BPCE - 2018 Registration document
ADDITIONAL INFORMATION Glossary
Acronyms FBF
Fédération Bancaire Française (French Banking Federation), a professional body representing all banking institutions in France
FCPR FGAS
Fonds Commun de Placement à Risque/ Venture capital investment fund
Fonds de Garantie à l’Accession Sociale /French state guarantee fund for subsidized loans
FINREP
FINancial REPorting
F-IRB
Foundation IRB approach
The Financial Stability Board, whose mandate is to identify vulnerabilities in the global financial system and to implement principles for regulation and supervision in the interest of financial stability. Its members are central bank governors, finance ministers and supervisors from the G20 countries Global Systemically Important Banks are financial institutions whose distress or failure, because of their size, complexity and systemic inter-dependence, would cause significant disruption to the financial system and economic activity. These institutions meet the criteria established by the Basel Committee and are identified in a list published in November 2011 and updated every year. The constraints applicable to G-SIBs increase with their level of capital Gestion Active des Portefeuilles Cantonnés /Workout portfolio management
FSB
GAPC
G-SIBs HQLA
High-Quality Liquid Assets
IARD
Incendie, Accidents et Risques Divers /property and casualty Insurance
IAS
International Accounting Standards International Accounting Standards Board
IASB
Internal Capital Adequacy Assessment Process: a process required under Pillar II of the Basel Accords to ensure that firms have sufficient capital to cover all their risks
ICAAP
IFRS
International Financial Reporting Standards
IRB
Internal-Ratings Based, an approach to capital requirements based on the financial institution’s internal rating systems Incremental Risk Charge: the capital requirement for an issuer’s credit migration and default risks, covering a period of one year for fixed income and loan instruments in the trading book (bonds and CDSs). The IRC is a 99.9% value-at-risk measurement; i.e. the greatest risk obtained after eliminating the 0.1% worst-case scenarios
IRC
IS
Information System Loans and Receivables
L&R LBO
Leveraged Buyout
Liquidity Coverage Ratio: a measurement introduced to improve the short-term resilience of banks’ liquidity risk profiles. The LCR requires banks to maintain a reserve of risk-free assets that can be converted easily into cash on the market in order to cover its cash outflows minus cash inflows over a 30-day stress period without the support of central banks Loan-to-Deposit ratio, i.e. a liquidity indicator that enables a credit institution to measure its autonomy with respect to the financial markets Maximum Distributable Amount, a new provision for banks placing restrictions on their dividend, AT1 coupon and bonus payments (under a rule that tightens restrictions as banks deviate from their requirements), if the capital buffers are not met. As these buffers are on top of Pillars I and II, they apply immediately if the bank fails to comply with the combined requirements Loss Given Default, a Basel II credit risk indicator corresponding to loss in the event of default
LCR LGD
LTD
MDA
MREL
Minimum Requirement for own funds and Eligible Liabilities
MTN NPE NRE
Medium Term Note
Non-Performing Exposure
Loi sur les Nouvelles Réglementations Economiques /New Economic Regulations Act
Net Stable Funding Ratio: this ratio is intended to strengthen the longer-term resilience of banks through additional incentives meant to encourage banks to finance their operations using more structurally stable resources. This long-term structural liquidity ratio, applicable to a one-year period, was formulated to provide a viable structure for asset and liability maturities
NSFR
OFR
Own Funds Requirements: i.e. 8% of risk-weighted assets (RWA) Obligations de financement de l’Habitat /Housing financing bond
OH
Own Risk and Solvency Assessment. As part of European efforts to reform prudential regulation of the Insurance industry, ORSA is an internal process undertaken by the institution to assess risk and solvency. It must show its ability to identify, measure and manage factors liable to have an impact on its solvency or financial position
ORSA
PD
Probability of Default, i.e. the likelihood that a counterparty of the bank will default within a one-year period
RMBS
See securitization
RSSI
Responsable de la Sécurité des Systèmes d’Information /Head of information system security
Risk-Weighted Assets. The calculation of credit risks is further refined using a more detailed risk weighting that incorporates counterparty default risk and debt default risk
RWA S&P SCF SEC
Standard & Poor’s
Société de Crédit Foncier /a French covered bond issuer
US Securities and Exchange Commission
Socama
Sociétés de Cautionnement Mutuel Artisanales /Mutual Guarantee Companies for small businesses
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Registration document 2018
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