The question will arise again for the SpainI want to deepen my knowledge in technologyWe distribute in 55 of our profit dividend net or 1The leaders in a segment can afford a hypeWe rely on an operational early 2011 startupThe operation should enable him to rise between 1And Facebook proved that his model was strongThere will be no social turn as JeanLouis Borloo wishedAnd 2 of GDP according to the 6 institutesThese figures will appear clearly in the budgetOn the occasion of the publication of the quarterly results, French banks have been quite disertes about the impact of Basel III prudential reforms on their balance sheets. These details were very expected by analysts. Even if the data assumptions are only for illustration, the final impacts still dependent on the modalities of implementation of the new regulation, the results already reveal their lot of surprises.
Overall, four French banks rated reported an increase of their weighted assets of risk nearly 420 billion euros, as a result of the project of regulation that will apply from 2013 third included CRD3 own funds directive).
Rules of financial soundness
For memory, more the consideration of the risk of their asset increase (market risk, counterparty, etc.), more banks need to raise their own funds, all things being equal, to respect the rules of financial strength. All, then the definition of the quality of own funds is more restrictive.
According to first estimates, BNP Paribas is the French Bank would out the better. Despite some outstanding weighted the most important risk (608 billion euros), Basel III would only cause an increase of 70 billion of these same outstanding and a decrease of 1 point of hard equity ratio ("core Tier-1"). It, all things being equal, would then be 8 at September 30, 2010, instead of the current 9. By these estimates, BNP Paribas puts forward its low risk profile, its market activities, the most affected by these reforms, having represented in the third quarter that 13 of the weighted stocks.
Conversely, Natixis has emerged as the most affected establishment. Of course, its weighted stock increase the same amount that those of BNP Paribas (72 billion), but for a much lower starting base, at EUR 111 billion. Suddenly, the increase of its weighted assets would potentially 65 against 12 for BNP Paribas.
Mitigation efforts
These figures however agree for all banks without mitigation efforts that they will be here in the implementation of reforms and the results set aside. For example, Natixis should partly compensate these effects by transfers of assets, a credit value adjustments (CVA) optimization and sharing risks with Caisses d'Epargne and Banques Populaires. In addition, caching of the results, calculated on the basis of the forecasts of analysts would win 140 points based on the ratio of own funds. The subsidiary of BPCE could also count on a reduction of its assets managed in extinction, just as the Société Générale and Credit Agricole SA. In amount absolute, it is the latter which would register the highest increase of weighted outstanding.
As Natixis, the Green Bank must now account for its participation in the regional banks, through its cooperative certificates of investment (CCI), weighted stocks (and not deduct capital directly as planned initially in Basel III). An impact that it amounts to EUR 50 billion. Natixis considers it his side to 37 billion. Finally, a reminder, all these institutions have provided that they would be in accordance with Basel III upon its establishment and that they would not appeal to the market.
