2007 REGISTRATION DOCUMENT

CONSOLIDATED FINANCIAL STATEMENTS5Notes to the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >7.c.2Shares subscribed or purchased by employees under the Company Savings PlanYear to 31 Dec. 2007 Year to 31 Dec. 2006Date plan announced 15 May 2007 18 May 2006Quoted price of BNP Paribas shares at date plan announced(in euros) 92.77 72.25Number of shares issued or transfered 5,971,476 4,670,388Purchase or subscription price (in euros) 69.20 60.50Five-year risk-free interest rate 4.16% 3.88%Five-year borrowing cost 8.00% 7.20%Borrowing cost during the holding period 16.56% 14.54%The Group did not recognise an expense in relation to the CompanySavings Plan in 2006 as the discount granted to employees subscribingor purchasing shares under this plan represents a non-material financialexpense for BNP Paribas when valued taking into account the five-yearcompulsory holding period applicable to the shares purchased. Of thetotal number of BNP Paribas Group employees who were offered theopportunity of buying shares under the Plan in 2007, 52% accepted theoffer and 48% turned it down.1234Note 8.ADDITIONAL INFORMATION8.a CHANGES IN SHARE CAPITALAND EARNINGS PER SHARE8.a.1Management of regulatory capitalThe BNP Paribas Group is required to comply with the French regulationsthat transpose European Union capital adequacy directives (Directive onthe Capital Adequacy of Investment Firms and Credit Institutions andFinancial Conglomerates Directive) into French law.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 address theissues of capital adequacy, risk concentration, liquidity and asset/liabilitymismatches.The capital adequacy ratio corresponds to total regulatory capitalexpressed as a percentage of the sum of:■ risk-weighted assets; and■ the regulatory capital requirement for market risks, multiplied by12.5.Regulatory capital is determined in accordance with Comité de laRéglementation Bancaire et Financière (CRBF) regulation 90-02 dated23 February 1990. It comprises three components – Tier One capital, TierTwo capital and Tier Three capital – determined as follows:■ t ier One capital corresponds to consolidated equity (excludingunrealised or deferred gains and losses), adjusted for certain items.The main adjustments consist of (i) deducting the planned dividendfor the year, as well as goodwill and other intangibles, (ii) excludingconsolidated subsidiaries that are not subject to banking regulations –mainly insurance companies – and (iii) applying limits to the eligibilityof certain securities, such as preferred shares and undated supersubordinated notes;■ t ier Two capital consists of subordinated debt (see Note 5.f) and part ofunrealised gains on variable-income securities. A discount is applied tosubordinated debt due in less than five years, and dated subordinateddebt included in Tier Two capital is capped at the equivalent of 50%of Tier One capital. Total Tier Two capital is capped at the equivalentof 100% of Tier One capital;■ t ier Three capital comprises subordinated debt with shorter maturitiesand can only be allocated to covering a certain proportion of marketrisks;■ the carrying amount of investments in associates (accounted for bythe equity method), subordinated debt towards credit institutions andfinance companies and the regulatory capital of companies subject tobanking regulations that are more than 10% owned by the Group arededucted for the purpose of calculating regulatory capital.5678910112007 Registration document - BNP PARIBAS 175