Obbligazione Belfius Banque 4.609% ( BE6293617633 ) in EUR

Belfius Banque

100 EUR ⇌

Belgio

BE6293617633 ( in EUR )

4.609% per anno ( pagato 1 volta l'anno)

perpetue

Prospetto opuscolo dell'obbligazione Belfius Bank BE6293617633 en EUR 4.609%, scadenza perpetue

100 000 EUR

17 500 000 EUR

29/12/2025 ( In 180 giorni )

Belfius Bank è una banca belga, parte del gruppo Belfius, che offre una vasta gamma di servizi finanziari a privati e aziende.

The Obbligazione issued by Belfius Banque ( Belgium ) , in EUR, with the ISIN code BE6293617633, pays a coupon of 4.609% per year.
The coupons are paid 1 time per year and the Obbligazione maturity is perpetue

BELFIUS BANK SA/NV

(incorporated with limited liability in Belgium)

Euro 10,000,000,000
Euro Medium Term Note Programme
due from one month from the date of original issue
Under the Euro Medium Term Note Programme (the "Programme") described in this base prospectus (the "Base Prospectus"), Belfius Bank SA/NV ("Belfius Bank" or the
"Issuer"), subject to compliance with all relevant laws, regulations and directives, may from time to time issue Euro Medium Term Notes that rank as senior obligations of the
Issuer (the "Senior Notes") and Euro Medium Term Notes that rank as subordinated obligations of the Issuer (the "Subordinated Notes" and together with the Senior Notes, the
"Notes"). The aggregate principal amount of Notes outstanding will not at any time exceed Euro 10,000,000,000 (or the equivalent in other currencies).
This Base Prospectus (which expression shall include this Base Prospectus as amended and/or supplemented from time to time and all documents incorporated by reference herein)
has been prepared for the purpose of providing disclosure information with regard to the Issuer and the Notes. This Base Prospectus has been approved as a base prospectus for the
purposes of Article 5.4 of Directive 2003/71/EC, as amended by Directive 2010/73/EU, on 9 May 2016 by the Commission de Surveillance du Secteur Financier (the "CSSF") in its
capacity as competent authority under the Luxembourg law of 10 July 2005 (as amended by the Luxembourg law of 3 July 2012) relating to prospectuses for securities (the
"Luxembourg Law on Prospectuses"). By approving this Base Prospectus, the CSSF assumes no responsibility as to the economic and financial soundness of the transaction and
the quality or solvency of the Issuer in line with the provisions of article 7(7) of the Luxembourg Law on Prospectuses. The CSSF has neither reviewed nor approved the
information contained in this Base Prospectus in relation to any issuance of any Notes that are not to be listed on the official list of the Luxembourg Stock Exchange and
admitted to trading on the regulated market of the Luxembourg Stock Exchange (the "Market") and for which a prospectus is not required in accordance with the
Prospectus Directive. In relation to any Notes, this Base Prospectus must be read as a whole and together with the applicable Final Terms (as defined below). Any Notes issued
under the Programme on or after the date of this Base Prospectus are issued subject to the provisions described or incorporated by reference herein. Application has also been made
to the Luxembourg Stock Exchange for Notes issued under the Programme for the period of 12 months from the date of this Base Prospectus to be listed on the official list of the
Luxembourg Stock Exchange and admitted to trading on the Market. References in this Base Prospectus to Notes being "listed" (and all related references), except where the context
otherwise requires, shall mean that such Notes have been listed and admitted to trading on the Market. The Market is a regulated market for the purposes of Directive 2004/39/EC of
the European Parliament and of the Council on markets in financial instruments. No certainty can be given that the application for the listing of any Notes will be granted.
Furthermore, admission of the Notes to the official list and trading on the Market is not an indication of the merits of the Issuer or the Notes. Unlisted Notes may also be issued
pursuant to the Programme. The applicable Final Terms in respect of the issue of any Notes will specify whether or not such Notes will be listed on the official list and admitted to
trading on the Market (or any other stock exchange).
The Notes issued will be in dematerialised form in accordance with Articles 468 et seq. of the Belgian Companies Code, and will be represented by a book-entry in the records of
the clearing system operated by the National Bank of Belgium (the "NBB") or any successor thereto (the "Securities Settlement System"). The Senior Notes may be eligible as
ECB collateral. The Programme has been rated A- in respect of Senior Notes with a maturity of one year or more, A-2 in respect of Senior Notes with a maturity of less than one
year, and BBB- in respect of Subordinated Notes by Standard & Poor's Credit Market Services France SAS ("Standard & Poor's"), and A3 in respect of Senior Notes and Ba1 in
respect of Subordinated Notes by Moody's France SAS ("Moody's"). Each of Moody's and Standard & Poor's is established in the European Union and is included in the updated
list of credit rating agencies registered in accordance with Regulation (EC) No.1060/2009 on credit rating agencies, as amended by Regulation (EU) No 513/2011, as amended (the
"CRA Regulation") published on the European Securities and Markets Authority ("ESMA")'s website (http://www.esma.europa.eu) (on or about 9 May 2016). Tranches of Notes
(as defined in "Overview of the Programme") to be issued under the Programme will be rated or unrated. Where a Tranche of Notes is to be rated, such rating will not necessarily be
the same as the ratings assigned to the Programme. Whether or not a rating in relation to any Tranche of Notes will be treated as having been issued by a credit rating agency
established in the European Union and registered under the CRA Regulation will be disclosed in the applicable Final Terms. A security rating is not a recommendation to buy, sell
or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency.
The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any U.S. state securities laws and, unless
so registered, may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons as defined in Regulation S under the Securities Act
("Regulation S") except pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act and applicable U.S. state securities laws.
This Base Prospectus shall be valid for a period of one year from its date of approval.
The issue price and amount of the relevant Notes will be determined at the time of the offering of each Tranche based on the then prevailing market conditions.
Prospective investors should have regard to the factors described under the section headed "Risk Factors" in the Base Prospectus. This Base Prospectus does not describe
all of the risks of an investment in the Notes.
Arranger
Société Générale Corporate & Investment Banking

Dealers

Banco Bilbao Vizcaya Argentaria, S.A.
Barclays
Belfius Bank
BNP PARIBAS
Citigroup
Commerzbank
Crédit Agricole CIB
Credit Suisse
J.P. Morgan
Landesbank Baden-Württemberg
Morgan Stanley
Nomura
Société Générale Corporate & Investment Banking
The Royal Bank of Scotland
UBS Investment Bank
UniCredit Bank

Base Prospectus dated 9 May 2016

EMEA 102441710 v17
- 1-

Responsibility Statement
Belfius Bank accepts responsibility for the information contained in this Base Prospectus. To the best of the
knowledge of Belfius Bank (having taken all reasonable care to ensure that such is the case), the information
contained in this Base Prospectus is in accordance with the facts and does not omit anything likely to affect
the import of such information.
General
This Base Prospectus has been prepared on the basis that any offer of Notes in any Member State of the
European Economic Area which has implemented the Prospectus Directive (each a "Relevant Member
State") will be made pursuant to an exemption under the Prospectus Directive, as implemented in that
Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly, any
person making or intending to make an offer in that Relevant Member State of Notes which are the subject of
an offering contemplated in this Base Prospectus as completed by the final terms ("Final Terms") in relation
to the offer of those Notes may only do so in circumstances in which no obligation arises for Belfius Bank or
any Dealer (as defined in "Overview of the Programme" below) to publish a prospectus pursuant to Article 3
of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in
each case in relation to such offer. Neither Belfius Bank nor any Dealer has authorised, nor do they authorise,
the making of any offer of Notes in circumstances in which an obligation arises for Belfius Bank or any
Dealer to publish or supplement a prospectus for such offer. The expression "Prospectus Directive" means
Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent
implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant
Member State and the expression "2010 PD Amending Directive" means Directive 2010/73/EU.
This Base Prospectus is to be read in conjunction with all documents which are incorporated herein by
reference (see "Documents Incorporated by Reference"). This Base Prospectus should be read and construed
together with any amendments or supplements hereto and, in relation to any Tranche of Notes, should be read
and construed together with the applicable Final Terms.
No person has been authorised to give any information or to make any representation other than those
contained in this Base Prospectus in connection with the issue or sale of the Notes and, if given or made, such
information or representation must not be relied upon as having been authorised by Belfius Bank or any of the
Dealers or the Arranger (as defined in "Overview of the Programme"). Neither the delivery of this Base
Prospectus nor any sale made in connection herewith shall, under any circumstances, create any implication
that there has been no change in the affairs of Belfius Bank since the date hereof or the date upon which this
Base Prospectus has been most recently amended or supplemented, or that there has been no adverse change
in the financial position of the Issuer since the date hereof or the date upon which this Base Prospectus has
been most recently amended or supplemented, or that any other information supplied in connection with the
Programme is correct as of any time subsequent to the date on which it is supplied or, if different, the date
indicated in the document containing the same.
In the case of any Notes which are to be admitted to trading on a regulated market within the European
Economic Area or offered to the public in a Member State of the European Economic Area in circumstances
which would otherwise require the publication of a prospectus under the Prospectus Directive (2003/71/EC),
the minimum specified denomination shall be 100,000 (or its equivalent in any other currency as at the date
of issue of the Notes).
The distribution of this Base Prospectus and the offering or sale of the Notes in certain jurisdictions may be
restricted by law. Persons into whose possession this Base Prospectus comes are required by Belfius Bank, the
Dealers and the Arranger to inform themselves about and to observe any such restriction. The Notes have not

EMEA 102441710 v17
- 2-

been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities
Act"). Subject to certain exceptions, Notes may not be offered, sold or delivered within the United States or to
U.S. persons. For a description of certain restrictions on offers and sales of Notes and on distribution of this
Base Prospectus, see "Subscription and Sale".
This Base Prospectus does not constitute an offer of, or an invitation by or on behalf of Belfius Bank, the
Dealers or the Arranger to subscribe for, or purchase, any Notes.
To the fullest extent permitted by law, none of the Dealers or the Arranger accept any responsibility for the
contents of this Base Prospectus or for any other statement made or purported to be made by the Arranger or a
Dealer or on its behalf in connection with Belfius Bank or the issue and offering of the Notes. The Arranger
and each Dealer accordingly disclaim all and any liability whether arising in tort or contract or otherwise
(save as referred to above) which they might otherwise have in respect of this Base Prospectus or any such
statement. Neither this Base Prospectus nor any other financial statements are intended to provide the basis of
any credit or other evaluation and should not be considered as a recommendation by any of Belfius Bank, the
Arranger or the Dealers that any recipient of this Base Prospectus or any other financial statements should
purchase Notes. Each potential purchaser of Notes should determine for itself the relevance of the information
contained in this Base Prospectus and its purchase of Notes should be based upon such investigation as it
deems necessary. None of the Dealers or the Arranger undertakes to review the financial condition or affairs
of Belfius Bank during the life of the arrangements contemplated by this Base Prospectus nor to advise any
investor or potential investor in the Notes of any information coming to the attention of any of the Dealers or
the Arranger.
In connection with the issue of any Tranche (as defined in the section "Overview of the Programme - Method
of Issue") of Notes, the Dealer or Dealers (if any) named as the stabilising manager(s) (the "Stabilising
Manager(s)") (or persons acting on behalf of any Stabilising Manager(s)) in the applicable Final Terms may
over-allot Notes or effect transactions with a view to supporting the market price of Notes at a level higher
than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager(s) (or
persons acting on behalf of any Stabilising Manager) will undertake stabilisation action. Any stabilisation
action may begin on or after the date on which adequate public disclosure of the final terms of the offer of the
relevant Tranche is made and, if begun, may be ended at any time, but it must end no later than the earlier of
30 days after the issue date of the relevant Tranche and 60 days after the date of the allotment of the relevant
Tranche. Any stabilisation action or over-allotment must be conducted by the relevant Stabilising Manager(s)
(or person(s) acting on behalf of any Stabilising Managers) in accordance with all applicable laws and rules.
In this Base Prospectus, unless otherwise specified or the context otherwise requires, references to "U.S.$"
are to the lawful currency of the United States, to "euro", "EUR" and "" are to the lawful currency of the
member states of the European Union that have adopted or adopt the single currency in accordance with the
Treaty establishing the European Union, as amended, and to "£" are to Sterling, the lawful currency of the
United Kingdom.

