REGLA ®

Leading Financial Transformation

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REGLA® Overview
Regla® is a flagship automation compliance product
of NTT that provides banks and financial institutions
with a platform to meet the challenges of the changing
landscape, for their regulatory compliance needs.
Regla’s journey started in June 2008. Since the
enactment of new regulations by the Financial
Services Authority for banking, NTT has begun to
evolve following the requirements set for a small
reporting system. Gradually, Regla® developed into a
platform, consists of many different products which
has proven to help the banking and financial services
industry to comply with IFRS methodology. Regla® has
expanded to include solutions for measuring banking
performance through fund transfer pricing, cost
allocation, profitability and performance management.

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REGLA® Product Family:

Regla® IFRS (International Financial Reporting Standard)
IFRS is a set of accounting rules and standards that determine how accounting events should be
reported in the business’s financial statements. Issued by the International Accounting Standards
Board (IASB), IFRS aims to make financial statements consistent, comparable and transparent
across the world.
• IFRS 7 applies to all entities, including entities that have few financial instruments (for example,
a manufacturer who has financial instruments in the form of cash, accounts receivable and
accounts payable) and those that have many financial instruments (for example, a financial
institution with assets and liabilities as the financial instruments).
• IFRS 9 specifies how an entity should classify and measure financial assets, financial liabilities
and some contracts to buy or sell non-financial items.
• IFRS 15 establishes the principles that an entity applies when reporting information about
the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a
customer. Applying IFRS 15, an entity recognizes revenue to depict the transfer of promised
goods or services to the customer in an amount that reflects the benefits expected for the
exchange of the goods or services.
• IFRS 16 objective is to report information that faithfully represents lease transactions and
provides a basis for users of financial statements to assess the amount, timing and uncertainty
of cash flows arising from leases. To meet that objective, a lessee should recognize assets and
liabilities arising from a lease.
Regla® RPM (Regla Performance Manager) Regla RPM has three major functions,
such as FTP (Fund Transfer Pricing), Cost Allocation and Profitability and
Performance Reporting.
• Fund Transfer Pricing: In FTP, we provide financial data elements, yield curve, currency,
exchange rate, includes mapping of Transfer Pricing COA to FTP methods, industry-standard
FTP methods (for example, Moving Average, Redemption Curve, Straight Term, Duration),
interpolation of non-standard tenor curves, mid-period pricing for high variance product terms.
• Cost Allocation: For the Cost Allocation, we help define direct and indirect allocation for
components, simulation and reconciliation results.
• Profitability and Performance Reporting: For profitability reporting and dashboard, we can
provide NII and NIM reporting, single customer profitability with drill down and roll up analysis
of profitability data, interest simulation and non-interest income or expenses.

IFRS is a set of accounting rules and standards

that determine how accounting events should be
reported in the business’s financial statements.

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Regla® RCS (Regulatory & Compliance Solution) • Risk (Apolo) module was created by NTT for banks/financial
Regla RCS features more detailed functions, including some Institutions to provide RWA (Risk Weighted Assets) reports.
that are not present in Regla IFRS and Regla RPM. In the These reports are used to determine the minimum amount
financial services industry and other highly regulated of capital that must be held by banks and other financial
sectors, legal and compliance teams are responsible for institutions in order to reduce the risk of insolvency.
communications monitoring to meet a growing number of • LLL (Legal Lending Limit) module was created by NTT
discovery requests, and to quickly identify non-compliant for banks/financial institutions to provide an LLL report.
occurrences within the organization’s activities. With increasing This report provides the maximum limit for the provision
regulatory and expenses related to compliance, financial of funds (credit facilities, securities, interbank placements,
services organizations are looking for more flexible and cost- investments, and off-balance sheet transactions) that a
effective regulatory compliance analytics tools and solutions. bank is allowed to make to a certain borrower or group
• Antasena module (a set of daily/monthly/quarterly/yearly of borrowers.
comprehensive financial and static data reports) was created • Forex and Trading module was created by the NTT for banks/
by NTT for banks/financial institutions to provide Antasena financial institutions to provide an information system of Foreign
reports, managed by Central Bank of Indonesia. This report Exchange Activities, managed by the Central Bank of Indonesia.
was created to compile the information submitted by users to The activities consist of financial assets transfer and liabilities
Bank Indonesia in an integrated manner with a uniform format between residents and non-residents population, including
according to the metadata set by the authorities. transfers of outside financial assets and liabilities between
• SLIK module (Debtor Information Report) was created by inhabitants which aims to ensure price financial stability.
NTT for banks/financial institutions to provide Debtor • Office Activity module was created by NTT for Banks/
Information System managed by the Service Authority Finance Financial Institutions to provide an information system
of Indonesia (OJK), The information system called Information of office activities reports managed by the Central Bank
Services Debtor consist of information about debtors, facilities of Indonesia. This module is able to support the required
provision of funds received by the debtor, and other related report creation process. The report is to be submitted by the
information presented based on the Debtor Report. head office to its branch offices, which conduct operational
• Basel III LCR (Liquidity Coverage Ratio) & NSFR (Net Stable activities both in and outside Indonesia.
Funding Ratio) module are reporting systems created by NTT • Basel III – IRRBB1 (Interest Rate Risk in the Banking Book)
for banks/financial institutions to give LCR and NSFR value. module was created by NTT for banks/financial institutions
Both ratios pursue two different complementary goals: the to provide the reporting systems with information on the
objective of the LCR is to promote the short-term resilience bank/financials’ changes in economic value of equity and net
of the liquidity risk profile of banks/financial institutions; interest income under each of the prescribed interest rate
while the goal of the NSFR is to reduce the funding risk over a shock scenarios.
broader time horizon.

In the financial services industry and other highly

regulated sectors, legal and compliance teams are
responsible for communications monitoring to meet
a growing number of discovery requests, and to
quickly identify non-compliant occurrences within the
organization’s activities.

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Current state of FSI industry REGLA® Benefit

From personal finance to commercial
banks, digital advancement and To meet key financial transformation objectives, such as
increased financial technology is rapidly improving cost efficiency through better transparency and
transforming the financial sector. The addressing key regulatory and compliance issues.
particular trend driving this digital
evolution is the growing influence of big
The platform enables complete and deep insights that
tech companies. Currently, the bank must
increase the result-oriented strategic business decisions.
complete their work report and submit
it to Central Bank and the Financial
Services Authority with a limited timeline. The platform offers the ability to generate reports with better
In addition, the bank must comply with data quality and single reliable source.
IFRS standards released by both Central
Bank and the Financial Services Authority. The platform helps to meet the changing regulatory
Meanwhile, the bank is facing difficulties compliance requirements (international and regional) and has
in obtaining data from various sources. a set of standard reports that can be modified for specific
analysis with multiple data views and grids.
REGLA meets the changing regulatory
compliance requirements (international
Based on the points above, Regla benefits apply to all stakeholders.
and regional) and has a set of standard
reports that can be modified for specific
analysis with multiple data views and grids.

Who Uses REGLA®?

Bank Financing Insurance Outside FSI

• Reporting compliance • Reporting compliance • Reporting compliance • IFRS: Finance and
solution: Finance solution: Finance solution: Finance Accounting.
and Accounting and Accounting and Accounting
(F&A), Compliance, (F&A), Compliance, (F&A), Compliance,
Risk Management Risk Management Risk Management
Department. Department. Department.
• IFRS: Finance and • IFRS: Finance and • IFRS: Finance and
Accounting, Risk Accounting, Risk Accounting, Risk
and Management and Management and Management
Department. Department. Department.
• Banking Performance
Management: Finance
and Accounting (F&A).

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Below details how each stakeholder would benefit from the inclusion of REGLA products in their business processes:

Finance & Accounting (F&A) Compliance & Risk Management

Finance and Accounting will earn benefits from REGLA IFRS
®
REGLA® IFRS Solutions (i.e. REGLA® IFRS 9) accelerates model
Solutions (REGLA® IFRS 9: Financial Instruments, REGLA® IFRS development with prepackaged templates for commonly used
16: Leases and REGLA® IFRS 7: Financial Instrument Disclosures) model types. Quickly create, test and execute ECL models for
that able to fulfill the compliance to the prevailing accounting and timely compliance with IFRS 9 requirements.
regulatory requirements, from the methodology, calculation and REGLA® Performance Manager allows management to track
reporting results. Having a REGLA® IFRS Solutions will enable the allocation of asset composition and profitability based on
stakeholders’ business-as-usual processes to be integrated and (1) line of business, (2) branches, or (3) profit center, including
offers seamless financial and regulatory reporting. analyzing the cost of funds, fund transfer pricing, profitability
REGLA® IFRS Solutions provides easy-to-use reporting measurement and monitoring on a more real-time basis.
templates and out-of-the-box visualizations, enabling you
to quickly design and deploy IFRS reports and disclosures.
Customizable templates report on position, tracing movement
and reconciliation. It will also let you aggregate or drill into
results to understand drivers and assess financial impacts.
Enhances accountability with automated disclosures and
posting into ledgers.

REGLA® Success Story

Challenge Solution Benefit

Our client, as one of the largest We implemented REGLA IFRS 9,
®
The Client could improve the
banks in Indonesia, was planning to which allowed the client to generate accuracy, speed, reliability, and
implement an integrated Financial automated IFRS 9 (as PSAK 71) compliance of its financial
Reporting Standard. This is a calculations for impairment and statement to IFRS 9 (as PSAK
Regulatory Compliance Project classification and measurement, to 71). Less on manual simulation
to meet the requirements set by meet the reporting requirements set for reporting purposes (internal
local regulators: Central Bank, by local regulators. reporting, group reporting) and
which officially announced that The Regla® application improve the capability to provide
all operating Banks in Indonesia (IFRS engine) will be delivered accurate and reliable financial
are expected to be compliant with pre-configured. This statement based on IFRS 9
IFRS. They anticipated that this pre-configuration ensures that deals standards to all stakeholders.
solution could be incorporated into will be treated successfully and in
all products (i.e. loan, treasury, and full compliance with IFRS without
deposits) and all components (i.e. any time/budget-consuming
transaction fees and costs), in the configurations. Valuation rules and
new system. the entire definition of accounting
rules have already been set up on
installation. It is independent of the
delivered pre-configuration.
The configuration can also be
changed and adapted to bank’s
needs without restrictions.

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About NTT Ltd.

NTT Ltd. is a leading, global technology services
company. To help our clients achieve their digital
transformation goals, we use our global capabilities,
expertise, and full-stack technology services
delivered through our integrated services platform.
As their long-term strategic partner, we help them
enhance customer and employee experience,
transform their cloud strategy, modernize their
networks and strengthen their cybersecurity. And
across their transformation priorities, we automate
their business processes and IT, drawing insights and
analytics from their core business data. As a global
ICT provider, we employ more than 50,000 people
across 57 countries, trading in 73 countries and
delivering services in over 200 countries and regions.
Together we enable the connected future.

Visit us at hello.global.ntt

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