XML 43 R17.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Derivative Financial Instruments for Hedging Purposes | 12 Months Ended
--- | ---
Dec. 31, 2023
Derivative Financial Instruments for Hedging Purposes [Abstract] |
Derivative Financial Instruments for hedging purposes |
10. | Derivative Financial Instruments for hedging purposes:
| (a.1) | As of December 31, 2023 and 2022, the Bank has the following portfolio of financial derivative instruments for accounting hedging purposes:
|  | Notional amount of contract with final expiration date in |  |  |  |
|  | Demand |  |  | Up to 1 month |  |  | Over 1 month and up to 3 months |  |  | Over 3 months and up to 12 months |  |  | Over 1 year and up to 3 years |  |  | Over 3 year and up to 5 years |  |  | Over 5 years |  |  | Total |  |  | Fair value Assets |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Derivatives held for fair value hedges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cash flow hedge derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap and cross currency swap |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 141,416 |  |  |  | 167,199 |  |  |  | 36,553 |  |  |  | 135,025 |  |  |  | 232,293 |  |  |  | 122,127 |  |  |  | 222,615 |  |  |  | 111,547 |  |  |  | 632,877 |  |  |  | 535,898 |  |  |  | 49,065 |  |  |  | 27,077 |
Total |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 141,416 |  |  |  | 167,199 |  |  |  | 36,553 |  |  |  | 135,025 |  |  |  | 232,293 |  |  |  | 122,127 |  |  |  | 222,615 |  |  |  | 111,547 |  |  |  | 632,877 |  |  |  | 535,898 |  |  |  | 49,065 |  |  |  | 27,077 |
| (a.2) | As of December 31, 2023 and 2022, the Bank has the following debt portfolio of financial derivative instruments for accounting hedging purposes:
|  | Notional amount of contract with final expiration date in |  |  |  |
|  | Demand |  |  | Up to 1 month |  |  | Over 1 month and up to 3 months |  |  | Over 3 months and up to 12 months |  |  | Over 1 year and up to 3 years |  |  | Over 3 year and up to 5 years |  |  | Over 5 years |  |  | Total |  |  | Fair value Liabilities |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Derivatives held for fair value hedges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cash flow hedge derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap and cross currency swap |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 63,587 |  |  |  | 218,840 |  |  |  | 123,214 |  |  |  | 180,325 |  |  |  | 129,166 |  |  |  | 983,782 |  |  |  | 1,151,878 |  |  |  | 1,382,947 |  |  |  | 1,467,845 |  |  |  | 160,602 |  |  |  | 223,016 |
Total |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 63,587 |  |  |  | 218,840 |  |  |  | 123,214 |  |  |  | 180,325 |  |  |  | 129,166 |  |  |  | 983,782 |  |  |  | 1,151,878 |  |  |  | 1,382,947 |  |  |  | 1,467,845 |  |  |  | 160,602 |  |  |  | 223,016 |
| (b) | Fair Value Hedges:
As of December 31, 2023 and 2022, no fair value hedges are held.
| (c) | Cash flow Hedges:
| (c.1) | The Bank uses cross currency swaps to hedge the risk from variability of cash flows attributable to changes in the interest rates and foreign exchange of borrowings from banks and bonds issued abroad in US Dollars, Hong Kong dollars, Swiss Franc, Japanese Yens, Peruvian Sol, Australian Dollars, Euros, Norwegian kroner and Mexican peso. The cash flows of the cross currency swaps equal the cash flows of the hedged items, which modify uncertain cash flows to known cash flows derived from a fixed interest rate.
|  | Additionally, these cross currency swap contracts used to hedge the risk from variability of the Unidad de Fomento (“CLF”) in mortgage loans denominated in CLF until a nominal amount equal to the portion notional of the hedging instrument CLF, whose readjustment daily impact the item “Interest and UF indexation revenue” of the Income Financial Statements.