EMEA 102441710 v17
- 3-

TABLE OF CONTENTS
Page
RISK FACTORS ................................................................................................................................................ 5
OVERVIEW OF THE PROGRAMME .............................................................................................................32
DOCUMENTS INCORPORATED BY REFERENCE .....................................................................................39
PROSPECTUS SUPPLEMENT .......................................................................................................................40
TERMS AND CONDITIONS OF THE NOTES ..............................................................................................41
CLEARING .......................................................................................................................................................74
USE OF PROCEEDS ........................................................................................................................................75
DESCRIPTION OF THE ISSUER ...................................................................................................................76
COMMON REPORTING STANDARD EXCHANGE OF INFORMATION .............................................105
THE PROPOSED EU FINANCIAL TRANSACTION TAX .........................................................................106
BELGIAN TAXATION ON THE NOTES .....................................................................................................107
LUXEMBOURGIAN TAXATION ON THE NOTES .................................................................................... 111
SUBSCRIPTION AND SALE ........................................................................................................................ 112
FORM OF FINAL TERMS ............................................................................................................................. 115
PART A - CONTRACTUAL TERMS ............................................................................................................. 116
PART B - OTHER INFORMATION ...............................................................................................................128
GENERAL INFORMATION ..........................................................................................................................132

EMEA 102441710 v17
- 4-

RISK FACTORS
An investment in the Notes involves a degree of risk. Prospective investors should carefully consider the risks
set forth below and the other information contained in this Base Prospectus (including information
incorporated by reference) before making any investment decision in respect of the Notes. The risks described
below are risks which the Issuer believes may have a material adverse effect on the Issuer's financial
condition and the results of its operations, the value of the Notes or the Issuer's ability to fulfil its obligations
under the Notes. All of these factors are contingencies which may or may not occur and the Issuer is not in a
position to express a view on the likelihood of all or any of such contingencies occurring. Additional risk and
uncertainties, including those of which the Issuer is not currently aware or deems immaterial, may also
potentially have an adverse effect on the Issuer's business, results of operations, financial condition or future
prospectus or may result in other events that could cause investors to lose all or part of their investment.
Factors which the Issuer believes may be material for the purpose of assessing the market risks associated
with the Notes issued under the Programme are also described below.
The Issuer believes that the factors described below represent the principal known risks inherent in investing
in Notes issued under the Programme, but the inability of the Issuer to pay interest, principal or other
amounts on or in connection with any Notes may occur for other reasons which are not known to the Issuer or
which the Issuer deems immaterial at this time. Prospective investors should also read the detailed
information set out elsewhere in this Base Prospectus (including any documents deemed to be incorporated in
it by reference) and reach their own views prior to making any investment decision.
Capitalised terms used herein and not otherwise defined shall bear the meaning ascribed to them in the
"Terms and Conditions of the Notes" below.
Factors that may affect Belfius Bank's ability to fulfil its obligations under the Notes.
Like other banks, Belfius Bank faces financial risk in the conduct of its business, such as credit risk,
operational risk and market risk (including liquidity risk).
Risks related to the business of banks in general, including Belfius Bank
1.
Credit risk
General credit risks are inherent in a wide range of Belfius Bank's businesses. These include risks
arising from changes in the credit quality of its borrowers and counterparties and the inability to
recover loans and any amounts due. Belfius Bank is subject to the credit risk that third parties such as
trading counterparties, counterparties under swaps and credit and other derivative contracts, borrowers
of loans made available by Belfius Bank, the issuers of securities which Belfius Bank holds,
customers, clearing agents and clearing houses, exchanges, guarantors, (re-)insurers and other financial
intermediaries owing Belfius Bank money, securities or other assets do not pay, deliver or perform
under their obligations. Bankruptcy, lack of liquidity, downturns in the economy or real estate values,
operational failure or other reasons may cause them to default on their obligations towards Belfius
Bank.
For the management of its credit risks, Belfius Bank uses an Advanced Internal Rating Based
approach. This means that Belfius Bank makes use of internal models for defining the key risk
parameters Probability of Default (PD), Loss Given Default (LGD) and Credit Conversion Factor
(CCF the conversion of an available credit line in an expected draw down amount) for off-balance
sheet commitments.

