CASH AND DUE FROM BANKS (Tables)

12 Months Ended

Dec. 31, 2022

CASH AND DUE FROM BANKS [Abstract]

Composition of Cash and due from Banks

a) This item comprises the following:

	2022		2021
	S/(000)		S/(000)
Cash and clearing (b)		5,410,294		4,973,007
Deposits with Central Reserve Bank of Peru (BCRP) (b)		24,160,723		25,359,565
Deposits with Central Bank of Bolivia and Colombia (b)		634,684		913,377
Deposits with foreign banks (c)		2,582,838		6,727,014
Deposits with local banks (c)		1,009,997		1,316,292
Interbank funds		269,314		2,943
Accrued interest		53,112		1,347
Total cash and cash equivalents		34,120,962		39,293,545
Restricted funds		62,878		27,195
Total cash		34,183,840		39,320,740

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

This item comprises the following:

	2022		2021
	S/(000)		S/(000)
Legal cash requirements (i)
Deposits with Central Reserve Bank of Perú		21,103,687		19,383,577
Deposits with Central Bank of Bolivia		628,399		905,309
Deposits with Republic Bank of Colombia		6,285		8,068
Cash in vaults of Bank		4,714,275		4,275,997
Total legal cash requirements		26,452,646		24,572,951
Additional funds
Overnight deposits with Central Reserve Bank of Perú (ii)		2,013,703		4,536,379
Term deposits with Central Reserve Bank of Perú (iii)		545,000		1,260,000
Cash in vaults of Bank and others		696,019		697,010
Other Deposits BCRP		498,333		179,609
Total additional funds		3,753,055		6,672,998
Total		30,205,701		31,245,949

(i) As of December 31, 2022 cash and deposits that generate interest subject to legal cash requirements in local and foreign currency are subject to an implicit rate of 6.01 percent and 34.55 percent, respectively, on the total balance of obligations subject to legal cash requirements, as required by the BCRP; as of December 31, 2021 4.77 percent and 33.17 percent, respectively.

The reserve funds, which represent the minimum mandatory, do not earn interest; however, the excess of the mandatory reserve deposited in BCRP, earns interests at a nominal rate established by BCRP.

Management considers that the Group has complied with the requirements established by current regulations related to the calculation of the legal reserve.

(ii) As of December 31, 2022, the Group maintains three “overnight” deposits with the BCRP, of which one is denominated in soles for a total of S/35.0 million and two are denominated in U.S. dollar for a total of US$518.8 million, equivalent to S/1,978.7 million. To that date, the deposit in soles and deposits in U.S. dollar accrue interest at annual rates of 5.25 percent and 4.39 percent, respectively, and have maturities at 4 days.

As of December 31, 2021, the Group maintained four “overnight” deposits with the BCRP, which two were denominated in soles in amount of S/690.0 million and two in U.S. Dollar in amount of US$964.7 million, equivalent to S/3,846.4 million. At said date, deposits in soles and deposits in U.S. Dollar accrued interest at annual rates of 1.85 percent and 0.05 percent, respectively, and had maturities at 3 days.

(iii) As of December 31, 2022, the Group maintains four term deposits, which are denominated in soles, accrue interest at an annual rate between 7.30 percent and 7.49 percent and expires on January 3, 2023. As of December 31, 2021, the Group held four term deposits denominated in soles, accruing interest at an annual rate between 2.48 percent and 2.49 percent and expired between January 3 and January 4, 2022. The decrease in term deposits at the BCRP is mainly influenced by higher rate levels at the market level, this generates a lower surplus to place in term deposits with the BCRP and, in general, a lower level of liquidity at the bank level.