How do banks contribute to the real economy?
Participants in the economy generate investments that lead to the production of goods and services. They also aid employment growth and contribute to the real economy. Because financing is at the heart of its business, BNP Paribas thus plays a key role in the real economy. The Group finances business and household investments, eitherdirectly via loans or indirectly via financial instruments (equities, bonds, etc.).
Financing the real economy: a key role for bnp paribas
3 contracts per minute to finance the Economy In 2015
BNP PARIBAS LEASING SOLUTIONS SIGNED NEARLY 300,000 LEASEFINANCING CONTRACTS FOR PROFESSIONAL EQUIPMENT
Unlisted but popular
Private-banking clients seeking investments that offer performance and promote an entrepreneurial spirit are increasingly attracted to private equity* funds. By investing in these funds, clients contribute to the growth of unlisted companies at different stages of their development and earn returns reflecting the risks taken.
For almost 20 years BNP Paribas Wealth Management has enabled clients to invest in the real economy via private equity. In 2015 the business reached a significant level of fundraising, especially through a new partnership with one of the largest Scandinavian asset managers which offers a fund investing in unlisted “large caps” in Scandinavia and Northern Europe, a dynamic economic region with growth above the eurozone average.
* Private equity: investment in unlisted firms.
BNL grows closer to micro-enterprises in Italy
In June 2015, BNL announced its commitment to support an initiative of the Italian Ministry of Economic Development to help small and micro-enterprises. Through BNL‘s specialised subsidiary, Artigiancassa, and the nationalcraft confederation, the bank developed new financial solutions enabling these companies to buy the goodsand services essential for theirbusinesses. Beyond financing, these companies will also benefit from the assistance of experts. An example of the importance BNL attaches to small and micro-enterprises is also reflected in its collaboration with PerMicro, an Italian leader in microlending.
Going public to go for growth
Access to capital markets is key for companies seeking financing. Elis, the European leader in the rental/maintenance of linen and work clothes, and Showroomprivé, a company specialising in the online sale of fashion items, both chose BNP Paribas to manage their respective listings on Euronext Paris.
The initial public offerings (IPO) helped raise the necessary funds to continue their expansions. BNP Paribas Equity Capital Markets was in charge of the structuring and placement of the two IPOs.
BNP Paribas Securities Services played a role in structuring the equity issues and since then has been assisting the companies with their shareholder-related tasks such as managing shareholder registers, organising AGMs and disbursing dividends. For Showroomprivé, BNP Paribas Securities Services successfully carried out the complex processing of the IPO procedure and also managed the share offering reserved for employees.
BNP Paribas, a pioneer in the Chinese market
BNP Paribas was one of the first banks to roll out a platform dedicated to handling Chinese renminbi (RMB), which some analysts believe will rank among the five most used currencies in five years‘ time. BNP Paribas was named “Renminbi House of the Year 2015” by Asia Risk, the region‘s leading financial magazine. The award recognised the bank‘s leadership and reflects the innovative investment solutions BNP Paribas offers to corporate, institutional and private-banking clients as well as its access to China‘s financial markets. The internationalisation of the renminbi opens up opportunities to investors planning to set up in China and also to Chinese companies seeking to invest abroad.
€10 billion to help SME growth in France
After meeting—and exceeding—the targets for its “BNP Paribas Entrepreneurs 2016” plan, BNP Paribas continued to support business growth in France.
In 2015 it again earmarked a minimum commitment of €10 billion to finance the investments of SMEs and their operating cycles.
The plan‘s target of gaining 5,000 new clients was renewed and its priorities reaffirmed: to help entrepreneurs with their international expansion and bolster measures encouraging innovative, women‘s and social entrepreneurship.
Helping individuals to finance their projects
Rise in loans to individuals (Domestic Markets) compared with 2014.