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PRESENTATION TO BANK NEGARA MALAYSIA (BNM). Capital Adequacy Framework for Islamic Bank (CAFIB)-Data And Reporting System. 10 August 2010. Overview Of CAFIB System System Development Data Flow Preparation & Computation CAFIB Data Preparation Manual Data Preparation

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PRESENTATION TO BANK NEGARA MALAYSIA (BNM)

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Presentation to bank negara malaysia bnm

PRESENTATION TO BANK NEGARA MALAYSIA (BNM)

Capital Adequacy Framework for Islamic Bank (CAFIB)-Data And Reporting System

10 August 2010


Presentation to bank negara malaysia bnm

  • Overview Of CAFIB System

  • System Development

  • Data Flow Preparation & Computation

    • CAFIB Data Preparation

    • Manual Data Preparation

  • Reconciliation, Audit Trail & Security Control

  • Change Management Process

  • Data Analysis & Reporting


Overview of cafib system

Overview of CAFIB System

  • Frequency

    • Weekly / Adhoc

    • Monthly

  • System Comprises of

    • Data Mart (Oracle 9i Enterprise Data Warehouse)

    • Parameter Setting Templates

    • Regulatory Templates Reporting (3 Excel Workbook)

    • Analysis – (20 Reports)


Building blocks

Capital Adequacy Framework

Basel II Standardised Approach

Credit Risk

Market Risk

Operational Risk

Financing, Deposits, Money Market, Treasury, Equity, Off-balance sheet items, Computron item (Accounting System)

Building Blocks


Presentation to bank negara malaysia bnm

Data Flow and Computation

Reporting &

Analysis

(STG) Data Files Staging

(DWH) Data Warehouse

Data Sources

Calculation

Others Data Mart

AMLA, NLF, DFISS, SME, RKP,

ROR, PMF, NPL, BASEL 1

Manual

(FOREX)

Market Risk Template

Aggregated Reporting

Compass

(DM)

Data Mart

Code Mapping & Reconciliation

Relational Reporting

IBS

Credit Risk Template

Risk

Management

Database

Overal RWA

Parameter Table (GL Code)

ICBA

Ops Risk Template

User to update Parameter Table through Excel spreadsheets every month

ETL Informatica

Local Regulator Specifics

CTRON

  • Market Risk

  • Credit Risk

  • Operational Risk

  • Bank Negara Template

Data

Preparation

Data

Consolidation

Computation

Code Mapping

Data Analysis & Reporting

Other data processes takes place

3rd Of

Month

Day of the

month

2nd Of Month

10th Of Month

10th of Month

10th Of Month

10th Of Month

CAFIB Computation only : End to End Process complete within 1 Hour

Apply to Daily/Weekly/Ad-hoc Process


Presentation to bank negara malaysia bnm

Regulatory Data Processing (Monthly)


Presentation to bank negara malaysia bnm

Regulatory Data Processing (Daily/Weekly)


System development

System Development


System development1

Step 1: Data Gap (Availability Data)

System Development

Example

A=Available PA=Partial Available FA=Currently not available but future may made available TBC=To be confirm NA = Not Available; BA=Business Availability, SA=System Availability; DWA=Datawarehouse Availability


Step 2 data gl code mapping

Step 2: Data GL Code Mapping

Example: Credit risk


Step 3 insert gl code into bnm excel template

Step 3: Insert GL Code into BNM excel template

GL Code

Security Code


Presentation to bank negara malaysia bnm

Step 4: Extract data from datawarehouse into BNM excel template


Cafib data preparation

CAFIB DATA PREPARATION


Flow of automated data preparation

CAFIB Data Preparation

Flow of Automated Data Preparation

Data Warehouse

CAFIB Data Computation Flow

Sub systems month end batch process

ETL Scripts to copy data from Sub System to Staging

Data processing for the Data Warehouse Model

Data Computation for CAFIB (from Sub System)

Manual Data Preparation Work Flow

Risk department generate reports & verify results

Population of Risk Data Mart

Reconciliations

(Code Mapping)

Reconciliation Work Flow

Informatica ETL Process


Manual data preparation

Manual Data Preparation

  • Foreign Exchange

    • Only applicable for Western Union business line and in USD only

    • Excel templates to collect data manually by Treasury.

