# Commission Decision of 24 July 2013 on the State aid SA.35062 (13/N-2) implemented by Portugal for Caixa Geral de Depósitos (notified under document C(2013) 4801) (Only the English text is authentic) (Text with EEA relevance) (2014/767/EU), Division 2: Definitions Extent: E+W+S+N.I. In this document, unless the context requires otherwise, the singular shall include the plural (and vice versa) and the capitalized terms used herein have the following meanings: Term Meaning Asset management means the development of specialized solutions to invest the savings of the retail (management of mutual and pension funds, and development of solutions tailored for individual investment needs) and institutional clients that include pension funds, Insurance Companies, Corporates and Public Institutions (management of investment portfolios based on customer requirements, either tracking a benchmark or following absolute return solutions) Bancassurance means a partnership between a bank and a third party insurance company whereby the Bank sells insurance company products through its retail network BCG Spain Banco Caixa Geral, S.A. (Spain) also referred to as the Spanish retail operation Caixa Seguros means CGD’s main subsidiary active in insurance business C/I ratio means the ratio of operating expenses (labour and SG&A costs) to operating income (the sum of net interest income, commission income, revenues from capital instruments, revenues from financial operations, and any other income from operations) Commitments mean the undertakings related to the restructuring of CGD set out in this document Corporate banking means the banking services offered to corporations, either large corporations or SMEs Coverage ratio of credit at risk means the coverage ratio of credit at risk with accumulated loan loss provisions Core Region means the Domestic Core Region (Portugal) and the International Core Region (as set out in clause 4.2.2.1) Credit at risk as defined in instruction no 16/2004 (consolidated version as of the 31 May 2013 – includes the revision introduced by instruction 23/2011) of the Bank of Portugal, corresponding to the sum of the following elements: a)) total value owed on the loans that have payments of principal or interest overdue for a period of at least 90 days. Current account loans that have not been previously contracted shall be considered as credit at risk when the overdraft has existed for 90 days; b)) total value of outstanding loans that have been restructured, after having been unsettled by a period not less than 90 days, without adequate collateral reinforcement (covering the full amount of principal and interest outstanding) or full payment by the borrower of all interest and other charges that were due; c)) total value of credit with instalments of principal or interest overdue for less than 90 days, but on which there is evidence to justify its classification as credit at risk, including the bankruptcy or liquidation of the debtor. In case of insolvency of the debtor, the recoverable balances may cease to be considered at risk after approval by a court of law in the respective agreement under the Code of Insolvency and Corporate Recovery (Código de Insolvência e Recuperação de Empresas), if no doubts persist about the effective collectability of the amounts due. Decision means the decision of 24 July 2013 of the European Commission on the restructuring of CGD in the context of which these Commitments are undertaken Divestiture Trustee one or more natural or legal person(s), independent from CGD, approved by the Commission and appointed by CGD and who has received from CGD the exclusive mandate to sell Caixa Seguros to a purchaser. The Divestiture Trustee shall protect the legitimate financial interests of CGD, subject to CGD’s unconditional obligation to divest […]. Employee means any person that has a contract of employment with CGD Factoring means a financial transaction whereby a business sells its accounts receivable (i.e. invoices) to a third party (called a factor) at a discount. A composite product offering a mix of finance, credit insurance and financial management services (collections). International Instrumental Activities has the meaning set out in clause 4.2.2.2 Investment banking means specialised financial services provided to corporate and institutional customers, including advisory in corporate mergers and acquisitions, project finance, corporate finance (acquisition finance, structured finance, bonds, commercial paper, securitisation, etc.), equity capital markets operations (IPOs, tender offers, equity-linked transactions, etc.) and market risk management (through hedging and structured finance solutions). Additionally, it also includes the provision of financial brokerage services and research reports to institutional and private individual investors, intermediation on fixed income securities and syndication of structured loans. KPI Key Performance Indicators Leasing means a contract by which an individual or a firm can obtain the use of certain fixed assets for which it must pay a series of contractual, periodic payments having the option to buy the asset at the end of the contract LDR means net loans to deposits ratio Monitoring Trustee or Trustee has the meaning set out in clause 6.10 and Appendix I herein New Production consists of all new contracted business with the exception of all previously contractually committed production or any new production which is strictly necessary to preserve the value of the loan collateral or which is otherwise related to minimising capital losses and/or enhancing the expected recovery value of a loan Nonperforming loans (NPL) ratio on new credit means new loans production that have payments of interest and/or principal that are past due by 90 days or more/total new credit portfolio Proprietary trading means the regular trading activities of CGD, unrelated to client business, using the Bank’s own capital and balance sheet. Restructuring Period is the time period specified in clause 3.3 Renting means an agreement where a payment is made for the temporary use of a good (in particular a vehicle) owned by a non-financial company, usually accompanied by the provision of a number of associated services Restructuring Plan means the plan submitted by CGD to the European Commission, via the Republic of Portugal, as last amended and supplemented by written communications on 19 July 2013 Remedial Actions mean action(s) that will allow CGD to meet the identified target(s). The remedial actions shall be presented by CGD as described in clause 4.2.3.3.The Monitoring Trustee will analyse the remedial actions proposed and will report to the Commission on their adequacy to meet the targets in the Restructuring Plan RWAs means risk weighted assets that shall be calculated on a consolidated basis in accordance with relevant Portuguese regulations and as approved by Bank of Portugal at the date of the Decision SME means a Small & Medium Enterprise which has a turnover below or equal to EUR 50 million and credit exposure to CGD that does not exceed EUR 1 million VAR means Value At Risk, the portfolio risk measure as described in the 1996 amendment by the Basel Committee on Bank Supervision. For the purposes of the calculation, figures refer to a historical simulation methodology using a 10-day holding period, a 99 % confidence interval and 501 trading days of data (corresponding to a 2-year horizon) Venture capital means the act of providing financial capital to start-up companies, in particular those with high growth potential, in exchange for equity in the business --- Source: https://www.legislation.gov.uk/eudn/2014/767/annex/division/2 (the official version) Page: https://openlegislation.uk/eu-decision-2014-767/annex/division-2 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.