2018 Registration document and annual fi nancial report - BNP PARIBAS416
5 RISKS AND CAPITAL ADEQUACY PILLAR 3
5
Liquidity risk
WHOLESALE FUNDING AND LIQUIDITY RESERVE MONITORING INDICATORS
Sources of wholesale funding [Audited]
Since 2016, the Group adopted a broad defi nition of wholesale funding, covering all funds excluding those provided by:
■ retail customers, SMEs and corporates;
■ institutional clients for their operating needs (e.g. portion needed for custody management);
■ monetary policy and funding secured by market assets.
This defi nition is broader than market funding. For example, it includes medium- to long-term debt placed in funds for individuals and, in the short-term portion, non-operating deposits in the Securities Services business.
The Group has a conservative policy for the management of its wholesale funding by ensuring that it does not depend on very short-term funding and diversifying these funding sources.
Thus, wholesale funding with an original maturity of less than one month, so-called very short-term wholesale funding, is systematically sterilised by being placed in immediately-available deposits in central banks so that they are not used to fund the Group s business.
The Group ensures that short-term wholesale funding (with original maturity of between 1 month and one year) is diversifi ed in terms of counterparty, industry and residual maturity. Any excess concentration on one of these criteria is systematically sterilised and placed in central bank deposits.
Medium-to long-term wholesale market funding (with original maturity over 1 year) is diversifi ed in terms of investor type, distribution network, fu nding programme (secured or unsecured), and by geographical area to ensure diversifi cation. Furthermore, the Group aims to optimise the term structure of its funding operations.
At end-2018 , sterilised very short-term wholesale funding totalled EUR 75.2 billion (leading to the sterilisation of an equivalent amount in the Group s liquidity reserve), diversifi ed short-term wholesale funding totalled EUR 124.7 billion and diversifi ed medium-to long-term wholesale funding totalled EUR 158.7 billion.
➤ TABLE 85 : BREAKDOWN OF THE WHOLESALE FUNDING BY CURRENCY [Audited]
The breakdown of funding by currency (after cross-currency swaps) corresponds to the Group s needs and to a diversifi cation objective.
In billions of euros
31 December 2018
EUR USD Other All currencies
Sterilised very short-term wholesale funding 42.3 17.3 15.6 75.2
S hort-term wholesale funding 42.0 48.1 34.6 124.7
M edium- to long-term wholesale funding 90.2 50.1 18.4 158.7
TOTAL WHOLESALE 174.5 115.5 68.6 358.5
In billions of euros
31 December 2017
EUR USD Other All currencies
Sterilised very short-term wholesale funding 32.9 22.3 13.7 68.9
S hort-term wholesale funding 48.9 42.8 29.1 120.8
M edium- to long-term wholesale funding 89.0 39.4 21.3 149.7
TOTAL WHOLESALE 170.7 104.6 64.1 339.4
