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PROVISIONS AND CONTINGENT PROVISIONS
 12 Months Ended
Dec. 31, 2018
Provisions [abstract]  
PROVISIONS AND CONTINGENT PROVISIONS

NOTE 22 

PROVISIONS AND CONTINGENT PROVISIONS 

 

  a) As of December 31, 2018 and 2017, the composition is as follows:

  

     As of December 31,
  2018 2017
  MCh$ MCh$
     
Provisions for personnel salaries and expenses 93,379 97,576
Provisions for mandatory dividends 178,600 168,840
Provisions for contingent loan risk* 23,709 9,480
Other 620 599
Total 305,271 303,798

* Under IFRS 9 disclosure requeriments 

 

  b) Below is the activity regarding provisions during the years ended December 31, 2018 and 2017

  

 

Personnel salaries 

and expenses  

 Mandatory Dividend Contingencies
  MCh$ MCh$ MCh$
       
Balances as of January 1, 2018 97,576 168,840 27,303
Provisions established 80,912 178,600 19,447
Application of provisions (72,975) - (4,431)
Provisions released (3,195) (168,840) (33,356)
Reclassifications - - -
Other (8,939) - -
       
Balances as of December 31, 2018  93,379 178,600 8,963
       
Balances as of January 1, 2017 72,592 142,815 65,404
Provisions established 106,687 168,840 8,645
Application of provisions (81,703) (142,815) (389)
Provisions released - - (46,357)
Reclassifications - - -
Other - - -
       
Balances as of December 31, 2017 97,576 168,840 27,303

  

  c) Provisions for personnel salaries and expenses includes:

  

  As of December 31,
  2018 2017
  MCh$ MCh$
     
Provision for seniority compensation 9,531 17,874
Provision for stock-based personnel benefits - -
Provision for performance bonds 59,633 53,947
Provision for vacations 22,792 23,039
Provision for other personnel benefits 1,423 2,716
Total 93,379 97,576

  

  d) Provisions for contingent loan risk

  

Provision for contingent loan arise from contingent liabilities and loan commitments. Provisions for ECL risks in respect of contingent loan are included in ECL allowance in the income statements for the year.

  

The Bank has apply the new model for ECL under IFRS to contingent loans. 

 

An analysis of changes in the corresponding ECL allowance is, as follows: 

 

  Stage 1 Stage 2 Stage 3 TOTAL
  Individual Collective Individual Collective Individual Collective
ECL allowance at January 1, 2018 1,028 16,261 219 187 2,884 3,182 23,761
Transfer              
Transfers to stage 2 (30) - 65 - - - 35
Transfers to stage 3 (1) - - - 328 - 327
Transfers to stage 3 - - (11) - 567 - 556
Transfers to stage 1 1 - (7) - - - (6)
Transfers to stage 2 - - - - - - -
Transfers to stage 1 - - - - (1) - (1)
Net changes on financial assets 115 683 3 (37) 54 (77) 741
Writte-off - - - - - - -
Foreign Exchange adjustments (32) (1,874) (10) 22 24 166 (1,704)
At 31 December 2018 1,081 15,070 259 172 3,856 3,271 23,709