NATIXIS -2020 Universal Registration Document

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Basel 3 Pillar III disclosures

B – Reserves and operational management of ratios Operational liquidity reserves From an operational standpoint, Natixis has liquidity reserves that contribute to Groupe BPCE’s reserves: reserves of liquid assets eligible for central bank collateralized V refinancing operations to secure intra-day settlements; denominated in EUR, US Dollar and JPY, these are located at Natixis Paris, Natixis New-York and Natixis Japan Securities respectively, which are the access points to the drawing and deposit facilities of the Banque de France, the US Fed and Bank of Japan; a liquidity reserve established in advance to meet a liquidity crisis V similar to the one simulated by the LCR; it is mainly composed of cash deposited at the Central Bank deposit facilities. A portion of this reserve is allocated to a portfolio of HQLA level 1 and level 2 securities, the management of which is supervised by the Buffer Committee chaired by two members of the Senior Management Committee, respectively in charge of Finance Division and Risks Division and included in the Group’s “Liquidity Management Plan” (LMP). This reserve includes a reserve carried by the American platformcomposedof cash, HQLA securitiesand receivables and held within the framework of the regulation “Dodd-Frank Enhanced Prudential Standards” and the program “Borrower-in-Custody”. HQLA assets reported in the LCR numerator also include unencumbered HQLA securities temporarily carried by the Capital Markets activities. These securities are not considered as part of the ringfenced liquidity reserve and are not meant to be held over the long term. The outstanding amount and composition of these portfolios may vary considerably from one reporting date to the next, as prices fluctuate. However, they can be monetized on the repo and securities borrowing/lending market, and this monetizationmay be forced in the event the Group liquidity-stressed BCP is activated and executed. In addition to these buffers, the aim of the internal policy governing the investment of residual surplus liquidity is either to reserve this liquidity for the deposit facility to ensure its continuous availability, with the result that this surplus liquidity is also included in the amount of assets reported in the LCR numerator, or to give it to the central body BPCE.

Oversight of the short-term liquidity ratio Since June 2013, Natixis has implemented governance for the managementof the LCR ratio, notably by setting an upper LCR limit. The managementof the LCR ratio is part of a Groupe BPCE initiative under the aegis of the BPCE DFG. Natixis’ LCR hedging is organized in close cooperation with BPCE and is managed by the Joint Refinancing Pool, acting with the authorization of the Financial Management Department on the basis of its forecasts. In this context, at Natixis terminals, the LCR is managed on a daily basis, with a safety margin, via adjustments with BPCE, as the structural over-coverageof the Group’s LCR remains managed and supported by the central body BPCE. Monitoring of rating trigger clauses In the event the Bank’s external credit rating is downgraded, it may be required to provide additional collateral to investors under agreements that include rating triggers. In particular, in calculating the liquidity coverage ratio (LCR), the amounts of these additional cash outflows and additional collateral requirementsare measured. These amounts comprise the payment the bank would have to make within 30 calendar days in the event its credit rating were downgraded by as much as three notches. Remuneration policy 3.3.6 The compensation policy items required in respect of Regulation (EU) 575-2013 (CRR) are provided in Chapter [2] of this universal registration document.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020