17. Glossary

ABD - Retail Banking Audit

AIRB - Advanced Internal Rating-Based

RWA - Risk Weighted Assets

BGK - Bank Gospodarstwa Krajowego; it is a Poland's only state-owned bank which primary business covers providing banking services for the public finance sector

CAR – Capital Adequacy Ratio; counted as: own funds (core funds and supplementary funds after deductions) / risk weighted assets (from the end of March 2014, capital ratios are calculated in line with Basel III principles)

CATI - Computer Assisted Telephone Interview (survey)

CPI –Consumer Price Index – world’s most popular measure of inflation

CRD IV – Capital Requirement Directive, a part of regulatory package CRD IV / CRR, which forms a part of Basel III

Cross-selling – a trade technique of selling a product or service combined with purchase of another product to an existing customer (zobacz, czy to ma sens)

CRR – Capital Requirement Regulation, EU regulation

EIB – European Investment Bank

ECB - European Central Bank

ETF - Exchange Traded Funds; a security that tracks an index

Fed – US Federal Reserve

FTE – Full Time Equivalent

FX swap – Foreign exchange swap; a purchase (or sale) of a specified amount of currency at a closer date and a simultaneous sale (or purchase) of the same amount of currency at a further date, at rates agreed upon the transaction

WSE – Warsaw Stock Exchange

Guarantee Line de minimis – A form of security of a loan, which dedicates funds to guaranteeing the repayment of loans in case of non-timely repayment

IBNI –Incured but Not Idenified Losses

ICAAP - Internal Capital Adequacy Assessment Process

IPO – Initial Public Offering, shares of stock in a company are sold to the general public on stock exchange market for the first time

PFSA – Polish Financial Supervision Authority

PPS – purchasing power standards

KUKE – Medium-term lending insured in Export Credit Insurance Corporation

Libor - London Interbank Offered Rate – the reference rate of interest on deposits and loans in the interbank market in London. Libor rates are set for the following currencies: USD, EUR, CHF, GBP, JPY, for 1 day, 1 week, 2 months, 3 months, 6 months and 1 year loans

K1 - Large enterprises (annual sales exceeding PLN 500 million)

K2 - Mid-sized enterprises (annual sales of PLN 30 – 500 million)

K3 - Small enterprises (annual sales below PLN 30 million

Net interest margin – Net interest income / Average interest earning assets

MbO – Management by Objectives

ML - Mortgage Loans - mortgage-secured products

NFC - Near Field Communication - technology that allows to pay using mobile phones

NML - Non-Mortgage Loans - unsecured products or products with collateral other than mortgage

PD – Probability of Default

„Mieszkanie dla Młodych” program – „Flats for Youth”, the government’s support program for people up to 35 years old in the process of purchase of their first, new flat

„Mid-caps” - Companies employing from 250 to 3 thousand people

ROA net – Net profit attributable to owners of the Bank / average total assets

ROE gross – Profit before income tax/ average total equity net of the year’s result

ROE net - Net profit attributable to owners of the Bank / average total equity net of the year’s result

MPC – Monetary Policy Council

New Connect Market – The market financing the development of small and medium-sized enterprises with high growth potential

SoFFin - Germany's Financial Market Stabilisation Fund

MBA studies – Executive Master of Business Administration postgraduate studies offerd in Polish and addressed to working professionals with higher education who have several years of experience in business, mainly occupying middle and higher management positions

„On-the-job” learning – Learning of new skills during work, ie. through participation in projects, workshops, etc.

UTP - Universal Trading Platform; new trading system, on which Warsaw Stock Exchange listings are published

Wibor - Warsaw Interbank Offered Rate; Polish equivalent of Libor

C/I ratio – Cost to Income; calculated as: (overhead costs + depreciation) / net income (including net other operating income/costs)

LTV ratio – Loan to Value ratio, expressing a relation between an amount of a loan and a value of its collateral (usually mortgage)

P/BV ratio – Price / Book value

P/E ratio – Price / Earnings

RWA – Risk Weighted Assets

Core Tier 1 ratio – Core equity capital ratio, calculted as: core funds after deductions / risk weighted assets (from the end of March 2014, capital ratios are calculated in line with Basel III principles)

SREP Guidline – Guidelines on Supervisory Review and Evaluation

SSI – Social Security Institution