ING Bank Śląski | Annual Report 2014

ING BANK ŚLĄSKI

ING BANK ŚLĄSKIAnnual Report 2014

Glossary of terms

A
AIRB

Advanced Internal Rating-Based approach for estimating capital requirements for credit risk

ALCO

Assets and Liabilities Committee

ALM

Assets and Liabilities Management

AMRON

Real Estate Market Analysis and Monitoring System – a standardised database of prices and values of real estate, using advanced statistical and analytical models. System owned by the Polish Bank Association. 

B
Banking Book

covers retail and corporate books (containing commercial loans and deposits) and Treasury Department books.  The primary objective of banking books is to ensure that all liquidity and interest rate risk positions are managed. 

Basel III

New Capital Accord (Basel III) — framework of provisions developed by the Basel Committee on Banking Supervision for the structure of financial institutions’ capital adequacy assessment

C
Catalyst

system of authorisation and trading in debt financial instruments maintained by the WSE and BondSpot company from its capital group 

C/I

Cost to Income ratio

CPI

Consumer Price Index, inflation measure

CRM

Customer Relationship Management

Cross-selling

sale of the product/service linked to the purchase of another product/service by the client

CSR

Corporate Social Responsibility

D
Dtl

Debt to Income ratio, a ratio of total liabilities to the current net income used when assessing credit risk

E
EaR

Earnings at Risk ratio, the concept applied to measure interest rate risk for banking book positions

ECB

European Central Bank

ECSI

European Customer Satisfaction Index, one of the methods of measuring customer satisfaction

EMIR

European Market Infrastructure Regulation – Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories

ESMA

European Securities and Market Authority

F
FED

Federal Reserve – central bank of the United States of America

FX Forward

derivative transaction consisting in purchase or sale of foreign currency for another currency at a future date at a locked exchange rate

FX Option

derivative transaction giving the right to purchase or sell foreign currency for another currency at a locked exchange rate at a determined future date

FX SWAP

derivative transaction of currency purchase at a determined future date, at a locked exchange rate followed by resale of the same currency amount at an exchange rate and at a date determined at the agreement conclusion date

G
GRI

Global Reporting Initiative, international non-profit organisation promoting reporting of sustainable growth issues GRI guidelines provide the principles for reporting economic, social and environmental issues and a list of indexes that should be included in CSR reports.

I
IBNR

Incurred But Not Reported 

ICAAP

Internal Capital Adequacy Assessment Process

IFRS/IAS

International Financial Reporting Standards/ International Accounting Standards

ILAAP

Internal Liquidity Adequacy Assessment Process 

INSFA

Individually Non-Significant Financial Assets

Interchange Fee

fee charged by the bank issuing a payment card from the acquirer for every transaction made using the card

Interest Margin

net interest income to average interest assets

IPO

Initial Public Offering

L
LGD

Loss Given Default risk parameter – loss for the bank due to the clients’ default

LGU

local government units

LIBOR

London Interbank Offered Rate, interest rate of loans and deposits on the interbank market in London

LTRO

Long Term Refinancing Operations of the European Central Bank consisting in major capital injection for the banking sector in the form of 36-month low-interest loans to commercial banks

LtV

Loan to Value, ratio used for credit risk assessment, it determines the amount of loan to the amount of collateral

M
Market Value of ING Bank Śląski S.A.

product of the price of ING Bank Śląski S.A. shares on WSE and the number of all Bank shares

MPC

Monetary Policy Council

N
NDF

Non-Deliverable Forward

NewConnect

organised equities market, based on the alternative trading system operated by the Warsaw Stock Exchange

P
PA

personal account

P/BV

Price/Book Value, market price of share to book value per share

PCBA

Polish Classification of Business Activities

PD

Probability of Default, risk parameter showing probability of impairment condition occurrence over 12 months

R
Recommendation D

recommendation of the Polish Financial Supervision Authority concerning the management of IT technology and security of ICT environment at banks

Recommendation H

recommendation of the Polish Financial Supervision Authority concerning internal control at banks

Recommendation J

recommendation of the Polish Financial Supervision Authority concerning the principles for gathering and processing by banks real property data

Recommendation M

recommendation of the Polish Financial Supervision Authority concerning operational risk management at banks

Recommendation R

recommendation of the Polish Financial Supervision Authority concerning rules for identification of impaired balance sheet credit exposures, determination of impairment losses for balance sheet credit exposures and provisions on off-balance sheet credit exposures

Recommendation S

recommendation of the Polish Financial Supervision Authority concerning management of mortgage-backed credit exposures

Recommendation T

recommendation of the Polish Financial Supervision Authority concerning best practices in retail credit exposures risk management

Risk Costs

impairment losses for financial assets and provisions for off-balance-sheet liabilities

Risk Costs Margin

impairment losses to average lending volume

ROA

Return on Assets, net profit to average assets

ROE

Return on Equity, net profit to average equity 

S
SME

Small and Medium-Sized Enterprises

T
Tier 1 Ratio

core Tier 1 solvency ratio

Trading Book

comprises FM books (interest-rate trading positions, FX transactions and FX options), where open positions are generated to earn short-term profit on market fluctuations or arbitrage operations

U
US Federal Reserve

central bank of the United States of America

V
VaR

Value at Risk (VaR) is the main methodology used to measure market risk

W
WIBOR

Warsaw Interbank Offered Rate, interest rate of loans on the Polish interbank market

WPC

Winning Performance Culture, method of corporate culture surveying

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