Home

Oracle FLEXCUBE Universal Banking

1. Authorization Status A Authorized U Unauthorized Record Status C Closed O Open You can use this screen to query the Facilities and the Utilizations Details for a Liability To do this choose the liability for which you wish to view details by checking the box at the beginning of each row and clicking the Facility Detail button The Facility Query screen with details of the facilities is displayed Facility Facility Details E Line Code Serial Number Line Currency Liability Id Limit Amount Collateral Amount Utilization Reportin g In the Facility Query screen choose the facility for which you wish to view the utilization details by checking the box at the beginning of the row and clicking on the Utilization Details button The system displays the Utilization Query screen containing details of the utilization as shown below 34 ORACLE 3 2 3 2 1 Consolidated Utilizations E Utilization id Customer Number Liability Number Line Code Serial Number Utilization Liability History This section contains the following topics Section 3 2 1 Invoking the Liability History Query Screen Invoking the Liability History Query Screen The Liability History Query screen allows you to query for records based on the following parameters Authorization Status Liability Number Record Status Liability Branch You can invoke the Liability Hist
2. 0000ssinneeeeinneeeennnneeenenneenene 5 2 5 22 Baek Valued TransactjOnS erriei istre seita tEn r Aetra TE EEEE ATE Ta 5 2 323 EOD Processing ecieiniabr tinier ariii i ee iA EEA EER aE AREE REAA EARE 5 3 Annexure 2 Revaluation cseeeeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeesseeneeeeeeeeeeees 6 1 6 1 Currency Revaluation eeo iinr T E GRAAE EAGAR EA 6 1 6 1 1 Facility Currency and Utilization CuUrrency seeeessseeeenseeeennneernnnneeeeennne 6 1 6 1 2 Facility Currency and Collateral Currency cccccccssceeeeeenteteeeeeenteeeeeeenaas 6 3 6 2 Collateral Revaluation ioeie en pai aA e AA aA 6 5 6 2 1 Collateral Revaluation of Market Based Securities 0 cccccccesteeeeeeeee 6 5 6 2 2 Collateral Revaluation of Non Market Based Securities 0000110000000110 6 8 Annexure 3 Gateway Processes amp Interfaces cccesseseeeeeeeeeeeeeeeeees 7 1 Abo Gateway Online yen Asti eats tee EA TE deat heh at gece ett nae ogee al 7 1 7 1 1 Gateway Online ProCeSS cccccccccceeeteeeteeeneeeeteeeeeeeeeteeneeeeeeteeaaeeeeeeneaaeees 7 1 7 1 2 Maintenance Transactions ccccccccccccceeieeeeeeeenneeeeeeenneeeeeeesneeeeeeetnaeeeenenaa 7 1 7 1 3 Batch PIOCOSS vi ccteice chinese an dean AREE SEEE Ea aa REAS AARAA EE Kelt ei 7 2 7 1 4 Reprocessing Locked Online Transactions 0 cccccccecceeeteseeeetetnneeeeenes 7 2 7 1 5 Technical undo Functional Rollback sseeeeeeseeeeeneesenennneernnnneerrenseeeenns 7 2
3. On 01 February 2008 the exchange rates have changed now 1USD 1 6 AUD After the exchange rate revision has been changed and authorized the revaluation process online process scans the contracts linked to the line converts the contract currency to the Facility currency using the new exchange rates and updates the line s utilization and available amount The following table indicates these details Loan Exchange Facility Currency Utilizatio Availabilit Amount Rate Equivalent USD n y AUD 15 000 1 60 24000 00 24000 00 26000 00 DEM 2 000 1 20 2400 00 2400 00 23600 00 GBP10 000 0 5 20000 00 20000 00 3600 00 Ga ORACLE INR 72 000 36 00 2 000 00 2 000 00 1600 00 Total 48400 0 1600 00 0 Stage 2 Revaluation occurs between the facility and the liability which is linked to that facility Due to the currency revaluation between utilized contract and the credit line of the facility as per Stage 1 there will be a revaluation on credit limit utilized by the liability Considering the same example as in Stage 1 You have defined a line for Loans and linked the Liability Code Symphony Group to it The credit limit assigned to the credit line is USD 100000 This liability is linked only to one Facility or line code Loans Initially before the change in the exchange rate the utilization of the liability is as shown in the table Li Liab
