BPCE - Risk Report - Pillar III 2020

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CREDIT RISKS

CREDIT RISK MANAGEMENT

Forbearance, performing and non-performing exposures

Forbearance results from the combination of a concession and financial hardships, and may involve performing or non-performing loans. The decision to downgrade a loan from the “performing forborne exposure” to the “non-performing forborne exposure” category is subject to a different set of rules than the rules for default (new concession or payment more than 30 days past due) and, like the decision to move a loan out of the “forborne” category, is subject to probationary periods. Forced restructuring, over indebtedness proceedings, or any kind of default as defined by the Group standard, which involves

a forbearance measure as previously defined, results in classification as a non-performing forborne exposure. Disclosures on “forbearance, performing and non-performing exposures” are being added to those already provided on default and impairment. Probationary periods for customers no longer in forbearance were implemented as part of the new default project. A forbearance qualification guide was rolled out as part of crisis management. Moreover, since the end of 2020, this guide also specifies the criteria enabling institutions to refer to these practices.

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RISK REPORT PILLAR III 2020 | GROUPE BPCE

www.groupebpce.com