BPCE - 2019 Universal Registration Document

ADDITIONAL INFORMATION

GLOSSARY

Acronyms ECB

European Central Bank

EDTF Enhanced Disclosure Task Force, an international task force formed at the initiative of the Financial Stability Board (FSB) in May 2012 to consider ways to enhance banks’ financial disclosures. The EDTF is made up of representatives from the private sector and of users and preparers of financial disclosures. In October 2012, it published a report containing 32 recommendations aimed at enhancing disclosures on risk management, capital adequacy, and exposure to liquidity, funding, market, credit and other risks. EFTT European financial transaction tax EIB European Investment Bank EL Expected Loss, i.e. the value of the loss likely to be incurred given the quality of the structure of the transaction and any measures taken to mitigate risk, such as collateral. It is calculated by multiplying exposure at risk (EAD) by Probability of Default (PD) and by Loss Given Default (LGD). EURIBOR Euro Interbank Offered Rate, the benchmark interest rate on the eurozone’s money market FBF Fédération bancaire française (French Banking Federation), a professional body representing all banking institutions in France FCPR Fonds commun de placement à risque /Venture capital investment fund FGAS Fonds de garantie à l’accession sociale /French state guarantee fund for subsidized loans FIDEPPP Fonds d’investissement et de développement des partenariats public-privé /Fund for investment and development of public-private partnerships FINREP FINancial REPorting FSB 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. FTE Full-time equivalent GAPC Gestion active des portefeuilles cantonnés /Workout portfolio management GRI Global Reporting Initiative G-SIBs 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. HQE French “high environmental quality” standard. HQLA High-Quality Liquid Assets HRD Human Resources department IARD Incendie, accidents et risques divers /property and casualty Insurance IAS International Accounting Standards IASB International Accounting Standards Board ICAAP 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. IFRS International Financial Reporting Standards IRB Internal-Ratings Based, an approach to capital requirements based on the financial institution’s internal rating systems IRBA Advanced IRB approach IRBF Foundation IRB approach IRC 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. IS Information System ISF Wealth Tax (impôt sur la fortune) L&R Loans and Receivables LBO Leveraged Buyout LCR 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. LGD Loss Given Default, a Basel II credit risk indicator corresponding to loss in the event of default LTD Loan-to-Deposit ratio, i.e. a liquidity indicator that enables a credit institution to measure its autonomy with respect to the financial markets MDA 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. MREL Minimum Requirement for own funds and Eligible Liabilities MTN Medium Term Note NBI Net banking income NGAM Natixis Global Asset Management NPE Non-Performing Exposure NRE Loi sur les nouvelles réglementations économiques /New Economic Regulations Act

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE