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Other Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Disclosure of Other Assets Text Block (Abstract)  
Schedule of other assets
   As of December 31, 
   2022   2021 
   MCh$   MCh$ 
     
Assets available to be granted under the financial leasing agreements   32,220    51,957 
Guarantee deposits (margin accounts) (1)   2,442,325    1,988,410 
Gold investments   715    718 
VAT credit   44,180    38,844 
Prepaid expenses (2)   245,937    322,887 
Valuation adjustments by macro hedge (3)   160,531    217,979 
Pension plan assets   542    523 
Accounts and notes receivable   184,989    92,039 
Brokerage dealer and simultaneous transactions   243,345    44,860 
Other cash submitted guarantess   2    41,195 
In-progress operation   31,709    15,163 
Other assets (4)   192,850    118,239 
 Total   3,579,345    2,932,814 

 

(1)Guarantee deposits (margin accounts) correspond to collateral associated with derivative financial contracts to mitigate the counterparty credit risk and are mainly established in cash. These guarantees operate when mark to market of derivative financial instruments exceed the levels of threshold agreed in the contracts, which could result in the Bank delivering or receiving collateral.

 

(2)Under this item, the Bank has recorded prepaid expense related to the Santander LATAM Pass programme, which is consumed on a monthly basis in accordance with the client use of Bank’s transactional products and therefore the Bank assigned the respective LATAM Pass miles. In May 2020, LATAM Airlines Group S.A began a reorganization process under Chapter 11, with an aim to continue operating. LATAM has publicly stated its intention to honor all current and future tickets, as well as travel vouchers, miles and frequent flyer programmes, which has been ratified by the bankruptcy court of New York (in charge of chapter 11). In addition, LATAM formalized two tranches of the DIP (Debtor in Possession) financing proposal for a total of USD 2,200 million, obtaining all resources necessary to continue operating during the crisis. In October 2020, the company made its first disbursement for US$1,150 million from the DIP financing, which represents 50% of the amount available and allowed to reestablish its operations and start preparing its reorganization plan. On January 27, 2021, the request made by LATAM to postpone the deadline for submitting its reorganization plan was approved. On November 26, 2021, LATAM submitted to the Bankruptcy court a Reorganization Plan supported by main stakeholders to strengthen the capital structure and long-term sustainability. The plan includes the injection of US$8,190 million through capital, convertible bonds and debt, with the purposes of allowing the company to exit from Chapter 11 with appropriate capitalization to execute its business plan.

 

(3)Net assets and liabilities fair value valuation subject to macro hedges. See Note 7.

 

(4)Other assets mainly include settlement of derivatives and other financial transactions.