EVALUATION

Strategic Finance Subject Name

Week - 6

Mario Aguilera
30/10/2023
Career: Industrial Engineering
 EVALUATION

DEVELOPMENT:

Relevance of Private Banking in the Chilean Economy:

a. The actions and operations relevant to private banking in Chile have an impact
significant in the capital markets of the country. This is due to the fact that Banco Santander of Chile, upon
having around 300 branches plays a fundamental role in intermediation
financial and in access to economic resources. Their notable actions and operations include:

Offer a wide range of financial products for individuals, such as checking accounts, cards
of credit, insurance, and mortgage loans, which promotes personal saving and investment.

Providing financial services to businesses, such as financing, credit cards

business services, state guarantees, and transactional services, which support growth and
business stability in Chile.

Manage debt securities both short and long term, regulated by Law 18045, which
contributes to the liquidity and stability of the stock market.

Offering investment and hedging services for both individuals and businesses, which allows
the diversification and protection of financial assets.

These actions are essential to mobilize financial resources in the economy, promote the
investment and facilitating access to credit, which directly impacts economic growth and
the development of the capital market in Chile.

b. The requirements and commitments acquired when purchasing financial products from Banco Santander
In Chile, they can vary depending on whether they are natural or legal persons. However, in both
cases, taking on debt has repercussions on the economy. The requirements and commitments can
include

Solvency assessment: Both natural and legal persons must undergo an evaluation.
of solvency to determine their ability to pay before obtaining credits or loans.

Interests and terms: The terms of financial products, such as interest rates and terms of
payment may vary depending on the type of customer, but in both cases, the cost of financing and the
Payment responsibilities are relevant.

Regulatory compliance: Both individuals and companies must comply with regulations.
financial institutions established in Law 18045 and other applicable regulations.

In summary, although the specific requirements and commitments may be different for individuals
Natural and legal, both types of clients assume debts that they must be able to settle, which
which directly affects the economy in terms of liquidity, investment, and financial stability.

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 EVALUATION

2) Analyze a type of insurance that offers Banco Santander, based on the coverages it has for
an automotive company.

Banco Santander Chile offers a variety of financial products, including insurance, to

meet the needs of businesses, including automotive companies. One of the insurances
What could be relevant for a company of this type is the 'Fleet Vehicle Insurance.'

This type of fleet vehicle insurance provides coverage for cars or vehicles of
an automotive company, and generally includes the following coverages:

Civil Liability: This component of the insurance covers damages and losses caused to third parties.
in case of an accident where the company is considered responsible. Helps cover the costs
legal and the required compensations.

Coverage for Own Damage: This coverage protects the company's vehicles against damage, already
due to collisions, fires, theft or vandalism. It can include both damage to the bodywork
like the mechanics of vehicles.

Personal Injury Coverage: If the occupants of the vehicles are injured in a

accident, this coverage can provide medical benefits and compensation for loss of
income.

Coverage for Uninsured Vehicles or Insufficient Coverage: If you are involved in a

accident with an uninsured driver or with inadequate coverage, this coverage helps to
cover the costs of repair and medical care.

Roadside Assistance: Offers towing services, roadside assistance, and repairs

minors in case of breakdowns.

Third Party Damage Coverage for Transported Cargo: If the company transports goods with its
vehicles, this coverage protects against damage to the cargo transported in case of an accident.

Personal Accident Coverage for Driver and Passengers: Provides benefits in case of
injuries or death of the occupants of the company vehicle.

Medical Expense Coverage: This coverage helps to cover the medical expenses of individuals.
involved in an accident, regardless of who is at fault.

It is important to note that the availability of these coverages and their details may vary according to the
insurance provider and the specific contract that the automotive company has with the Bank
Santander, Chile. These insurances are essential to protect assets and liabilities.
from the automotive company in case of incidents involving its fleet of vehicles, which contributes to
to the financial security of the company.

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 EVALUATION

3) In a table, compare the financial instruments of the capital market, issued by the
Santander bank for legal entities, considering its most relevant characteristics.

Santander Bank issues various financial instruments in the capital markets for individuals.
legal. These instruments offer different characteristics and investment options. To
continuation, a comparison of some of the most relevant instruments is presented:
Instrument
Most relevant characteristics
Financial
Issued by the bank to finance its operations.
They offer a fixed return and periodic interest payments.
Bonds
They have different maturity dates and interest rates.
corporate
They can be acquired by investors interested in receiving payments from
interests and recover the capital invested at maturity.

They represent partial ownership of the company.

Investors can buy shares of the bank and make profits.
economic through dividends and capital gains.
Actions
Stock prices can fluctuate based on supply and demand.
demand in the market.
Investors can buy and sell shares on stock exchanges.

The bank offers a variety of investment funds for legal entities.

Investment funds allow investors to diversify their portfolio.
and access different types of assets.
Funds of
Investors can invest in fixed income funds, equity funds,
investment
mixed, among others.
The returns of investment funds are subject to the evolution of
the underlying assets and the fund management decisions.

It is important to note that this table only shows some of the financial instruments.
issued by Banco Santander and that there are other instruments available in the market
capitals. Investors must carefully assess the characteristics and risks of each
instrument before making investment decisions. It is recommended to seek financial advice
professional to obtain more detailed and personalized information.

4) Mention the determining points of the issuance of short-term debt securities and of the
Issuance of long-term securities under Law 18.045 on the securities market. It is based on.
your answer.

The issuance of short-term debt securities and long-term securities under Law 18.045
The stock market in Chile is governed by specific regulations aimed at ensuring the
transparency, security, and efficiency in financial markets. Next, I will mention the
determining points of both emissions and I will provide a brief justification:

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 EVALUATION

Issuance of Short-Term Debt Securities:

Maturity Period: Short-term debt securities usually have a maturity period of

up to one year. This feature allows companies or issuers to obtain temporary financing
for working capital needs or short-term projects.

Disclosure Requirements: Issuers must provide complete and accurate information about
the terms and conditions of the issuance, as well as on its financial situation and its plans for
payment. This ensures that investors have the necessary information to make decisions.
informed.

Regulation of Securities: Short-term debt securities are subject to specific regulations.

that ensure compliance with market regulations, thus protecting investors and
maintaining market integrity.

Foundation: The issuance of short-term debt securities is relevant for companies that
they need short-term financing to manage their daily operations or smaller projects
duration. Proper regulation and disclosure are essential to protect investors and
maintain confidence in the stock market.

Issuance of Long-Term Debt Securities:

Maturity Date: Long-term debt securities usually have a maturity period

superior a un año. This makes them suitable for long-term project financing,
investments in infrastructure or other capital needs that require an extended period.

Greater Complexity: Given the longer time horizon, the issuance of long-term securities can
be more complex. Issuers must provide more extensive details about the terms and
conditions, as well as on their long-term payment plans.

Disclosure and Regulation Requirements: Just like in short-term securities, the issuers of
Long-term debt securities must comply with strict regulations and provide information.
detailed to the investors.

Foundation: Long-term debt securities are essential for project financing.

and long-term investment. Proper regulation and disclosure are even more critical in this
case, since long-term commitment requires thorough planning and supervision to
guarantee compliance with obligations.

In summary, Law 18.045 in Chile establishes a regulatory framework aimed at protecting the
investors and ensure transparency in the issuance of debt securities, both short and long term
long term. The duration of the securities and the complexity of the underlying projects are factors
determinants in the necessary regulation and disclosure.

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BIBLIOGRAPHIC REFERENCES

Week-6 content and additional resources IACC 2023