BCV's reaction to the Arthur Andersen audit

When it presented its report on BCV to the Vaud Cantonal Parliament (Grand Conseil vaudois) last January, the Vaud Cantonal Government (Conseil d'Etat) requested that further study of the matter be undertaken. Arthur Andersen, which had already made a study of BCV's credit risks and methods of provision calculation last Fall, was thus commissioned for another study.

BCV has received the results of their work. Andersen's analysis provides valuable information that generally corresponds to BCV's expectations. The study shows that the credit risk BCV has been confronted with results from BCV's corporate mandate, which is to serve the economy of Vaud Canton.

As for the matter of the Banque vaudoise de crédit bailout, BCV appreciates the fact that its consequences have finally been quantified precisely.

Non-performing loans have had an impact on BCV's profitability. Since 1997, however, profitability has improved, and every front-line division of the Bank is presently profitable. This fact makes it clear that starting in 1996, BCV's income-diversification strategy has helped it to fulfil its corporate mandate to serve the canton's economy.

Lausanne, 22 May 2002

Contact(s)

Daniel Herrera, Head of Communications
Phone +41 844 228 228
E-mail