NATIXIS_PILLAR_III_2017_EN

14 APPENDIX

Appendix 6: Glossary

Acronym/Term

Definition

Changes in the supervisory framework for banks, incorporating the lessons drawn from the 2007-2008 financial crisis, meant to complement the Basel II accords by enhancing the quality and quantity of the minimum capital requirements applicable to financial institutions. Basel III 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, an organization bringing together the central bank governors of the G20 countries tasked with reinforcing the solidity of the global financial system and the effectiveness of prudential supervision and cooperation among bank regulators. A portion of a loan issued in the form of an exchangeable security. For a given issue, a bond grants the same debt claims on the issuer for the same nominal value, the issuer being a company, a public sector entity or a government. Main runner or lead manager in the issuance of new equity, debt or securities instruments A means of asset financing whereby the lender is routinely informed of the value of the borrower’s assets pledged as collateral. Business Continuity Plan Banque Fédérale des Banques Populaires.

Basel 3 (the Basel Accords)

BCBS

BCP

BFBP Bond

Bookrunner

Borrowing base lending

Basis points

Bps

Courtier Courtage

Broker

Brokerage

Banking Recovery and Resolution Directive Chiffre d’affaires/conseil d’administration

BRRD

CA

Compound annual growth rate. Mean annual growth rate over a specified period

CAGR

Capital adequacy ratio Ratio of total capital (Tier 1 and 2) to risk-weighted assets (RWA). CCAN

Comité Consultatif des Actionnaires de Natixis (Natixis Shareholders' Consultative Committee).

Credit Conversion Factor

CCF CDO

Collateralized debt obligations, i.e. debt securities backed by a pool of assets which can be either bank loans (mortgages) or corporate bonds. Interest and principal payments may be subject to subordination (i.e. through the creation of tranches). Credit Derivatives Products Company, i.e. a business specializing in the sale of coverage against credit default through credit derivatives. Credit default swap, i.e. insurance against credit risk in the form of a bilateral financial contract whereby the protection buyer periodically pays a premium to the protection seller, who in turn promises to compensate for any losses on a reference asset (a bond issued by a government, financial institution or company) upon the occurrence of a credit event (bankruptcy, default, deferred payment or restructuring). Comité des Établissements de Crédit et des Entreprises d’Investissement , i.e. the former French Credit Institutions and Investment Firms Committee, which has since been incorporated into the Autorité de Contrôle Prudentiel et de Résolution (French Prudential Supervisory Authority).

CDPC

CDS

CECEl

Chief Executive Officer

CEO

Chèque Emploi Service Universel (universal service employment voucher).

CESU CET1 CFCC CFH CFO CGM

Common Equity Tier 1

Comité de coordination des fonctions de contrôles (Control Functions Coordination Committee)

Cash flow hedge

Chief Financial Officer

Combined General Shareholders' Meeting

Comité d’Hygiène, de Sécurité et des Conditions de Travail /Committee for Hygiene, Safety and Working Conditions

CHSCT

Corporate & Investment Banking Cooperative investment certificates Chief Information Security Officer

CIB CIC

CISO CLOs

Collateralized loan obligation, i.e. a credit derivative product backed by a homogeneous pool of corporate loans.

Commercial Mortgage-Backed Securities

CMBS

Constant maturity swap, i.e. a swap that allows the buyer to exchange a short-term interest rate for a longer-term interest rate.

CMS

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NATIXIS Risk report Pillar III 2017