bannière Caffil

Cost of risk

Cost of risk

The cost of risk is at a low level, reflecting the excellent quality of the assets. It primarily corresponds to allowances for collective impairment calculated according to criteria based on the probability of default and of loss given default applied within the framework of Basel II and III.

 

 

 

The provisions recognized by Caisse Française de Financement Local to cover its loans and debt securities (in compliance with IFRS) are estimated on the basis of each portfolio’s past performance and trends, and on the borrower’s economic environment.

 

 

The minor amounts of impairment and non-performing loans that the company reports testify to the very low level of risk and the overall high quality of Caisse Française de Financement Local’s portfolio.