2007 REGISTRATION DOCUMENT

5 NotesCONSOLIDATED FINANCIAL STATEMENTSto the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >The following table shows the main items taken into account in the calculation of regulatory capital:In millions of euros at 31 December 2007 31 December 2006Tier One capital 37,601 33,346Shareholders’ equity 53,799 49,512Minority interests 5,594 5,312Regulatory deductions (1) (21,792) (21,478)Tier Two capital 19,224 18,344Deductions (3,254) (3,784)Tier Three capital 1,013 1,519TOTAL REGULATORY CAPITAL 54,584 49,425(1)Including the dividend to be recommended at the Annual General Meeting.123Under the European Union regulation transposed into French law byregulation 91-05, the Group’s capital adequacy ratio must at all times beat least 8%, including a Tier One ratio of at least 4%. Under United Statescapital adequacy regulations, BNP Paribas is qualified as a FinancialHolding Company and as such is required to have a capital adequacyratio of at least 10%, including a Tier One ratio of at least 6%.Ratios are monitored and managed centrally, on a consolidated basis, atGroup level. Where a French or international entity is required to complywith banking regulations at its own level, its ratios are also monitoredand managed directly by the entity.Capital adequacy ratios are managed prospectively on a prudent basisthat takes into account the Group’s profitability and growth targets.The Group maintains a balance sheet structure that allows it to financebusiness growth on the best possible terms while preserving its very highquality credit rating. In line with the commitment to offering shareholdersan optimum return on their investment, the Group places considerableemphasis on efficiently investing equity capital and attentively managingthe balance between financial strength and shareholder return. In 2006and 2007, BNP Paribas’ capital adequacy ratios complied with regulatoryrequirements and its own targets.Regulatory capital levels are managed using information producedduring the budget process, including forecast growth in earnings andrisk-weighted assets, planned acquisitions, share buyback programmes,planned issues of hybrid capital instruments and exchange rateassumptions. Changes in ratios are reviewed by the Group’s executivemanagement at quarterly intervals and whenever an event occurs or adecision is made that will materially affect consolidated ratios.45678910111762007 Registration document - BNP PARIBAS