2012 Registration document and annual financial report - BNP Paribas

RISKS AND CAPITAL ADEQUACYLiquidity and funding risk5➤ FIGURE 8: CONSOLIDATED BALANCE SHEET TO CASH BALANCE SHEET RECONCILIA TIONin Md€ASSETSLIABILITIESTrading book derivatives(including derivatives used for hedging purposes)Reverse repos and other financial assets at fairvalue through P&L(mainly excluding share relative to Insurance)Accrued income and other assets425298105€59bn42225889Trading book derivatives(including derivatives used for hedging purposes)Repos and other financial liabilities at fair valuethrough P&L(mainly excluding debt securities and subordinateddebt)Accrued expenses and other liabilities974CashBalanceSheet31.12.12*974Transition to prudential scope152152Transition to prudential scope1,907 1,907* Excluding repurchase agreements (€12bn), mainly netted with fixed income securities on the asset side of the cash balance sheet.The cash balance sheet assesses the equilibrium of the balance sheetstructure by measuring:■ funding needs of customer activities (customer trading book, customerloans and Group tangible and intangible assets);■ the Group’s stable funding broken down into equity and relatedaccounts , client deposits and medium/long-term wholesale funding;■ the excess reflects the Group’s surplus of stable funding relativeto funding needs of customer activities that can be invested inpredominantly liquid assets to contribute to the Bank’s liquidityreserve;■ short-term wholesale funding invested in predominantly liquid assetsto contribute to the Bank’s liquidity reserve .C ash balance sheet is used as an internal management tool for theGroup’s business lines and/or entities.Medium and long-term liquidity management is mainly based on themedium and long-term assets vs. liabilities mismatch analysis.52012 Registration document and annual financial report - BNP PARIBAS 305