XML 50 R30.htm IDEA: XBRL DOCUMENT v3.22.0.1
Contingencies and Commitments
 12 Months Ended
Dec. 31, 2021
Disclosure of commitments and contingent liabilities [text block] [Abstract]  
CONTINGENCIES AND COMMITMENTS

NOTE 23

CONTINGENCIES AND COMMITMENTS

 

a)Lawsuits and legal procedures

 

As of the issuance date of these financial statements, the Bank and its affiliates were subject to certain legal actions in the normal course of their business, As of December 31, 2021, the Bank and its subsidiaries have provisions for this item of Ch$1,395 million (Ch$1,024 million as of December 31, 2020) which is included in “Provisions” in the Consolidated Statements of Financial Position as provisions for contingencies.

 

b)Contingent loans

 

The following table shows the Bank’s contractual obligations to issue loans:

 

    As of December 31,  
    2021     2020  
    MCh$     MCh$  
Letters of credit issued     323,531       165,119  
Foreign letters of credit confirmed     53,777       82,779  
Performance guarantee     1,390,410       1,090,643  
Personal guarantees     579,051       441,508  
Total contingent liabilities     2,346,769       1,780,049  
Available on demand credit lines     8,986,535       8,391,414  
Other irrevocable credit commitments     265,517       406,234  
Total loan commitment     9,252,052       8,797,648  
Total     11,598,821       10,577,697  

 

c)Held securities

 

The Bank holds securities in the normal course of its business as follows:

 

    As of December 31,  
    2021     2020  
    MCh$     MCh$  
Third party operations            
Collections     109,465       83,392  
Transferred financial assets managed by the Bank     16,987       18,017  
Assets from third parties managed by the Bank and its affiliates     1,307,727       1,352,032  
Subtotal     1,434,179       1,453,441  
Custody of securities                
Securities held in custody     7,022,067       11,022,790  
Securities held in custody deposited in other entity     820,948       808,186  
Issued securities held in custody     9,713,122       10,461,847  
Subtotal     17,556,137       22,292,823  
Total     18,990,316       23,746,264  

 

As of December 31, 2021, the Bank has classified the portfolios managed by private banking into “Assets from third parties managed by the Bank and its affiliates” (memo account). At the end of December 2021, the balance for this was Ch$1,307,692 million (Ch$1,351,997 million at December 31, 2020).

 

d)Guarantees

 

Banco Santander-Chile has an integral bank policy of coverage of Official Loyalty N°5077934 in force with the company Compañía de Seguros Chilena Consolidada S.A., coverage for USD50,000,000 per claim with an annual limit of USD100,000,000, which covers both the Bank and its subsidiaries, with an expiration date of June 30, 2022. This guarantee has an annual renewal clause.

 

e)Contingent loans and liabilities

 

The Bank took on several contingent loans and liabilities, to satisfy its clients’ needs, that are not be recognized in the Consolidated Financial Statements of Financial Position; these contain loan risks and they are, therefore, part of the Bank’s global risk.