The table below shows the effect, at December 31, 2017 and 2016, on the fair value of the main financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by a sensitivity analysis under a 1bp scenario, detailed in the following table:
| As of December 31, 2017 | ||||
| Instrument Level 3 | Valuation technique | Main unobservable inputs | Impacts (in MCh$) Sens. -1bp Unfavorable scenario |
Impacts (in MCh$) Sens. +1bp Favorable scenario |
| Derivatives | Present Value method | Curves on TAB indices (1) | (1.3) | 1.3 |
| Available for sale investments | Internal rate of return method | BR UF (2) | - | - |
| As of December 31, 2016 | ||||
| Instrument Level 3 | Valuation technique | Main unobservable inputs | Impacts (in MCh$) Sens. -1bp Unfavorable scenario |
Impacts (in MCh$) Sens. +1bp Favorable scenario |
| Derivatives | Present Value method | Curves on TAB indices (1) | (12.30) | 12.30 |
| Available for sale investments | Internal rate of return method | BR UF (2) | - | - |
| (1) | TAB: “Tasa Activa Bancaria” (Active Bank Rate). Average interest rates on 30, 90, 180 and 360 day deposits published by the Chilean Association of Banks and Financial Institutions (ABIF) in nominal currency (Chilean peso) and in real terms, adjusted for inflation (in Chilean unit of account (Unidad de Fomento - UF)). |
| (2) | BR: “Bonos de Reconocimiento” (Recognition Bonds). The Recognition Bond is an instrument of money provided by the State of Chile to workers who joined the new pension system, which began operating since 1981. |