XML 111 R88.htm IDEA: XBRL DOCUMENT
v3.19.1

RISK MANAGEMENT (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2018
Disclosure of nature and extent of risks arising from financial instruments [line items] |
Schedule of quality assets and its related provision | The following table shows quality assets and its related provision, based on our internal scoring policy as of December 31, 2018:
| Individually assessed
Commercial Portfolio | Stage 1 | Stage 2 | Stage 3 | Total Individual | Percentage |  | Stage 1 | Stage 2 | Stage 3 | Total ECL Allowance | Percentage
MCh$ | MCh$ | MCh$ | MCh$ | % |  | MCh$ | MCh$ | MCh$ | MCh$ | %
A1 | 29,998 | - | - | 29,998 | 0.10% |  | 2 | - | - | 2 | 0.00%
A2 | 1,074,789 | - | - | 1,074,789 | 3.56% |  | 525 | - | - | 525 | 0.06%
A3 | 2,699,684 | 309 | - | 2,699,993 | 8.94% |  | 2,526 | - | - | 2,574 | 0.29%
A4 | 3,200,608 | 16,546 | - | 3,217,154 | 10.65% |  | 8,865 | 323 | - | 9,206 | 1.04%
A5 | 1,755,259 | 26,141 | - | 1,781,400 | 5.90% |  | 11,296 | 453 | - | 11,192 | 1.33%
A6 | 935,499 | 45,671 | - | 981,170 | 3.25% |  | 6,975 | 2,213 | - | 9,188 | 1.04%
B1 | - | 494,915 | 187 | 495,102 | 1.64% |  | - | 14,107 | 79 | 14,232 | 1.61%
B2 | - | 81,955 | 156 | 82,111 | 0.27% |  | - | 2,786 | 66 | 2,852 | 0.32%
B3 | - | 67,089 | 614 | 67,703 | 0.22% |  | - | 3,841 | 233 | 4,074 | 0.46%
B4 | - | 47,653 | 45,480 | 93,133 | 0.31% |  | - | 2,488 | 19,688 | 22,176 | 2.51%
C1 | - | 46,383 | 108,325 | 154,708 | 0.51% |  | - | 2,548 | 48,147 | 50,695 | 5.75%
C2 | - | 15,678 | 39,246 | 54,924 | 0.18% |  | - | 1,261 | 18,171 | 19,672 | 2.20%
C3 | - | 19,655 | 26,204 | 45,859 | 0.15% |  | - | 733 | 10,803 | 11,297 | 1.31%
C4 | - | 3,560 | 32,445 | 36,005 | 0.12% |  | - | 246 | 17,077 | 17,323 | 1.96%
C5 | - | 703 | 64,762 | 65,465 | 0.22% |  | - | 32 | 40,541 | 40,573 | 4.60%
C6 | - | 1,525 | 69,510 | 71,035 | 0.22% |  | - | 35 | 43,310 | 43,789 | 4.91%
Subtotal | 9,695,837 | 867,783 | 386,929 | 10,950,549 | 36.24% |  | 30,189 | 31,066 | 198,115 | 259,370 | 29.39%
| Collectively assessed
| Stage 1 | Stage 2 | Stage 3 | Total Group | Percentage |  | Stage 1 | Stage 2 | Stage 3 | Total ECL Allowance | Percentage
MCh$ | MCh$ | MCh$ | MCh$ | % |  | MCh$ | MCh$ | MCh$ | MCh$ | %
Commercial | 3,616,969 | 232,472 | 386,154 | 4,235,595 | 14.02% |  | 43,541 | 24,754 | 179,317 | 247,432 | 28.04%
Mortgage | 4,341,470 | 249,039 | 285,510 | 4,876,289 | 16.14% |  | 70,904 | 54,372 | 159,066 | 284,342 | 32.23%
Consumer | 9,258,962 | 447,496 | 444,523 | 10,150,981 | 33.60% |  | 9,006 | 15,102 | 67,162 | 91,270 | 10.34%
Subtotal | 17,217,671 | 929,007 | 1,116,187 | 19,262,865 | 63.76% |  | 123,451 | 94,048 | 405,545 | 623,044 | 70.61%
Total | 26,913,508 | 1,796,790 | 1,503,116 | 30,213,414 | 100.00% |  | 153,640 | 124,114 | 603,660 | 882,414 | 100.00%
Schedule of modified loans |
|  | As of December 31, 2018 |
|  | Stage 1 |  |  | Stage 2 |  |  | Stage 3 |  |  | Total |
|  | MCh$ |  |  | MCh$ |  |  | MCh$ |  |  | MCh$ |
Gross carrying amount |  |  | 26,913,508 |  |  |  | 1,796,790 |  |  |  | 1,503,116 |  |  |  | 30,213,414 |
Modified loans |  |  | - |  |  |  | 582,513 |  |  |  | 815,094 |  |  |  | 1,397,607 |
% |  |  | - |  |  |  | 32.42 | % |  |  | 54.23 | % |  |  | 4.63 | %