EMEA 102441710 v17
- 5-

When granting credits to individuals (essentially mortgage loans), to self-employed persons and to
small enterprises, standardised and automated processes are mainly used, in which the results from the
scoring and/or rating models play an important role.
When granting credits to medium-sized and large enterprises as well as Public and Social Banking
customers, an individualised approach is implemented. Credit analysts examine the file autonomously
and define the customer's internal rating. Then a credit committee takes a decision on the basis of
various factors such as solvency, the customer relationship, the customer's prospects, the credit
application and the guarantees. In the analysis process, credit applications are carefully examined and
only accepted if the borrower's repayment capacity is demonstrated. To support the credit decision
process, a RAROC (Risk Adjusted Return on Capital) measures the expected profitability of the credit
transaction or even of the full relationship with the customer, and compares it with a required RAROC
level (target rate). As such, the RAROC is an instrument for differentiating the risks and for guiding
the return combinations in an optimal way.
Belfius Bank has further intensified its strategy of being close to its customers. This approach provides
significant added value to Belfius Bank's customers, regardless of the segment in which they operate.
Credit and risk committees are regionalised and decision-making powers are increasingly delegated to
the regional commercial and credit teams, strengthening the principle of decision-by-proximity. This
has resulted in a greater involvement of the various teams in the decision-making process, as well as
stronger monitoring of the use of the delegated powers mentioned above.
Belfius Bank monitors the evolution of the solvency of its borrowers throughout the whole credit
lifecycle. The different portfolios of the Retail and Commercial Business for which risk management
relies on a portfolio approach are reviewed periodically. Customer ratings, using an individualised
approach, are also updated periodically, in line with the bank's choice to apply AIRB (Advanced
Internal Rating Based) models. The economic review process of credit applications is intended to
ensure that any signs of risk can be detected in time and subsequently monitored and/or addressed.
This review process is organised, according to the Credit Review Guideline, in an annual cycle, with
in-depth analysis for customers with important credit exposures and/or significant (positive or
negative) evolutions in their risk profile.
2.
Market risk
The businesses and earnings of Belfius Bank and of its individual business segments are affected by
market conditions. Market risk can be understood as the potential adverse change in the value of a
portfolio of financial instruments due to movements in market price levels, to changes of the
instrument's liquidity, to changes in volatility levels for market prices or changes in the correlations
between the levels of market prices.
Belfius Bank records several additional value adjustments which might vary significantly based on
market evolutions of for example credit and basis risk.
Management of market risk within the Issuer is focused on all Non Financial Markets and Financial
activities and encompasses interest rate risk, spread risk and the associated credit risk/liquidity risk,
foreign-exchange risk, equity risk (or price risk), inflation risk and commodity price risk.
Non Financial Markets activities
Managing structural exposure to market risks (including interest rate risk, equity risk, real estate risk
and foreign exchange risk) is also known as Asset/Liability Management ("ALM"). The structural
exposure at Belfius Bank results from the imbalance between its assets and liabilities in terms of
volumes, durations and interest rate sensitivity.

