Aquarius Intraday Liquidity Monitoring & Reporting

© TAS SpA BCBS 248 overview Key objectives Promote sound intraday liquidity management to ensure the bank can meet payment and settlement obligations on a timely basis under both normal and stressed conditions Enable banking supervisors to monitor internationally active banks’ intraday liquidity risk Promote best practices of liquidity management for domestic banks. Prescriptive application at discretion of national supervisors Actors and monitoring tools 1)Daily max intraday liquidity usage (largest net negative position) 2)Available intraday liquidity at the start of the day 3)Total payments 4)Time Critical Obligations Indicators Purpose All Banks Correspondent Bank Service Providers LVPS* Direct Participants Provide dimension on banks payments activity and intraday liquidity usage and availability during normal times 5)Value of payments made on behalf of correspondent banking customers 6)Intraday credit extended to correspondent banking customers. Assess concentration of bank’s correspondent activity and extent of exposure on intraday credit lines 7)Intraday throughput – daily average across a bank’s settlement account with an average hourly view reported as a percentage of overall payments Establish trends on bank’s average payment settlement to identify any changes that might occur *LVPS: Large Value Payment System (Target 2 in Europe) Stress Scenario Own Financial Stress: a bank suffers or is perceived to suffer from a stress event Counterparty Stress: Major Counterparty A Customer Bank’s stress – Correspondent Bank Market-wide credit or liquidity stress

© TAS SpA Regulatory reporting challenges Change mindset and processes from End of Day to Intraday Ensure data source and data quality with appropriate collection Improve visibility of correspondent banking activities Tackle reporting requirements across currencies, multiple clearing system and correspondent relationships Set-up monitoring tools

© TAS SpA Intraday Liquidity Strategy To measure expected daily gross liquidity inflows and outflows (Cash & Securities) To monitor intraday liquidity positions against expected activities and available resources To acquire sufficient intraday funding to meet intraday objectives To have the ability to manage and mobilise collateral as necessary to obtain intraday funds Robust capability to manage the timing of liquidity outflows in line with intraday objectives To be prepared to deal with unexpected disruptions to intraday liquidity flows Data Collection Payment details, Clearing and Settlement Systems specifications Counterparties Timing and cut offs Relevant deadlines Currencies & Jurisdictions Bank legal structure (subsidiaries, branches) Clearing/Settlement Systems Bank Payment Systems Cash Credit Lines Collaterals Unencumbered Assets Key Operational Elements

© TAS SpA Our Objectives From intraday analysis to active management to reduce risks and cost of buffers through prompt detection of unexpected surplus or deficits and intraday funding optimisation Leverage on intraday payments intelligence: Assessing the impact of flows against intraday volumes Reconsidering mandates requirements (i.e. urgency) Provide value added services to correspondent customers such as intraday monitoring reports

© TAS SpA Aquarius Solution Overview A2A RNI SWIFT SIA-COLT C:D: SFTP ISO15022 * ISO20022 * FIN-MT Proprietary EBICS PAYMENT SYSTEMS BANK BACK OFFICE APPLICATIONS CORRESPONDENT CUSTOMERS APPLICATIONS  Intraday Liquidity  Securities Settlement (T2S compliant)  T2S Cash and Collateral  Cash and Liquidity (T2, EBA, Correspondent)  Collateral (Triparty, Pooling, Bilateral)  BCBS 248 compliance for all banks, correspondent banking providers and LVPS Direct Participants  Intraday Liquidity Intelligence  Intraday liquidity reporting to correspondent customers  Multiple currency, clearing system and correspondent relationships  Standardization and full Straight Through Processing  Reducing impacts on Core Bank Applications Integrated or stand alone modules to manage SECURITIES SETTLEMENT CASH MANAGEMENT COLLATERAL MANAGEMENT How can AQUARIUS improve your Intraday Liquidity Experience INTRADAY LIQUIDITY MANAGEMENT

© TAS SpA Aquarius Intraday Liquidity Module Intraday Monitoring Intraday Intelligence Payment Flows Alerting Reporting

© TAS SpA  Daily and monthly calculation of the monitoring tools (LVPS direct and indirect participant and Correspondent banking activities)  Tools historical data  Consolidated data per currency, clearing system, correspondent Nostro accounts, correspondent banking customers  Legal Entity, Branches and Group/Holding level Intraday Monitoring Intraday Intelligence  Payments flow analysis  Forecasting  Liquidity sources (collateral, credit lines, balances)  Correspondent banking customers dashboard (credit lines and balances monitoring)  Forthcoming: Stress Testing (Own, Major Counterparty, Market Wide, Customer/Correspondent) Aquarius Intraday Liquidity Module

© TAS SpA Aquarius Intraday Liquidity Module  End-of-Day and Intraday reporting (MT940, MT950, MT942)  BCBS 248 compliance reports  Value added “reports service” for customers  Ad-hoc reports on daily or monthly basis Payment Flows Alerting  Flexible alerting system to monitor: Intraday surpluses or deficits on balances Customers/Counterparties activity Collateral and credit lines usage  Real-time monitoring of incoming and outgoing payment flows (LVPS and Correspondent accounts)  Drill-down functionality to access payments details (Type, counterparty, customer, clearing system,.. )  Payments historical data Reporting

© TAS SpA Easy Integration  Designed to minimize integration efforts.  Relevant flows can be provided to the application through standard messages ISO (SWIFT MT FIN) for correspondent and other payment platforms ISO or for Target 2 flows National standard (i.e. RNI in Italy) for domestic payments  An embedded message library can be easily adapted for proprietary, fixed or xml format messages.  Message originals or copies can be received from existing network* and/or from Back Office applications. A2A RNI SWIFT SIA-COLT C:D: SFTP ISO15022 and Proprietary PAYMENT SYSTEMS BACK OFFICE APPLICATIONS Domestic Central Bank Correspondent INTRADAY LIQUIDITY MANAGEMENT *On request TAS can provide its own network application Network Gateway Clearing Systems

© TAS SpA Technical Coverage Full Monitoring tools Stress testing Intraday Intelligence Reporting Customer NeedsCoverageBenefits Integration Forthcoming Full Compliance to BCBS 248 Scenarios: Own Major Counterparty Customer/Correspondent Market-wide Allows intraday operational processes control Payments flow analysis Forecasting Customers collateral and credit lines Intraday and end-of-day reporting IL internal reporting IL customers reporting Configuration of new reports Easy to set up through messages (ISO 15022, 20022, domestic and proprietary)

© TAS SpA Customer Assistance Coverage Remote Help Desk (level 1) on customer activation [CET 7am- 22am European Target Calendar] Telephone Ticketing Mail Planned technical (i.e. new Oracle release) Regulatory compliance Remote Level 2 On site on critical issues [CET 7am- 22am European Target Calendar] New features and modules Remote deploy (FTP / TAS website) VPN Access Active Remote Help Desk on TAS activation 24x7 Customer Support Trouble Shooting Maintenance Product evolution / Customisation Customer Needs Delivery Standard services Optional services

Aquarius TAS Capital Markets & Treasury Intraday Liquidity Monitoring & Reporting © 2016, TAS SpA. All information contained herein is the property under copyright of TAS SpA and its subsidiaries. It may not be published or disclosed in whole or in part to any other party without the express written permission of TAS SpA. This prohibition is void in case of information published or lawfully disclosed by sources other than the TAS. Disclaimer: TAS Group has taken every possible precaution in preparing this document. However, TAS Group does not accept any responsibility for errors or omissions. Similarly, TAS does not assume any liability for damage caused by any use of the information contained in this document. All information herein is subject to change without notice.