ECL allowance |  |  | 153,640 |  |  |  | 125,114 |  |  |  | 603,660 |  |  |  | 882,414 |
Modified loans |  |  | - |  |  |  | 44,099 |  |  |  | 323,802 |  |  |  | 367,901 |
% |  |  | - |  |  |  | 35.25 | % |  |  | 53.64 | % |  |  | 41.69 |
Schedule of mortage and other loan |
Collectively assessed | Individually assessed
Mortgages | Other loans | Revolving (Credit cards) | Collectively assessed SME | Individually assessed SME | Middle market | Corporate and Investment Banking
45% | 42% | 42% | 42% | 60% | 50% | Santander Group criteria
There is also a relative threshold of 100% of all portfolios with the exception of the Corporate and Investment Banking Portfolio. Qualitative criteria for SICR Stage 2: The qualitative criteria is based on the existence of evidence that leads to an automatic classification of financial instruments in stage 2, mainly 30 days overdue and restructured. Thresholds of SICR are calibrated based on the average ECL of exposures that are 30 days overdue or with a level of credit risk considered to be “significant”.
Collectively assessed | Individually assessed
Mortgages | Other loans | Revolving (Credit cards) | Collectively assessed SME | Individually assessed SME | Middle market | Corporate and Investment Banking
Irregular portfolio > 30 days | Irregular portfolio > 30 days | Irregular portfolio > 30 days | Irregular portfolio > 30 days | Irregular portfolio > 30 days | Irregular portfolio > 30 days | Irregular portfolio > 30 days
Restructured marked for monitoring | Restructured marked for monitoring | Restructured marked for monitoring | Restructured marked for monitoring | Restructured marked for monitoring | Restructured marked for monitoring | Restructured marked for monitoring
|  |  |  | Clients that are considered to be substandard or in incompliance (pre-legal action) | Clients that are considered to be substandard or in incompliance (pre-legal action) | Clients that are considered to be substandard or in incompliance (pre-legal action)
Schedule of risk concentration. | The following table shows the risk concentration by industry, and by stage before ECL allowance:
As of December 31, 2018 | Loans and account receivable at amortised cost
Stage 1 | Stage 2 | Stage 3 | Total
MCh$ | MCh$ | MCh$ | MCh$
Commercial loans |  |  |  |
Manufacturing | 992,786 | 92,931 | 54,048 | 1,139,765
Mining | 182,342 | 21,821 | 4,585 | 208,748
Electricity, gas, and water | 384,288 | 22,365 | 2,279 | 408,932
Agriculture and livestock | 934,199 | 166,271 | 100,781 | 1,201,251
Forest | 120,371 | 9,402 | 14,115 | 143,888
Fishing | 238,348 | 11,104 | 3,569 | 253,021
Transport | 716,493 | 55,011 | 37,802 | 809,306
Communications | 178,215 | 30,407 | 7,222 | 215,844
Construction(a) | 723,600 | 88,691 | 93,747 | 906,038
Commerce | 2,950,517 | 189,623 | 199,924 | 3,340,064
Services | 1,771,595 | 81,159 | 12,915 | 1,865,669
Other | 4,120,052 | 331,470 | 242,096 | 4,693,618
Subtotal | 13,312,806 | 1,100,255 | 773,083 | 15,186,144
Mortgage loans | 9,258,962 | 447,496 | 444,523 | 10,150,981
Consumer loans | 4,341,740 | 249,039 | 285,510 | 4,876,289
Total | 26,913,508 | 1,796,790 | 1,503,116 | 30,213,414
| (a) | In 2018 we improved the classification of our construction loans, reassigning loans for real state rental investment companies to services.