| (c.2) | Below are the cash flows of borrowings from banks and bonds issued abroad objects of these hedges and the cash flows of the asset part of the derivative:
|  | Demand |  |  | Up to 1 month |  |  | Over 1 month and up to 3 months |  |  | Over 3 months and up to 12 months |  |  | Over 1 year and up to 3 years |  |  | Over 3 years and up to 5 years |  |  | Over 5 years |  |  | Total |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Hedge element |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outflows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Bond |  |  | — |  |  |  | — |  |  |  | (450 | ) |  |  | (378 | ) |  |  | (4,686 | ) |  |  | (4,423 | ) |  |  | (199,047 | ) |  |  | (226,822 | ) |  |  | (245,308 | ) |  |  | (339,527 | ) |  |  | (552,541 | ) |  |  | (338,871 | ) |  |  | (1,252,534 | ) |  |  | (1,421,772 | ) |  |  | (2,254,566 | ) |  |  | (2,331,793 | )
Borrowing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,366 | ) |  |  | (59,876 | ) |  |  | (88,096 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (89,462 | ) |  |  | (59,876 | )
Hedge instrument |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inflows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cross Currency Swap |  |  | — |  |  |  | — |  |  |  | 450 |  |  |  | 378 |  |  |  | 4,686 |  |  |  | 4,423 |  |  |  | 200,413 |  |  |  | 286,698 |  |  |  | 333,404 |  |  |  | 339,527 |  |  |  | 552,541 |  |  |  | 338,871 |  |  |  | 1,252,534 |  |  |  | 1,421,772 |  |  |  | 2,344,028 |  |  |  | 2,391,669 |
Net cash flows |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
| (c.3) | Below are the cash flows of the underlying assets portfolio and the cash flow of the liability part of the derivatives:
|  | Demand |  |  | Up to 1 month |  |  | Over 1 month and up to 3 months |  |  | Over 3 months and up to 12 months |  |  | Over 1 year and up to 3 years |  |  | Over 3 years and up to 5 years |  |  | Over 5 years |  |  | Total |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Hedge element |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inflows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flows in CLF |  |  | — |  |  |  | — |  |  |  | 1,506 |  |  |  | 1,437 |  |  |  | 1,834 |  |  |  | 1,742 |  |  |  | 182,057 |  |  |  | 268,092 |  |  |  | 328,074 |  |  |  | 327,478 |  |  |  | 467,263 |  |  |  | 309,408 |  |  |  | 1,314,328 |  |  |  | 1,389,012 |  |  |  | 2,295,062 |  |  |  | 2,297,169 |
Hedge instrument |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outflows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cross Currency Swap |  |  | — |  |  |  | — |  |  |  | (1,506 | ) |  |  | (1,437 | ) |  |  | (1,834 | ) |  |  | (1,742 | ) |  |  | (182,057 | ) |  |  | (268,092 | ) |  |  | (328,074 | ) |  |  | (327,478 | ) |  |  | (467,263 | ) |  |  | (309,408 | ) |  |  | (1,314,328 | ) |  |  | (1,389,012 | ) |  |  | (2,295,062 | ) |  |  | (2,297,169 | )
Net cash flows |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With respect to CLF assets hedged; these are revalued monthly according to the variation of the UF, which is equivalent to monthly reinvest the assets until maturity of the relationship hedging.
| (c.4) | The unrealized results generated during the year 2023 by those derivative contracts that conform the hedging instruments in this cash flow hedging strategy, have been recorded with credit to equity amounting to Ch$113,183 million (charge to equity of Ch$215,476 million and credit to equity of Ch$182,376 million as of December 31, 2022 and 2021, respectively). The net effect of taxes credit to equity amounts to Ch$82,624 million (a charge to equity of Ch$157,297 million and a credit to equity of Ch$133,135 million as of December 31, 2022 and 2021, respectively).
The accumulated balance for this concept as of December 31, 2023 corresponds to a credit in equity amounted to Ch$9,401 million (a charge to equity amounting to Ch$103,782 million as of December 31, 2022 and a credit to equity amounting to Ch$111,694 million as of December 31, 2021).
| (c.5) | The effect of the cash flow hedging derivatives that offset the result of the hedged instruments corresponds to a gain of Ch$4,320 million in 2023 (a gain of Ch$251,371 million in 2022 and a loss of Ch$123,101 million in 2021).
| (c.6) | As of December 31, 2023 and 2022, there was no inefficiency in the Bank’s cash flow hedge, because as both the hedge item and hedge instruments are mirrors of the other, all variation of value attributable to rate and revaluation components are entirely netted.
| (c.7) | As of December 31, 2023, 2022 and 2021, the Bank had no hedges of net investments in foreign businesses.

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

X
- Definition The disclosure of derivative financial instruments. [Refer: Derivatives [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfDerivativeFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration