BPCE_PILLAR_III_2017
3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of regulatory capital
Additional Tier 1(AT1) capital
Additional Tier1 capital includes: subordinatedinstrumentsissued in compliancewith the restrictive ● eligibility criteria set forth by Article52 of the CRR; additional paid-in capital related to these instruments. ●
The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod. AdditionalTier 1 capital predominantlyconsists of non-innovativeor innovative capital instruments, with progressive dividend yields on innovativecapital instruments.
TABLE 5 – CHANGES IN AT1 CAPITAL ➡
AT1 capital
in millionsof euros 12/31/2016 Redemptions
1,304 (1,063)
Issues
-
Foreign exchange effect Phase-inadjustments
43
164 448
12/31/2017
Tier 2Capital
Tier 2 capitalconsistsof: subordinatedinstrumentsissued in compliancewith the restrictive ●
the amount arising from provisionsin excess of expected losses (in ● this calculation performing loans are clearly separated from loans in default). The following deductions are made: equity interests in eligible banking, financial and insurance ● institutions,accordingto the rules on allowancesfor these holdings and the phase-inperiod.
eligibility criteria set forth by Article63 of the CRR; additional paid-in capital related to Tier 2 items; ●
TABLE 6 – CHANGES IN TIER 2 CAPITAL ➡
Tier 2 capital
in millionsof euros
12/31/2016
15,693
Redemptionof subordinatednotes
(29)
Prudential haircut
(335)
New subordinated note issues
0
Phase-indeductions and adjustments
161
Foreign exchange effect
(933)
12/31/2017
14,557
36
Risk Report Pillar III 2017
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