Schedule of macro economical forward | The annual growth forecasts for the most relevant macroeconomic variables for each of our scenarios are as follows:
| Average estimates 2019 - 2020
| Unfavorable scenario 2 | Unfavorable scenario 1 | Base scenario | Favorable scenario 1 | Favorable scenario 2
Official interest rate | 1.78% | 2.82% | 3.91% | 4.99% | 6.03%
Unemployment rate | 8.47% | 7.53% | 6.55% | 6.10% | 5.57%
Housing Price growth | 0.89% | 1.06% | 1.50% | 2.68% | 4.49%
GDP growth | 1.40% | 2.22% | 2.99% | 3.87% | 4.68%
Consumer Price Index | 1.14% | 1.98% | 2.83% | 3.75% | 4.59%
Schedule of probabilities | The probabilities for the scenarios must total 100% and be symmetrical.
Local scenario |  | Global scenario
| Probability weighting |  |  | Probability weighting
Favorable scenario 2 | 5% |  | Favorable scenario 1 | 20%
Favorable scenario 1 | 20% |  | Base scenario | 60%
Base scenario | 50% |  | Unfavorable scenario 1 | 20%
Unfavorable scenario 1 | 20% |  |  |
Unfavorable scenario 2 | 5% |  |  |
Schedule of allowance sensibility | The ECL allowance sensibility to future macro economic conditions is as follows:
December 31, 2018 | Ch$
Reported ECL allowance | 882,414
Gross carrying amount | 30,282,022
Reported ECL Coverage | 2.91%
ECL amount by scenarios |
Favorable scenarios 2 | 745,089
Favorable scenarios 1 | 815,113
Base scenarios | 879,358
Unfavorable scenarios 2 | 949,329
Unfavorable scenarios 2 | 970,563
Coverage ratio by scenarios |
Favorable scenarios 2 | 2.46%
Favorable scenarios 1 | 2.69%
Base scenarios | 2.90%
Unfavorable scenarios 2 | 3.13%
Unfavorable scenarios 2 | 3.21%
Schedule of financial assets and associated collateral | The following table show the maximum exposure to credit risk by class of financial asset, associated collateral and the net exposure to credit risk:
December 31, 2018 | Maximum exposure to credit risk | Collateral (*) | Net exposure | Associated ECL
| MCh$ | MCh$ | MCh$ | MCh$
Commercial loans | 15,254,752 | 7,369,291 | 7,885,461 | 506,802
Mortgage loans | 10,150,981 | 9,699,324 | 451,657 | 91,270
Consumer Loans | 4,876,289 | 754,920 | 4,121,369 | 284,342
Total | 30,282,022 | 17,823,535 | 12,458,487 | 882,414
Schedule of portfolio |
| c. | Portfolio characteristics:
| As of December 31,
Category | 2017
Commercial Portfolio | Individual |  | Percentage |  | Allowance |  | Percentage
MCh$ |  | % |  | MCh$ |  | %
A1 | 1,051,072 |  | 3.79% |  | 827 |  | 0.10%
A2 | 5,957,305 |  | 21.49% |  | 18,514 |  | 2.34%
A3 | 2,176,779 |  | 7.85% |  | 27,894 |  | 3.53%
B | 539,074 |  | 1.94% |  | 32,089 |  | 4.06%
C1 | 145,033 |  | 0.52% |  | 2,604 |  | 0.33%
C2 | 56,871 |  | 0.21% |  | 5,104 |  | 0.65%
C3 | 39,825 |  | 0.14% |  | 8,935 |  | 1.13%
C4 | 53,261 |  | 0.19% |  | 19,120 |  | 2.42%
D1 | 71,896 |  | 0.26% |  | 41,941 |  | 5.30%
D2 | 77,048 |  | 0.28% |  | 62,234 |  | 7.87%
Subtotal | 10,168,164 |  | 36.67% |  | 219,262 |  | 27.73%
| Group |  | Percentage |  | Allowance |  | Percentage
MCh$ |  | % |  | MCh$ |  | %
Commercial |  |  |  |  |  |  |
Normal portfolio | 3,488,633 |  | 12.58% |  | 58,728 |  | 7.42%
Impaired portfolio | 414,530 |  | 1.50% |  | 160,345 |  | 20.27%
Subtotal | 3,903,163 |  | 14.08% |  | 219,073 |  | 27.69%
Mortgage |  |  |  |  |  |  |
Normal portfolio | 8,634,351 |  | 31.14% |  | 20,174 |  | 2.55%
Impaired portfolio | 462,544 |  | 1.67% |  | 48,892 |  | 6.17%
Subtotal | 9,096,895 |  | 32.81% |  | 69,066 |  | 8.72%
Consumer |  |  |  |  |  |  |
Normal portfolio | 4,230,567 |  | 15.26% |  | 114,099 |  | 14.42%
Impaired portfolio | 327,125 |  | 1.18% |  | 169,657 |  | 21.44%
Subtotal | 4,557,692 |  | 16.44% |  | 283,756 |  | 35.86%
Total | 27,725,914 |  | 100.00% |  | 791,157 |  | 100.00%
Schedule of financial assets and off-balance sheet commitments | Below is the distribution by financial asset and off-balance sheet commitments of the Bank’s maximum exposure to credit risk as of December 31, 2018 and 2017, without deduction of collateral, security interests or credit improvements received:
|  | As of December 31,
|  | 2018 |  | 2017
|  | Amount of exposure |  | Amount of exposure
| Note | MCh$ |  | MCh$
Deposits in banks | 5 | 1,240,578 |  | 839,561
Cash items in process of collection | 5 | 353,757 |  | 668,145
Investments under resale agreements | 7 | - |  | -
Financial derivative contracts | 8 | 3,100,635 |  | 2,238,647
Trading investment |  | - |  | 485,736
Loans and account receivable from customers and interbank loans, net |  | - |  | 26,934,757
Available for sale investment |  | - |  | 2,574,546
Financial assets held for trading | 6 | 77,041 |  | -
Loans and account receivable at amortised cost / Loans and account receivable at FVOCI | 9 and 10 | 29,399,589 |  | -
Debt instrument at fair value through other comprehensive income | 12 | 2,394,323 |  | -
Off-balance commitments: |  |  |  |
Letters of credit issued |  | 223,420 |  | 201,699
Foreign letters of credit confirmed |  | 57,038 |  | 75,499
Performance guarantees |  | 1,954,205 |  | 1,823,793
Available credit lines |  | 8,997,650 |  | 8,135,489
Personal guarantees |  | 133,623 |  | 81,577
Other irrevocable credit commitments |  | 327,297 |  | 260,691
Total |  | 48,345,002 |  | 44,320,140
Schedule of fair value of derivative instruments | Below, there are additional details regarding our exposure for those countries classified above 1 and represents our majority of exposure to categories other than 1, Below we detail as of December 31, 2018, considering fair value of derivative instruments.
Country | Classification | Derivative Instruments (adjusted to market) USD MCh$ | Deposits USD MCh$ | Loans USD MCh$ | Financial investments USD MCh$ | Total Exposure USD MCh$
Bolivia | 3 | 0.00 | 0.00 | 0.06 | 0.00 | 0.06
China | 2 | 0.00 | 0.00 | 243.95 | 0.00 | 243.95
Italy | 2 | 0.00 | 2.38 | 0.78 | 0.00 | 3.16
México | 2 | 0.00 | 0.01 | 0.00 | 0.00 | 0.01
Panamá | 2 | 0.63 | 0.00 | 0.00 | 0.00 | 0.63
Perú | 2 | 3.38 | 0.00 | 0.00 | 0.00 | 3.38
Thailand | 2 | 0.00 | 0.00 | 0.31 | 0.00 | 0.31
Turkey | 3 | 0.00 | 0.00 | 9.49 | 0.00 | 9.49
Total |  | 4.01 | 2.39 | 254.59 | 0.00 | 260.99
The total amount of this exposure to derivative instruments must be compensated daily with collateral and, therefore, the net credit exposure is USD 0. Our exposure to Spain within the group is as follows:
Counterpart | Country | Classification | Derivative instruments (market adjusted) MUSD | Deposits MUSD | Loans MUSD | Financial Investments MUSD | Exposure Exposure MUSD
Banco Santander España (*) | Spain | 1 | 9.74 | 118.26 | - | - | 128.00
Schedule of security interests, collateral, or credit improvements | Below is the detail of security interests, collateral, or credit improvements provided to the Bank as of December 31, 2018 and 2017,
| As of December 31,
| 2018 |  | 2017
| MCh$ |  | MCh$
Non-impaired financial assets: |  |  |
Properties/mortgages | 22,047,354 |  | 19,508,151
Investments and others | 2,200,776 |  | 2,108,962
Impaired financial assets: |  |  |
Properties/ mortgages | 119,181 |  | 152,252
Investments and others | 865 |  | 1,087
Total | 24,368,176 |  | 21,770,452
Schedule of liquidity portfolio | The management of the Bank’s liquidity portfolio is performed by the Financial Management Division under rules determined by the ALCO.
