Basel Accord: Set of prudential banking rules released by the Basel Committee on Banking Supervision in 1988 to give greater solidity to the global financial system. Its main characteristic is the requirement of a minimum percentage resulting from the division of the share capital of a financial institution by its respective risk-weighted assets inherent to them. The Basel Accord was implemented in Brazil by CMN Resolution No. 2,099, of August 17, 1994, as amended, which instituted minimum amounts of paid-in capital and risk-adjusted owners’ equity for Brazilian financial institutions. In January 2001, the Basel Committee on Banking Supervision released a new version of the Basel Accord.

B3: Former BM&FBOVESPA, it is one of the main financial market infrastructure companies in the world, operating in exchange and over-the-counter environments.

BACEN or Central Bank: Central Bank of Brazil. It is a federal autarchy linked to the Ministry of Economy.

BISBank for International Settlements Committee on Banking Supervision.

BR GAAP: Generally accepted accounting practices in Brazil.

CAGR: Compound annual growth rate.

CDI: Interbank Deposit Certificate.

CMN: Brazilian Monetary Council.

Company or Paraná Banco: Refers to Paraná Banco S.A.

Agreements: Agreements entered into with Public Sector bodies and entities that authorize the granting of payroll-deductible loan to beneficiaries of such entities.

COPOM: Monetary Policy Committee.

CVM: Acronym for Comissão de Valores Mobiliários (Securities and Exchange Commission), whose objective is to supervise, regulate, discipline and develop the securities market in Brazil.

Financial statements: They are accounting reports in which it is possible to compare the economic and financial situation of a company in different periods.

Derivatives: Securities traded in future settlement markets or other assets with or without securities issued by the Bank as backing or object.

IFRS: International Financial Reporting Standards.

Basel Ratio: Pursuant to CMN Resolution No. 2,099, of 08/17/1994, the obligation to maintain an adjusted owners’ equity value, compatible with the risk level of the asset structure of a given financial institution, as defined in the Agreement of Basel.

IOF: Tax on Credit, Exchange and Insurance Transactions, or relating to Securities.

IPCA: Extended Consumer Price Index, disclosed by IBGE;

IPO: Acronym for Initial Public Offering. Means the initial public offering of shares made by a company.

OPA: It means the Public Offer for the Acquisition of Shares and is conducted when a company wishes to no longer have shares traded on the stock exchange.

ROAA: Monthly weighted average return on asset.

ROAE: Monthly weighted average return on equity.

SEC: United States Securities and Exchange Commission.

Securities Act: United States Securities Act of 1933.

Selic: Special Settlement and Custody System.

Public sector: Sector comprised by the following bodies and entities: the direct administration of the Government, the states, the Federal District and the municipalities; autarchies and foundations instituted or maintained, directly or indirectly, by the Government, by the States, by the Federal District and by the Municipalities; public companies and mixed economy companies, and other bodies and entities under power of the Government, States, Federal District and Municipalities.

STF: Federal Supreme Court

STJ: Superior Court of Justice.

SUSEP: Superintendence of Private Insurance.

TAC: Credit Facility Fee.

DI Rate: Average daily rate of interbank deposits expressed as a percentage per year, calculated and published by CETIP and expressed as an effective annual rate.

Securities Available for Sale: As established in BACEN Circular No. 3,068, of 11/8/2001, securities acquired by the Bank do not fit into the following categories: (i) acquired for the purpose of being actively and frequently traded; or (ii) for which the institution has the intention and financial capacity to hold them in its portfolio until maturity.

TJLP: Long-Term Interest Rate, expressed as a percentage per year, determined by the CMN.

US GAAP: Generally Accepted Accounting Practices in the United States.

VaRValue at Risk. Risk assessment modality.

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