Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• relations with clients and suppliers / listening to our clients and meeting their needs

pROTECTING mORE

VuLNERABLE CLIENTS

Cetelem says “Yes to developing

healthy loans, no to over-indebtedness”

Using advanced client rating techniques,

Cetelem has continued to advertise its growth

objectives and its ability to say “no”. By rejecting

30% of the applications it receives, Cetelem

protects those who would clearly not be able

to pay back their loan. This selectiveness maintains

the quality of the company’s risks, reflected

in the fact that 98% of its loans are repaid in full.

In 2005, Cetelem set up a special centre to help

indebted individuals in precarious situations.

The three Cetelem indicators

100

80

60

40

20

0

98.2 98.1 97.7

32 31 30

2.21 1.64 1.31

2004 2005 2006

In June 2006, Cetelem published a booklet

explaining its actions to promote responsible

lending, defined as “lending that meets four

fundamental commitments at each stage of

the client relationship, from the loan request, its

implementation and reimbursement to its final

settlement”: fighting over-indebtedness, promoting

credit access for the greatest possible

number of people, providing every client with

flexible support and finding amicable solutions

in the event of difficulties.

In order to concretely report on the results of

these commitments, in 2006 Cetelem defined

three activity indicators which are now included

its annual report: The loan refusal rate, the per-

% of loans repaid in full

Refusal rate

Risk ratio

centage of payment defaults and the risk ratio

calculated by dividing provisions recorded for

bad debts by total outstanding loans. This level

has significantly declined over the last few years

and now represents less than 2% of the overall

amount, a low level compared to that of the

United States and the United Kingdom, where

it amounts to 4.5% and 6% respectively of outstanding

loans.

95 BNP PARIBAS AND ITS STAKEHOLDERS

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