XML 29 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Changes in Accounting Policies, Estimates and Disclosures | 12 Months Ended
--- | ---
Dec. 31, 2022
Changes in Accounting Policies, Estimates and Disclosures [Abstract] |
Changes in Accounting Policies, Estimates and Disclosures |
4. | Changes in Accounting policies, Estimates and Disclosures:
| a) | Changes in Estimates - Refinements to ECL models used for calculation
COVID-19 pandemic and the various Goverment support measures resulted in an economic environment which differed significantly from the historical economic conditions upon which the impairment models were built. As a result, there was a greater need for management judgements to be applied alongside the use of models as of December 31, 2021. During 2022 the direct impact of the pandemic on economic performance has reduced, resulting in the release of all material judgements required specifically to capture COVID-19 risks. The assessment of SICRs and the measurement of ECLs required to be based on reasonable and supportable information that is available to an entity without undue cost or effort. The Bank has developed estimates based on the best available information about past events, current conditions and forecasts of economic conditions. In assessing forecast conditions, the Bank has considered the effects of COVID-19 and the government support measures that were taken. Indeed, in September 2022, the Bank completed a calibration of parameters, such as: a) PD models, considering more recent information concerning COVID-19 pandemic and including new macroeconomics, b) SICRs were adjusted, carrying out a more retrospective comparison of credit rating and c) improvements were made regarding the recognition of collateral, obtaining a more precise estimate of the expected credit loss. The impact of calibrations or refinements in the ECL models and assumptions resulted in an inmaterial amount.
| b) | Changes in Accounting plan
During 2022, changes were incorporated into the accounting plan, both in the coding of accounts and in their description. Said changes seek to improve the quality of financial information in order to facilitate the reading, understanding and comparison of the financial statements, along with providing the banking system with more detailed financial information. These changes also ensure that the financial statements comply with the standards of IAS 1 and other applicable accounting standards. The impacts to these Consolidated Financial Statements according to the changes mentioned above are detailed below: Consolidated Balance Sheet as of December 31, 2021
|  | as of December 31, 2021 |
|  | Reported Balance |  |  | Reclassifications |  |  |  |  |  | New Balance |
|  | MCh$ |  |  | MCh$ |  |  | Ref. |  |  | MCh$ |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  |  | 3,713,734 |  |  |  | — |  |  |  |  |  |  |  | 3,713,734 |
Transactions in the course of collection |  |  | 326,446 |  |  |  | — |  |  |  |  |  |  |  | 326,446 |
Derivative instruments |  |  | 2,983,298 |  |  |  | (2,983,298 | ) |  |  | a |  |  |  | — |
Financial assets held-for-trading |  |  | 3,876,695 |  |  |  | (3,876,695 | ) |  |  | b |  |  |  | — |
Financial assets held-for-trading at fair value through profit and loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  |  | — |  |  |  | 2,705,496 |  |  |  | a |  |  |  | 2,705,496 |
Debt financial instruments |  |  | — |  |  |  | 3,737,942 |  |  |  | b |  |  |  | 3,737,942 |
Others |  |  | — |  |  |  | 138,753 |  |  |  | b |  |  |  | 138,753 |
