NATIXIS // 2021 Universal Registration Document

9 GLOSSARY

Acronym/Term

Definition

EUR

Euro.

Euribor

Euro Interbank Offered Rate, the benchmark interest rate on the euro zone’s money market.

European Securities and Markets Authority (ESMA)

An independent European supervisory authority located in Paris. On January 1, 2011, it replaced the Committee of European Securities Regulators (CESR). It forms part of the European System of Financial Supervision. Its expanded mandate includes the supervision of rating agencies in Europe and the development of technical standards for EU Regulations on the functioning of the financial markets (EMIR, MiFID, the “Prospectus” Directive).

Expected loss

See EL.

A financial institution’s exposure in the event of a counterparty’s default. EAD covers on- and off-balance sheet exposures. Off-balance sheet exposures are converted into balance sheet equivalents with the help of internal or regulatory conversion factors (drawdown assumption). The price that would be received to sell an asset or paid to transfer a liability in a standard arm’s length transaction between market participants at the measurement date. Fair value is therefore based on the exit price. An “issuer credit risk” component calculated using a discounted cash-flow model, contract by contract, including parameters such as swaps curve, and revaluation spread (based on the BPCE reoffer curve).

Exposure at default (EAD)

Fair value

Fair Value adjustment on own senior debt

FBF

French Banking Federation. Professional body that brings together all banking companies in France.

FCPR

Private equity Investment Fund (Fonds Commun de Placement à Risque).

FED

Federal Reserve System, i.e. the US central bank.

FINREP

Financial reporting.

F-IRB

Foundation Internal Ratings-Based Approach.

FSB

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. Its primary objective is to coordinate international efforts by national financial authorities and international standard setters in the regulation and supervision of banks. Conceived at the G20 summit in London in April 2009, the FSB is the successor to the Financial Stability Forum, which was founded in 1999 under a G7 initiative.

FTE

Full-time equivalent.

Fully-Loaded

Indicates full compliance with Basel 3 solvency requirements (mandatory from 2019).

FX

Foreign exchange.

GAAP

Generally accepted accounting principles.

GAPC

Workout portfolio management (Gestion active des portefeuilles cantonnés).

GBP

Pound sterling (British pound).

GDP

Gross Domestic Product.

GEC

Global Energy & Commodities.

GM

General Shareholders’ Meeting.

Green bonds

A green bond is an “environmental” bond issued by an approved entity (business, local authority or international organization) to finance an eco-friendly and/or sustainability-driven project or activity. These instruments are often used in connection with the financing of sustainable agriculture, the protection of ecosystems, renewable energy and organic farming. Global Reporting Initiative: An organization consisting of stakeholders and partners (businesses, audit firms, human rights, environmental protection, and labor organizations, and government representatives) which has created a joint framework for the development of sustainability reporting.

GRI

Gross exposure

Exposure before the impact of provisions, adjustments and risk reduction techniques.

G-SIBs

Global systemically important banks.

G-SIIs

Global systemically important institutions.

GWWR

General Wrong Way Risk.

Haircut

The percentage by which a security’s market value is reduced to reflect its value in a stressed environment (counterparty risk or market stress). The size of the haircut reflects the perceived risk. Alternative management funds: A speculative investment fund that seeks to generate absolute return through a high degree of management flexibility.

Hedge fund

Holding company

The Company that heads a corporate group.

HQLA

High-quality liquid assets.

HQE

High Environmental Quality (Haute qualité environnementale).

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021