Credit Risk Management and Financial Stability: A Case Study of BNP Paribas Fortis
Credit Risk Management and Financial Stability: A Case Study of BNP Paribas Fortis

Author(s): Lucas Desmet
Subject(s): Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: credit risk; BNP Paribas Fortis; financial performance; ESG
Summary/Abstract: This work shows the way in which BNP Paribas Fortis protects its financial stability in a rapid, dynamic banking environment and in the process of managing risks. Credit risk management, capital strength and compliance with Basel III rules is emphasized. The bank appliessound governance framework, which includes the “three lines of defense” mechanism, to manage risks at all the levels. BNP Paribas Fortis maintains high CET1 ratios, solid liquidity and therefore is relatively safe against financial shocks. With checking income, repayment history and financial statements, the credit risk is monitored while customers are tracked continuously during and after receiving loans. The study is a qualitative analysis of official accounts issued by the bank. In general conclusion, the findings indicate that BNP Paribas Fortis remains reliable, competitive; and well-positioned for future challenges by investing in digital banking and sustainability.

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