Non-trading financial assets mandatorily measured at fair value through profit or loss |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Financial assets at fair value through profit or loss |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Financial assets at fair value through other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt financial instruments |  |  | 3,054,809 |  |  |  | — |  |  |  |  |  |  |  | 3,054,809 |
Equity instruments |  |  | 6,365 |  |  |  | — |  |  |  |  |  |  |  | 6,365 |
Derivative financial instruments for hedging purposes |  |  | — |  |  |  | 277,802 |  |  |  | a |  |  |  | 277,802 |
Financial assets at amortized cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rights by resale agreements and securities lending |  |  | 64,365 |  |  |  | — |  |  |  |  |  |  |  | 64,365 |
Debt financial instruments |  |  | 839,744 |  |  |  | — |  |  |  |  |  |  |  | 839,744 |
Loans and advances to Banks |  |  | 1,529,751 |  |  |  | — |  |  |  |  |  |  |  | 1,529,751 |
Loans to customers - Commercial loans |  |  | 19,353,491 |  |  |  | — |  |  |  |  |  |  |  | 19,353,491 |
Loans to customers - Residential mortgage loans |  |  | 10,307,542 |  |  |  | — |  |  |  |  |  |  |  | 10,307,542 |
Loans to customers - Consumer loans |  |  | 3,931,344 |  |  |  | — |  |  |  |  |  |  |  | 3,931,344 |
Investments in other companies |  |  | 46,923 |  |  |  | — |  |  |  |  |  |  |  | 46,923 |
Intangible assets |  |  | 105,942 |  |  |  | — |  |  |  |  |  |  |  | 105,942 |
Property and equipment |  |  | 222,320 |  |  |  | — |  |  |  |  |  |  |  | 222,320 |
Right-of-use assets |  |  | 100,188 |  |  |  | — |  |  |  |  |  |  |  | 100,188 |
Current tax assets |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Deferred tax assets |  |  | 276,400 |  |  |  | — |  |  |  |  |  |  |  | 276,400 |
Other assets |  |  | 674,115 |  |  |  | (7,004 | ) |  |  | c;d |  |  |  | 667,111 |
Non-current assets and disposal groups held for sale |  |  | — |  |  |  | 19,480 |  |  |  | c |  |  |  | 19,480 |
Investments properties |  |  | 12,476 |  |  |  | (12,476 | ) |  |  | d |  |  |  | — |
TOTAL ASSETS |  |  | 51,425,948 |  |  |  | — |  |  |  |  |  |  |  | 51,425,948 |
|  | as of December 31, 2021 |
|  | Reported Balance |  |  | Reclassifications |  |  |  |  |  | New Balance |
|  | MCh$ |  |  | MCh$ |  |  | Ref. |  |  | MCh$ |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Transactions in the course of payments |  |  | 210,479 |  |  |  | — |  |  |  |  |  |  |  | 210,479 |
Obligations under repurchase agreements |  |  | 95,009 |  |  |  | (95,009 | ) |  |  | e |  |  |  | — |
Derivative instruments |  |  | 2,773,476 |  |  |  | (2,773,476 | ) |  |  | a |  |  |  | — |
Financial liabilities held for trading at fair value through profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  |  | — |  |  |  | 2,772,780 |  |  |  | a |  |  |  | 2,772,780 |
Others |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Financial liabilities designated as at fair value through profit or loss |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Derivative Financial Instruments for hedging purposes |  |  | — |  |  |  | 696 |  |  |  | a |  |  |  | 696 |
Financial liabilities at amortized cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current accounts and other demand deposits |  |  | 18,542,791 |  |  |  | — |  |  |  |  |  |  |  | 18,542,791 |
Saving accounts and time deposits |  |  | 9,140,006 |  |  |  | — |  |  |  |  |  |  |  | 9,140,006 |
Obligations by repurchase agreements and securities lending |  |  | — |  |  |  | 95,009 |  |  |  | e |  |  |  | 95,009 |
