European Banking Authority
Created on 1 January 2011 and headquartered in London, the European Banking Authority is the EU's regulatory agency for banks. It has a broad remit, notably supervision of the stability of the financial system and of its operations, the issuance of regulatory standards and the protection of depositors.

Rating agencies
These provide investors with guidelines on the different available bonds, and value the capacity of issuers to meet their repayment commitments. Though these valuations are by nature imperfect, they are very useful in the regulation of financial institutions. The three main ratings agencies are Standard & Poor's (US group McGraw-Hill), Moody's (independent US group) and Fitch (French group Fimalac).

Payment default
This refers to the incapacity of a debtor to meet a debt maturity or pay interest. Also referred to as a credit event, it is generally the first indication of a borrower's financial difficulties.

Sovereign debt
Sovereign bonds, as distinct from private bonds, are government bonds. Historically, the sovereign bonds of mature economies were considered the safest means of investment because of the political stability of the countries concerned and related tax benefits. Many long-term investment managers, such as insurance companies, are exposed to these bonds. However, things have changed and certain sovereign debt is no longer risk free.

Sovereign funds
These are investment funds set up by a state to manage surplus savings over the medium to long term. They can be combined with oil revenues, as is the case in the Persian Gulf and Norway, or with a trade surplus, as is the case in China and Singapore.

Resident/non-resident investors
The public debt held by a country's residents is less exposed to destabilising liquidation during times of difficulty. In France, around 65% of State debt is held by non-residents, versus a little over 50% in the euro zone, a little under 50% in the US and around 5-6% in Japan.

Bond ratings
Ratings agencies divide their bond ratings into four groups, from the least risky to the most risky: A is used for good quality bonds, the best rating being AAA at Standard & Poor's and Fitch, and Aaa at Moody's. This is followed by B (speculative-grade), C (highly speculative) and D (default).

Public debt/GDP ratio
The most common way of measuring public debt is to compare it with the national product, GDP. Although contested, a study by US economists Carmen Reinhart and Kenneth Rogoff states that at the level of around 90%, debt starts to weigh on growth. At any rate, it becomes difficult to control. At the end of 2010, and according to the IMF, this ratio was close to 220% in Japan, 91% in the US and 85% in the euro zone (119% in Italy, 82% in France and 80% in Germany).

SIFIs
Systemically important financial institutions: These are essentially large banks the extent of whose activities are such that the State would feel obliged to support them if they failed, given the risk to the financial system as a whole. A global list of SIFIs is currently being drawn up. The banks on this list could find themselves with tougher capitalisation restrictions.