The document discusses a regulatory reporting system called UBX ECB 575. It provides functionality for centralized data storage, processing, and generation of regulatory reports according to the requirements of Regulation (EU) No 575/2013. The system merges data into a common pool, allows for data validation and adjustment, generates reports in the required format, and ensures consistency between reporting forms. It has a user interface for parameterizing and visualizing reports, and an architecture that uses a unified database and middleware.

2. Contents
1. Introduction and conclusions
2. System functionality
3. Scope of reporting
• reports and templates (FINREP, COREP, LEX, LEV, IP
LOSSES, LIQUIDITY)
4. User interface
• reports and output files parameterization and
visualization, adjustments and administration
5. Architecture
• conceptual model
6. Technical requirements
7. Database
• information maintenance and storage
8. Input data definition
9. Consistency and reconciliation of input and output data
10.Maintenance
11. Sirma Business Consulting

3. • Regulation begins with Basel III international approval by G-20 (the so-called
agreement Basel III, concluded by the Basel Committee on Banking
Supervision), strengthens capital requirements for banks, introduces
mandatory capital conservation buffer and counter-cyclical buffer. Framework
is introduced for the new regulatory requirements regarding liquidity and
leverage.
• CRD IV – Basel III agreement European equivalent, which consists of two
parts, set to amend and replace the existing capital requirements Directives
via two new legislative instruments: Regulation CRR on prudential
requirements creation, which institutions must meet, and Directive (CRD),
postulating access to deposit-taking activities.
• (CRR) Capital Requirements Regulation.
• (CRD) Capital Requirements Directive, to be implemented through the
national legislation of each country.
Regulation

4. • The Regulation contains detailed prudential requirements for credit
institutions and investment firms regarding:
capital
liquidity
leverage coefficient
counterparty credit risk
• The Directive covers the requirements for access to the undertaking and
performing activities of banks and freedom of service provision, and the
designation of competent authorities and principles governing prudential
supervision.
• New elements in the Directive are:
improved management
sanctions
capital buffers
enhanced supervision
Regulation

5. • European regulation and Directive 2013/36/EU together constitute the legal
framework, governing the rules for access to the activity of credit institutions,
and their applicable supervisory framework and prudential rules.
• European Banking Authority (EBA) is an independent EU Authority which
works to ensure effective and consistent prudential regulation and
supervision across the European banking sector. Its overall objectives are to
maintain financial stability in the EU and to safeguard the integrity, efficiency
and orderly functioning of the banking sector.
• Whilst the national supervisory authorities remain in charge of supervising
individual financial institutions, the objective of the European supervisory
authorities is to improve the functioning of the internal market by ensuring
appropriate, efficient and harmonised European regulation and supervision.
Regulation

6. Conclusions
Proposals for CRD IV have three specific objectives:
• Ensuring that banks have more and better manageable capital,
and withstand future shocks by their main activity.
• Setting up a new governance framework that empowers
supervisory authorities to monitor banks more closely and
undertake actions when risks are detected, “for example to
reduce credit when it looks like it's growing into a bubble”.
• Creating a single rulebook for banking regulation and
improving transparency and regulations enforcement for all
banks and investment companies.

7. SYSTEM FUNCTIONALITY
UBX ECB 575

8. • UBX ECB 575 is a system for centralized storage and data processing for
regulatory reporting in accordance with the requirements of Regulation
(EU) № 575/2013 of the European Parliament and Council.
Through efficient data processing technology and process distribution in
three production areas in unified database, the system provides functionality,
which includes:
• Data merging into a common information pool for the purposes of
reporting under the requirements of Regulation 575 of 2013 and
concomitant reports.
System functionality

9. System functionality
• Data control during processing – logical, validation control
• Module-oriented reports visualization
• Visualization of errors and data adjustments
• Unification of information to the reports generation required form
• Data validation after consolidation and transformation stage – data storage into
reporting tables with optimal set of details, as required for direct generation of
ECB reports
• Consistency validation between the different reporting forms
• Available to the user administration via Web-based client interface, providing
option to maintain nomenclature values, edit reports, define and modify settings
• Reports generation by type of reporting, according to their frequency
• History of reports, submitted to the supervisory authorities

10. SCOPE OF REPORTING
Reports and templates
UBX ECB 575

11. Scope of reporting
COREP (OWN FUNDS REPORTING AND REQUIREMENTS) – information on own funds and requirements
in respect thereof in accordance with Article 99 of Regulation (EU) № 575/2013
Own funds and capital requirements
REPORTING LOSS, ARISING FROM LOANS SECURED BY REAL ESTATE - losses from loans secured by
real estate, under Article 101, paragraph 4, point а) of Regulation (EU) № 575/2013
REPORTING LARGE EXPOSURES AND CONCENTRATION RISK – large exposures and other large
exposures, under Article 394, paragraph 1 of Regulation (EU) № 575/2013
LEVERAGE REPORTING – leverage ratio in accordance with Article 430 of Regulation (EU) №
575/2013
LIQUIDITY REPORTING- the requirements for liquidity coverage ratio and net stable funding under
Article 415 of Regulation (EU) № 575/2013

12. • FINREP (REPORTING OF FINANCIAL INFORMATION IN ACCORDANCE WITH IFRS) – the financial
information under Article 99 of Regulation (EU) № 575/2013
Financial information
Scope of reporting
• REPORTING TEMPLATES ON ASSET ENCUMBRANCE

