Contingent Transactions

12 Months Ended

Dec. 31, 2020

10.	CONTINGENT TRANSACTIONS

In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in statement of financial position and they are, therefore, an integral part of the total risk of the Bank.

As of December 31, 2020 and 2019, the Bank maintains the following maximum exposure to credit risk related to this kind of transactions:


	12/31/2020			12/31/2019
Undrawn commitments of credit cards and checking accounts		95,220,298			124,364,340
Guarantees granted		1,282,770			2,340,277
Letters of credit		888,664			607,827
Overdraft and unused agreed commitments		518,606			1,432,695

		97,910,338			128,745,139

Less: Allowance for ECL (1)		(23,200	)		(23,514	)

Total		97,887,138			128,721,625

(1)	It includes high grade credit risk exposures in stage 1. During 2020 and 2019, there were no transfers between stages. See also note 22.

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy described in note 51.