Borrowings from financial institutions |  |  | 4,861,865 |  |  |  | — |  |  |  |  |  |  |  | 4,861,865 |
Debt financial instruments issued |  |  | 9,478,905 |  |  |  | (917,510 | ) |  |  | f |  |  |  | 8,561,395 |
Other financial obligations |  |  | 274,618 |  |  |  | (24,613 | ) |  |  | g |  |  |  | 250,005 |
Lease liabilities |  |  | 95,670 |  |  |  | — |  |  |  |  |  |  |  | 95,670 |
Debt financial instruments issued for regulatory capital purposes |  |  | — |  |  |  | 917,510 |  |  |  | f |  |  |  | 917,510 |
Provisions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for dividends |  |  | 237,877 |  |  |  | — |  |  |  |  |  |  |  | 237,877 |
Provisions for contingent loan credit risk |  |  | 93,049 |  |  |  | — |  |  |  |  |  |  |  | 93,049 |
Other provisions |  |  | 958 |  |  |  | 35,937 |  |  |  | h |  |  |  | 36,895 |
Currents tax liabilities |  |  | 112,283 |  |  |  | — |  |  |  |  |  |  |  | 112,283 |
Deferred tax liabilities |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Employee benefits |  |  | 106,963 |  |  |  | — |  |  |  |  |  |  |  | 106,963 |
Other liabilities |  |  | 583,027 |  |  |  | (11,324 | ) |  |  | g;h |  |  |  | 571,703 |
Liabilities included in disposal groups held for sale |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
TOTAL LIABILITIES |  |  | 46,606,976 |  |  |  | — |  |  |  |  |  |  |  | 46,606,976 |
EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Attributable to equity holders of the parent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital |  |  | 2,418,833 |  |  |  | — |  |  |  |  |  |  |  | 2,418,833 |
Reserves |  |  | 904,059 |  |  |  | — |  |  |  |  |  |  |  | 904,059 |
Accumulated other comprehensive income |  |  | 41,617 |  |  |  | — |  |  |  |  |  |  |  | 41,617 |
Retained earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings from previous periods |  |  | 636,023 |  |  |  | — |  |  |  |  |  |  |  | 636,023 |
Income for the year |  |  | 1,056,316 |  |  |  | — |  |  |  |  |  |  |  | 1,056,316 |
Less: Provision for dividends |  |  | (237,877 | ) |  |  | — |  |  |  |  |  |  |  | (237,877 | )
Non-controlling interest |  |  | 1 |  |  |  | — |  |  |  |  |  |  |  | 1 |
TOTAL EQUITY |  |  | 4,818,972 |  |  |  | — |  |  |  |  |  |  |  | 4,818,972 |
TOTAL LIABILITIES AND EQUITY |  |  | 51,425,948 |  |  |  | — |  |  |  |  |  |  |  | 51,425,948 |
Reclassifications:
| a) | The assets and liabilities “Derivative instruments” are separated into “Derivative financial instruments held for trading at fair value through profit or loss” and “Derivative Financial Instruments for hedging purposes”.
| b) | Debt financial instruments and mutual funds were reclassified from “Financial assets held-for-trading” to “Financial assets held-for-trading at fair value through profit or loss”.
| c) | Investment in Nexus S.A and assets received in lieu of payment were reclassified from “Other assets” to “Non-current assets and disposal groups held for sale”.
| d) | Investment properties were reclassified from “Investment properties” to “Other assets”.
| e) | Short sales of shares were reclassified from “Obligations under repurchase agreements” to “Obligations by repurchase agreements and securities lending at amortized cost”.
| f) | Subordinated bonds were reclassified from “Debt financial instruments issued” to “Debt financial instruments issued for regulatory capital purposes”.
| g) | Suppliers of goods for leasing were reclassified from “Other financial obligations” to “Other liabilities”.
| h) | Loyalty provision were reclassified from “Other Liabilities” to “Other provisions”.