| As of December 31,
| 2018 | 2017
| MCh$ | MCh$
Financial investments for trading | 77,041 | 485,736
Available for sale investments | 2,394,323 | 2,574,546
Encumbered assets (net) (1) | (48,843) | (268,330)
Net cash (2) | 149,321 | (37,628)
Net Interbank deposits (3) | 967,095 | 768,595
Total liquidity portfolio | 3,585,937 | 3,522,919
| (1) Assets encumbered through repurchase agreements are deduced from liquidity portfolio
| (2) Cash minus reserve requeriments. As is presented in Note 4 the reserve requeriments are established by the monthly average reserves that the bank must maintain in accordance with regulation governing minimum reserves
| (3) Includes overnight deposits in Central Bank, domestic banks and foreign banks.
Schedule of exposure to liquidity risk | The following table displays the actual derived percentages as calculated per above:
| As of December 31,
| 2018 % |  | 2017 %
30 days | (20) |  | (48)
30 days foreign currency | - |  | (22)
90 days | (37) |  | (51)
Schedule of breakdown by maturity | Below, is the breakdown by maturity, of the liability balances of the Ba as of December 31, 2018 and 2017:
| Demand | Up to 1 month | Between 1 and 3 months | Between 3 and 12 months | Subtotal up to 1 year | Between 1 and 3 years | Between 3 and 5 years | More than 5 years | Subtotal after 1 year | Total
As of December 31, 2018 | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$
Obligations under repurchase agreements | - | 48,545 | - | - | 48,545 | - | - | - | - | 48,545
Checking accounts, time deposits and other time liabilities | 9,027,434 | 5,248,418 | 4,108,556 | 3,326,199 | 21,710,607 | 191,547 | 6,137 | 63,988 | 261,672 | 21,972,279
Financial derivatives contracts | - | 131,378 | 120,361 | 349,551 | 601,290 | 495,789 | 471,185 | 949,464 | 1,916,438 | 2,517,728
Interbank borrowings | 39,378 | 16,310 | 404,575 | 1,188,692 | 1,648,955 | 139,671 | - | - | 139,671 | 1,788,626
Issue debt instruments | - | 71,465 | 39,267 | 745,830 | 856,562 | 2,431,849 | 1,549,743 | 3,277,079 | 7,258,671 | 8,115,233
Other financial liabilities | 179,681 | 934 | 2,412 | 22,844 | 205,871 | 9,261 | 92 | 176 | 9,529 | 215,400
Subtotal | 9,246,493 | 5,517,050 | 4,675,171 | 5,633,116 | 25,071,830 | 3,268,117 | 2,027,157 | 4,290,707 | 9,585,981 | 34,657,811
Contractual interest payments | 4,918 | 82,292 | 158,760 | 812,920 | 1,058,890 | 1,156,262 | 1,110,918 | 1,537,385 | 3,804,565 | 4,863,456
Total | 9,251,411 | 5,599,342 | 4,833,931 | 6,446,036 | 26,130,720 | 4,424,379 | 3,138,075 | 5,828,092 | 13,390,546 | 39,521,267
As of December 31, 2018, the scheduled maturities of other commercial commitments, including accrued interest, were as follows:
Other Commercial Commitments | Up to 1 month MCh$ | Between 1 and 3 months MCh$ | Between 3 and 12 months MCh$ | Between 1 and 5 years MCh$ | More than 5 years MCh$ | Total MCh$
Performance guarantee | 663,642 | 188,147 | 905,554 | 163,506 | 33,356 | 1.954,205
Confirmed foreign letters of credit | 3,842 | 9,128 | 33,177 | 10,891 | - | 57,038
Letters of credit issued | 12,469 | 110,970 | 54,015 | 45,937 | 29 | 223,420
Pledges and other commercial commitments | 22,128 | 63,230 | 41,637 | 6,628 | - | 133,623
Total other commercial commitments | 702,081 | 371,475 | 1,034,383 | 226,962 | 33,385 | 2,638,286
| Demand | Up to 1 month | Between 1 and 3 months | Between 3 and 12 months | Subtotal up to 1 year | Between 1 and 3 years | Between 3 and 5 years | More than 5 years | Subtotal after 1 year | Total
