NOTE 06
INVESTMENTS UNDER RESALE AGREEMENTS AND OBLIGATIONS UNDER REPURCHASE AGREEMENTS
| a) | Rights arising from resale agreements |
The Bank purchases financial instruments agreeing to resell them at a future date. As of December 31, 2017 and 2016, rights associated with instruments acquired under contracts to resell are as follows:
| As of December 31, | |||||||||
| 2017 | 2016 | ||||||||
| From 1 day and less than 3 months | More than 3 months and less than 1 year |
More than 1 year | Total | From 1 day and less than 3 months | More than 3 months and less than 1 year |
More than 1 year | Total | ||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||
Securities from the Chilean Government and the Chilean Central Bank |
|||||||||
| Chilean Central Bank Bonds | - | - | - | - | 3,260 | - | - | 3,260 | |
| Chilean Central Bank Notes | - | - | - | - | - | - | - | - | |
Other securities from the Government and the Chilean Central Bank |
- | - | - | - | 3,476 | - | - | 3,476 | |
| Subtotal | - | - | - | - | 6,736 | - | - | 6,736 | |
| Total | - | - | - | - | 6,736 | - | - | 6,736 | |
b) Obligations arising from repurchase agreements
The Bank raises funds by selling financial instruments and committing itself to buy them back at future dates, plus interest at a predetermined rate. As of December 31, 2017 and 2016, obligations related to instruments sold under repurchase agreements are as follows:
| As of December 31, | |||||||||
| 2017 | 2016 | ||||||||
From 1 day to less than 3 months |
More than 3 months and less than 1 year |
More than 1 year |
Total | From 1 day to less than 3 months |
More than 3 months and less than 1 year |
More than 1 year |
Total | ||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||
Securities from Chilean Government and the Chilean Central Bank: |
|||||||||
| Chilean Central Bank Bonds | - | - | - | - | - | - | - | - | |
| Chilean Central Bank Notes | - | - | - | - | 155,044 | - | - | 155,044 | |
| Other securities from the Government and the Chilean Central Bank | 241,995 | - | - | 241,995 | - | - | - | - | |
| Subtotal | 241,995 | - | - | 241,995 | 155,044 | - | - | 155,044 | |
Instruments from other domestic institutions: |
|||||||||
| Time deposits in Chilean financial institutions | 1,118 | 38 | - | 1,156 | 56,898 | 495 | - | 57,393 | |
| Subtotal | 1,118 | 38 | - | 1,156 | 56,898 | 495 | - | 57,393 | |
Instruments from other foreign institutions: |
|||||||||
| Securities from Govemment or foreign Central Banks | 24,910 | - | - | 24,910 | - | - | - | - | |
| Subtotal | 24,910 | - | - | 24,910 | - | - | - | - | |
| Total | 268,023 | 38 | - | 268,061 | 211,942 | 495 | - | 212,437 | |
c) Below is the detail by portfolio of collateral associated with repurchase agreements as of December 31, 2017 and 2016, valued at fair value:
| As of December 31, | |||||||
| 2017 | 2016 | ||||||
Available for sale portfolio |
Trading portfolio |
Total | Available for sale portfolio |
Trading portfolio | Total | ||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||
| Chilean Central Bank and Government securities: | |||||||
| Chilean Central Bank Bonds | - | - | - | - | - | - | |
| Chilean Central Bank Notes | - | - | - | 155,044 | - | 155,044 | |
Other securities from the Government and the Chilean Central Bank |
241,995 | - | 241,995 | - | - | - | |
| Subtotal | 241,995 | - | 241,995 | 155,044 | - | 155,044 | |
| Other Chilean securities: | |||||||
| Time deposits in Chilean financial institutions | 1,156 | - | 1,156 | 57,393 | - | 57,393 | |
| Subtotal | 1,156 | - | 1,156 | 57,393 | - | 57,393 | |
Instruments from other foreign institutions: |
|||||||
| Securities from Govemment or foreign Central Banks | 24,910 | - | 24,910 | - | - | - | |
| Subtotal | 24,910 | - | 24,910 | - | - | - | |
| Total | 268,061 | - | 268,061 | 212,437 | - | 212,437 | |