CASH AND DUE FROM BANKS (Tables)

12 Months Ended

Dec. 31, 2021

CASH AND DUE FROM BANKS [Abstract]

Composition of Cash and due from Banks

a) The composition of the item is presented below:

	2021		2020
	S/(000)		S/(000)
Cash and clearing (b)		4,973,007		5,233,643
Deposits with Central Reserve Bank of Peru (BCRP) (b)		25,359,565		26,003,415
Deposits with Central Bank of Bolivia and Colombia (b)		913,377		1,085,785
Deposits with foreign banks (c)		6,727,014		3,350,106
Deposits with local banks (c)		1,316,292		1,027,081
Interbank funds		2,943		32,222
Accrued interest		1,347		1,515
Total cash and cash equivalents		39,293,545		36,733,767
Restricted funds		27,195		19,227
Total cash		39,320,740		36,752,994

Cash, Clearing and Deposits with Central Banks and Bank of Republic

The composition of these funds is as follows:

	2021		2020
	S/(000)		S/(000)
Legal cash requirements
Deposits with Central Reserve Bank of Perú (i)		19,383,577		16,903,941
Deposits with Central Bank of Bolivia		905,309		1,079,878
Deposits with Republic Bank of Colombia		8,068		5,907
Cash in vaults of Bank		4,275,997		4,529,683
Total legal cash requirements		24,572,951		22,519,409
Additional funds
Overnight deposits with Central Reserve Bank of Perú (ii)		4,536,379		2,972,744
Term deposits with Central Reserve Bank of Perú (iii)		1,260,000		5,988,900
Cash in vaults of Bank and others		697,010		703,960
Other Deposits BCRP		179,609		137,830
Total additional funds		6,672,998		9,803,434
Total		31,245,949		32,322,843

(i) At December 31, 2021 cash and deposits that generate interest subject to legal cash requirements in local and foreign currency are subject to an implicit rate of 4.77 percent and 33.17 percent, respectively, on the total balance of obligations subject to legal cash requirements, as required by the BCRP (4.00 percent and 34.51 percent, respectively, at December 31, 2020).

In Management’s opinion, the Group has complied with the calculation legal cash requirements established by current regulations.

(ii) As of December 31, 2021, the Group maintains four “overnight” deposits with the BCRP, of which are two denominated in soles in amount of S/690.0 million and two in US dollar in amount of US$964.7 million, equivalent to S/3,846.4 million. At said date, the deposit in soles and deposits in US dollar accrue interest at annual rates of 1.85 percent and 0.05 percent, respectively, and have maturities at 3 days.

As of December 31, 2020, the Group maintains four “overnight” deposits with the BCRP, which are two denominated in soles in amount of S/559.7 million and two in US dollar in amount of US$666.4 million, equivalent to S/2,413.0 million. At said date, deposits in soles and deposits in US dollar accrue interest at annual rates of 0.15 percent and 0.13, respectively, and have maturities at 4 days.

(iii) In order to manage liquidity and in view of the BCRP’s offer of profitable rates for short-term deposits. The Group maintains four term deposits, which are denominated in soles, accrue interest at an annual rate of 2.48 percent and 2.49 percent and have maturities between January 3 and 4, 2022. As of December 31, 2020, the group held sixteen time deposits denominated in soles, accruing interest at an annual rate of 0.25 percent and maturing between January 4 and January 7, 2021. The decrease in time deposits at the BCRP is mainly due to lower liquidity surpluses due to a lower level of customer deposits.