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Expected Credit Losses Allowance

12 Months Ended

Dec. 31, 2019

Expected Credit Losses Allowance [Abstract]

NOTE 30

EXPECTED CREDIT LOSSES ALLOWANCE

Expected credit losses (ECL) allowance – under IFRS 9

As of December 31, 2019 and 2018, under the new credit risk model established by IFRS 9 the ECL allowance by stage recorded at income statements is as follows:

For the year ended December 31, 2019	Stage1						Stage2						Stage3						TOTAL
	Individual			Collective			Individual			Collective			Individual			Collective
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans		(3,002	)		(4,930	)		(10,469	)		(8,686	)		(79,501	)		(33,657	)		(140,245	)
Mortgage loans		-			(1,177	)		-			(4,998	)		-			(8,237	)		(14,412	)
Consumer loans		-			(8,875	)		-			(15,280	)		-			(145,328	)		(169,483	)
Contingent loans		45			589			10			24			152			188			1,008
Loans and account receivable at FVOCI		5			-			-			-			-			-			5
Debt at FVOCI		-			(184	)		-			-			-			-			(184	)
Total		(2,952	)		(14,577	)		(10,459	)		(28,940	)		(79,349	)		(187,034	)		(323,311	)

For the year ended December 31, 2018	Stage1					Stage2						Stage3						TOTAL
	Individual			Collective		Individual			Collective			Individual			Collective
	MCh$			MCh$		MCh$			MCh$			MCh$			MCh$			MCh$
Commercial loans		79			5,652		(2,891	)		(1,533	)		(96,131	)		(47,959	)		(142,783	)
Mortgage loans		-			5,583		-			5,161			-			3,377			14,121
Consumer loans		-			1,861		-			192			-			(191,304	)		(189,251	)
Contingent loans		(90	)		1,214		11			(68	)		(225	)		(834	)		8
Loans and account receivable at FVOCI		363			-		68			-			-			-			431
Debt at FVOCI		-			66		-			-			-			-			66
Total		352			14,376		(2,812	)		3,752			(96,356	)		(236,720	)		(317,408	)

II.

Provision for loan losses – under IAS 39

				Loans and accounts receivable from customers
For the year ended December 31, 2017	Interbank loans			Commercial loans						Mortgage loans			Consumer loans			Contingent loans
	Individual			Individual			Group			Group			Group			Individual			Group			Total
	MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$			MCh$
Charged-off individually significant loans		-			(15,699	)		-			-			-			-			-			(15,699	)
Provisions established		(307	)		(64,658	)		(148,681	)		(43,621	)		(252,038	)		(3,117	)		(4,224	)		(516,646	)
Total provisions and charge-offs		(307	)		(80,357	)		(148,681	)		(43,621	)		(252,038	)		(3,117	)		(4,224	)		(532,345	)
Provisions released		3,970			55,925			20,491			11,427			46,089			7,001			1,660			146,563
Recovery of loans previously charged off		-			11,114			21,499			10,942			39,972			-			-			83,527
Net charge to income		3,663			(13,318	)		(106,691	)		(21,252	)		(165,977	)		3,884			(2,564	)		(302,255	)

The detail of Charge-off of individually significant loans, is as follows:

	For the years ended December 31,
	2017
	MCh$

Charge-off of loans		51,978
Provision applied		(36,279	)
Net charge offs of individually significant loans		15,699