OFSS.png

Oracle Financial Services Capital Adequacy Application Pack v8.1.0.1.0 One-off Patch Release #2 (8.1.0.1.2)

OFS Financial Services Capital Adequacy Application Pack is a separately licensed product.

Description

ID 32343183 - OFS CAP APPLICATION PACK 8.1.0.1 ONE-OFF PATCH RELEASE #2 (8.1.0.1.2)

Pre-installation Requirements

The minimum patch set level must be OFS CAP Application Pack release 8.1.0.1.1.

This patch is compatible with the OFS AAI release 8.1.1.0.0.

Pre-installation Steps

PR2 TABLES in CONFIG SCHEMA

1.        Take back up of the tables PR2_RULE_QUERY, PR2_RUN_EXECUTION_FILTER, and PR2_RUN_EXECUTION_B.

2.       Truncate the tables in the following order: PR2_RULE_QUERY, PR2_RUN_EXECUTION_FILTER, PR2_RUN_EXECUTION_B.

If you re-apply the patch on a setup that already has CAP ADQ PACK 8.1.0.1.2 installed, perform the following steps:

1.        Back up the tables INFODOM_PATCHES, INSTALLER_FSAPPS_SCRIPTS_DETAILS, and OFSAA_INSTALLER_EXECUTION_STORAGE in CONFIG Schema.

2.       Perform the following actions for the tables INFODOM_PATCHES, INSTALLER_FSAPPS_SCRIPTS_DETAILS, and OFSAA_INSTALLER_EXECUTION_STORAGE and commit the changes:

§  DELETE FROM INFODOM_PATCHES WHERE V_APP_ID = 'OFS_BASEL_BASIC' AND V_PATCH_NAME = '8.1.0.1.2';

§  DELETE FROM INSTALLER_FSAPPS_SCRIPTS_DETAILS WHERE V_APP_ID = 'OFS_BASEL_BASIC' AND V_APP_VERSION = '8.1.0.1.2';

§  DELETE FROM OFSAA_INSTALLER_EXECUTION_STORAGE WHERE V_APP_ID = 'OFS_BASEL_BASIC' AND V_APP_VERSION = '8.1.0.1.2';

New Features

In the OFS Basel Regulatory Capital Release 8.1.0.1.2, we adhere to the Large Exposure and Leverage Ratio changes as per the CRR II Guidelines of EU along with the existing compliances. We have also adhered to the FIRB and AIRB guidelines of RBI and the existing compliances of RBI.

Europe Jurisdiction (EU)

As part of this release, the solution is compliant with the CRR II and CRD V regulations of the EU, for the Large Exposure and Leverage Ratio Calculations. The key functionalities of CRR II and CRD V related to Large Exposure and Leverage Ratio that is addressed in this release are the following:

 

Large Exposures

·       Consideration of Tier 1 Capital Based Threshold

·       Changes to specific Exempted Exposures for Threshold consideration

Leverage Ratio

·       Changes to Exposure Measure calculation

·       Changes to specific Exempted Exposures calculation

 

India Jurisdiction (RBI)

The FIRB and AIRB calculations of RBI are updated with the revised process modeling changes and the supervisory parameter changes.

Installing this Release

To install this release, follow these steps:

1.        Log in to My Oracle Support, and search for 32343183 under the Patches & Updates tab.

1.        Download the 32343183_GENERIC.zip archive file and copy it to your OFSAA server in Binary mode.

2.       Extract the contents of the patch archive file using the following command:

unzip -a <name of the file to extract>

For example, unzip -a 32343183_GENERIC.zip

Note: The ‘-a’ option is mandatory to unzip the patch.
If you notice the error message: “unzip: not found [No such file or directory” before you install the package, contact your UNIX administrator.

3.       Update the following parameters in the params.conf file in the directory path appsLibConfig/conf/ as per the comments detailed in the file:

a.       UPLOAD_MODEL

b.       MODEL_TYPE

c.       DATAMODEL

d.       DM_DIRECTORY

Note: There is a DATAMODEL associated with this release. You must set the value for UPLOAD_MODEL as 1 if you need to upload the DATAMODEL during the installation. If the DATAMODEL is already uploaded before the installation, you must set the value UPLOAD_MODEL as 0.

