09/03/2022 - ABN Amro Bank NV: Abbreviations and definitions of important terms 2021

Term

Definition

ABU

Federation of Private Employment Agencies

AEX

Amsterdam Exchange Index

AFM

Autoriteit Financiële Markten

(Netherlands Authority for the Financial Markets)

AI

Artificial intelligence

ALM

Asset & Liability Management

AMA

Advanced Measurement Approach

AML

Anti-Money Laundering

AMX

Amsterdam Midcap Index

API

Application programming interface

AT1

Additional Tier 1

ATM

Automatic teller machine

A-IRB

Advanced Internal Ratings-Based

bps

Basis points

BRRD

Bank Recovery and Resolution Directive

CASY

Client Assessment on Sustainability

CBS

Centraal Bureau voor de Statistiek (Statistics Netherlands)

CCO

Chief Commercial Officer

CCP

Central Clearing Counterparty

CCR

Counterparty Credit Risk

CDC

Collective Defined Contribution

CDD

Customer Due Diligence

CDR

Commission Delegated Regulation

CDS

Credit Default Swap

CDSB

Climate Disclosure Standards Board

CP/CD

Commercial paper/ Certificates of Deposit

CEM

Current exposure method

CEO

Chief Executive Officer

CER

Climate-related and environmental risks

CET

Common Equity Tier

CET1

Common Equity Tier 1

CFO

Chief Financial Officer

CHRO

Chief Human Resources Officer

CI&TO

Chief Innovation & Technology Officer

Term

Definition

CIB

Corporate & Institutional Banking

CLA

Collective Labour Agreement

CO2

Carbon dioxide

CoR

Cost of Risk

CRD

(the EU's) Capital Requirements Directive

CRE

Commercial real estate

CRO

Chief Risk Officer

CRR

Capital Requirements Regulation

CRS

European Common Reporting Standard

CSA

Credit Support Annexes

CSRD

Corporate Sustainability Reporting Directive

CTF

Counter-Terrorism Financing

CVA

Credit Valuation Adjustment

DDoS

Distributed Denial of Service

DAC6

Directive on Administrative Cooperation

DFC

Detecting Financial Crime

DJSI

Dow Jones Sustainability Index

DLT

Distributed Ledger Technology

DNSH

Do no significant harm

DNB

De Nederlandsche Bank N.V. (Dutch central bank)

DoD

Definition of Default

DPPS

Dutch Public Prosecutor Services

DR

Depositary receipt

DVA

Debit Valuation Adjustment

EAD

Exposure At Default

EBA

European Banking Authority

EC

Economic Capital

ECB

European Central Bank

ECL

Expected credit loss

EDTF

Enhanced Disclosure Task Force

E&E

Entrepreneur & Enterprise

EEA

European Economic Area

EES

Employee Engagement Survey

eNPS

Employee Net Promoter Score

Term

Definition

ABN AMRO Bank N.V.

Also referred to as ABN AMRO Bank,

ABN AMRO, the Bank or the parent company.

Together with its consolidated entities in

the Netherlands and abroad referred to

as the group.

Additional Tier 1 capital

Capital that consists of items that meet the

(AT1)

following main criteria: they should be perpetual,

subordinated, have neither a maturity date nor

an incentive to redeem, have full dividend/

coupon discretion and be loss absorbing at

discretion of the Bank, as defined in Capital

Requirements Regulation (CRR).

Advanced Internal

The highest and most detailed level of

Ratings-Based(A-IRB)

credit risk calculation for determining capital

adequacy levels under Basel II, based on

the use of internal models to assess risk.

Advanced Measurement

The highest and most detailed level of

Approach (AMA)

operational risk calculation for determining

capital adequacy levels under Basel II, based

on the use of internal models to assess risk.

Ageas

Ageas SA/NV (formerly known as Fortis SA/NV)

and Ageas N.V. (formerly known as Fortis N.V.)

together.

Bail-in

An arrangement as defined in Article 3A:44 of

the Dutch Financial Supervision Act, through

which creditors of a failing financial institution

are required to cancel some of its debts as

part of a plan to save the financial institution

from collapse.

Basel III/IV

The finalised Basel III standards of 7 December

2017 (Basel IV) imply a major change in the way

banks have to determine their risk-weighted

assets (RWAs) when calculating their minimum

regulatory capital. For additional information,

please refer to the Regulatory environment

in Annual Report 2018.

Basis point (bp)

One hundredth of 1 percentage point.

Capital adequacy

Measure of a company's financial strength,

often expressed in equity as a percentage

of total assets or, in the case of banks,

in the CET1 ratio.

Certificate of deposit

An unsecured short-term funding instrument

with maturities up to one year.

Client assets

Assets, including investment funds and assets

of private individuals and institutions, which

are professionally managed with the aim of

Term

Definition

Commercial paper (CP)

An unsecured short-term funding instrument

with maturities up to one year.

Consortium

Refers to The Royal Bank of Scotland Group

plc ('RBS Group'), Ageas and Banco Santander

S.A. ('Santander'), which jointly acquired

ABN AMRO Holding on 17 October 2007

through RFS Holdings B.V. ('RFS Holdings').

On 3 October 2008, the State of the

Netherlands became the successor of Ageas.

Cost of risk

Annualised impairment charges on loans

and advances customers for the period

divided by the average loans and advances

customers (excluding at fair value through

P&L) on the basis of gross carrying amount

and excluding the fair value adjustments

from hedge accounting.

Coverage ratio

Coverage ratio shows the extent to which

the stage exposures are covered by the

allowances for credit losses.

Covered bonds

Covered bonds are secured long-term funding

instruments. This type of bond differs from

a standard bond because of the possibility

of recourse to a pool of assets. In a default

event, the bondholder has recourse to the

issuer and the respective pool of assets.

Credit risk

Risk of a financial loss that occurs if a client

or counterparty fails to meet the terms of a

contract or otherwise fails to perform as agreed.

Credit valuation

Market value adjustments for counterparty

adjustments

credit risk.

Depositary receipt

Negotiable certificate which represents

ownership of the securities of a non-domiciled

issuer while being able to be admitted to

trading on a regulated market and traded

independently of the securities of the

non‑domiciled issuer.

Devops

DevOps is a market standard practice for

IT development. It brings development

and IT operations (maintenance) together

in one team, increasing efficiency by reducing

handovers.

Duration of equity

Duration of equity indicates the sensitivity

of the market value of equity to a 1% parallel

change in the yield curve. The targeted

interest risk profile results in a limit of the

duration of equity between 0 and 7 years.

Economic capital (EC)

An estimate of the amount of capital that

the bank should possess in order to be able

to sustain larger-than-expected losses with

a given level of certainty.