BPCE_PILLAR_III_2017

Communication policy and structure of the Pillar III report

This report provides informationon Groupe BPCE’s risks and thus complies with regulationNo.

575/2013 on prudentialrequirementsfor credit

institutions and investment firms (Capital Requirements Regulation –

CRR) and directive No. 2013/36 on access to the activity of credit

institutionsand the prudential supervision of credit institutions and investmentfirms (Capital Requirements Directive IV – CRD IV).

Improvement of transparency In order to improve the transparency of information published each year in its Pillar III report and meet the needs of investors and analysts, Groupe BPCE is fully committed to the Financial Stability Board initiatives aimed at improving financial disclosures (Enhanced Disclosure Task Force – EDTF). A cross-referenceTable between EDTF recommendationsand publishedinformationis presentedpage 215. In January 2015, the Basel Committee published phase one of the overhaul of Pillar III disclosures on credit, counterparty and market risks, and securitization transactions. In December 2016, the European Banking Authority in turn published its recommendations,

adapting the proposals of the Basel Committee to the prudential requirementsin Part Eight of the CRR, “Disclosureby institutions”.In March 2017, the Basel Committee completed the review of Pillar III disclosures, consolidating current and future requirements. The regulators aim to fully standardize disclosures to investors in the interest of facilitatingthe comparisonof risk profiles, by introducing detailed tables, the majority of which will follow mandatory

templates.

Groupe BPCE draws on the EBA’s guidelinesfor the publicationof its Pillar III report.

Governance

The policy governingthe publicationof Pillar III information,drawingon recommendationsby the EuropeanBankingAuthority,was approvedby the Supervisory Board onDecember 14, 2016.

Structure of the Pillar III report

The PillarIII report is divided into 14 sections: section 1 explains the overall structure of Groupe BPCE’s internal ● control system; section 2 presents key figures, the regulatory environment, main ● risks, emergingrisks and risk factors; section3 covers capital management and capital adequacy; ●

section 4 describes Groupe BPCE’s governance and risk ● managementframework; subsequentsections provide detailed disclosures on Groupe BPCE’s ● main risks. Each section describes risk management and organizational principles, provides an overview of key disclosures and sets out detailed quantitative information in a separate sub-section.

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Risk Report Pillar III 2017