358 2019 Universal registration document and annual financial report - BNP PARIBAS
5 risks and CaPital adequaCy Pillar 3
5
Credit risk
➤ TABLE 40: EQUITY POSITIONS UNDER THE SIMPLE WEIGHTING METHOD (EU CR10)
In millions of euros
31 December 2019
On- balance-
sheet gross
exposure
Off- balance-
sheet gross
exposure Total gross
exposure EAD Risk weight RWAs Capital
requirement
Private equity exposures in diversified portfolios 2,271 956 3,227 2,749 190% 5,224 418
Listed equity exposures 1,260 60 1,320 1,290 290% 3,741 299
Other equity exposures 12,106 234 12,339 12,223 370% 45,224 3,618
TOTAL 15,637 1,249 16,887 16,262 54,189 4,335
In millions of euros
31 December 2018
On- balance-
sheet gross
exposure
Off- balance-
sheet gross
exposure Total gross
exposure EAD Risk weight RWAs Capital
requirement
Private equity exposures in diversified portfolios 1,983 648 2,630 2,306 190% 4,382 351
Listed equity exposures 1,193 213 1,405 1,349 290% 3,912 313
Other equity exposures 8,834 89 8,923 8,879 370% 32,851 2,628
TOTAL 12,010 949 12,959 12,534 41,146 3,292
As at 31 December 2019, the Group did not use simple risk weights for specialised lending exposures.
➤ TABLE 41: INSURANCE UNDERTAKINGS (EU INS1)
In millions of euros 31 December 2019 31 December 2018
Holdings in insurance companies(*) (before 370% risk weight) 8,041 6,648
TOTAL RISK-WEIGHTED ASSETS 29,753 24,599
(*) Significant financial holdings in insurance companies consolidated by the equity method within the prudential scope, benefiting from the provisions of article 49 of Regulation (EU) No. 575/2013 on exemptions from deduction from regulatory capital of holdings in an insurance company. Under the provisions of article 48 of Regulation (EU) No. 575/2013, a potential deduction from regulatory capital would have a limited impact with a decrease of around 10 basis points in the CET1 ratio.
➤ TABLE 42: EQUITY UNDER THE SIMPLE WEIGHTING METHOD RISK-WEIGHTED ASSETS MOVEMENTS BY KEY DRIVER
In millions of euros
31 December
2018
Key driver
Total variation
31 December
2019 Asset
size Asset
quality Model
updates Methodology
and policy Acquisitions
and disposals Currency Other
RWAs 41,146 6,825 18 - - 6,129 - 71 13,043 54,189
The change in risk-weighted assets in 2019 is attributed mainly to the increase in the carrying amount of the insurance entities and the change in the consolidation method of some of the Group s unregulated entities.
