4192019 Universal registration document and annual financial report - BNP PARIBAS

5risks and CaPital adequaCy Pillar 3

5

Liquidity risk

➤ TABLE 89: BREAKDOWN OF THE GROUP S MEDIUM- AND 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 2019

Tier 1 hybrid

debt

Tier 2 subordinated

debt

Unsecured senior debt Secured

senior debt

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

In millions of euros

31 December 2018

Tier 1 hybrid

debt

Tier 2 subordinated

debt

Unsecured senior debt Secured

senior debt

Monetary policy

funding TOTAL Non-

preferred Preferred

Total MLT funding 8,982 16,084 23,421 94,838 29,732 35,000 208,057

MLT debt placed with clients - - - (14,360) - - (14,360)

Monetary policy - - - - - (35,000) (35,000)

WHOLESALE MLT FUNDING 8,982 16,084 23,421 80,478 29,732 - 158,697

➤ TABLE 90: TRENDS IN THE GROUP S WHOLESALE FUNDING

In millions of euros

31 December

2018 New

origination Redemp-

tions Buy-backs Exercise of

calls

Perimeter effect and

other 31 December

2019

Total MLT funding 208,057 52,554 (23,478) (4,193) (16,106) 5,665 222,499

MLT debt placed with clients (14,360) (7,274) 2,444 1,484 1,127 416 (16,163)

Monetary policy (35,000) - - - 5,000 - (30,000)

WHOLESALE MLT FUNDING 158,697 45,280 (21,034) (2,709) (9,979) 6,082 176,336

Total medium- to long-term wholesale funding outstandings stood at EUR 176.3 billion at 31 December 2019 against EUR 158.7 billion at 31 December 2018. 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 45.3 billion in 2019, up from EUR 42.8 billion in 2018.

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 since 27 June 2019 (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 20.17% at 31 December 2019, BNP Paribas issued EUR 39.6 billion (principal remaining outstanding) or EUR 41.0 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 2019, 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 requirements, in 2020 the Group plans to issue EUR 13 billion of non-preferred senior debt, subject to market conditions. The Group had completed more than 25% of its issue programme as at 31 January 2020.

As a reminder, the main characteristics of these debt instruments are:

■ issuance under EMTN and U.S. MTN programmes;

■ non preferred senior notes (pursuant to article L.613-30-3-I-4 of the French Monetary and Financial Code);