As of December 31, 2017 | MM$ | MM$ | MM$ | MM$ | MM$ | MM$ | MM$ | MM$ | MM$ | MM$
Obligations under repurchase agreements | - | 268,061 | - | - | 268,061 | - | - | - | - | 268,061
Checking accounts, time deposits and other time liabilities | 8,376,371 | 5,120,171 | 4,201,271 | 2,299,018 | 19,996,831 | 106,833 | 2,811 | 62,362 | 172,006 | 20,168,837
Financial derivatives contracts | - | 144,410 | 196,444 | 356,288 | 697,142 | 378,582 | 358,358 | 705,406 | 1,442,346 | 2,139,488
Interbank borrowings | 4,130 | 46,013 | 397,419 | 1,030,241 | 1,477,803 | 220,554 | - | - | 220,554 | 1,698,357
Issue debt instruments | - | 21,043 | 55,119 | 274,239 | 350,401 | 1,727,571 | 2,104,771 | 2,910,910 | 6,743,252 | 7,093,653
Other financial liabilities | 177,663 | 701 | 2,583 | 31,879 | 212,826 | 27,581 | 404 | 1,219 | 29,204 | 242,030
Subtotal | 8,558,164 | 5,600,399 | 4,852,836 | 3,991,665 | 23,003,064 | 2,461,121 | 2,466,344 | 3,679,897 | 8,607,362 | 31,610,426
Contractual interest payments | 4,403 | 45,465 | 117,779 | 462,579 | 630,226 | 808,502 | 776,796 | 1,147,553 | 2,732,851 | 3,363,077
Total | 8,562,567 | 5,645,864 | 4,970,615 | 4,454,244 | 23,633,290 | 3,269,623 | 3,243,140 | 4,827,450 | 11,340,213 | 34,973,503
As of December 31, 2017, the scheduled maturities of other commercial commitments, including accrued interest, were as follows:
Other Commercial Commitments | Up to 1 month | Between 1 and 3 months | Between 3 and 12 months | Between 1 and 5 years | More than 5 years | Total
(in millions of Ch$)
Performance guarantee | 514,510 | 244,543 | 835,030 | 208,479 | 21,231 | 1,823,793
Confirmed foreign letters of credit | 16,681 | 33,513 | 21,277 | 4,028 | - | 75,499
Letters of credit issued | 12,367 | 115,720 | 43,029 | 30,554 | 29 | 201,699
Pledges and other commercial commitments | 16,028 | 13,382 | 47,288 | 4,880 | - | 81,578
Total other commercial commitments | 559,586 | 407,158 | 946,624 | 247,941 | 21,260 | 2,182,569
Schedule of high, low and average levels | High, low and average levels for each component and year were as follows:
VaR | 2018 USDMM |  | 2017 USDMM
Consolidated: |  |  |
High | 5.23 |  | 5.71
Low | 1.21 |  | 1.56
Average | 2.01 |  | 3.01
Fixed-income investments: |  |  |
High | 2.54 |  | 5.51
Low | 1.19 |  | 1.15
Average | 1.71 |  | 2.36
Variable-income investments |  |  |
High | 0.01 |  | 0.01
Low | 0.00 |  | 0.00
Average | 0.00 |  | 0.00
Foreign urrency investments |  |  |
High | 4.29 |  | 4.21
Low | 0.09 |  | 0.53
Average | 1.14 |  | 1.71
Schedule of market risk | Market risk – Financial management portfolio – December 31, 2018 and 2017
| 2018 |  | 2017
Effect on financial income | Effect on capital |  | Effect on financial income | Effect on capital
Financial management portfolio – local currency (MCh$) |  |  |  |  |
Loss limit | 48,000 | 192,001 |  | 48,000 | 175,000
High | 43,742 | 189,725 |  | (37,148) | (141,287)
Low | 27,854 | 170,450 |  | (22,958) | (112,818)
Average | 37,569 | 180,972 |  | (29,110) | (128,506)
Financial management portfolio – foreign currency (Th$US) |  |  |  |  |
Loss limit | 30 | 75 |  | 30 | 75
High | 12 | 38 |  | 16 | 42
Low | 4 | (10) |  | 4 | 15
Average | 9 | 22 |  | 10 | 23
Financial management portfolio – consolidated (in MCh$) |  |  |  |  |
Loss limit | 48,000 | 192,002 |  | 48,000 | 175,000
High | 45,492 | 192,848 |  | (38,249) | (142,442)
Low | 29,167 | 168,766 |  | (23,571) | (112,277)
Average | 38,908 | 182,557 |  | (29,948) | (128,360)
Schedule of levels of basic capital and effective net equity | The levels of basic capital and effective net equity at the close of each period are as follows:
