Oracle
Financial Services Capital Adequacy Application Pack v8.1.0.0.0 Maintenance
Level Release #1(8.1.0.1.0)
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OFS Financial Services Capital Adequacy Application Pack is a separately licensed product.
ID 32056601: OFS CAP 8.1.0.0.0 MAINTENANCE LEVEL RELEASE #1 (8.1.0.1.0)
The minimum patch set level must be OFS CAP Application Pack v8.1.0.0.0.
For detailed instructions on installing this Maintenance Level
Release, see OFS
CAP Installation Guide 8.1.0.1.0.
The OFS Basel Regulatory Capital Release 8.1.0.1.0 release caters to the Capital Requirements Regulation (CRR) II and Capital Requirements Directive (CRD) V compliance for the Europe Jurisdiction (EU), in addition to the existing compliance for CRR for the EU.
Europe Jurisdiction
As part of this release, the application is compliant with the CRR II and CRD V regulations of the EU for Credit Risk and Counterparty Credit Risk calculations. The key functionalities of CRR II and CRD V of Credit risk and Counterparty Credit Risk that are addressed in this release are as follows:
·
Credit Risk
§
Treatment of CIUs
§
Changes to the Defaulted Exposure Treatment
·
Counterparty Credit Risk
§
Revised Original Exposure Method
·
Across All Calculations
§
SME Factor Updates
§
Additional Factor Updates
The other functionalities that remain unchanged from CRR to CRR II are also available. Similar to the 8.1.0.0.0 release changes, the bank’s portfolio is being identified and processed in parallel for the following risk types.
·
Credit Risk (the core assets related to the
bank)
·
Credit Risk pertaining to Invested Exposures
(the assets which the bank has invested in the form of money market, or
long-term instruments)
·
Counterparty Credit Risk in the form of
derivatives
·
Counterparty Credit Risk in the form of
Securities and Financing Transaction assets
No bugs were fixed in this release.
The following are the known issues or limitations in this release.
Sl. No. |
Bug ID |
Bug Description |
1 |
32066711 |
National Discretionary Overwrite of the RW for
Immovable Assets are not being handled explicitly, as the regulatory
calculation definition is not being considered in the rules. This will impact
the Immovable Assets, wherein there is a national discretionary overwrite to
the RW. This overwrite will update the Risk Weight for the exposures, to be a
risk weight greater than 35% for Residential Real Estate Exposures and 50%
for Commercial Real Estate Exposures. |
2 |
32077007 |
The Market Value based LTV calculations for
Immovable Assets are not handled, though the calculation logic considers this
option. This impacts Immovable Assets, wherein the bank decides to compute
LTV based on market value, instead of mortgage lending value. |
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