EMEA 102441710 v17
- 6-

Belfius Bank's Board of Directors has the ultimate responsibility for setting the strategic risk tolerance,
including the risk tolerance for market risks in non financial markets activities. The Management
Board of Belfius Bank and Belfius Insurance have the ultimate responsibility for managing the interest
rate risks of Belfius within the above set risk tolerance and within the regulatory framework.
Operational responsibility for effective ALM is delegated to the Asset & Liability Committee
("ALCo"). The ALCo manages interest rate risk, foreign exchange risk, and liquidity risk of Belfius
Bank's and Belfius Insurance's balance sheets within a framework of normative limits and reports to
the Management Board. Important files at a strategic level are submitted for final decision to the
Management Board, which has the final authority before any practical implementation.
The ALCo of Belfius Bank is responsible for guiding and monitoring balance sheet and off-balance
sheet commitments and, doing so, places an emphasis on:
the creation of a stable income flow;
the maintenance of economic value; and
the insurance of robust and sustainable funding.
Financial Markets activities
Financial Markets activities encompass client-oriented activities and hedge activities at Belfius Bank.
No Financial Markets activities are undertaken at Belfius Insurance. For their needs in Financial
Markets products, Belfius Insurance turns to Belfius Bank or other banks.
The Value-at-Risk ("VaR") concept is used as the principal metric for proper management of the
market risk Belfius Bank is facing. The VaR measures the maximum loss in Net Present Value
("NPV") the bank might be facing in normal and/or historical market conditions over a period of 10
days with a confidence interval of 99%. The following risks are monitored at Belfius Bank using a
VaR computation:
interest rate and foreign-exchange rate risk: this category of risk is monitored via an historical
VaR based on an internal model approved by the National Bank of Belgium. The historical
simulation approach consists of managing the portfolio through a temporal series of historical
asset yields. These revaluations generate a distribution of portfolio values (yield histogram)
on the basis of which a VaR (% percentile) may be calculated.

The main advantages of this type of VaR are its simplicity and the fact that it does not assume
a normal but a historical distribution of asset yields (distributions may be non-normal and the
behaviour of the observations may be non-linear).
general and specific equity risks are measured on the basis of a historical VaR with full
valuation based on 300 scenarios.
spread risk and inflation risk are measured via a historical approach, applying 300 observed
variations on the sensitivities.
Since the end of 2011, Belfius Bank has computed a Stressed Value-at-Risk ("S-VaR") on top of its
regular VaR. This S-VaR measure consists of calculating an additional VaR based on a 12 consecutive
months observation period which generates the largest negative variations of Net Present Value in the
bank's current portfolio of financial instruments.

EMEA 102441710 v17
- 7-

3.
Operational risk
Belfius Bank defines "operational risk" as the risk of financial or non-financial impact resulting from
inadequate or failed internal processes, people and systems, or from external events. The definition
includes legal, reputational and strategic risk but excludes expenses from commercial decisions.
The framework on the management of operational risk at Belfius Bank is in place and is based on the
principles mentioned in the "principles for the sound management of operational risk" of the Bank for
International Settlements.
The governance structure is based on a first line responsibility by the business management and a
second line responsibility by the operational risk management department, who defines the
methodological principles. There is a clear separation of duties between both lines.

EMEA 102441710 v17
- 8-

The operational risk management includes the collection of operational events (loss data), the
organisation of yearly risk and control self-assessments, as well as the performance of scenario
analysis, the collection of insurance claims and the yearly review of the insurance policies, advice on
operational risk topics, co-ordination of the fraud management at Belfius Bank, the development and
testing of business continuity plans and performance of business impact analysis, a crisis
management programme, the management of information risk. All activities of Belfius Bank are
covered by the current framework.
4.
Liquidity risk
The liquidity risk at Belfius Bank mainly stems from:
changes to the commercial funding amounts collected from Retail and Private customers,
small, medium-sized and large companies, public and similar customers and the way these
funds are allocated to customers through loans;
the volatility of the collateral that is to be deposited with counterparties as part of the
framework for derivatives and repo transactions (so called cash & securities collateral);
the value of the liquid reserves by virtue of which Belfius Bank can collect funding on the
repo market and/or from the European Central Bank ("ECB");
the capacity to obtain interbank and institutional funding.
Liquidity and Capital Management (LCM), a division situated within the scope of the Chief Financial
Officer (CFO), is the front-line manager for the liquidity requirements of Belfius Bank. It identifies,
analyses and reports on current and future liquidity positions and risks, and defines and coordinates
funding plans and actions under the operational responsibility of the CFO and under the general
responsibility of the Management Board. The CFO also bears final operational responsibility for
managing the interest rate risk contained in the banking balance sheet via the ALM department and the
ALCo, meaning that total bank balance sheet management lies within his operational responsibility.
LCM organises a weekly Liquidity Management Committee (LMC), in presence of the CFO, the Risk
Department, the Treasury Department of the Financial Markets and the Retail and Commercial and
Public and Corporate business lines. This committee implements the decisions taken by LCM in
relation to obtaining short-term and long-term funding on the institutional markets and through the
commercial franchise.
LCM also monitors the funding plan to guarantee Belfius Bank will continue to comply with its
internal and regulatory liquidity ratios.
LCM reports on a daily and weekly basis to the Management Board about the bank's liquidity
situation.
Second-line controls for monitoring the liquidity risk are performed by the Risk department, which
ensures that the reports published are accurate, challenges the retained hypothesis and models, realises
simulation over stress situations and oversees compliance with limits, as laid down in the Liquidity
Guideline.
5.
Competition
Belfius Bank faces strong competition across all its markets from local and international financial
institutions including banks, life insurance companies and mutual insurance organisations. While
Belfius Bank believes it is positioned to compete effectively with these competitors, there can be no

