374 2019 Universal registration document and annual financial report - BNP PARIBAS
5 risks and CaPital adequaCy Pillar 3
5
Credit risk
Considered from a regulatory standpoint to be guarantees, CDS hedges totalled EUR 640 million at 31 December 2019, compared with EUR 444 million at 31 December 2018. These hedges are put on by CIB to hedge exposures mainly treated under the IRB approach. Provided they are eligible, they have the effect of decreasing the estimated Loss Given Default for the underlying asset, and, therefore, reducing its consumption in terms of risk-weighted assets. At 31 December 2019, the reduction in
risk-weighted assets resulting from hedging operations via CDS concerns only the corporate asset class, and represents EUR 229 million (EU CR7).
The following tables give for the central governments and central banks, corporates and institutions portfolios the breakdown of the risk mitigation resulting from all the collaterals and guarantees relating to the portfolio of loans and credit commitments for all the Group s business lines.
➤ TABLE 50: IRBA CREDIT RISK MITIGATION FOR SOVEREIGN, FINANCIAL INSTITUTION, CORPORATE AND SPECIALISED FINANCING PORTFOLIOS [Audited](1)
(1) The audit does not cover the breakdown between the IRB and standardised approach.
In millions of euros
31 December 2019 31 December 2018
Total exposure
Risk mitigation
Total exposure
Risk mitigation
Guarantees and credit
derivatives Collateral
Total guarantees
and collateral
Guarantees and credit
derivatives Collateral
Total guarantees
and collateral
Central governments and central banks 270,355 3,586 25 3,611 284,811 3,757 6 3,763
Corporates 553,272 87,503 75,629 163,132 504,405 77,229 70,144 147,373
Institutions 58,137 6,459 577 7,036 46,859 3,407 771 4,178
TOTAL 881,764 97,549 76,230 173,779 836,075 84,393 70,921 155,314
➤ TABLE 51: STANDARDISED APPROACH CREDIT RISK MITIGATION FOR SOVEREIGN, FINANCIAL INSTITUTION, CORPORATE AND SPECIALISED FINANCING PORTFOLIOS [Audited](1)
In millions of euros
31 December 2019 31 December 2018
Total exposure
Risk mitigation
Total exposure
Risk mitigation
Guarantees and credit
derivatives Collateral
Total guarantees
and collaterals
Guarantees and credit
derivatives Collateral
Total guarantees
and collaterals
Central governments and central banks 41,454 0 700 700 40,579 1 3 4
Corporates 144,388 8,573 26,114 34,687 146,722 5,712 23,484 29,196
Institutions 23,266 258 63 321 23,490 637 24 661
TOTAL 209,109 8,832 26,876 35,708 210,791 6,351 23,510 29,860
