BPCE_REGISTRATION_DOCUMENT_2017
FINANCIAL REPORT IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2017
MARKET RISK 7.2 Market risk refers to the possibility of financial loss due to market trends, suchas: interest rates: interest rate risk is the risk that the fair value or ● future cash flows of a financial instrument will fluctuate due to changes inmarketrates of interest; exchange rates; ● prices: market price risk is the risk of a potential loss resulting ● from changes in market prices, whetherthey are caused by factors specific to the instrument or its issuer, or by factors affecting all market traded instruments. Variable-income securities, equity derivativesand commodityderivativesare exposed to this type of risk; and more generally,any market parameterinvolved in the valuationof ● portfolios. Systems for the measurement and monitoring of market risks are presented inthe risk managementreport. The information provided in the risk management report required under IFRS 7 and relating to the management of market risk comprises: VaR forthe GroupeBPCE scope; ● the conclusions of the global stress tests. ●
7.3
INTEREST RATE RISK AND EXCHANGE
RATE RISK Interestrate risk is the risk that unfavorablechangesin interestrates will adversely impact the Group’s annual results and net worth. Exchange rate risk is the risk of losses resulting from changes in exchange rates. The Group’sapproachto the managementof overall interestrate risk and foreign exchange risk is discussed in Chapter 3 – Risk managementreport – Liquidity, interest rate and exchange rate risks. 7.4 Liquidity risk is the risk that the Group will be unable to honor its paymentcommitmentsas they fall due and replace funds when they are withdrawn. The funding proceduresand liquidity risk managementarrangements are disclosed inthe risk managementreport. Disclosures relating to the managementof liquidity risk required by IFRS 7 are provided in Chapter 3 – Risk management report – Liquidity, interestrate and foreign exchange risk. LIQUIDITY RISK
Note 8
Partnerships and associates
5
8.1
INVESTMENTS IN ASSOCIATES
Partnerships and other associates 8.1.1 The Group’s maininvestmentsin joint venturesand associatesare as follows:
12/31/2017
12/31/2016
in millionsof euros
CNP Assurances(group)
2,567
2,450
Socram Banque
76
76
EDF Investment Group(EIG)
521 145 493
524 135 410
BanqueCalédonienne d’investissement
Other
Financial sectorcompanies
3,802
3,595
Other
310 310
296 296
Non-financial companies
TOTALINVESTMENTSIN ASSOCIATES
4,112
3,891
307
Registration document 2017
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