EMEA 102441710 v17
- 9-

assurance that increased competition will not adversely affect Belfius Bank's pricing policy and lead to
losing market share in one or more markets in which it operates.
Competition is also affected by other factors such as changes in consumer demand and regulatory
actions. Moreover competition can increase as a result of internet and mobile technologies changing
customer behaviour, the rise of mobile banking and the threat of banking business being developed by
non-financial companies, all of which may reduce the profits of the credit institution.
6.
Increased and changing regulation of the financial services industry could have an adverse effect
on Belfius Bank's operations
As is the case for all credit institutions, Belfius Bank's business activities are subject to substantial
regulation and regulatory oversight in the jurisdictions in which it operates, mainly in Belgium.
Recent developments in the global markets have led to an increased involvement of various
governmental and regulatory authorities in the financial sector and in the operations of financial
institutions. In particular, governmental and regulatory authorities in France, the United Kingdom, the
United States, Belgium, Luxembourg and elsewhere have, as a result, provided additional capital and
funding requirements and have introduced and may, in the future, be introducing a significantly more
restrictive regulatory environment, including new accounting and capital adequacy rules, restrictions
on termination payments for key personnel and new regulation of derivative instruments. Current
regulation, together with future regulatory developments, could have an adverse effect on how Belfius
Bank conducts its business and on the results of its operations.
The recent global economic downturn has resulted in significant changes to regulatory regimes. There
have been significant regulatory developments in response to the global crisis, including the stress test
exercise co-ordinated by the Committee of European Banking Supervisors in co-operation with the
ECB, liquidity risk assessments and the adoption of a new regulatory framework. The most relevant
areas of regulation include the following:
The requirements under Basel III have been implemented in the European Union through the
adoption of (i) Directive 2013/36/EU of the European Parliament and of the Council of 26
June 2013 on access to the activity of credit institutions on prudential requirements for credit
institutions and investment firms ("CRD") and (ii) Regulation (EU) No. 575/2013 of the
European Parliament and of the Council of 26 June 2013 on prudential requirements for credit
institutions and investment firms ("CRR" and together with CRD, "CRD IV").
As part of the so-called banking union, the "Single Supervision Mechanism" or "SSM" was
adopted by Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific
tasks on the European Central Bank concerning policies relating to the prudential supervision
of credit institutions. Under the SSM, the European Central Bank (ECB) has assumed certain
supervisory responsibilities in relation to Belfius Bank, which were previously handled by the
NBB. The ECB may interpret the applicable banking regulations, or exercise discretions
given to the regulator under the applicable banking regulations, in a different manner than the
NBB.
Regulation 806/2014 of the European Parliament and of the Council of 15 July 2014
establishing uniform rules and a uniform procedure for the resolution of credit institutions and
certain investment firms in the framework of a Single Resolution Mechanism and a Single
Bank Resolution Fund and amending Regulation (EU) No 1093/2010 of the European
Parliament and the Council ("Single Resolution Mechanism" or "SRM"). The Single
Resolution Mechanism entered into force on 19 August 2014 and applies to credit institutions
which fall under the supervision of the ECB, including the Issuer. The SRM has established a

EMEA 102441710 v17
- 10-