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Provisions and Contingent Provisions
 12 Months Ended
Dec. 31, 2021
Disclosure of provisions [text block] [Abstract]  
PROVISIONS AND CONTINGENT PROVISIONS

NOTE 21

PROVISIONS AND CONTINGENT PROVISIONS

 

a)As of December 31, 2021 and 2020, the composition is as follows:

 

   As of December 31, 
   2021   2020 
   MCh$   MCh$ 
         
Provisions for personnel salaries and expenses   110,621    104,270 
Provisions for mandatory dividends   253,640    164,284 
Provision for interest of perpetual bonds   4,995    
-
 
Provisions for contingent loan   40,357    28,247 
Provision for contingencies   55,236    33,863 
Total   464,849    330,664 

 

b)Below is the activity regarding provisions during the years ended December 31, 2021, 2020 and 2019:

 

   

Personnel salaries

and expenses

     Mandatory Dividend    

Interest of

perpetual bonds

     Contingent loan     Contingencies     Total  
    MCh$     MCh$     MCh$     MCh$     MCh$     MCh$  
Balances as of January 1, 2021     104,270       164,284      
-
       28,247       33,863       330,664  
Provisions established     90,363       253,640       4,995       73,201       32,269       454,468  
Application of provisions     (80,768 )    
-
      
-
      
-
      
-
       (80,768 )
Provisions released     (1,836 )     (164,284 )    
-
       (63,654 )     (10,896 )     (240,670 )
Other     (1,408 )    
-
      
-
       2,563      
-
       1,155  
Balances as of December 31, 2021     110,621       253,640       4,995       40,357       55,236       464,849  
                                                 
Balances as of January 1, 2020     101,223       185,727      
-
       23,240       15,940       326,130  
Provisions established     76,281       164,284      
-
       14,683       25,367       280,615  
Application of provisions     (71,481 )    
-
      
-
      
-
      
-
       (71,481 )
Provisions released     (1,755 )     (185,727 )    
-
       (9,676 )     (7,444 )     (204,602 )
Other     2      
-
      
-
      
-
      
-
       2  
Balances as of December 31, 2020     104,270       164,284      
-
       28,247       33,863       330,664  
                                                 
Balances as of January 1, 2019     93,379       178,600      
-
       23,709       9,583       305,271  
Provisions established     78,316       185,727      
-
       15,879       28,373       308,295  
Application of provisions     (70,385 )    
-
      
-
      
-
       (155 )     (70,540 )
Provisions released     (552 )     (178,600 )    
-
       (16,348 )     (21,861 )     (217,361 )
Other     465      
-
      
-
      
-
      
-
       465  
Balances as of December 31, 2019     101,223       185,727      
-
       23,240       15,940       326,130  

 

c)Provisions for personnel salaries and expenses includes:

 

   As of December 31, 
   2021   2020 
   MCh$   MCh$ 
         
Provision for seniority compensation   7,638    6,658 
Provision for stock-based personnel benefits   
-
    
-
 
Provision for performance bonus   73,960    65,786 
Provision for vacations   28,553    29,307 
Provision for other personnel benefits   470    2,519 
Total   110,621    104,270 

 

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.

 

An analysis of changes in the corresponding ECL allowance as of December 31, 2021 and 2020 is as follows:

 

    December 31, 2021  
    Stage 1     Stage 2     Stage 3     TOTAL  
ECL allowance at January 1, 2021   13,825     6,315     8,107     28,247  
Transfer                        
Transfers from stage 1 to stage 2     (1,303 )     4,714      
-
       3,411  
Transfers from stage 1 to stage 3     (70 )    
-
       2,876       2,806  
Transfers from stage 2 to stage 3    
-
       (217 )     4,990       4,773  
Transfers from stage 2 to stage 1     1,323       (4,551 )    
-
       (3,228 )
Transfers from stage 3 to stage 2    
-
       217       (1,699 )     (1,482 )
Transfers from stage 3 to stage 1     12      
-
       (469 )     (457 )
Net changes on financial assets     9,058       3,120       (6,074 )     6,104  
Write-off    
-
      
-
      
-
      
-
  
Other adjustments     184       1       (2 )     183  
At December 31, 2021     23,029       9,599       7,729       40,357  

 

    December 31, 2020  
    Stage 1     Stage 2     Stage 3     TOTAL  
ECL allowance at January 1, 2020   14,636     768     7,836     23,240  
Transfer                        
Transfers from stage 1 to stage 2     (4,887 )     15,227      
-
       10,340  
Transfers from stage 1 to stage 3     (76 )    
-
       2,840       2,764  
Transfers from stage 2 to stage 3    
-
       (221 )     4,559       4,338  
Transfers from stage 2 to stage 1     2,852       (9,569 )    
-
       (6,717 )
Transfers from stage 3 to stage 2    
-
       240       (1,940 )     (1,700 )
Transfers from stage 3 to stage 1     14      
-
       (444 )     (430 )
Net changes on financial assets     2,079       (189 )     (4,743 )     (2,853 )
Write-off    
-
      
-
      
-
      
-
  
Other adjustments     (793 )     59       (1 )     (735 )
At December 31, 2020     13,825       6,315       8,107       28,247