2007 REGISTRATION DOCUMENT

4 Balance2007 REVIEW OF OPERATIONSsheet< Contents >INTERNATIONAL C APITAL A DEQUACY RATIOIn billions of euros 31 December 2007 31 December 2006Shareholders’ equity before appropriation of income 53.8 49.5of which preferred and similar shares 6.7 4.4Minority interests before appropriation of income 5.6 5.3of which preferred and similar shares 2.2 3.0Regulatory deductions and other items (*) (20.2) (20.4)of which dividends attributable to equity holders of the parent (3.2) (**) (2.9)TIER 1 CAPITAL 39.2 34.4Tier 2 capital 22.2 21.3Other regulatory deductions (***) (7.7) (7)Allocated Tier 3 capital 1.0 0.7TOTAL CAPITAL 54.6 49.4Tier 1 ratio (****) 7.3% 7.4%International capital adequacy ratio 10.0% 10.5%(*)Mainly goodwill.(**)Remuneration of undated super subordinated notes and dividend subject to approval by the AGM.(***)Mainly interests in credit institutions that are not consolidated or accounted for by the equity method.(****)Based on risk-weighted assets of EUR 540.4 billion at 31 December 2007 and EUR 462.5 billion at 31 December 2006.12345CAPITAL A DEQUACY6At 31 December 2007, the BNP Paribas Group’s available regulatorycapital, determined in accordance with the rules and instructions issuedin France for the application of the European Capital Adequacy (“Capitaladequacy of investment firms and credit institutions”) and FinancialConglomerates Directives, represented:■ 126% of required regulatory capital excluding Tier 3 capital (129%at end-2006); and■ 128% including Tier 3 capital (135% at end-2006).The Financial Conglomerates Directive has come into force and is appliedby BNP Paribas.In the various countries in which the Group operates, BNP Paribas alsocomplies with specific regulatory ratios in line with procedures controlledby the relevant supervisory authorities. These ratios mainly concern:■ concentration of risks;■ liquidity;■ mismatches.In France, these ratios are defined as follows:■ risk concentration ratio: the aggregate risk on beneficiaries whoseindividual risks each exceed 10% of net consolidated shareholders’equity must not exceed eight times the Group’s capital;■ the total amount of weighted risks on a customer group consideredas a single beneficiary must not exceed 25% of net consolidatedshareholders’ equity;■ for the purposes of risk calculation, a single beneficiary may includenatural persons or legal entities related such that it is probable thatif one party were to suffer financial difficulties, the other wouldconsequently encounter difficulties in payment;■ liquidity ratio: this measures the potential one-month liquidity gap.The regulatory standard liquidity is 100%;■ own funds and permanent capital ratio: this measures the coverageof uses of funds beyond five years with sources of funds with a residuallife of more than five years. The regulatory minimum ratio is 60%.78910111002007 Registration document - BNP PARIBAS