NATIXIS - 2018 Registration document and annual financial report

8 ADDITIONAL INFORMATION Glossary

Acronym/Term

Definition

See EL.

Expected loss

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). 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. Fédération Bancaire Française (French Banking Federation), a professional body representing all banking institutions in France.

Exposure at default (EAD)

Fair value

FBF

Private Equity Investment Fund (Fonds Commun de Placement à Risque)

FCPR

Federal Reserve System, i.e. the US central bank.

FED

Financial Reporting

FINREP

Foundation Internal Ratings-Based Approach

F-IRB

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.

FSB

Full-time equivalent

FTE

Fixed-term employment contract

FTEC

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

Fully-Loaded

FV Adjustment on own senior debt

Foreign exchange

FX

Generally accepted accounting principles

GAAP GAPC

Workout portfolio management (Gestion active des portefeuilles cantonnés)

Pound sterling (British pound)

GBP GDP GEC

Gross Domestic Product

Global Energy & Commodities General Shareholders’ Meeting

GM

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. Exposure before the impact of provisions, adjustments and risk reduction techniques.

Green bonds

GRI

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

574

Natixis Registration Document 2018