ANBIMA: entity resulting from the merger of the National Association of investment Banks (Anbid) and the National Association of Financial Market Institutions (Andima)
Arbitration Chamber: Market Arbitration Chamber established by Bovespa in June 2007.
BACEN or Banco Central: Central Bank of Brazil (Banco Central do Brasil).
Bank or Banco PAN: refers to Banco PAN S.A..
Basel Accord: a conjunction of prudential banking principles released by the Basel Committee on Banking Supervision in 1988, aiming to guarantee the solidity of the global financial system. Its main characteristic is a minimal percentage, obtained by dividing the financial institution’s capital by its risk-weighted assets. The Accord was implemented in Brazil, with some differences, through National Monetary Council Resolution 2099, wich determined minimal paid-up capital and equity values, adjusted by Brazilian financial institutions’ risk.
Basel Index: index defined in the Basel Accord, implemented in Brazil in accordance to the National Monetary Council Resolution 2099.
Brazil or Country: the Federative Republic of Brazil.
BM&FBOVESPA: Securities, Commodities & Futures Exchange.
BIS: Bank for International Settlements.
BR GAAP: Accounting practices adopted in Brazil, or Brazilian GAAP or Brazilian Corporation Law.
CAGR: Compound Annual Growth Rate.
CBLC: the Brazilian Settlement and Custodial Company (Companhia Brasileira de Liquidação e Custódia).
CDB: Certificate of Bank Deposit.
Código de Defesa do Consumidor: the Brazilian Consumer Protection Code (Código de Defesa do Consumidor), from September 11, 1990.
Civil Code: Law No. 10,406 of January 10, 2002.
CMN: National Monetary Council.
CNPS: National Council of Wage Policy (Conselho Nacional da Previdência Social).
COAF: Financial Activities Control Council (Conselho de Controle de Atividades Financeiras).
COFINS: Contribution for Social Security (Contribuição para o Financiamento da Seguridade Social).
Commitment Clause: Arbitration Clause that compels the Company, its shareholders, managers and Fiscal Council members to refer any and all disputes or controversies between them to arbitration.
COPOM: the Brazilian Committee for Monetary Policy (Comitê de Política Monetária).
CPIs: the parliamentary commissions of inquiry (Comissão Parlamentar de Inquérito).
CPMF: the temporary contribution on financial flows (Contribuição Provisória sobre a Movimentação Financeira).
CRM: Customer Relationship Manager, which is one of our technological tools to store and follow our customers’ credit history.
CSLL: the social contribution tax on net profit (Contribuição Social sobre Lucro Líquido).
CVM: the Brazilian Securities Commission (Comissão de Valores Mobiliários).
DBM: Data Base Marketing, which is one of our technological tools to store information relating to our clients for future and continuing marketing campaigns.
DI: Interbank Deposit.
EC 40/03: Constitutional Amendment 40, from May 29, 2003.
FEBRABAN: Brazilian Federation of Banks (Federação Brasileira de Bancos).
Federal Constitution: Constitution of the Federative Republic of Brazil.
Federal Government or Government: Federal Government of the Federative Republic of Brazil.
FENASEG: Brazilian Federation of Private Insurance and Capitalization Companies (Federação Nacional das Empresas de Seguros Privados e de Capitalização).
FIDCs: the credit rights investment funds (Fundos de Investimento em Direitos Creditórios).
IBGC: Brazilian Institute for Corporate Governance (Instituto Brasileiro de Governança Coorporativa).
IBGE: Brazilian Geography and Statistics Institute (Instituto Brasileiro de Geografia e Estatística).
Ibope: the Brazilian Institute of Public Opinion and Statistics (Instituto Brasileiro de Opinião e Estatística).
IBRACON: the Brazilian Federal Accounting Board (Conselho Federal de Contabilidade).
IGP: General Price Index (Índice Geral de Preços), disclosed by Fundação Getúlio Vargas.
IGP-M: General Price Index – Market (Índice Geral de Preços – Mercado), disclosed by Fundação Getulio Vargas.
INSS: the National Institute of Social Security (Instituto Nacional do Seguro Social).
IOF: the tax on financial taxations (Imposto sobre as Operaçaões Financeiras).
IPC: local purchase power index (Índice de Poder de Compra), disclosed by Fundação Getúlio Vargas.
IPCA: the extended consumer price index (Índice de Preços ao Consumidor Amplo), disclosed by IBGE.
IRB: Brazilian Reinsurance Institute (Instituto de Resseguros do Brasil S.A.).
IRRF: withholding income tax (Imposto de Renda Retido na Fonte).
IRPJ: corporate income tax (Imposto de Renda de Pessoa Jurídica).
ITRs: quarterly financial information (Informações Trimestrais).
JUCESP: Board of Trade of the State of São Paulo (Junta Comercial do Estado de São Paulo).
PIB: Gross Domestic Product or GDP (Produto Interno Bruto).
PIS: the Contribution for the Social Integration Program (Programa de Integração Social).
PROER: the program for encouraging national restructuring and strengthening (Programa de Estímulo à Reestruturação e ao Fortalecimento do Sistema Financeiro Nacional).
RAET: the Temporary Special Administration Regime (Regime de Administração Especial Temporária).
Real, Reais or R$: refers to the Brazilian real, the official currency of Brazil.
Regulation S: rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to institutional and other investors outside the United States and Brazil that are not U.S. persons.
ROAE: Return on Average Equity.
Rule 144A: rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to qualified institutional buyers of the United States.
SBPE: the Brazilian Savings and Loans System (Sistema Brasileiro de Poupança e Empréstimo).
SEC: Securities and Exchange Commission.
SELIC: Special System for Settlement and Custody (Sistema Especial de Liquidação e Custódia).
STF: Supreme Court (Supremo Tribunal Federal).
STJ: Superior Court of Justice (Superior Tribunal de Justiça).
SUSEP: the Private Insurance Superintendence (Superintendência de Seguros Privados).
TAC: fees for opening of credit lines (tarifa de abertura de crédito – TAC).
TJLP: the average long-term interest rate (Taxa de Juros de Longo Prazo), disclosed by CMN.
TR: Referential Rate (Taxa Referencial), disclosed by the Central Bank.
United States: United States of America.
U.S. dollar, U.S. dollars or US$: refers to U.S. dollars.