BPCE_PILLAR_III_2017

APPENDICES Glossary

Acronyms

Enhanced Disclosure Task Force, an international task force formed at the initiative of the Financial Stability Board (FSB) in May 2012to considerways to enhancebanks’ financial disclosures.The EDTF is made up of representativesfrom the private sector and of users and preparers of financial disclosures. In October 2012, it published a report containing 32 recommendations aimed at enhancingdisclosureson risk management,capital adequacy,and exposure to liquidity, funding, market,credit and otherrisks

EDTF

EURIBOR

Euro InterbankOffered Rate,the benchmark interestrate on theeurozone’smoney market

FBF

Fédérationbancaire française (FrenchBankingFederation),a professionalbody representing all banking institutionsin France

FCPR FGAS

Fonds communde placementà risque /Venture capital investment fund

Fonds de garantie àl’accession sociale/ Frenchstate guaranteefund for subsidized loans

FINREP

FINancialREPorting Single ResolutionFund

SRF

The 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 ministersand supervisors from theG20 countries

FSB ALM

Asset and liabilitymanagement

GAPC

Gestionactive des portefeuilles cantonnés /Workout portfoliomanagement

Global systemically important banks are financial institutions whose distress or failure, because of their size, complexity and systemic inter-dependence,would cause significantdisruptionto the financialsystemand economicactivity. These institutions meet the criteriaestablishedby the Basel Committeeand are identifiedin a list publishedin November 2011and updatedevery year. The constraints applicable to G-SIBs increasewith theirlevel ofcapital

G-SIBs HQLA

High-qualityliquid assets

IARD

Incendie,accidents etrisques divers /propertyand casualty insurance

IAS

InternationalAccountingStandards InternationalAccountingStandards Board

IASB

Internal Capital Adequacy Assessment Process A practice required under Pillar II of the Basel Accords to ensure that firms have sufficientcapital tocover all their risks

ICAAP

IFRS

InternationalFinancialReportingStandards

IRB

Internal-ratings based, an approach tocapital requirements based on the financialinstitution’sinternal rating systems

A-IRB F-IRB

Advanced IRB approach Foundation IRBapproach

IncrementalRisk Charge:the capitalrequirementfor an issuer’scredit migrationand defaultrisks, coveringa periodof one year for fixed income and loan instrumentsin the trading book (bonds and CDSs). The IRC is a 99.9% value-at-riskmeasurement; i.e. the greatestrisk obtainedafter eliminating the0.1% worst-case scenarios

IRC L&R

Loans and receivables

Liquidity Coverage ratio: a measurementintroduced to improve the short-term resilience of banks’ liquidity risk profiles. The LCR requires banks to maintain a reserve of risk-free assets that can be convertedeasily into cash on the market in order to cover their cash outflows minuscash inflowsover a 30-day stressperiodwithoutthe support ofcentralbanks

LCR LBO

Leveraged buyout

AML-CTF

Anti-money laundering and counter-terrorism financing

LGD

Loss GivenDefault, aBasel II credit risk indicatorcorresponding toloss in the event ofdefault

Maximum distributable amount, a new provision for banks placing restrictions on their dividend, AT1 coupon and bonus payments (under a rule that tightensrestrictionsas banks deviatefrom their requirements),if the capital buffers are not met. As these buffersare on top ofPillars I and II, theyapply immediatelyif the bank fails to comply with thecombined requirements

MDA SSM

Single Supervisory Mechanism

MREL

Minimum Requirement for own funds and Eligible Liabilities

SRM NPE NRE

Single ResolutionMechanism Non-performing exposure

Loi sur les nouvelles réglementations économiques /French Law on New Economic Regulations

Net Stable FundingRatio: this ratio is intended to strengthenthe longer-termresilienceof banks through additional incentives meant to encourage banks to finance their operations using more structurally stable resources. This long-term structural liquidity ratio, applicable toa one-yearperiod,was formulated toprovide aviablestructurefor assetand liabilitymaturities

NSFR

OH

Obligationsde financementde l’habitat /Housing financing bond

Own Risk and Solvency Assessment. As part of European efforts to reform prudential regulation of the insurance industry, ORSA is an internal process undertaken by the financial institution to assess risk and solvency. It must show its ability to identify, measureand manage factors liable tohave an impact on its solvencyor financialposition

ORSA

BCP

Business Continuity Plan

PD

Probabilityof Default, i.e. the likelihood thata counterparty ofthe bank willdefaultwithin a one-yearperiod

RMBS

See securitization

RSSI

Responsable de la sécurité desystèmesd’information /Head ofIT systemsecurity

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Risk Report Pillar III 2017