Basel II project

2006 was a year of stabilization for Basel II organization, a year of transition from project status to implementation and day-to-day operation.

At year-end, most of our internal models were developed, documented, internally validated and implemented.

Dexia officially applied in December 2006 to use the advanced internal rating-based approach for regulatory capital calculation from January 1, 2008.

2007 will see intense relations with the different regulatory authorities as our application is examined.