CASH AND DUE FROM BANKS (Tables)

12 Months Ended

Dec. 31, 2023

The composition of the item is presented below:

	2023		2022
	S/(000)		S/(000)

Cash and clearing (b)		5,227,446		5,410,294
Deposits with Central Reserve Bank of Peru (BCRP) (b)		23,673,777		24,160,723
Deposits with Central Reserve Bank of Bolivia and bank Republic of Colombia (b)		1,397,469		634,684
Deposits with foreign banks (c)		2,951,396		2,582,838
Deposits with local banks (c)		600,180		1,009,997
Interbank funds		–		269,314
Accrued interest		70,346		53,112
Total cash and cash equivalents		33,920,614		34,120,962
Restricted funds		10,334		62,878
Total cash		33,930,948		34,183,840

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

The composition of these funds is as follows:

	2023		2022
	S/(000)		S/(000)

Legal cash requirements (i)
Deposits with Central Reserve Bank of Peru		21,182,492		21,103,687
Deposits with Central Reserve Bank of Bolivia		1,352,378		628,399
Deposits with Republic Bank of Colombia		45,091		6,285
Cash in vaults of Bank		4,490,602		4,714,275
Total legal cash requirements		27,070,563		26,452,646

Additional funds
Overnight deposits with Central Reserve Bank of Peru (ii)		1,546,478		2,013,703
Term deposits with Central Reserve Bank of Peru (iii)		-		545,000
Cash in vaults of Bank and others		736,844		696,019
Other Deposits BCRP		944,807		498,333
Total additional funds		3,228,129		3,753,055
Total		30,298,692		30,205,701

(i)

As of December 31, 2023 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 34.87 percent, respectively, on the total balance of obligations subject to legal cash requirements, as required by the BCRP; as of December 31, 2022, 6.01 percent and 34.55 percent, respectively.

As of December 31, 2023, part of the additional reserve funds in dollars at a variable rate amounting to US$150.0 million, equivalent to S/556.4 million, have cash flow coverage through interest rate swaps (IRS), through which said funds are converted into dollars at a fixed rate, see note 12(c).

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

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

(ii)

As of December 31, 2023, the Group maintains four “overnight” deposits with the BCRP, of which one is denominated in soles in amount of S/1,160.0 million and two are denominated in U.S. Dollar in amount of US$104.2 million, equivalent to S/386.5 million. At said date, the deposit in soles and deposits in U.S. Dollar accrue interest at annual rates of 4.00 percent and 5.34 percent, respectively, and have maturities at 5 days.

As of December 31, 2022, the Group maintained three “overnight” deposits with the BCRP, which one were denominated in soles in amount of S/35.0 million and two in US Dollar in amount of US$518.8 million, equivalent to S/1,978.7 million. At said date, deposits in soles and deposits in U.S. Dollar accrued interest at annual rates of 5.25 percent and 4.39, respectively, and had maturities at 4 days.

(iii)

As of December 31, 2023, the Group no maintains term deposits with the BCRP. As of December 31, 2022, the group held four term deposits denominated in soles, accruing interest at an annual rate between 7.30 percent and 7.49 percent and expired on January 3, 2023.