NATIXIS_REGISTRATION_DOCUMENT_2017

ADDITIONAL INFORMATION Glossary

Acronym/Term

Definition

External Credit Assessment Institution, i.e. a credit rating agency that is registered or certified in accordance with EU regulation, or a central bank that issues credit ratings.

ECAI

European Central Bank

ECB

Enhanced Disclosure Task Force

EDTF EEA EGM

European Economic Area

Extraordinary General Shareholders’ Meeting

European Investment Bank

EIB

Expected loss, i.e. the value of the loss likely to be incurred given the quality of the structure of the transaction and any measures taken to mitigate risk, such as collateral. It is calculated by multiplying exposure at risk (EAD) by Probability of Default (PD) and by Loss Given Default (LGD). Expected Loss Best Estimate, i.e. the institution’s best estimate of expected loss for the defaulted exposure. This estimate takes into account current economic circumstances, exposure status and an estimate of the increase of the loss rate caused by possible additional unexpected losses during the recovery period.

EL

ELBE

Europe, Middle East and Africa Employment preservation plan

EMEA

EPP

In a securitization arrangement, the equity tranche refers to the tranche that bears the first losses incurred from defaults within the underlying portfolio.

Equity (tranche)

Environmental and social responsibility

ESR ETF

Exchange-traded fund, i.e. a type of investment fund that tracks a stock market index or asset.

European Union

EU

Euro

EUR

Euro Interbank Offered Rate, the benchmark interest rate on the eurozone’s money market. 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, “Prospectus” Directive). 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. Fédération Bancaire Française (French Banking Federation), a professional body representing all banking institutions in France. See EL.

EURIBOR

European Securities and Markets Authority (ESMA)

Expected loss

Exposure at default (EAD)

8

Fair value

FBF

Private Equity Investment Fund (Fonds Commun de Placement à Risque)

FCPR

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

FED

FINancial REPorting

FINREP

Foundation Internal Ratings-Based Approach

F-IRB

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 financial institutions. Conceived at the G20 summit in London in April 2009, the FSB functions as the successor to the Financial Stability Forum, which was founded in 1999 under a G7 initiative.

FSB

Full-time equivalent

FTE

Fixed-term employment contract

FTEC

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

Fully-Loaded

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).

FV Adjustment on own senior debt

Foreign exchange

FX

Generally accepted accounting principles

GAAP GAPC

Workout portfolio management (Gestion active des portefeuilles cantonnés)

Pound sterling (British pound)

GBP GDP GEC

Gross Domestic Product

Global Energy & Commodities General Shareholders’ Meeting

GM

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Natixis Registration Document 2017