2018 Registration document and annual fi nancial report - BNP PARIBAS 373
5RISKS AND CAPITAL ADEQUACY PILLAR 3
5
Credit risk
Considered to be guarantees and treated under the IRB approach, CDS hedges totalled EUR 444 million at 31 December 2018, compared with EUR 439 million at 1 January 2018. 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 2018, the reduction in risk-
weighted assets resulting from hedging operations via CDS (EU CR7) concerns only the corporate asset class, and represents EUR 140 million.
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 49: IRBA CREDIT RISK MITIGATION FOR SOVEREIGN, FINANCIAL INSTITUTION, CORPORATE AND SPECIALISED FINANCING PORTFOLIOS
In millions of euros
31 December 2018 1 January 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 284,811 3,757 6 3,763 272,874 3,988 5 3,994
Corporates 504,405 77,229 70,144 147,373 487,606 80,052 53,890 133,942
Institutions 46,859 3,407 771 4,178 46,730 3,358 1,024 4,382
TOTAL 836,075 84,393 70,921 155,314 807,210 87,398 54,920 142,318
➤ TABLE 50: STANDARDISED APPROACH CREDIT RISK MITIGATION FOR SOVEREIGN, FINANCIAL INSTITUTION, CORPORATE AND SPECIALISED FINANCING PORTFOLIOS
In millions of euros
31 December 2018 1 January 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 34,131 1 3 4 37,033 0 2 2
Corporates 140,153 5,712 23,484 29,196 139,516 1,921 24,711 26,633
Institutions 19,369 637 24 661 17,718 8 17 25
TOTAL 193,653 6,351 23,510 29,860 194,267 1,930 24,731 26,660
