Universal registration document and annual financial report 2020

2020 Universal registration document and annual financial report - BNP PARIBAS 383

5risks and CaPital adequaCy Pillar 3

Credit risk

EXPOSURES, PROVISIONS AND COST OF RISK [Audited]

Impaired exposures (stage 3) related to assets at amortised cost and financing and guarantee commitments given, as well as the guarantees received as collateral are presented in note 4.f to the financial statements.

The following table shows the carrying amount of performing and non- performing(1) financial assets included in the prudential consolidation scope in accordance with the EBA s Guidelines on disclosure of non- performing and forborne exposures published on 17 December 2018.

An exposure is deemed to be non-performing when it falls into one of the following categories:

■ exposures in default;

■ ninety days past-due exposures which are not in default;

■ restructured loans (see the Restructured loans section) during the one- year minimal period required before returning to performing status.

In accordance with these guidelines, the classifications used for exposures shown are taken from financial reports intended for the supervisory authority(2) and so differ from the exposure classes usually used within the context of Pillar 3. The classification includes:

■ central banks;

■ public administrations including mainly central governments, regional or local authorities and international organisations;

■ credit institutions including credit institutions and multilateral development banks;

■ other financial corporations including institutions (notably supervised investment companies and clearing houses) and corporations (mainly investment funds, pension funds and insurance companies);

■ non-financial corporations including mainly corporations and small and medium enterprises (SME);

■ households: mainly non-SME retail portfolio.

(1) At 31 December 2020, the Group s non-performing loans ratio was 2.8%, compared with 3.2% at 31 December 2019. This ratio is used by the European Banking Authority to monitor non-performing outstandings in Europe. It is calculated on the basis of gross outstanding of loans, receivables and deposits with central banks, not netted of guarantees received.

(2) Appendices III and V of Implementing Regulation (EU) No. 680/2014 on supervisory reporting.

EXPOSURES, PROVISIONS AND COST OF RISK