NATIXIS_REGISTRATION_DOCUMENT_2017
8 ADDITIONAL INFORMATION Glossary
Acronym/Term
Definition
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.
Green bonds
GRI
Exposure before the impact of provisions, adjustments and risk reduction techniques.
Gross exposure
Global systemically important banks Global systemically important institutions
G-SIBs G-SIIs 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
The company that heads a corporate group
Holding company
High Environmental Quality (Haute qualité environnementale)
HQE
High-quality liquid assets
HQLA
Human Resources
HR HY
High Yield
Property and casualty insurance (Incendie, Accidents et Risques Divers).
IARD
International Accounting Standards International Accounting Standards Board
IAS
IASB IBOR
lnterbank Offered Rate
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
ICAAP
Infrastructure Development Finance Company
IDFC IFACI
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
International Financial Reporting Standards
IFRS
International Monetary Fund
IMF
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.
Incremental Risk Charge (IRC)
Insurance risk
Investment grade
IRB
Incremental Risk Measure
IRM
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.
IRRBB
Information system
IS
International Swaps and Derivatives Association
ISDA
Wealth Tax (Impôt Sur la Fortune)
ISF ISP
Investment service provider
Independent wealth management advisor
IWMA
Joint Venture
JV
Loans and receivables
L&R LBO LCR
Leveraged buyout
Liquidity coverage ratio
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.
Leverage effect
Financing through debt
Leverage/leveraged financing
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Natixis Registration Document 2017
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