372 2019 Universal registration document and annual financial report - BNP PARIBAS
5 risks and CaPital adequaCy Pillar 3
5
Credit risk
RESTRUCTURED LOANS [Audited]
When a borrower is bordering on or in financial difficulties, he may receive a concession from the bank that would otherwise not have been granted had the borrower not met with financial difficulty. The concession may be:
■ a change to the contract terms and conditions;
■ partial or total refinancing of the debt.
The loan is then said to be restructured . It must retain the status of restructured during a period of observation, known as a probation period, for at least two years. The concept of restructuring is described in the accounting principles (note 1.e.5 to the consolidated financial statements).
According to the principles for identifying the restructured exposure amounts for the Group as a whole, for the non-retail business, exposures are identified individually during the loan process, notably during Committees. As for restructured exposures for retail customers, they are usually identified via a systematic process requiring the use of algorithms whose parameters are validated by the RISK and Finance Functions.
Information on restructured loans is reported to the supervisory authority on a quarterly basis.
The following table shows the gross value and impairment amounts of performing and non-performing loans that have been restructured.
➤ TABLE 49: CREDIT QUALITY OF RESTRUCTURED LOANS (EU NPL1) [Audited]
In millions of euros
31 December 2019
Gross carrying value
Accumulated impairment, accumulated negative changes
in fair value due to credit risk and provisions
Performing exposures
Non-performing exposures
Performing exposures
Non- performing exposures
of which defaulted
Loans and advances 3,408 8,104 6,141 (355) (3,304)
General governments 2 7 6 - (2)
Credit institutions - 7 7 - (7)
Other financial corporations 76 285 285 (3) (143)
Non-financial corporations 1,793 3,453 3,380 (122) (1,566)
Households 1,537 4,352 2,463 (230) (1,586)
Debt securities 46 167 167 - (49)
Off-balance-sheet exposures 447 133 132 (16) (8)
TOTAL 3,901 8,404 6,440 (371) (3,361)
In millions of euros
31 December 2018
Gross carrying value
Accumulated impairment, accumulated negative changes
in fair value due to credit risk and provisions
Performing exposures
Non-performing exposures
Performing exposures
Non- performing exposures
of which defaulted
Loans and advances 2,990 8,312 6,516 (369) (3,509)
General governments 3 5 3 - (2)
Credit institutions - 9 9 - (8)
Other financial corporations 26 331 326 (1) (149)
Non-financial corporations 1,204 3,813 3,731 (60) (1,737)
Households 1,757 4,154 2,447 (308) (1,613)
Debt securities - 162 162 - (47)
Off-balance-sheet exposures 452 141 131 (17) (2)
TOTAL 3,442 8,615 6,809 (386) (3,558)
RESTRUCTURED LOANS
