PA - Banco Security

199
PAGE
Regulatory Liquidity Mismatching as of December 31, 2009 in THCH$ (Foreign Currency), for Banco Security is as follows:
< 1 months
From 1 to 3
months
From 3
months to 1
year
From 1 to 3
years
From 3 to 6
years
> 6 years total
ThCLP$ ThCLP$ ThCLP$ ThCLP$ ThCLP$ ThCLP$ ThCLP$
Available funds 49,613 - - - - - 49,613
Financial investments 3,546 2,119 2,634 6,111 19,958 26,863 3,349
Commercial and consumer loans 42,049 56,286 69,927 14,740 6,522 2,911 192,435
Lines of credit and overdraft - - - - - - -
Other liabilities 65,770 - - - - - 65,770
Derivative contracts 6,531 384 22,266 526 - - 29,707
167,509 58,789 94,827 21,378 26,480 29,774 398,758
On demand obligations 61,964 - - - - - 61,964
Financing from other banks 3,757 508 - - - - 4,265
Time deposits 100,937 55,830 6,017 - - - 162,784
External financing 37,428 45,932 33,491 11,349 - - 128,200
Other obligations 34,327 - - - - - 34,327
Derivate contracts 19,730 21,724 17,180 1,072 - - 59,706
258,143 123,995 56,687 12,421 - - 451,246
Net cash flow (90,634) (65,206) 38,140 8,957 26,480 29,774 (52,488)
Accumulative net cash flow (90,634) (155,840) (117,700) (108,742) (82,262) (52,488)
Legal limit (197,789)
Surplus / (deficit) 107,155
Hedge Accounting
The Bank established a cash flow hedge in October 2010. Upon inception of the hedge the Bank formally documented the
relationship between hedges, hedged items, described the objectives and strategy of such hedge described how risk will be
measured and defined methodologies related to testing the hedges effectiveness.
The Bank makes a prospective and retrospective evaluation of the effectiveness of the hedge to confirm whether it is highly
effective, considering that it is highly effective if the results are between 80% and 125%.
The Bank defined a hedging strategy, through which it is able to stabilize the variability of the revaluation of interest paid in US
dollars and the changes in exchange rate for foreign borrowings in US dollars at a floating rate through derivatives (e.q. cross