Obligation BNP Paribas SA 0% ( NL0012011340 ) en USD

BNP Paribas SA

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Pays-bas

NL0012011340 ( en USD )

14/01/2021 - Obligation échue

Prospectus brochure de l'obligation BNP Paribas NL0012011340 en USD 0%, échue

BNP Paribas est une banque internationale française, l'une des plus grandes d'Europe, offrant une large gamme de services financiers aux particuliers, entreprises et institutions.

L'Obligation émise par BNP Paribas SA ( Pays-bas ) , en USD, avec le code ISIN NL0012011340, paye un coupon de 0% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 14/01/2021

MARKET ACCESS SECURITIES BASE PROSPECTUS
DATED 3 JULY 2017

BNP Paribas Issuance B.V.
(formerly BNP Paribas Arbitrage Issuance B.V.)
(incorporated in the Netherlands)
(as Issuer)
BNP Paribas
(incorporated in France)
(as Issuer and Guarantor)
Base Prospectus for the issue of Warrants and Certificates

This document (the "Base Prospectus") constitutes a base prospectus in respect of Warrants and Certificates
issued under the Note, Warrant and Certificate Programme of BNP Paribas Issuance B.V. (formerly BNP
Paribas Arbitrage Issuance B.V.) ("BNPP B.V.") and BNP Paribas ("BNPP") (the "Programme"). Any W&C
Securities (as defined below) issued on or after the date of this Base Prospectus pursuant to Final Terms
referencing this Base Prospectus are issued subject to the provisions herein. This does not affect any W&C
Securities issued before the date of this Base Prospectus. This Base Prospectus constitutes a base prospectus for
the purposes of Article 5.4 of the Prospectus Directive. Prospectus Directive means Directive 2003/71/EC (as
amended including by Directive 2010/73/EU) and includes any relevant implementing measure in a relevant
Member State of the European Economic Area.
Application has been made to the Autorité des marchés financiers ("AMF") in France for approval of this Base
Prospectus in its capacity as competent authority pursuant to Article 212.2 of its Règlement Général which
implements the Prospectus Directive. Upon such approval, application may be made for securities issued under
the Programme during a period of 12 months from the date of this Base Prospectus to be listed and/or admitted
to trading on Euronext Paris and/or a Regulated Market (as defined below) in another Member State of the
European Economic Area. Euronext Paris is a regulated market for the purposes of the Markets in Financial
Instruments Directive 2004/39/EC (each such regulated market being a "Regulated Market"). Reference in
this Base Prospectus to W&C Securities being "listed" (and all related references) shall mean that such W&C
Securities have been listed and admitted to trading on Euronext Paris or, as the case may be, a Regulated Market
(including the regulated market of the Luxembourg Stock Exchange) or on such other or further stock
exchange(s) as the relevant Issuer may decide. Each Issuer may also issue unlisted W&C Securities. The
applicable Final Terms (as defined below) will specify whether or not W&C Securities are to be listed and
admitted to trading and, if so, the relevant Regulated Market or other or further stock exchange(s).
The requirement to publish a prospectus under the Prospectus Directive only applies to W&C Securities which
are to be admitted to trading on a regulated market in the European Economic Area and/or offered to the public
in the European Economic Area other than in circumstances where an exemption is available under Article 3.2
of the Prospectus Directive (as implemented in the relevant Member State(s)). Each Issuer may issue W&C
Securities for which no prospectus is required to be published under the Prospectus Directive ("Exempt
Securities") under this Base Prospectus. See "Exempt Securities" in the "General Description of the Programme
and Payout Methodology under this Base Prospectus" section below. The AMF has neither approved nor
reviewed information contained in this Base Prospectus in connection with Exempt Securities.
0079467-0000115 HK:22490695.21
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Under the Programme each of BNPP B.V. and BNPP (the "Issuers" and each an "Issuer"), may from time to
time issue, inter alia, warrants ("Warrants") or certificates ("Certificates" and, together with the Warrants,
"W&C Securities") of any kind including, but not limited to, W&C Securities relating to a specified index or a
basket of indices, a specified share, global depositary receipt ("GDR") or American depositary receipt ("ADR")
or a basket of shares, ADRs and/or GDRs, a specified interest in an exchange traded fund, an exchange traded
note, an exchange traded commodity or other exchange traded product (each an "exchange traded
instrument") or a basket of interests in exchange traded instruments, a specified debt instrument or a basket of
debt instruments, a specified fund share or unit or basket of fund shares or units, a specified entity or entities and
any other types of W&C Securities including hybrid W&C Securities whereby the underlying asset(s) may be
any combination of such indices, shares, interests in exchange traded instruments, debt, fund shares or units, or
other asset classes or types. Each issue of the W&C Securities will be issued on the terms set out herein which
are relevant to such W&C Securities under "Terms and Conditions of the W&C Securities" (the "Security
Conditions" or the "Conditions"). Notice of, inter alia, the specific designation of the W&C Securities the
