How 8of9 Can Get You In Shape For The NSFR In Partnership With

Overview 8of9 is a next generation company that translates complex financial regulation into simple solutions.

The Problem with NSFR Changing Regulations! No Time! Complexity! There are three major obstacles in implementing a NSFR initiative. 1. There is a great deal of data required from many different internal departments. 2. The regulations are complex and constantly changing. 3. Collecting, sorting and processing the data would constitute a large time investment. Changing Regulations! No Time! Complexity!

Compliance required by Jan. 1, 2018 What Will It Take To Get In Shape? A new capital ratio imposed after Basel III, in the wake of the financial crisis  Measures an institution’s amount of stable sources of funding over a 1-year period Full ratio: BHCs with $250+ billion in assets OR $10+ billion in foreign exposure Modified ratio: BHCs between $50 - $250 billion in assets AND less than $10 billion in foreign exposure The NSFR must be publicly reported on a quarterly basis concurrently with other financial statements Compliance required by Jan. 1, 2018 What Is The NSFR? What Does It Do? Who Must Comply? How Should You Report? When Must You Comply?

Watching Your NSFR Weight Equity and liabilities multiplied by specific stability factors Available Stable Funding Weight Required Stable Funding Weight 100 100 * Equity and assets multiplied by specific risk and liquidity factors * Note: Institutions subject to the modified ratio must maintain ASF levels above 70%

NSFR Nutritional Facts Liability Type ASF Weight Asset Type RSF Weight Capital 100% Cash 0% Long Term Borrowing (12m+) OBS 5% Client Deposits Current Savings Time 90% 95% Securities Level 1 Level 2 50% Other Deposits / Short Term Borrowing 1m – 6m 6m - 12m Loans ...to Banks ...to Other Borrowers 85% Trading / Pension Liabilities Derivatives Bank Deposits Other Assets

You’re Already Collecting The Data You Need! NSFR DFAST EMIR Requires accounting of derivatives values (MTM or other) Requires accounting of collateral value Requires quarterly accounting of on and off balance sheet items Requires accounting of held securities Requires accounting of customer deposits and loans

NSFR – Solution Framework Sort & Categorize Process Apply Weight Factors Input Client Data Output Examine Client Data, Formatting, And Categorization Model Business Logic Based On Rule Constantly Monitor & Update Regulatory Requirements Reduce Complexity Through Automation Can Test Hypothetical Situations To Predict Compliance Status Governance & Granularity for External and Internal Audits We Report Before You Have To!

We Look Forward To Working With You Soon! Address 1115 Broadway 11th Floor New York, NY 10010 Phone & Fax Phone: 917-261-3901 Online Email: info@8of9.nyc Website: www.8of9.nyc

Additional Information

How This New Diet May Impact Your Business Capital on Hand                   (Most stable source of funding) Derivatives                           (Requires 100% stable funding) Short-term Loans                 (Requires less stable funding than long term)  Long-term Loans (Requires more stable funding than short term)

Steps To Tracking NSFR Compliance Receive Client Data Examine Data Format & Categories Model Logic Engine Based On Rule Teach Program To Understand The Various Categories In Terms Of The Rule Assign Regulatory Weights To Each Category Program Engine To Add Up Various Categories And Apply Weight Factor Have Program Take The Converted Values And Run Ratio Calculation Report NSFR Level Program is scalable Can test hypothetical situations to see if a change in business will alter compliance status 8of9 will monitor the regulations for changes and keep the model updated We report before you have to

How Do You Shape Up Against Others Watching Their Weight? This new diet may seem tough, but not impossible! In fact, according to 2012 IMF data, most of the world is already complying with the NSFR. Source: https://www.imf.org/external/pubs/ft/wp/2014/wp14106.pdf