2020 Universal registration document and annual financial report - BNP PARIBAS 447
5risks and CaPital adequaCy Pillar 3
5
Liquidity risk
➤ TABLE 93: BREAKDOWN OF THE GROUP S MEDIUM- TO LONG- TERM (MLT) WHOLESALE FUNDING
The instruments are shown at their net carrying amount (including in particular accrued unpaid interest and the revaluation of the hedged portion).
In millions of euros
31 December 2020
Tier 1 hybrid
debt
Tier 2 subordinated
debt
Unsecured senior debt Secured
MLT funding
Monetary policy
funding TOTAL Non-
preferred Preferred
Total MLT funding 10,819 20,761 54,938 87,179 21,998 101,768 297,464
MLT debt placed with clients - - - (14,588) - - (14,588)
Monetary policy - - - - - (101,768) (101,768)
WHOLESALE MLT FUNDING 10,819 20,761 54,938 72,591 21,998 - 181,108
In millions of euros
31 December 2019
Tier 1 hybrid
debt
Tier 2 subordinated
debt
Unsecured senior debt Secured
MLT funding
Monetary policy
funding TOTAL Non-
preferred Preferred
Total MLT funding 9,535 18,439 41,028 96,778 26,720 30,000 222,499
MLT debt placed with clients - - - (15,547) (616) - (16,163)
Monetary policy - - - - - (30,000) (30,000)
WHOLESALE MLT FUNDING 9,535 18,439 41,028 81,231 26,103 - 176,336
➤ TABLE 94: TRENDS IN GROUP MLT WHOLESALE FUNDING
In millions of euros 31 December
2019 New
origination Redemptions Buy-backs Exercise
of calls
Perimeter effect and
other 31 December
2020
Total MLT funding 222,499 147,750 (22,049) (4,598) (40,304) (5,836) 297,464
MLT debt placed with clients (16,163) (3,624) 2,149 2,045 727 277 (14,588)
Monetary policy (30,000) (101,768) - - 30,000 - (101,768)
WHOLESALE MLT FUNDING 176,336 42,358 (19,899) (2,553) (9,577) (5,559) 181,108
Total medium- to long-term wholesale funding outstandings stood at EUR 181.1 billion at 31 December 2020 against EUR 176.3 billion at 31 December 2019. This increase is mainly related to new issues conducted within the framework of the new TLAC environment (non preferred senior debt).
Wholesale funding raised by the Group in the markets with an initial maturity of over 1 year reached EUR 42.4 billion in 2020, compared to EUR 45.3 billion in 2019.
Wholesale funding trends based on regulatory changes
In addition to the Group s liquidity management targets, use of wholesale funding also satisfies new regulatory requirements relating to Recovery and Resolution, with the application of the TLAC ratio minimum requirement (see paragraph Recovery and resolution in Capital adequacy and capital planning section in section 5.2).
In order to comply with the regulatory TLAC ratio requirements of 20.02% at 31 December 2020, BNP Paribas issued EUR 52.7 billion (outstanding principal amount) or EUR 54.9 billion (carrying amount, including in particular accrued unpaid interest and revaluation of the hedged portion) of non-preferred senior TLAC-eligible debt between 2017 and 2020, with different maturity dates and in various currencies, in the form of public issuances and private placements.
To meet the TLAC requirement of 22% in 2022 (excluding countercyclical capital buffer) and to prepare for future MREL requirement, the Group plans to issue EUR 13 billion of non-preferred senior debt in 2021, subject to market conditions. The Group had completed more than 35% of its issue programme for this category of debt as at 31 January 2021.
As a reminder, the main characteristics of these debt instruments are:
■ issuance under EMTN and US MTN programmes;
■ non preferred senior notes (pursuant to article L.613-30-3-I-4 of the French Monetary and Financial Code);
