Skip to content
Subscriber Only

BNP Said to Mull Plan for $50 Billion Spain-Italy Funding

BNP Paribas SA, France’s largest bank, may narrow a 40 billion-euro ($50 billion) funding gap in Spain and Italy by moving some loans in those countries to deposit-rich Belgium, three people with knowledge of the matter said.

The bank is seeking to tighten the mismatch of loans and deposits in European countries by the transfer of export-lending and project-finance portfolios to Belgium, the people said, citing Chief Financial Officer Lars Machenil at a meeting last month in Paris. The bank also studied moving commodities-finance assets to Switzerland, they said, declining to be identified because the discussions aren’t public.