NATIXIS - Universal registration document and financial report 2019

9 LEGAL AND GENERAL INFORMATION Glossary

Acronym/Term

Definition

Green bonds

Bonds 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, 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.

GWWR Haircut

General Wrong Way Risk

The percentage by which a security’s market value is reduced to reflect its value under a stressed environment (counterparty risk or market stress). The size of the haircut reflects the perceived risk. A hedge fund is 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

HQE

High Environmental Quality (Haute qualité environnementale)

HQLA

High-quality liquid assets

HR HY

Human Resources

High Yield

IARD

Property and casualty insurance (Incendie, Accidents et Risques Divers).

IAS

International Accounting Standards International Accounting Standards Board

IASB IBOR

Interbank Offered Rate

ICAAP

Internal Capital Adequacy Assessment Process, a practice required under Pillar II of the Basel Accords to ensure that firms have sufficient capital to cover all their risks

IDFC IFACI

Infrastructure Development Finance Company

French Institute of Internal Auditing and Control (Institut Français de l’Audit et du Contrôle Internes). International Financial Reporting Interpretations Committee (IFRIC) — IFRIC 21, adopted by the European Union in June 2014, is an interpretation of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets.”

IFRIC 21

IFRS

International Financial Reporting Standards

IMF

International Monetary Fund

Incremental Risk Charge (IRC)

The capital requirement intended to cover issuers’ credit migration and default risks for a period of one year for fixed income and loan instruments in the trading book (bonds and CDS). The IRC is a 99.9% value-at-risk measure; i.e. the greatest risk after the elimination of the 0.1% worst-case scenarios. Encompasses asset and liability risks (interest rate, valuation, counterparty and forex risk) as well as risks related to the pricing of mortality risk premiums and the risks associated with life and non-life insurance, including pandemics, accidents and natural disasters (such as earthquakes, hurricanes, industrial accidents, acts of terrorism and military conflict). A long-term rating of a counterparty or underlying issue awarded by a rating agency, ranging from AAA/Aaa to BBB-/Baa3. A rating of BB+/Ba1 or below is considered non-investment grade. Internal-ratings based, referring to the Internal Ratings-Based Approach, the measurement of credit risk on the basis of credit ratings as defined by EU regulations.

Insurance risk

Investment grade

IRB

IRM

Incremental Risk Measure

IRRBB

Interest Rate Risk in the Banking Book. IRRBB designates the current or future risk to which the bank’s capital and profits are exposed due to adverse interest rate fluctuations influencing positions in the banking book.

IS

Information system

ISDA

International Swaps and Derivatives Association

ISF ISP

Wealth Tax (Impôt Sur la Fortune)

Investment service provider

IWMA

Independent wealth management advisor

JV

Joint Venture

L&R LBO LCR

Loans and receivables

Leveraged buyout

Liquidity coverage ratio

Leverage effect

The leverage effect accounts for the rate of return on equity based on the after-tax rate of return on invested capital (return on capital employed) and the cost of debt. By definition, it is equal to the difference between the rate of return on equity and the return on capital employed.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019