4.      Provide RWX permissions to the following shell script in the directory path ./OFS_BASEL_BASIC/bin:

setup.sh

5.       Stop All OFSAA services and Web services.

For more information, see the Starting or Stopping Infrastructure Services section in the Oracle Financial Services Capital Adequacy Pack Installation Guide 8.1.0.0.0.

6.      Execute the following install command in the directory path ./OFS_BASEL_BASIC/bin:

./setup.sh

7.       Verify the log file OFS_BASEL_BASIC_installation.log in the following directory to ensure that the patch is applied successfully:

./OFS_BASEL_BASIC/logs

8.      Clear the application cache. Delete the files for the web application server that you configured as per the following table:

Web application server

Directory path

Tomcat

<Tomcat installation directory>/work/Catalina/localhost/<Application name>/org/apache/jsp

WebLogic

<Weblogic installation location>/domains/<Domain name>/servers/<Server name>/tmp/_WL_user/<Application name>/<auto generated folder>/jsp_servlet

WebSphere

<Websphere installation directory>/AppServer/profiles/<Profile name>/temp/<Node name>/server1/<Application name>/<.war file name>

9.      Generate the application EAR or WAR file and redeploy the application onto your configured web application server. For more information, see Create and Deploy the EAR or WAR Files.

10.   Perform the following steps if the OFS AAI Infrastructure release 8.1.1.0.0 is installed:

a.       cd $FIC_DB_HOME/bin

b.       Execute the following shell script:

./updatePipelineType.sh

11.     After the successful installation of the release, restart all OFSAAI services. For more information, see the Starting or Stopping Infrastructure Services section in the Oracle Financial Services Capital Adequacy Pack Installation Guide 8.1.0.0.0.

Post-installation Steps

1.        Restore PR2_RULE_QUERY, PR2_RUN_EXECUTION_FILTER, and PR2_RUN_EXECUTION_B tables, if required for the Run Execution Audit.

2.       Import the Regulatory Calculation definitions for the required jurisdictions as per the steps documented in section Importing Run Definitions in Oracle Financial Services Basel Regulatory Compliance for RBI User Guide or  Oracle Financial Services Basel Regulatory Compliance for EBA User Guide.

The Regulatory Calculation definitions for INDIA and EU are packaged in the installer as per the following table:

Dump file

Directory path

Definitions

BASEL_RUN_DEFINITIONS_INDIA.DMP

<Extracted Installer location>/OFS_BASEL_BASIC/bin

IN - Basel III - Capital Calculation - Standardized Approach

IN - Capital Calculation - Advanced IRB Approach

IN - Capital Calculation - Foundation IRB Approach

BASEL_RUN_DEFINITIONS_EU.DMP

<Extracted Installer location>/OFS_BASEL_BASIC/bin

EU - CRRII - Capital Calculation - Standardized Approach

 

EU - CRRII - Capital Calculation - Standardized Approach for CR and CCR

 

Bugs Fixed in this Release

There are no bugs fixed in this release.

Known Issues or Limitations in this Release

The following known issues are applicable in this release:

Sl No:

Bug ID

Definitions

1

32285784

Calculation of Leverage Exposure Measure of Written Credit Derivatives

The offset of the written credit derivatives by the purchased credit derivatives that meet certain conditions as specified by the regulator is not handled for all the scenarios. The impacted rules are listed below:

·       LR - Written Credit Derivatives Notional Amount Offset for Derivatives

·       LR - Eligible Purchased Mitigant Used for Offsetting for Derivatives

·       LR - Regulatory Exemption for Eligible Purchased Credit Derivative for Offsetting for Derivatives

2

32477733

Large Exposure Exemption for Covered Bonds

The supervisory exemption for covered bonds for large exposure calculations currently does not exempt the covered bond exposures. The impacted rule is given below:

 

EU - Large Exposure Detail Supervisory Exemption Approval For Covered Bonds

Oracle Financial Services Software   |   Copyright © 2021, Oracle and/or its affiliates. All rights reserved.   |   Phone: +1.650.506.7000   |   Fax: +1.650.506.7200   |   www.oracle.com/industries/financial-services/index.html