2007 REGISTRATION DOCUMENT

RISK MANAGEMENT3Risk mitigation techniquesLIQUIDITY AND R EFINANCING R ISKIn 2007, the Group continued to diversify its sources of financing in termsof structures, investors and collateralised financing.A “deposit” product line was created to diversify the corporate andinstitutional investor base and reduce interbank borrowings. This strategyaims to dilute the impact of a fall in deposits that may be triggered bya downgrade in the Bank’s rating.In December 2007, the Group has a total outstanding of covered bondsamounting to EUR 9 billion as part of its covered bond programme setup in the fourth quarter of 2006 for a total amount of EUR 25 billion.SENIOR DEBTSenior debt issued by BNP Paribas SA and its subsidiaries (excludingBancWest) in 2007 totalled EUR 44.2 billion, on a par with senior debtissued in 2006.Issues with an economic life of more than one year (after modellingthe maturity of callable instruments with a statistical rule), amount toEUR 37.8 billion, unchanged from the previous year.Instruments with an economic life of one year or less due to the exerciseof a call provision represent an amount of EUR 6.4 billion, or 40% morethan in 2006, essentially due to the Equity Linked Notes issued by theGroup’s Hong Kong branch.SUBORDINATED DEBT AND HYBRIDSECURITIESDuring the year, BNP Paribas issued subordinated notes for EUR 3.4 billionand four undated super subordinated notes (one denominated in euros,one in pounds sterling and two in US dollars) for a total amount ofEUR 2.3 billion.PROPRIETARY SECURITISATIONS< Contents >As part of the day-to-day management of liquidity, the Group’s least liquidassets may be swiftly transformed into liquid assets by securitising loans(mortgages and consumer loans) granted to retail banking customers,as well as loans granted to corporate customers.The only securitisation transaction in 2007 was carried out by UCI inSpain and raised EUR 700 million ( Group share).At 31 December 2007, loans totalling EUR 13.3 billion had beenrefinanced through securitisations, including EUR 7.4 billion for theSpecialised Financial Services business lines (following the transfer ofVela Lease Srl from BNL to Equipment Solutions) and EUR 5.9 billion forBNL (EUR 7.0 billion and EUR 8.2 billion, respectively, at end-2006).12345INSURANCE SUBSCRIPTION R ISKS(See section 5.5 Financial statements – note 4.e. – Insurance risks.)678910112007 Registration document - BNP PARIBAS 85