1,411				725				―				―				1,411				725
Bonds			―				―				6,897,317				8,340,272				―				―				6,897,317				8,340,272
Subordinate bonds			―				―				―				―				732,611				1,004,621				732,611				1,004,621
Subtotal			―				―				6,914,710				8,352,078				732,611				1,004,621				7,647,321				9,356,699
Total			9,932,744				11,733,736				6,914,710				8,352,078				12,990,925				13,515,236				29,838,379				33,601,050

Assets		Liabilities
-    Cash and due from banks		-    Current accounts and other demand deposits
-    Transactions in the course of collection		-    Transactions in the course of payments
-    Investment under resale agreements		-    Obligations under repurchase agreements

Schedule of offsetting of financial assets and liabilities

		Effect of offsetting on balance sheet										Related amount not offset
		Gross amount				Amounts offset		Net amounts reported on the balance sheet				Financial Instruments				Financial Collateral				Net amount
		MCh$				MCh$		MCh$				MCh$				MCh$				MCh$
As of December 31, 2018
Derivative financial assets			1,513,947			―			1,513,947				(1,007,130	)			(30,036	)			476,781
Derivative financial liabilities			1,528,234			―			1,528,234				(1,007,130	)			(233,450	)			287,654
			Effect of offsetting on balance sheet										Related amount not offset
			Gross amount			Amounts offset			Net amounts reported on the balance sheet				Financial Instruments				Financial Collateral				Net amount
			MCh$			MCh$			MCh$				MCh$				MCh$				MCh$
As of December 31, 2019
Derivative financial assets			2,786,215			―			2,786,215				(2,113,970	)			(43,337	)			628,908
Derivative financial liabilities			2,818,421			―			2,818,421				(2,113,970	)			(418,988	)			285,463

Fair Value - not measured at fair value

Disclosure of detailed information about financial instruments [line items]

Schedule of valuation techniques and inputs

Type of Financial Instrument	Valuation Method	Description: Inputs and Sources
Local Bank and Corporate Bonds	Discounted cash flows model	Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (Central Bank Bonds) and issuer spread. These inputs (base yield and issuer spread) are provided on a daily basis by third party price providers that are widely used in the Chilean market.
Offshore Bank and Corporate Bonds	Discounted cash flows model	Since inputs for these types of securities are not observable by the market, we model interest rate of returns for them based on a Base Yield (US-Libor) and issuer spread. These inputs (base yield and issuer spread) are provided on a weekly basis by third party price providers that are widely used in the Chilean market.

X

- Definition

The disclosure of fair value of financial instruments, not measured at fair value in statement of financial position.

+ References

No definition available.

+ Details

Name:	bch_DisclosureOfFairValueOfFinancialInstrumentsNotMeasuredAtFairValueInStatementOfFinancialPositionTableTextBlock
Namespace Prefix:	bch_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of impact on the fair value of financial instruments using alternative assumptions that are reasonably possible related to significant unobservable inputs.

+ References

No definition available.

+ Details

Name:	bch_DisclosureOfImpactOnFairValueOfFinancialInstrumentsUsingAlternativeAssumptionsThatAreReasonablyPossibleRelatedToSignificantUnobservableInputsTableTextBlock
Namespace Prefix:	bch_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of level hierarchy classification of other assets and liabilities not measured at fair value on the balance sheet.

+ References

No definition available.

+ Details

Name:	bch_DisclosureOfLevelHierarchyClassificationOfOtherAssetsAndLiabilitiesNotMeasuredAtFairValueOnBalanceSheetTableTextBlock
Namespace Prefix:	bch_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of transfers between levels for assets and liabilities measured at fair value.

+ References

No definition available.

+ Details

Name:	bch_DisclosureOfTransfersBetweenLevelsForAssetsAndLiabilitiesMeasuredAtFairValueTableTextBlock
Namespace Prefix:	bch_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of detailed information about valuation techniques and inputs for financial instruments.

+ References

No definition available.

+ Details

Name:	bch_DisclosureOfValuationTechniquesAndInputsForFinancialInstruments
Namespace Prefix:	bch_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the fair value of financial instruments. [Refer: Financial instruments, class [member]; At fair value [member]]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 10
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2019-03-27

+ Details

Name:	ifrs-full_DisclosureOfFairValueOfFinancialInstrumentsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Line items represent concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes of the table.

+ References

No definition available.

+ Details

Name:	ifrs-full_DisclosureOfFinancialInstrumentsLineItems
Namespace Prefix:	ifrs-full_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the offsetting of financial assets and financial liabilities. [Refer: Financial assets; Financial liabilities]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2019-01-01
-Section Offsetting financial assets and financial liabilities
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS07_g13A-13F_TI
-URIDate 2019-03-27

+ Details

Name:	ifrs-full_DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of significant inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when measuring the fair value of assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 13
-IssueDate 2019-01-01
-Paragraph 93
-Subparagraph d
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=13&code=ifrs-tx-2019-en-r&anchor=para_93_d&doctype=Standard
-URIDate 2019-03-27

+ Details

Name:	ifrs-full_DisclosureOfSignificantUnobservableInputsUsedInFairValueMeasurementOfAssetsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	ifrs-full_MeasurementAxis=ifrs-full_NotMeasuredAtFairValueInStatementOfFinancialPositionButForWhichFairValueIsDisclosedMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: