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

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

3. 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!

4. 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?

5. 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%

6. 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

7. 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

8. 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!

9. We Look Forward To Working With You Soon!
Address
1115 Broadway 11th Floor
New York, NY 10010
Phone & Fax
Phone:
Online
Website:

10. Additional Information

11. 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)

12. 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

13. 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.
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