    • Manual human verification on data performed monthly against hard-copy reports. Respective managers are required to verify the data.

    • Data warehouse perform data-type checking on the value column.

      • E.g. No alphabets can be entered to the value column.


Manual file collection process interim process

Manual File Collection Process (Interim Process)

Automated email alert to inform user to send updated templates

Risk department gather data from Treasury

Verify and submit to Manager for approval

Submit data to APKP for processing

Yes

Encounter data error?

APKP Person in Charge transfer file to the ETL server

CAFIB Data Computation Workflow

End

No

Note: APKP –Jabatan Aplikasi Korporat


Reconciliation audit trail security control

RECONCILIATION, AUDIT TRAIL & SECURITY CONTROL


Reconciliation

Reconciliation

  • Automated Reconciliation

    • Balance sheet item will be matched against GL Accounting System (Computron).

      • There is a variance report generated to display the discrepancy found.

      • If discrepancy/large variance found, user need to check the Code Mapping.

    • The reconciliation is carried out against the Code Mapping parameter that the users enter.


Reconciliation workflow

Reconciliation Workflow

Automated email alert to inform user to update the GL and Product codes

Risk department update code mapping

Submit to the APKP for processing

APKP Person in Charge transfer file to the ETL server

Yes

Encounter data processing error?

Risk department execute Variance Report to verify variance

Manual reconciliation process

CAFIB Data Computation Workflow

No

End

Note: APKP –Jabatan Aplikasi Korporat


Sample reconciliation

Sample Reconciliation

Sum of all product code must be equal to the respective GL code. A variance report will be generated to display the discrepancy (if any).

Example:

No Variance


Sample variance reports

Sample Variance Reports


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Validation By User

Credit Risk Data From

Datawarehouse

Validation Template (CAFIB Data vs Balance Sheet)


Audit trail

Audit Trail

  • There will be logging process at each of the ETL process (Computation, Code Mapping) to record the successes and failures of each process.

  • The logging details includes:

    • Start Date & Time

    • End Date & Time

    • Input and Output Row Count

    • Database Connection Information

    • Error reported and its data set


Security control excel

Security Control (Excel)

  • Only designated workstation in the bank are allowed to access to the CAFIB Regulatory Excel Worksheets Templates.

  • All templates cell are locked once data is generated for the desired period (Chosen by the user).

  • Manual data entry is restricted.


Security control analysis

Security Control (Analysis)

  • User Authentication is required before the user is able to enter the system and access data.

  • Only designated personnel are given the user id and password to access the CAFIB project folder.


Change management process

Change MANAGEMENT PROCESS


Change management process1

Change Management Process

IPRO Evaluation

Enhancement needs arises.

Risk department fill in IPRO form & submit to IPRO committee

System development process flow

APKP evaluate request and sent to Vendor for development

Enhancement request sent to APKP

End

Note: IPRO –Jabatan Inovasi & Integrasi Proses; APKP –Jabatan Aplikasi Korporat


System development process flow

System Development Process Flow

No

User Acceptance Sign-Off

Data Model Design Review

Business Requirement Study and Analysis

Technical Requirement Study

Yes

Testing

(UAT & SIT)

Deployment & Security Setup

System Development

/ Fixes

End

Yes

No

Note: UAT – User Acceptance Test , SIT – System Integration Test


Scalability

Scalability

  • The system can be easily extended by adding new components to the Risk Data Mart in the Data Warehouse.

  • This require normal ETL process to extract data from the Data Warehouse and perform computation to update the Data Mart.

    • E.g.:

      From BIA to TSA : Additional code mapping needs to be configured to break the income by business lines.

    • For IRB: Complex computation can be performed during ETL process as all the exposures data element is ready in data warehouse.


Data analysis reporting

DATA ANALYSIS & REPORTING


Analysis reports credit risk

Analysis Reports – Credit Risk


Analysis reports market risk

Analysis Reports – Market Risk


Analysis reports op risk

Analysis Reports – Op Risk


Example report exposure details by exposure type

Example Report: Exposure details by exposure type


Example report rwcr trend

Example Report: RWCR Trend


Example report rwa vs rwcr trend

Example Report: RWA vs RWCR Trend


Presentation to bank negara malaysia bnm

Q&A


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