BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2019

Exposure to risks Note 7 The risk exposures reported below include credit risk, market risk, overall interest rate risk, foreign exchange risk and liquidity risk. Information relating to capital management and regulatory ratios is presented in the Risk Management section.

Information on financial assets with past due payments and remodeling due to financial difficulties is provided in the section on “Credit Risk” in Chapter 6 “Risk Management”. Information on liquidity risk (analysis of financial assets and liabilities and commitments by contractual maturity date) is provided in the section on “Liquidity, Interest Rate and Exchange Rate Risks” in Chapter 6 “Risk Management”.

7.1

CREDIT RISK AND COUNTERPARTY RISK

Key points Credit risk is the risk that one party to a financial transaction fails to fulfill his obligations, causing the other party to incur a financial loss.

STAGE 1

STAGE 2

STAGE 3

Expected Credit Loss (ECL) at 1 yr.

ECL at maturity

ECL at maturity

IFRS 9

In the event of a significant increase in the credit risk

Deterioration of the credit risk to the point where the asset is non-performing

Material change in the credit risk

Objective impairment criterion

5

the breakdown of gross exposure by geographic region; • concentration of credit risk by borrower; • the breakdown of exposure by credit rating. • This information forms an integral part of the financial statements certified by the Statutory Auditors.

Certain disclosures relating to risk management required by IFRS 7 are also provided in the risk management report. They include: the breakdown of gross exposures by category and approach • (separation of credit and counterparty risk);

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE