NATIXIS - Universal registration document and financial report 2019

LEGAL AND GENERAL INFORMATION Glossary

Acronym/Term

Definition

ECB

European Central Bank

EDTF EEA EGM

Enhanced Disclosure Task Force

European Economic Area

Extraordinary General Shareholders’ Meeting

EIB

European Investment Bank

EL

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.

ELBE

EMEA

Europe, Middle East and Africa Employment preservation plan

EPP

Equity (tranche)

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

ESR ETF

Environmental and social responsibility

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

EU

European Union

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, “Prospectus” Directive).

Expected loss See EL. Exposure at default (EAD) 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). Fair value 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. FBF Fédération Bancaire Française (French Banking Federation), a professional body representing all banking institutions 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 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.

FTE

Full-time equivalent

FTEC

Fixed-term employment contract

Fully-Loaded

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

FV Adjustment on own senior debt

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).

FX

Foreign exchange

G-SIBs G-SIIs GAAP GAPC

Global systemically important banks Global systemically important institutions Generally accepted accounting principles

9

Workout portfolio management (Gestion active des portefeuilles cantonnés)

GBP GDP GEC

Pound sterling (British pound)

Gross Domestic Product

Global Energy & Commodities General Shareholders’ Meeting

GM

551

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019