number and type of the W&C Securities, the date of issue of the W&C Securities, the issue price (if applicable),
the underlying asset, index, fund, or other item(s) to which the W&C Securities relate, the exercise period or
date (in the case of Warrants), the redemption date (in the case of Certificates), whether they are interest
bearing, partly paid, redeemable in instalments (in the case of Certificates), exercisable (on one or more exercise
dates) (in the case of Certificates), whether the W&C Securities are eligible for sale in the United States and
certain other terms relating to the offering and sale of the W&C Securities will be set out in a final terms
document (the "Final Terms") which may be issued for more than one series of W&C Securities and will be
filed with the AMF. Copies of Final Terms in relation to W&C Securities to be listed on Euronext Paris will
also be published on the website of the AMF (www.amf-france.org). References herein to the Final Terms may
include, in the case of U.S. Securities (as defined below), (x) a supplement to the Base Prospectus under Article
16 of the Prospectus Directive or (y) a prospectus.
W&C Securities related to a specified interest in an exchange traded instrument or basket of interests in
exchange traded instruments, a specified fund share or unit or basket of fund shares or units or hybrid W&C
Securities related to any of these asset classes, may not at any time be offered, sold, resold, held, traded,
pledged, exercised (in the case of Warrants), settled or redeemed (in the case of Certificates), transferred or
delivered, directly or indirectly, in the United States or to, by or for the account or benefit of, persons that are (i)
a "U.S. person" as defined in Regulation S under the Securities Act ("Regulation S"); or (ii) a person other than
a "Non-United States person" as defined in Rule 4.7 under the United States Commodity Exchange Act of 1936,
as amended (the "Commodity Exchange Act"); or (iii) a "U.S. person" as defined in the Interpretive Guidance
and Policy Statement Regarding Compliance with Certain Swap Regulations promulgated by the United States
Commodity Futures Trading Commission (the "CFTC"); or (iv) any other "U.S. person" as such term may be
defined in Regulation S or in regulations or guidance adopted under the Commodity Exchange Act (each such
person, a "U.S. person"), unless expressly provided for pursuant to any applicable U.S. wrapper to the Base
Prospectus. Any such applicable U.S. wrapper may restrict the types of W&C Securities that can be offered,
sold, resold, held, traded, pledged, exercised, redeemed, transferred or delivered and the terms of such W&C
Securities.
Neither the United States Securities and Exchange Commission (the "SEC") nor any state securities commission
has approved or disapproved of these securities or passed upon the accuracy of this prospectus. Any
representation to the contrary is a criminal offence. W&C Securities issued by BNPP B.V. will be guaranteed by
BNP Paribas (in such capacity, the "Guarantor") pursuant to a Deed of Guarantee (the "Guarantee"), the form
of which is set out herein.
Except in the case of U.S. Securities, each of BNPP B.V. and BNPP has a right of substitution as set out herein.
In the event that either BNPP .B.V. or BNPP exercises its right of substitution, a supplement to the Base
Prospectus will be published on the website of the AMF (www.amf.france.org) and on the website of BNPP
(https://rates-globalmarkets.bnpparibas.com/gm/public/LegalDocs.aspx).
Each issue of W&C Securities will entitle the holder thereof on due exercise (in the case of Warrants) or on the
Instalment Date(s) and/or the Redemption Date (in the case of Certificates) (or, in the case of Multiple Exercise
Certificates, each Exercise Settlement Date) to receive a cash amount (if any) calculated in accordance with the
relevant terms, all as set forth herein and in the applicable Final Terms.
Capitalised terms used in this Base Prospectus shall, unless otherwise defined, have the meanings set forth in the
Conditions.
Prospective purchasers of W&C Securities should ensure that they understand the nature of the relevant
W&C Securities and the extent of their exposure to risks and that they consider the suitability of the
relevant W&C Securities as an investment in the light of their own circumstances and financial condition.
W&C Securities involve a high degree of risk and potential investors should be prepared to sustain a total
loss of the purchase price of their W&C Securities. See "Risk Factors" on pages [147] to [187].
0079467-0000115 HK:22490695.21
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In particular, the W&C Securities and the Guarantee have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and
trading in the W&C Securities has not been approved by the CFTC under the Commodity Exchange Act.
Neither Issuer has registered as an investment company pursuant to the United States Investment
Company Act of 1940, as amended (the "Investment Company Act"). Unless such Securities are U.S.
Securities as specified in the applicable Final Terms, the W&C Securities are being offered and sold in
reliance on Regulation S. No W&C Securities of such series, or interests therein, may at any time be
offered, sold, resold, traded, pledged, exercised, redeemed, transferred or delivered, directly or indirectly,
in the United States or to, or for the account or benefit of, persons that are (i) a "U.S. person" as defined
in Regulation S ; (ii) a person other than a "Non-United States person" as defined in Rule 4.7 under the
Commodity Exchange Act; (iii) a "U.S. person" as defined in the Interpretive Guidance and Policy
Statement Regarding Compliance with Certain Swap Regulations promulgated by the CFTC; or (iv) any
other "U.S. person" as such term may be defined in Regulation S or in regulations or guidance adopted
under the Commodity Exchange Act (each such person, a "U.S. person"). Any offer, sale, resale, trade,
pledge, exercise, transfer or delivery made, directly or indirectly, within the United States or to, or for the
account or benefit of, a U.S. person will not be recognised. The W&C Securities of such series may not be
legally or beneficially owned at any time by any U.S. person (as defined in the "Offering and Sale" section
below) and accordingly are being offered and sold outside the United States to non-U.S. persons in
reliance on Regulation S and pursuant to CFTC regulations and guidance.
Certain issues of W&C Securities may also be offered and sold in the United States to persons reasonably
believed to be both qualified institutional buyers ("QIBs") as defined in Rule 144A under the Securities
Act ("Rule 144A") and qualified purchasers ("QPs") as defined under the Investment Company Act.
Each purchaser of U.S. Securities within the United States is hereby notified that the offer and sale of such
Securities is being made in reliance upon an exemption from the registration requirements of the Securities Act.
For a description of certain further restrictions on offers and sales of the W&C Securities and on the distribution
of this Base Prospectus, see "Offering and Sale" below.
U.S. Securities will, unless otherwise specified in the Final Terms, be sold through BNP Paribas Securities
Corp., a registered broker-dealer. See the Conditions below.
The Issuers have requested the AMF to provide the competent authorities in Luxembourg with a certificate of
approval attesting that the Base Prospectus has been drawn up in accordance with the Prospectus Directive.
In the event that the applicable Final Terms specify that W&C Securities are eligible for sale in the United
States ("U.S. Warrants" or "U.S. Certificates", as the case may be, and together, the "U.S. Securities"), (A)
the W&C Securities sold in the United States to QIBs who are QPs will be represented by one or more global
Securities (each, a "Rule 144A Global Security") issued and deposited with (1) a custodian for, and registered
in the name of a nominee of, The Depository Trust Company ("DTC") or (2) a common depositary on behalf of
Clearstream Banking, société anonyme ("Clearstream, Luxembourg") or Euroclear Bank S.A./N.V.
("Euroclear") and/or any other relevant clearing system and (B) W&C Securities sold outside the United States
to non-U.S. persons will be represented by one or more global Securities (each, a "Regulation S Global
Security") issued and deposited with a common depositary on behalf of Clearstream, Luxembourg and
Euroclear and/or any other relevant clearing system and may not be legally or beneficially owned at any time by
any U.S. person. In the event that the Final Terms do not specify that W&C Securities are eligible for sale
within the United States or to U.S. persons, the W&C Securities offered and sold outside the United States to
non-U.S. persons may not be legally or beneficially owned at any time by any U.S. person and will be
represented by a Clearing System Global Security or a Registered Global Security, as the case may be. Such
U.S. Securities will be subject to additional restrictions as set forth in the applicable U.S. wrapper to the Base
Prospectus, including restrictions on the types of Securities that can be offered, sold, resold, held, traded,
pledged, exercised, redeemed, transferred or delivered and the terms of such Securities.
The securities described in this Base Prospectus may only be offered in the Netherlands to Qualified Investors
(as defined in the Prospectus Directive).
BNPP B.V.'s long-term credit ratings are A with a stable outlook (Standard & Poor's Credit Market Services
France SAS ("Standard & Poor's")) and BNPP B.V.'s short term credit ratings are A-1 (Standard & Poor's).
BNPP's long-term credit ratings are A with a stable outlook (Standard & Poor's), A1 with a stable outlook
(Moody's Investors Service Ltd. ("Moody's")), A+ with a stable outlook (Fitch France S.A.S. ("Fitch France"))
and AA (low) with a stable outlook (DBRS Limited ("DBRS")) and BNPP's short-term credit ratings are A-1
(Standard & Poor's), P-1 (Moody's), F1 (Fitch France) and R-1 (middle) (DBRS). Each of Standard & Poor's,
Moody's, Fitch France and DBRS is established in the European Union and is registered under the Regulation
(EC) No. 1060/2009 (as amended) (the "CRA Regulation"). As such each of Standard & Poor's, Moody's,
Fitch France and DBRS is included in the list of credit rating agencies published by the European Securities and
Markets Authority on its website (at http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) in
0079467-0000115 HK:22490695.21
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accordance with the CRA Regulation. W&C Securities issued under the Programme may be rated or unrated.
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. Please also refer to "Credit Ratings may not
Reflect all Risks" in the Risk Factors section of this Base Prospectus.

0079467-0000115 HK:22490695.21
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TABLE OF CONTENTS
Page
PROGRAMME SUMMARY IN RELATION TO THIS BASE PROSPECTUS ..................................................................... 7
PROGRAMME SUMMARY IN RELATION TO THIS BASE PROSPECTUS (IN FRENCH) .............................................. 36
PRO FORMA ISSUE SPECIFIC SUMMARY OF THE PROGRAMME IN RELATION TO THIS BASE PROSPECTUS......... 70
PRO FORMA ISSUE SPECIFIC SUMMARY OF THE PROGRAMME IN RELATION TO THIS BASE PROSPECTUS
(IN FRENCH) ........................................................................................................................................................ 106
RISK FACTORS ..................................................................................................................................................... 147
USER'S GUIDE TO THE BASE PROSPECTUS .......................................................................................................... 188
AVAILABLE INFORMATION.................................................................................................................................. 192
FORWARD-LOOKING STATEMENTS .................................................................................................................... 192
PRESENTATION OF FINANCIAL INFORMATION ................................................................................................... 192
DOCUMENTS INCORPORATED BY REFERENCE ................................................................................................... 193
GENERAL DESCRIPTION OF THE PROGRAMME AND PAYOUT METHODOLOGY UNDER THIS BASE
PROSPECTUS ....................................................................................................................................................... 208
[FORM OF] FINAL TERMS FOR THE SECURITIES .................................................................................................. 210
TERMS AND CONDITIONS OF THE W&C SECURITIES .......................................................................................... 243
ANNEX 1 Additional Terms and Conditions for Payouts....................................................................... 312
ANNEX 2 Additional Terms and Conditions for Index Securities .......................................................... 320
ANNEX 3 Additional Terms and Conditions for Share Securities .......................................................... 327
ANNEX 4 Additional Terms and Conditions for ETI Securities .............................................................. 340
ANNEX 5 Additional Terms and Conditions for Debt Securities ........................................................... 357
ANNEX 6 Additional Terms and Conditions for Fund Securities ........................................................... 359
ANNEX 7 Additional Terms And Conditions For Market Access Securities .......................................... 372
USE OF PROCEEDS .............................................................................................................................................. 381
FORM OF GUARANTEE........................................................................................................................................ 382
FORM OF THE W&C SECURITIES ......................................................................................................................... 386
DESCRIPTION OF BNPP B.V. ................................................................................................................................ 387
DESCRIPTION OF BNPP ....................................................................................................................................... 391
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BOOK-ENTRY CLEARANCE SYSTEMS ................................................................................................................... 392
BOOK-ENTRY SYSTEMS ....................................................................................................................................... 392
TAXATION ........................................................................................................................................................... 396
FRENCH TAXATION ............................................................................................................................................. 397
LUXEMBOURG TAXATION ................................................................................................................................... 399
U.S. FEDERAL INCOME TAXATION ...................................................................................................................... 400
HIRING INCENTIVES TO RESTORE EMPLOYMENT ACT WITHOLDING ................................................................. 410
FOREIGN ACCOUNT TAX COMPLIANCE ACT ....................................................................................................... 412
OTHER TAXATION ............................................................................................................................................... 414
U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 ......................................................................... 415
NOTICE TO PURCHASERS AND HOLDERS OF U.S. SECURITIES AND TRANSFER RESTRICTIONS .......................... 418
OFFERING AND SALE ........................................................................................................................................... 425
GENERAL INFORMATION .................................................................................................................................... 439
RESPONSIBILITY STATEMENT .............................................................................................................................. 450

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PROGRAMME SUMMARY IN RELATION TO THIS BASE PROSPECTUS
Summaries are made up of disclosure requirements known as "Elements". These Elements are numbered in
Sections A E (A.1 E.7). This summary contains all the Elements required to be included in a summary for
this type of W&C Securities, Issuer and Guarantor. Because some Elements are not required to be addressed,
there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be
inserted in the summary because of the type of W&C Securities, Issuer and Guarantor, it is possible that no
relevant information can be given regarding the Element. In this case a short description of the Element should
be included in the summary explaining why it is not applicable.
Section A - Introduction and warnings

Element
Title

A.1
Warning that the

This summary should be read as an introduction to the Base
summary should be
Prospectus and the applicable Final Terms. In this summary,
read as an
unless otherwise specified and except as used in the first
introduction and
paragraph of Element D.3, "Base Prospectus" means the Base
provision as to
Prospectus of BNPP B.V. and BNPP dated 3 July 2017 as
claims
supplemented from time to time under the Note, Warrant and
Certificate Programme of BNPP B.V. and BNPP. In the first
paragraph of Element D.3, "Base Prospectus" means the Base
Prospectus of BNPP B.V. and BNPP dated 3 July 2017 under
the Note, Warrant and Certificate Programme of BNPP B.V.
and BNPP.

Any decision to invest in any W&C Securities should be based
on a consideration of this Base Prospectus as a whole,
including any documents incorporated by reference and the
applicable Final Terms.