Consolidated Income Statement as of December 31, 2021
|  | as of December 31, 2021 |
|  | Reported Balance |  |  | Reclassifications |  |  |  |  | New Balance |
|  | MCh$ |  |  | MCh$ |  |  | Ref. |  | MCh$ |
STATEMENT OF INCOME |  |  |  |  |  |  |  |  |  |  |
Interest revenue |  |  | 2,388,470 |  |  |  | — |  |  |  |  |  | 2,388,470 |
Interest expense |  |  | (814,448 | ) |  |  | — |  |  |  |  |  | (814,448 | )
Net interest income |  |  | 1,574,022 |  |  |  | — |  |  |  |  |  | 1,574,022 |
Income from commissions |  |  | 584,321 |  |  |  | — |  |  |  |  |  | 584,321 |
Expense from commissions |  |  | (129,293 | ) |  |  | — |  |  |  |  |  | (129,293 | )
Net income from commissions |  |  | 455,028 |  |  |  | — |  |  |  |  |  | 455,028 |
Net Financial income (expense) |  |  | 186,941 |  |  |  | (15,962 | ) |  | a |  |  | 170,979 |
Foreign exchange transactions, net |  |  | (15,962 | ) |  |  | 15,962 |  |  | a |  |  | — |
Income attributable to investments in other companies |  |  | — |  |  |  | 1,793 |  |  | b |  |  | 1,793 |
Result from non-current assets and disposal groups held for sale not admissible as discontinued operations |  |  | — |  |  |  | 1,986 |  |  | c |  |  | 1,986 |
Other operating income |  |  | 34,056 |  |  |  | (12,993 | ) |  | c;d |  |  | 21,063 |
TOTAL OPERATING INCOME, BEFORE EXPECTED CREDIT LOSSES |  |  | 2,234,085 |  |  |  | (9,214 | ) |  |  |  |  | 2,224,871 |
Expected credit losses |  |  | (19,172 | ) |  |  | — |  |  |  |  |  | (19,172 | )
TOTAL OPERATING INCOME, NET OF EXPECTED CREDIT LOSSES |  |  | 2,214,913 |  |  |  | (9,214 | ) |  |  |  |  | 2,205,699 |
Expenses from salaries and employee benefits |  |  | (450,952 | ) |  |  | — |  |  |  |  |  | (450,952 | )
Administrative expenses |  |  | (324,625 | ) |  |  | — |  |  |  |  |  | (324,625 | )
Depreciation and amortization |  |  | (76,798 | ) |  |  | — |  |  |  |  |  | (76,798 | )
Impairment of non-financial assets |  |  | (1,690 | ) |  |  | — |  |  |  |  |  | (1,690 | )
Other operating expenses |  |  | (30,355 | ) |  |  | 11,007 |  |  | c;d |  |  | (19,348 | )
TOTAL OPERATING EXPENSES |  |  | (884,420 | ) |  |  | 11,007 |  |  |  |  |  | (873,413 | )
Income attributable to associates |  |  | 1,793 |  |  |  | (1,793 | ) |  | b |  |  | — |
NET OPERATING INCOME |  |  | 1,332,286 |  |  |  | — |  |  |  |  |  | 1,332,286 |
Income taxes |  |  | (275,969 | ) |  |  | — |  |  |  |  |  | (275,969 | )
NET INCOME FOR THE YEAR |  |  | 1,056,317 |  |  |  | — |  |  |  |  |  | 1,056,317 |
Reclassifications:
| a) | Income and expense from foreign exchange were included as part of “Net Financial income (expense)”.
| b) | Income from investments in associates and other companies were reclassified from “Income attributable to associates” to “Other operating income”.
| c) | Expenses for assets received in lieu of payment and income from sale of noncurrent assets were reclassified from “Other operating expenses” and “Other Operating income” to “Result from non-current assets and disposal groups held for sale not admissible as discontinued operations”.
| d) | Income for recovery of expenses for credit operations of financial leasing and other operational risk events were reclassified from “Other operating income” to “Other Operating expenses”.
During the year ended December 31, 2022, there have been no other significant accounting changes that affect the presentation of these Consolidated Financial Statements.

X
- References No definition available. + Details
Name: | bch_ChangesinAccountingPoliciesEstimatesandDisclosuresLineItems
Namespace Prefix: | bch_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for changes in accounting policies, accounting estimates and errors. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 8 -IssueDate 2022-03-24 -Section Accounting policies -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=8&code=ifrs-tx-2022-en-r&doctype=Standard&dita_xref=IAS08_g7-31__IAS08_g7-31_TI -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration