BNP Paribas Well Positioned Ahead of Tarullo Rules, Fillion Says

BNP Paribas SA (BNP) is “well positioned” to satisfy rules proposed by Federal Reserve board member Daniel K. Tarullo that would impose the same capital and liquidity rules on units of foreign lenders as on domestic firms, an executive of France’s largest bank said.

BNP Paribas’s U.S. consumer-banking division “provides diversity and liquidity,” Jean-Yves Fillion, chief executive officer of the Paris-based bank’s North American corporate and investment banking, said on Bloomberg Television’s “Market Makers” with Stephanie Ruhle and Erik Schatzker today. “That’s why we are really well positioned to comply and to adjust to the upcoming regulation.”

The Fed in December proposed subjecting two dozen foreign banks to stricter U.S. capital rules and requiring them to house their U.S. businesses, including securities trading, within regulated holding companies, to lower risks to the financial system. The Fed also proposed that most of the banks be forced to comply with stricter liquidity rules.

The Tarullo proposals are going to be “a game changer” for U.S. units of foreign banks, Fillion said. While the upcoming Fed rules are a “challenge for foreign bank organizations,” BNP Paribas has “very diversified” U.S. operations, including investment banking, asset management and retail banking, he said, without providing more details of BNP’s plans to comply with the Fed’s rules.

BNP Paribas, active in the country since 1919, has more than 14,000 employees in the U.S., including more than 3,000 professionals in corporate and investment banking, according to its website. BNP Paribas also owns BancWest, which operates more than 700 consumer-banking branches in about 20 Western and Midwestern states.

BancWest had $58.2 billion in deposits at the end of June, up 4.4 percent from a year earlier, while the U.S. retail-banking unit’s loans rose 3.5 percent to $54.6 billion over the period, the bank said July 31.

To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net

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