Where a claim relating to information contained in the Base
Prospectus and the applicable Final Terms is brought before a
court in a Member State of the European Economic Area, the
plaintiff may, under the national legislation of the Member
State where the claim is brought, be required to bear the costs
of translating the Base Prospectus and the applicable Final
Terms before the legal proceedings are initiated.

No civil liability will attach to the Issuer or the Guarantor (if
any) in any such Member State solely on the basis of this
summary, including any translation hereof, unless it is
misleading, inaccurate or inconsistent when read together with
the other parts of this Base Prospectus and the applicable Final
Terms or, following the implementation of the relevant
provisions of Directive 2010/73/EU in the relevant Member
State, it does not provide, when read together with the other
parts of this Base Prospectus and the applicable Final Terms,
key information (as defined in Article 2.1(s) of the Prospectus
Directive) in order to aid investors when considering whether
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Element
Title

to invest in the W&C Securities.
A.2
Consent as to use
Certain issues of W&C Securities with an issue price of less than
the Base
EUR100,000 (or its equivalent in any other currency) may be offered in
Prospectus, period
circumstances where there is no exemption from the obligation under the
of validity and
Prospectus Directive to publish a prospectus. Any such offer is referred to
other conditions
as a "Non-exempt Offer". Subject to the conditions set out below, the
attached
Issuer consents to the use of this Base Prospectus in connection with a Non-
exempt Offer of W&C Securities by the Managers, any financial
intermediary named as an Authorised Offeror in the applicable Final Terms
and any financial intermediary whose name is published on BNPP's website
(https://rates-globalmarkets.bnpparibas.com/gm/Public/LegalDocs.aspx)
and identified as an Authorised Offeror in respect of the relevant Non-
exempt Offer (each an "Authorised Offeror").

Offer period: The Issuer's consent is given for Non-exempt Offers of W&C
Securities during the Offer Period specified in the applicable Final Terms.

Conditions to consent: The conditions to the Issuer's consent (in addition to
the conditions referred to above) are that such consent (a) is only valid
during the Offer Period specified in the applicable Final Terms; and (b)
only extends to the use of this Base Prospectus to make Non-exempt Offers
of the relevant Tranche of W&C Securities in the Non-exempt Offer
Jurisdictions specified in the applicable Final Terms.

AN INVESTOR INTENDING TO PURCHASE OR PURCHASING
ANY W&C SECURITIES IN A NON-EXEMPT OFFER FROM AN
AUTHORISED OFFEROR WILL DO SO, AND OFFERS AND
SALES OF SUCH SECURITIES TO AN INVESTOR BY SUCH
AUTHORISED OFFEROR WILL BE MADE, IN ACCORDANCE
WITH THE TERMS AND CONDITIONS OF THE OFFER IN
PLACE BETWEEN SUCH AUTHORISED OFFEROR AND SUCH
INVESTOR INCLUDING ARRANGEMENTS IN RELATION TO
PRICE, ALLOCATIONS, EXPENSES AND SETTLEMENT. THE
RELEVANT INFORMATION WILL BE PROVIDED BY THE
AUTHORISED OFFEROR AT THE TIME OF SUCH OFFER.
Section B - Issuers and Guarantor

Element
Title

B.1
Legal and
W&C Securities may be issued under this Base Prospectus under the Note,
commercial name
Warrant and Certificate Programme by BNP Paribas Issuance B.V.
of the Issuer
(formerly BNP Paribas Arbitrage Issuance B.V.) ("BNPP B.V.") or BNP
Paribas ("BNPP" or the "Bank") (together the "Issuers" and each an
"Issuer").
B.2
Domicile/ legal
BNPP B.V. was incorporated in the Netherlands as a private company with
form/ legislation/
limited liability under Dutch law having its registered office at Herengracht
0079467-0000115 HK:22490695.21
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Element
Title

