NATIXIS - Universal registration document and financial report 2019

9 LEGAL AND GENERAL INFORMATION Glossary

Glossary 9.7

Acronym/Term

Definition

A-IRB ABCP

Advanced Internal Ratings-Based Approach

Asset-backed commercial paper, i.e. a marketable debt instrument backed by cash flows from a pool of underlying assets. 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 for the Banking and Insurance Sector (Autorité de Contrôle Prudentiel et de Résolution), France’s banking and insurance supervisor. Association for the Defence of Minority Shareholders (Association de Défense des Actionnaires Minoritaires). Association for the right to economic initiative (Association pour le droit à l’initiative économique)

ABS

ACPR

ADAM

ADIE

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

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

ALM (Committee)

Asset and Liability Management Committee

AM

Asset Management

AMF AML

French Financial Markets Authority (Autorité des Marchés Financiers)

Anti-money laundering

AML-CTF

Anti-money laundering and counter-terrorism financing

AQR

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

ARRCO

AT1 AUM

Additional Tier 1 capital Assets under management

Back office Backtesting

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

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 in 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. Changes in the supervisory framework for banks, incorporating the lessons drawn from the 2007-2008 financial crisis, meant to complement the Basel 2 accords by enhancing the quality and quantity of the minimum capital requirements applicable to financial institutions. 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, 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. French Bulletin for Mandatory Legal Announcements ( Bulletin des Annonces Légales Obligatoires ).

BALO

Basel 1 (the Basel Accords)

Basel 2 (the Basel Accords)

Basel 3 (the Basel Accords)

BCBS

BCP

Business Continuity Plan

BFBP

Banque Fédérale des Banques Populaires.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019