13. ARCHITECTURE
Conceptual model
UBX ECB 575

14. Functional architecture
EXTERNAL DATA UBX ECB 575
Reporting Web
Services
Metadata
(Reports Definitions)
Database
Unified
Source
Data
3
Load
and
Control
Generated
Reports
Data
MS Excel
Source
Systems
ETL
5
Generate
Reports
(Transform)
4
Use
Reporting
Definition
Run
ETL
Processes
Manage
2
Extract
and
Transform
Middleware User Interface
9
Save
Corrections
7
Get
Reporting
Data
Application Web
Services
6
Load
Reporting
Data
8
Post
Corrections
UI Web Application
Get
Post
Consolidated
Data
1
Customized
ETL

15. Technical architecture
UBX Database
Oracle Net Listenerendpoint
UBX Web Application
&
Services
Web Site Endpoint
Visual Studio LightSwitch Server Runtime
SQL ServerEndpoint
DATA PROVIDER.NET
UBX Client
Windows Client Visual Studio Tools for Office

16. USER INTERFACE
Reports parameterization and visualization,
adjustments and administration
UBX ECB 575

17. User interface
 Single panel access to all modules
Web-based client interface

18.  dimensions mapping support and dimensions values hierarchy grouping
User interface
Web based client interface for parameterization

19.  general panel by reports type, thematically grouped for easy link between
different forms
Visualization and user access to reports in Excel format
User interface

20.  initial loading of input data according to the defined format
 data integrity control
 processing between the layers– integration, calculation of indicators,
aggregation
ETL menu
User interface

21.  storage of previously performed adjustments
 modifications log support
 option for permanent and single input of values for input data not available at sources
Set of correction and data modification tools
User interface

22.  user roles and access rights definition
 general settings with calendar with pre-defined reporting date type, current and
“open/closed” processing date, exchange rates
Application administration tool
User interface

23. TECHNICAL REQUIREMENTS
Minimum and recommended specifications
UBX ECB 575

24. Technical requirements
DB Server
• Hardware:
CPU: Minimum: 1.8GHz x64 processor Dual Core
Recommended: 2GHz or faster Quad Core or more;
RAM: Minimum: 8GB RAM
Recommended: 16GB RAM or greater;
HDDs: Minimum: 500GB
Recommended: 1TB or greater
• Software:
OS: Minimum: Windows Server 2003 SP2 Standard Edition
Recommended: Windows Server 2008 R2 Standard Edition
or higher.
DB: Minimum: Oracle Database Server 10g Enterprise Edition
Recommended: Oracle Database Server 11g Enterprise Edition
or higher

25. • Hardware:
CPU: Minimum: 1.8GHz (x64 processor)
Recommended: 2GHz or faster Dual Core;
RAM: Minimum: 4GB RAM
Recommended: 8GB RAM or greater;
HDDs: Minimum: 40GB
Recommended: 80GB or greater
• Software:
OS: Minimum: Windows Server 2008 Standard Edition
Recommended: Windows Server 2008 R2 Standard Edition or
higher;
Web Server: Minimum: IIS7
Recommended: IIS7.5 or higher;
Application Server
Technical requirements

26. MS .NET Framework: Minimum: v4.5
Recommended: v4.5 or higher
Other: LightSwitch in Visual Studio 2013 - Server Configuration
with local SQL Express
Oracle Data Access Components 11.2.0.3.20 or higher.
Application Server
Technical requirements

27. Technical requirements
• Hardware :
CPU: Minimum: 1.4GHz (x64)
Recommended: 2GHz or more;
RAM: Minimum: 2GB
Recommended: 4GB
or more;
HDD: Minimum: 10GB
Recommended: 20GB
or more;
Display: 1280 x 800 or higher
Work stations

28. Technical requirements
• Software:
OS: Minimum: Windows XP SP2
Recommended: Windows 7 SP1 or higher
Web Browser: Internet Explorer 7 or higher
Firefox 3.6 or higher
Chrome 12 or higher;
Silverlight: 5.0 or higher;
MS Office: 2010 or higher
Visual Studio Tools for Office 2010 or higher
Work stations

29. DATABASE
Maintenance and storage
UBX ECB 575

30. Database
 Input data storage in the staging layer for the duration necessary to produce, sent and
receive verification by the receiving authority of reporting information as of specific
reporting date
 Processed data storage in the dimension layer two years after particular reporting date
 Final reports storage in the presentation layer for a period of ten years
 Option to parameterize the duration for each layer
Information collection periodicity
 Parameterized solution with minimal requirement for monthly data loading into staging
layer
 Parameterized solution with minimal requirement for monthly data processing in the
dimension layer
 Parameterized solution with minimal requirement for monthly reports generation in the
presentation layer
Information storage periodicity

31. Database
 data of type “currency” is reported with minimum precision to thousand units
 data of type “percentage” is presented as one with minimum precision up to four
decimal places
 data of type “integer” is reported as integers with precision to the nearest respective
integer
Presentation of numerical values as facts on input data as
follows:
 data of type “currency” is reported in reporting currency units (Bulgarian lev) as decimal
number with minimum precision up to two decimal places
 data of type “percentage” is presented as one with minimum precision up to four
decimal places
 data of type “integer” is reported as integers with precision to the nearest respective
integer
Presentation of numerical values as facts on output
(exchange) data as follows:

32. INPUT DATA DEFINITION
Content under predefined tools and nomenclatures
UBX ECB 575

33. Input data definition
Input data is set and presented into consolidated table according to
the source, the type of the reporting data and the types of
nomenclature values:
• Nomenclatures – types and values
• Customers – fact tables content
• Loans - fact tables content
• Deposits (by type of external financing) - fact tables content
• Securities - fact tables content
• Derivatives - fact tables content
• GL - fact tables content
………………………………
Content under predefined tools and nomenclatures

34. CONSISTENCY AND RECONCILIATION
Input and output data
UBX ECB 575

35. Consistency and reconciliation
 In-built functionality for consistency between the different reports (p.3.2).