country of
595, 1017 CE Amsterdam, the Netherlands; and
incorporation

BNPP was incorporated in France as a société anonyme under French law
and licensed as a bank having its head office at 16, boulevard des Italiens
75009 Paris, France.
B.4b
Trend information
In respect of BNPP:
Macroeconomic environment.
Macroeconomic and market conditions affect BNPP's results. The nature of
BNPP's business makes it particularly sensitive to macroeconomic and
market conditions in Europe, which have been at times challenging and
volatile in recent years.
In 2016, global growth stabilised slightly above 3%, despite a much lower
growth in the advanced economies. Three major transitions continue to
affect the global outlook: declining economic growth in China, fluctuating
energy prices that rose in 2016, and a second tightening of monetary policy
in the United States in the context of a resilient domestic recovery. It should
be noted that the central banks of several large developed countries continue
to maintain accommodative monetary policies. IMF economic forecasts for
20171 point to a recovery in global activity, no significant improvement in
growth in the euro zone and Japan, and a slowdown in the United Kingdom.

In that context, two risks can be identified:

Financial instability due to the vulnerability of emerging countries
While the exposure of the BNP Paribas Group to emerging countries is
limited, the vulnerability of these economies may generate disruptions in
the global financial system that could affect the BNP Paribas Group and
potentially alter its results.
A broad increase in the foreign exchange liabilities of the economies of
many emerging market economies was observed in 2016, at a time when
debt levels (in both foreign and local currency) were already high. The
private sector was the main source of the increase in this debt. Furthermore,
the prospect of a gradual increase in US key rates (the Federal Reserve
Bank made its first increase in December 2015, and a second in December
2016) and increased financial volatility stemming from concerns about
growth and mounting geopolitical risk in emerging markets have
contributed to a tightening of external financial conditions, increased capital
outflows, further currency depreciations in many emerging markets and
heightened risks for banks. These factors could result in further downgrades
of sovereign ratings.

1 See notably: IMF World Economic Outlook, updated in January 2017.
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Element
Title

There is still a risk of disturbances in global markets (rising risk premiums,
erosion of confidence, declining growth, deferral or slower pace of
normalisation of monetary policies, declining liquidity in markets, asset
valuation problems, decline in credit supply and disorderly deleveraging)
that could affect all banking institutions.
Systemic risks related to increased debt and market liquidity
Despite the upturn since mid-2016, interest rates remain low, which may
continue to encourage excessive risk-taking among some players in the
financial system: increased maturities of financing and assets held, less
stringent policy for granting loans, increase in leveraged financing.
Some players (insurance companies, pension funds, asset managers, etc.)
entail an increasingly systemic dimension and in the event of market
turbulence (linked for instance to a sudden rise in interest rates and/or a
sharp price correction) they may decide to unwind large positions in an
environment of relatively weak market liquidity.
Recent years have also seen an increase in debt (public and private) in both
developed and emerging countries. The resulting risk could materialise
either in the event of a spike in interest rates or a further negative growth
shock.
Laws and regulations applicable to financial institutions
Recent and future changes in the laws and regulations applicable to
financial institutions may have a significant impact on BNPP. Measures that
were recently adopted or which are (or whose application measures are) still
in draft format, that have or are likely to have an impact on BNPP notably
include:
-
the structural reforms comprising the French banking law of 26
July 2013 requiring that banks create subsidiaries for or segregate
"speculative" proprietary operations from their traditional retail
banking activities, the "Volcker rule" in the US which restricts
proprietary transactions, sponsorship and investment in private
equity funds and hedge funds by US and foreign banks, and
upcoming potential changes in Europe;
-
regulations governing capital: the Capital Requirements Directive
IV ("CRD4")/the Capital Requirements Regulation ("CRR"), the
international standard for total loss-absorbing capacity ("TLAC")
and BNPP's designation as a financial institution that is of systemic
importance by the Financial Stability Board;
-
the European Single Supervisory Mechanism and the ordinance of
6 November 2014;
-
the Directive of 16 April 2014 related to deposit guarantee systems
and its delegation and implementing decrees, the Directive of
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