BPCE_REGISTRATION_DOCUMENT_2017

9 ADDITIONAL INFORMATION Glossary

Acronyms

Own Risk and SolvencyAssessment.As part of European efforts to reform prudential regulationof theinsurance industry, ORSA isan internal process undertaken by the financial institution to assess riskandsolvency. It must show its ability to identify, measure and manage factors liableto havean impact on its solvency or financialposition

ORSA

BCP

BusinessContinuity Plan

PD

Probability of Default, i.e. the likelihood thata counterparty of the bankwill default within a one-yearperiod

PERP

Plan d’épargne retraite populaire /Retirement savings plan

Prêt locatif intermédiaire /Loan for investment in propertyto be rented at prices above “social” housing prices but below market prices for 6 (or 12) years

PLI

PLS SME

Prêt locatif social /Socialhousing loan Small- andmedium-sized enterprises Small- andmedium-sized industries

SMI NBI

Net banking income

PSLA

Prêt socialocation-accession /Loan tofinancetheleasing or purchase of property by low-income families

PTZ

Prêt à taux zéro /Interest-free loan

RMBS

See securitization

Return on Equity: net income restated for returnson hybridsecurities recognized as equity instruments, divided by shareholders’ equity (restated for hybridsecurities), used to measuretheprofitgenerated on capital

ROE CSR RSSI

Corporate Social Responsibility

/Headof IT system security

Responsable de la sécurité des systèmes d’information Réduction du temps de travail /Reductionof workingtime

RTT

Risk-weighted assets.Thecalculationof credit risks is further refined using a more d tailed riskweighting that incorporates counterparty default riskanddebtdefault risk

RWA S&P SCF SCPl SEC SEPA

Standard & Poor’s

Société decréditfoncier /a French covered bond issuer

Société civilede placement immobilier /Realestateinvestmentrust

Securities and Exchange Commission

Single Euro Payments Area Specialized Financial Services

SFS

IS

Information system

Socama

Sociétésde cautionnement mutuel artisanales /Mutual Guarantee Companies for small businesses

SupervisoryReviewandEvaluation Process: Methodology for assessing andmeasuring the risks foreach bank. SREP gives the prudentialauthoritiesa setof harmonized toolsto analyzea bank’s risk profilefromfourdifferentangles:businessmodel,governance and risk management, risk tocapital,andrisk toliquidityandfunding The supervisor sends the banktheSREPdecisionsat theendof theprocessandsetskey objectives. Thebankmust then “correct” these within a specific time Single Resolution Mechanism:AnEU-levelsystemto ensure an orderly resolution of non-viable banks witha minimalimpact on taxpayers and the realeconomy. The SRM is oneof thepillars of theEuropeanBankingUnionandconsists of an EU-level resolution authority (Single Resolution Board – SRB)anda common resolution fund financed by thebanking sector (Single ResolutionFund– SRF) Stressed Value-at-Risk: The SVaRcalculation method isdentical to the VaR approach (historicalor MonteCarlomethod,scope – position – risk factors– choicesandmodeling– model approximations andnumericalmethods identical to thoseused forVaR)and involves a historical simulation (with“one-day” shocks) calculated over a one-year stressedperiod,at a 99% confidence l vel scaled up to 10 days. The goal is to assess the impacts of stressed scenarios on the portfolio and currentmarketlevels Total LossAbsorbingCapacity:a ratio applicable to G-SIBs that aimsto ensure thateach G-SIBhas thecapacity tocontinue its essential operations for theeconomy even after a loss has consumed all of its capital. In November 2015, theFSBpublished thefinal TLAC calibration: all TLAC-eligible instruments will have tobe equivalent o at least16% of risk-weighted assets at January 1, 2019and at least 6%of the leverageratio denominator. TLACwillsubsequently have to be equivalento18%of risk-weighted assetsand6.75% of the leverageratio denominator f omJanuary 1,2022 Total Return Swap, i.e. a transaction whereby two parties exchangethe income generated and any change in value on two different assetsover a given time period Titressupersubordonnés /deeply subordinated notes, i.e. perpetualbondswithno contractual redemption commitment that pay interest in perpetuity. In theeventof liquidation, they are paid after other creditors (subordinated loans). Thesecurities pay annualinterest contingenton the paymentof a dividend or the achievement of a specific result Tier 1/Tier 2capital

SREP

SRM

SVaR T1/T2

TLAC

TRS

TSS VSE

Very small enterprises

EFTT TUP CGU

European FinancialTransactionTax

Transmission universellede patrimoine /Totaltransferof assetsandliabilities

CashGenerating Unit

Value at Risk: a measurement of market riskon a bank’s trading book expressed as a monetary value. It allows theentityperforming the calculation to appraise themaximum losses liable to be incurred on its trading book. A statistical variable, VaR is always associated with a confidence interval (generally 95% or 99%) anda specifictime frame (in practice,onedayor 10 days, as thetrading positions involved are meant to be unwound within a few days)

VaR

620

Registration document 2017