|  |  | Ratio
| As of December 31, |  | As of December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
| MCh$ |  | MCh$ |  | % |  | %
Basic capital | 3,239,546 |  | 3,066,180 |  | 7.72 |  | 7.92
Regulatory capital | 4,101,664 |  | 3,881,252 |  | 13.40 |  | 13.91
Consumer Loans [Member] |
Disclosure of nature and extent of risks arising from financial instruments [line items] |
Schedule of provision matrix | The following diagrams set forth the allowances required by our current models for consumer loans: Santander:
Bank | Loan type |  | Allowance Level(1) (Loss rate)
Consumer | Performing |  | New clients | Existing clients | Banefe |
| 0.53% -19.75% | 0.05%-11.92% | 0.13%-18.67% |
Renegotiated consumer loans which were less than 90 days past due at the time of renegotiation (2) |  | 3.66%-30.40% | 10.19%-43.71% |
Renegotiated consumer loans which were more than 90 days past due at the time of renegotiation (2) |  | 41.50%-100% | 51.11%-100% |
Non-performing | Days Past Due | New Clients | Existing Clients | Previously Renegotiated Bank | Previously Renegotiated Banefe
90-120 | 31.78% | 31.78% | 41.50% | 51.11%
120-150 | 51.17% | 51.17% | 60.15% | 66.65%
150-180 | 59.98% | 59.98% | 68.86% | 78.50%
>180 |  | Charged-off
| 1. | Percentage of loans outstanding
| 2. | This category relates only to loans which were renegotiated and were less than 90 days past due at the time of renegotiation, migrating from such category as they reached 90 days past due since renegotiation.
Commerical Loans [Member] |
Disclosure of nature and extent of risks arising from financial instruments [line items] |
Schedule of provision matrix | In order to calculate the estimated incurred loan loss for all commercial loans collectively evaluated for impairment, the Bank sub-divided the portfolio in the following way:
Loan type | Allowance Level(1) (Loss rate) |
Commercial loans analyzed on a group basis | Performing | Commercial loan to individuals w/o mortgage collateral | Commercial loan to individuals with mortgage collateral | Small Enterprise | Mid-sized Enterprise |  |
0.87% -15.70% | 0.03%-3.98% | 0.21%-14.39% | 0.14%-7.31 |  |
Renegotiated commercial loans which were less than 90 days past due at the time of renegotiation (2) | loan w/o mortgage collateral 2.93%-20.65% | loan with mortgage collateral 1.17%-8.25%
Renegotiated commercial loans which were more than 90 days past due at the time of renegotiation (2) | Days Past Due when renegotiated | Commercial loan to individuals w/o mortgage collateral | Commercial loan to individuals with mortgage collateral | Small Enterprise | Mid-sized Enterprise |
90-179 | 41.69% | 12.15% | 30.95% | 18.93% |
180-359 | 67.31% | 23.42% | 64.47% | 51.86% |
360-719 | 75.69% | 34.65% | 70.15% | 63.12% |
>720 | 83.82% | 46.25% | 74.53% | 72.87% |
Non-performing consumer | Days Past Due | Commercial loan to individuals w/o mortgage collateral | Commercial loan to individuals with mortgage collateral | Small Enterprise | Mid-sized Enterprise | Previously renegotiated
90-179 | 41.69% | 12.15% | 30.95% | 18.93% | 18.93%
180-359 | 67.31% | 23.42% | 64.47% | 51.86% | 51.86%
360-719 | 75.69% | 34.65% | 70.15% | 63.12% | 63.12%
>720 | 83.82% | 46.25% | 74.53% | 72.87% | 72.87%
| (1) | Percentage of loans outstanding
| (2) | This category relates only to loans which were renegotiated and were less than 90 days past due at the time of renegotiation, migrating from such category as they reached 90 days past due since renegotiation.
