2        Introduction

This chapter provides an understanding of the Oracle Financial Services Regulatory Reporting for the US Treasury Integration Pack application and its scope. It includes:

·        Overview

·        OFSAA Regulatory Reporting Architecture

·        Scope

Overview

Regulatory reporting and financial services have evolved to be an inseparable combination. It has worsened since the 2008 financial crisis. Today, banks and financial institutions must file hundreds of regulatory reports. For the U.S. Treasury alone, institutions must file multiple submissions of FFIEC-101, call reports, stress testing reports, and so on. Reporting requirements increase rapidly in number and complexity for banks operating regionally or globally, where they must file in multiple jurisdictions.

Treasury International Capital (TIC) reporting system collects data for the United States on cross-border portfolio investment flows and positions between the U.S. and foreign residents. This data help in:

·        Construction of Balance of Payments

·        Formulation of International Financial and Monetary Policy

·        Tracking developments in International Markets

The U.S. Treasury retains administrative control/oversight of the TIC system and the Federal Reserve Board has final oversight.

The data collected by TIC are as follows.

Table 2: US Treasury Data Type and Reports

Cross-border transactions and holdings not captured by TIC are:

·        U.S. Government cross-border Capital Transactions

·        Direct Investments

The U.S. Treasury expects the following institutions to report the TIC B reports:

Savings & Loans Holding Companies (SLHC)

·        All other Financial Institutions

§       Insurance Companies

§       Pension Funds

§       Mutual Funds

§       Money Market Funds

§       Investment Banks

§       Private Equity Funds

§       Real Estate Investment Trust (REITS)

§       Credit Card Issuers

§       Hedge Funds

§       Trusts

§       Finance Companies

§       Mortgage Companies

§       Factors and other Financial Intermediaries who extend short-term business credit to finance inventories or carry accounts receivable

§       Futures Commission Merchants

·        Depository Institutions located in the United States:

§       Commercial Banks

§       United States branches and agencies of foreign banks

§       Trust companies that conduct commercial banking business

§       Banking Edge Act and Agreement Corporations

§       The Federal Reserve Bank of New York

·        Bank Holding Companies (BHC)

·        Financial Holding Companies (FHC)

·        Securities Brokers and Dealers

The OFS REG REP US Treasury solution enables financial services organizations to manage and execute regulatory reporting in a single integrated environment. It automates end-to-end processes from data capture through submission with industry-leading solutions. It leverages Oracle Financial Services Analytical Application (OFSAA) and Oracle Financial Services Data Foundation (OFSDF) for managing analytical application data.  The AgileREPORTER in Regulatory Reporting (REG REP) Solution enables firms to automate the final mile of the reporting process. It provides pre-built integration to Vermeg Reporting, eliminating the need for further manual intervention. The solution ensures data integrity allowing banks to focus more time on analyzing and gaining new business insight from their growing stores of data instead of preparing data and reports with the sole objective of meeting submission deadlines.

OFSAA Regulatory Reporting Architecture

Figure 1: Regulatory Reporting (REG REP) Solution Architecture

This interface connects the Oracle FSDF to Lombard Risk. As you can see in the Architecture figure above, Data flows from OFSAA to Lombard Risk.

OFSDF is an analytical data warehouse platform for the Financial Services industry. It combines an industry data model for Financial Services along with a set of management and infrastructure tools that allows Financial Services Institutions to develop, deploy, and operate analytical solutions spanning key functional areas in Financial Services, including:

1.     Enterprise Risk Management

2.     Enterprise Performance Management

3.     Customer Insight

4.     Financial Crime and Compliance Management

OFSDF is a comprehensive data management platform that helps institutions to manage the analytical data life cycle from sourcing to reporting and business intelligence/BI using a unified, consistent platform and toolset.

AgileREPORTER is a form and workflow tool that enables both creation and submission of regulatory returns. AgileREPORTER addresses the financial reporting requirements of both domestic and international banks and financial institutions by automating compliance with mandated reports to central banks, regulatory agencies. AgileREPORTER works easily with multiple sources of information as it standardizes data elements and automates regulatory report production in prescribed templates with the associated workflow for automatic submission. It is a reliable and efficient infrastructure to compile, generate, and submit regulatory reports. It collects data from a wide universe (not just OFSAA Results). It provides automated repeated manual adjustments, variance analysis, and validation checks. It provides features to explain and justify a number quickly, including links to OBIEE.

The solution provides a pre-built interface or integration between FSDF and AgileREPORTER. With this integration, you can automate the end-to-end reporting process covering data preparation to the last mile of reporting.

Scope

Oracle Financial Services Regulatory Reporting for US Treasury Integration Pack covers the following regulatory reports for specified release as mentioned in the table:

Table 3: Scope of Regulatory Reports and Schedules