Banking · Core Banking Systems and Technology

Evaluate the following statements regarding technology, computerized accounting, and Core Banking Solutions (CBS) in modern banking environments: Statement 1: In a distributed Core Banking environment, the process of Two-Phase Commit is utilized to ensure that a fund transfer between two different database nodes is either written to both databases or to neither, thereby maintaining the integrity of the accounting ledgers across the entire network. Statement 2: The implementation of Big Data Analytics on top of a CBS allows a bank to perform real-time 'What-If' analysis on its General Ledger to predict the impact of sudden changes in the Repo Rate by the Reserve Bank of India on its Net Interest Margin. Statement 3: Cloud-native banking systems utilize containerization technology like Docker and Kubernetes to ensure that different accounting modules such as Loans, Deposits, and Forex can be updated and scaled independently without affecting the stability of the entire core engine. Statement 4: To comply with the Principle of Data Minimization, a computerized accounting system must be designed to delete the transaction history of a customer every 12 months, keeping only the final closing balance to save storage space on the primary servers. Statement 5: The use of Blockchain technology for internal inter-branch accounting within a bank provides a decentralized ledger that eliminates the need for a central reconciliation department, as every branch maintains a synchronized and immutable copy of the transaction history. Statement 6: High-availability architectures for CBS often involve a 'Multi-Master' setup where multiple database servers can accept write operations simultaneously, though this requires complex conflict resolution logic to ensure that account balances remain accurate. Statement 7: In the computerized environment, the 'Day-End' process has been completely eliminated in favor of 'Continuous Accounting,' where financial statements like the Balance Sheet and P and L are generated every second and reported directly to the regulator via an automated API. Which of the following options describes the correct status of these statements?