Enterprise Risk Management at BNP Paribas

The 1998 merger between BNP, the largest bank in France and Paribas, a major investment and finance bank, gave rise to BNP Paribas (BNP) one of the largest banks in Europe. BNP operated some 2,200 retail branches in France and had operations in more than 85 other countries. The company provided corporate, retail, and investment banking services. Other activities included specialized financing, private banking, asset management, and insurance. In 2002, BNP Paribas had a total assets of € 710319 millions and a net income of € 3295 millions.

BNP had global ambitions. During 2001, it forged links with several foreign banks to form GSPS LLC, to offer global Visa card solutions.

It was growing its asset-financing business, through acquisitions such as US-based Capstar Partners. In China, BNP had won permission to start a joint venture with Wuhan-based Changjiang Securities.

But BNP had been pulling back from a three-decade-old joint venture with Germany's Dresdner Bank (now owned by German insurance giant Allianz) citing differences in strategies. The company had bought more than 10% of Crédit Lyonnais from the French government and purchased more than 5% on the open market soon after, leading to rumors that BNP Paribas might acquire its rival. But BNP had finally lost out to be Crédit Agricole.