Residential Mortgage Loans [Member] |
Disclosure of nature and extent of risks arising from financial instruments [line items] |
Schedule of provision matrix | The following table sets forth the required loan loss allowance for residential mortgage loans:
Bank | Loan type | Allowance Level(1) (Loss rate)
Residential mortgage | Performing | Bank (excl Select) |  | Santander Select |  |
0.00%-5.18% |  | 0.00%-3.88% |  |
Renegotiated mortgage loans which were less than 90 days past due at the time of renegotiation (2) | 0.16%-8.37% |  |
Renegotiated mortgage loans which were more than 90 days past due at the time of renegotiation (2) | 5.58%-26.25% |  |
Non-performing mortgage | Loan to Value |  |  |  |
0-60 | 5.58% |  |  |
60-80 | 8.48% |  |  |
80-90 | 11.93% |  |  |
>90 | 16.25% |  |  |
| 1. | Percentage of loans outstanding
| 2. | This category relates only to loans which were renegotiated and were less than 90 days past due at the time of renegotiation, migrating from such category as they reached 90 days past due since renegotiation.

X
- Definition The disclosure of detailed information about description of managing liquidity risk. + References No definition available. + Details
Name: | bsac_DescriptionOfDetailedInformationManagingLiquidityRiskExplanatory
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about capital risk. + References No definition available. + Details
Name: | bsac_DisclosureOfCapitalRiskExplanatory
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about credit risk exposure. + References No definition available. + Details
Name: | bsac_DisclosureOfDetailedInformationCreditRiskExposureExplanatory
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about sensitivity analysis. + References No definition available. + Details
Name: | bsac_DisclosureOfSensitivityAnalysisExplanatory
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for allowance sensibility. + References No definition available. + Details
Name: | bsac_ScheduleOfAllowanceSensibility
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for financial assets and associated collateral. + References No definition available. + Details
Name: | bsac_ScheduleOfFinancialAssetsAndAssociatedCollateral
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for macro economical forward. + References No definition available. + Details
Name: | bsac_ScheduleOfMacroEconomicalForward
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The tabular disclosure of modified loans. + References No definition available. + Details
Name: | bsac_ScheduleOfModifiedLoans
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition tabular disclosure for mortage and other loan. + References No definition available. + Details
Name: | bsac_ScheduleOfMortageAndOtherLoan
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for portfolio. + References No definition available. + Details
Name: | bsac_ScheduleOfPortfolio
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for probabilities. + References No definition available. + Details
Name: | bsac_ScheduleOfProbabilities
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for risk concentration. + References No definition available. + Details
Name: | bsac_ScheduleOfRiskConcentration.
Namespace Prefix: | bsac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of how the entity manages its liquidity risk. [Refer: Liquidity risk [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 39 -Subparagraph c -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_39_c&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DescriptionOfManagingLiquidityRisk
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the credit risk exposure. Credit risk exposure is the credit risk inherent in an entity’s financial assets and commitments to extend credit. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 35M -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_35M&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfCreditRiskExposureExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of financial liabilities. [Refer: Financial liabilities] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 7 -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_7&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfFinancialLiabilitiesExplanatory
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_DisclosureOfNatureAndExtentOfRisksArisingFromFinancialInstrumentsLineItems
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the provision matrix. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 35N -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_35N&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfProvisionMatrixExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The explanation of the credit risk management practices and how they relate to the recognition and measurement of expected credit losses. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 35F -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_35F&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_ExplanationOfCreditRiskManagementPracticesAndHowTheyRelateToRecognitionAndMeasurementOfExpectedCreditLossesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of information about the collateral held as security and other credit enhancements (for example, quantification of the extent to which collateral and other credit enhancements mitigate credit risk) for financial assets that are credit-impaired at the reporting date. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 35K -Subparagraph c -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_35K_c&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_InformationAboutCollateralHeldAsSecurityAndOtherCreditEnhancementsForCreditimpairedFinancialAssetsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the sensitivity analysis for types of market risk to which the entity is exposed, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date. [Refer: Market risk [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Paragraph 40 -Subparagraph a -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=para_40_a&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_SensitivityAnalysisForEachTypeOfMarketRisk
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | ifrs-full_ClassesOfFinancialInstrumentsAxis=ifrs-full_ConsumerLoansMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | ifrs-full_ClassesOfFinancialInstrumentsAxis=bsac_CommericalLoansMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | ifrs-full_ClassesOfFinancialInstrumentsAxis=bsac_ResidentialMortgageLoansMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |