2018 Registration document and annual fi nancial report - BNP PARIBAS320

5 RISKS AND CAPITAL ADEQUACY PILLAR 3

5

Capital management and capital adequacy

The Basel Committee recommends fi rst application of this buffer in 2022; however, this agreement must be transcribed into European law to be applicable.

The qualitative elements (LRQua) requested by the Implementing Regulation (EU) No. 2016/200 of 15 February 2016 are described below.

Processes used to manage the risk of excessive leverage

Monitoring of the leverage ratio is one of the responsibilities of the Capital Committee (as described in the section Capital management hereafter).

F actors that had an impact on the leverage ratio during the period to which the disclosed leverage Ratio refers

The leverage ratio was 4.5% as of 31 December 2018, stable compared with 1 January 2018.

As at 31 December 2018, the exposures used for the leverage ratio take into account the exemption related to centralised exposures with the Caisse des dépôts et consignations as regulated savings.

The table below shows the leverage ratio according to the format required by Implementing Regulation (EU) No. 2016/200 of 15 February 2016.

Only relevant items with a non-zero value are included.

➤ TABLE 22: LEVERAGE RATIO ITEMISED

➤ Summary reconciliation of accounting assets and leverage ratio exposures (LRSum)

In billions of euros 31 December 2018 1 January 2018

1 Total assets as per published fi nancial statements 2,041 1,950

2 Adjustment for entities which are consolidated for accounting purposes but are outside the scope of regulatory consolidation (215) (210)

4 Adjustments for derivative fi nancial instruments (80) (79)

5 Adjustment for securities fi nancing transactions (SFTs)(*) (5) (1)

6 Adjustment for off-balance sheet items (ie conversion to credit equivalent amounts of off-balance sheet exposures) 160 160

EU-6b Adjustment for exposures exempt from the total exposure for the purposes of the ratio in respect of article 429, paragraph 14, of Regulation (EU) N o. 575/2013 (17) -

7 Other adjustments (18) (18)

8 LEVERAGE RATIO TOTAL EXPOSURE MEASURE 1,864 1,801 (*) Securities Financing Transactions: repurchase agreements and securities borrowing/lending.