BPCE_REGISTRATION_DOCUMENT_2017
9 ADDITIONAL INFORMATION Glossary
Acronyms
Own Risk and SolvencyAssessment.As part of European efforts to reform prudential regulationof theinsurance industry, ORSA isan internal process undertaken by the financial institution to assess riskandsolvency. It must show its ability to identify, measure and manage factors liableto havean impact on its solvency or financialposition
ORSA
BCP
BusinessContinuity Plan
PD
Probability of Default, i.e. the likelihood thata counterparty of the bankwill default within a one-yearperiod
PERP
Plan d’épargne retraite populaire /Retirement savings plan
Prêt locatif intermédiaire /Loan for investment in propertyto be rented at prices above “social” housing prices but below market prices for 6 (or 12) years
PLI
PLS SME
Prêt locatif social /Socialhousing loan Small- andmedium-sized enterprises Small- andmedium-sized industries
SMI NBI
Net banking income
PSLA
Prêt socialocation-accession /Loan tofinancetheleasing or purchase of property by low-income families
PTZ
Prêt à taux zéro /Interest-free loan
RMBS
See securitization
Return on Equity: net income restated for returnson hybridsecurities recognized as equity instruments, divided by shareholders’ equity (restated for hybridsecurities), used to measuretheprofitgenerated on capital
ROE CSR RSSI
Corporate Social Responsibility
/Headof IT system security
Responsable de la sécurité des systèmes d’information Réduction du temps de travail /Reductionof workingtime
RTT
Risk-weighted assets.Thecalculationof credit risks is further refined using a more d tailed riskweighting that incorporates counterparty default riskanddebtdefault risk
RWA S&P SCF SCPl SEC SEPA
Standard & Poor’s
Société decréditfoncier /a French covered bond issuer
Société civilede placement immobilier /Realestateinvestmentrust
Securities and Exchange Commission
Single Euro Payments Area Specialized Financial Services
SFS
IS
Information system
Socama
Sociétésde cautionnement mutuel artisanales /Mutual Guarantee Companies for small businesses
SupervisoryReviewandEvaluation Process: Methodology for assessing andmeasuring the risks foreach bank. SREP gives the prudentialauthoritiesa setof harmonized toolsto analyzea bank’s risk profilefromfourdifferentangles:businessmodel,governance and risk management, risk tocapital,andrisk toliquidityandfunding The supervisor sends the banktheSREPdecisionsat theendof theprocessandsetskey objectives. Thebankmust then “correct” these within a specific time Single Resolution Mechanism:AnEU-levelsystemto ensure an orderly resolution of non-viable banks witha minimalimpact on taxpayers and the realeconomy. The SRM is oneof thepillars of theEuropeanBankingUnionandconsists of an EU-level resolution authority (Single Resolution Board – SRB)anda common resolution fund financed by thebanking sector (Single ResolutionFund– SRF) Stressed Value-at-Risk: The SVaRcalculation method isdentical to the VaR approach (historicalor MonteCarlomethod,scope – position – risk factors– choicesandmodeling– model approximations andnumericalmethods identical to thoseused forVaR)and involves a historical simulation (with“one-day” shocks) calculated over a one-year stressedperiod,at a 99% confidence l vel scaled up to 10 days. The goal is to assess the impacts of stressed scenarios on the portfolio and currentmarketlevels Total LossAbsorbingCapacity:a ratio applicable to G-SIBs that aimsto ensure thateach G-SIBhas thecapacity tocontinue its essential operations for theeconomy even after a loss has consumed all of its capital. In November 2015, theFSBpublished thefinal TLAC calibration: all TLAC-eligible instruments will have tobe equivalent o at least16% of risk-weighted assets at January 1, 2019and at least 6%of the leverageratio denominator. TLACwillsubsequently have to be equivalento18%of risk-weighted assetsand6.75% of the leverageratio denominator f omJanuary 1,2022 Total Return Swap, i.e. a transaction whereby two parties exchangethe income generated and any change in value on two different assetsover a given time period Titressupersubordonnés /deeply subordinated notes, i.e. perpetualbondswithno contractual redemption commitment that pay interest in perpetuity. In theeventof liquidation, they are paid after other creditors (subordinated loans). Thesecurities pay annualinterest contingenton the paymentof a dividend or the achievement of a specific result Tier 1/Tier 2capital
SREP
SRM
SVaR T1/T2
TLAC
TRS
TSS VSE
Very small enterprises
EFTT TUP CGU
European FinancialTransactionTax
Transmission universellede patrimoine /Totaltransferof assetsandliabilities
CashGenerating Unit
Value at Risk: a measurement of market riskon a bank’s trading book expressed as a monetary value. It allows theentityperforming the calculation to appraise themaximum losses liable to be incurred on its trading book. A statistical variable, VaR is always associated with a confidence interval (generally 95% or 99%) anda specifictime frame (in practice,onedayor 10 days, as thetrading positions involved are meant to be unwound within a few days)
VaR
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Registration document 2017
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