NATIXIS // 2021 Universal Registration Document

9 GLOSSARY

Acronym/Term

Definition

ABCP

Asset-backed commercial paper, i.e. a marketable debt instrument backed by cash flows from a pool of underlying assets.

ABE

European Banking Authority (See EBA) .

ABS

Asset-backed security, i.e. an instrument representing a pool of financial assets (excluding mortgage loans), its performance linked to that of the underlying asset or pool of assets. French Prudential Supervisory Authority. French banking and insurance supervisory body for the banking and insurance sector.

ACPR

ADAM

Association for the Defense of Minority shareholders (Association de Défense des Actionnaires Minoritaires).

ADIE

Association for the right to economic initiative (Association pour le droit à l’initiative économique).

Afep-Medef

French Association of Private Sector Companies – French Business Confederation (Association Française des Entreprises Privées – Mouvement des Entreprises de France).

AFS

Available-for-sale.

AGIRC

General Association for Managers’ Pension Institutions (Association Générale des Institutions de Retraite des Cadres).

A-IRB

Advanced Internal Ratings-Based Approach.

ALM

Asset and liability management – Management of the financial risks borne by an institution’s balance sheet (interest rate, currency, liquidity) and its refinancing policy in order to protect the bank’s asset value and/or its future profitability.

ALM (Committee)

Asset and Liability Management Committee.

AM

Asset Management.

AMF

French Financial Markets Authority.

AML

Anti-money laundering.

AML-CTF

Anti-money laundering and counter-terrorism financing.

AQR

Asset quality review involves the supervisory assessment of risks, the actual review of the quality of assets and stress tests. Association for the Employee Complementary Pension Plan (Association pour le Régime de Retraite Complémentaire des Salariés).

ARRCO

AT1

Additional Tier 1 capital.

AUM

Assets under management.

Back office

An Administrative Department at a financial intermediary that performs support and post-trading functions.

Back testing

A method of comparing observed actual losses with expected losses of a model.

Bail-in

A mechanism designed to limit the use of public funds by a failing institution still in operation or in the process of liquidation. The bail-in mechanism grants power to the supervisory authorities to require certain creditors of a credit institution on the brink of failure to convert their debt into shares of the institution and/or to take a loss on their holdings. Under the European accord of June 26, 2015, in the event of capital inadequacy (due to losses), creditors holding subordinated debt, then senior creditors, then unsecured deposits by large corporates, then those of SMEs and finally those of individuals exceeding €100,000 will be bailed-in. However, secured deposits, covered bonds, employee compensation, liabilities related to the institution’s vital activities and interbank liabilities with a maturity of less than 7 days should not be affected. A supervisory framework established in 1988 by the Basel Committee aiming to maintain the solvency and stability of the international banking system by establishing uniform minimum capital requirements for banks on the international level. It established a minimum capital adequacy ratio of 8% in relation to all the risks borne by a bank. A supervisory framework aimed at better anticipating and limiting the risks borne by credit institutions. It focuses on banks’ credit risk, market risk and operational risk. The terms drafted by the Basel Committee were adopted in Europe through a European Directive and have been applicable in France since January 1, 2008. A new development in banking prudential standards, which incorporated the lessons of the financial crisis of 2007-2008. They complement the Basel 2 accords by reinforcing the quality and quantity of minimum capital that institutions must hold. Basel 3 also establishes minimum requirements for liquidity risk management (quantitative ratios), defines measures aimed at limiting procyclicality in the financial system (capital buffers that vary according to the economic cycle) and reinforces requirements for financial institutions deemed to be systemically important. Basel Committee on Banking Supervision. Institution bringing together the governors of the central banks of the G20 countries in charge of strengthening the soundness of the global financial system as well as the effectiveness of prudential supervision and cooperation between banking regulators. Bulletin des Annonces Légales Obligatoires.

BALO

Basel I (the Basel Accords)

Basel II (the Basel Accords)

Basel III (the Basel Accords)

BCBS

BCP

Business Continuity Plan.

BFBP

Banque Fédérale des Banques Populaires.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021