4. The Facility batch which runs at BOD checks the limits schedule for a facility and if a schedule is due on the current date in the branch If so it updates the limit amount for the facility for which the schedule is due with the schedule limit amount For example you have defined a limit schedule for a facility for your client ABC Corporation where the Limit Amount initially is USD 1 million and the start date for the facility is Jan 01 2009 The schedule is as shown below Limit Date Limit Amount Feb 01 2009 500000 Mar 02 2009 800000 April 03 2009 400000 May 04 2009 900000 In this case during BOD on Feb 01 200r the limit mount will be updated to USD 500 000 and on Mar 02 2009 it will be modified again to USD 800 000 If the batch does not run on Mar 02 2009 it will be run on Mar 03 2009 Accordingly the Scheduled Limit Amount defined for Mar 02 2009 Schedule will be updated as Facility Limit Amount During EOD the system processes limits schedules and revision process takes place for the facilities as per the scheduled date It processes the limit schedules till next working day and marks all the schedules till date as processed a ORACLE When the Facility Start Date and Schedule Date falls on the same day then on save of Facility record you will get an override message for confirmation on updating the limit amount of Facility as per the schedule amount While
5. Transaction Creation amp Delet Aut Close amp Query Notify Tech Modificatio mq peoben undo n Customer Yes Yes Yes Yes Yes No No Liability Yes Yes Yes Yes Yes No Yes Facility Yes Yes Yes Yes Yes No Yes Collateral Yes Yes Yes Yes Yes No Yes ted ORACLE 7 2 7 2 1 7 2 2 Collateral Yes Yes Yes Yes Yes No No Pool Issuers Yes Yes Yes Yes Yes No No Securities Yes Yes Yes Yes Yes No No Limits Yes Yes Yes Yes Yes No No Transfer Account Yes Yes Yes Yes Yes No No Service Batch Process The Batch processes which can be triggered using Gateway Online Process e EOD Process e Input File Process e Output File Process Reprocessing Locked Online Transactions During the processing of Gate Way online transactions some of the transactions processing may be fail because of a lock in the database LCM provides a feature to process the locked records Technical undo Functional Rollback This feature of Gateway will allow the external system to rollback previously entered transactions in LCM This feature will be supported in Gateway Inbound online information required as part of Technical undo is also Transaction Id of the previous transaction Technical undo is not supported for Query and Notification transactions Gateway Batch This section contains the following topics e Section 7 2 1 Gatew
6. Issuer Maintenance e Section 2 11 Securities Maintenance e Section 2 12 Collaterals Maintenance e Section 2 13 Collateral Pool Maintenance e Section 2 14 Facilities Maintenance e Section 2 15 Track Exposure Maintenance e Section 2 16 Account Contract Balance Maintenance for Netting e Section 2 17 Ear Marking Maintenance e Section 2 18 Global Block Exposure Maintenance e Section 2 19 Exception Queue Maintenance e Section 2 20 Exception Queue Slab Maintenance e Section 2 21 Limits amp Collaterals Parameter Details e Section 2 22 Facilities Amount Transfer Maintenance e Section 2 23 Force Collateral Revaluation e Section 2 24 Multi Authorization Maintenance e Section 2 25 Dual Authorization of Utilization Transaction e Section 2 26 Liabilities Merger Credit Score Maintenance This section contains the following topics e Section 2 2 1 Invoking the Credit Score Maintenance Screen Invoking the Credit Score Maintenance Screen Before creating a Liability in the system your Bank will assess the credit score of individual liabilities You can create and maintain Credit Score names in the Credit Score Maintenance screen These credit scores can later be linked to Liability Maintenance GEDMLIAB for assessing the liability score a ORACLE Credit Score Maintenance is a bank level maintenance and will be accessible in all Branches You can invoke the Credit Sco
7. Increase o date code n t decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease 3 15 Feb 05 LINE1 500000 PRINCIPAL Increase Fa ORACLE Line Utilization S n Line Value Utilizatio o code date n 1 LINE1 10 Jan 05 1000000 2 LINE1 10 Feb 05 900000 3 LINE1 15 Feb 05 1400000 Step 4 Payment of 0 2M value date 10 mar 2005 Utilization Log Step 5 Reversal of Payment of 0 2M value date 10 mar 2005 on 15 mar 2005 Utilization S n Value Line Utilizatio Componen Increase o date code n t Decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease 3 15 Feb 05 LINE1 500000 PRINCIPAL Increase 4 10 Mar 05 LINE1 200000 PRINCIPAL Decrease Line Utilization S n Line Value Utilizatio o code date n 1 LINE1 10 Jan 05 1000000 2 LINE 10 Feb 05 900000 3 LINE 15 Feb 05 1400000 4 LINE 10 Mar 05 1200000 Log S n Value Line Utilizatio Componen Increase o date code n t decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease 3 15 Feb 05 LINE1 500000 PRINCIPAL Increase 4 10 Mar 05 LINE1 200000 PRINCIPAL Decrease 5 10 Mar 05 LINE1 200000 PRINCIPAL Increase Line Utilization Step 6 Liquidation of Contract Value da
8. Indicate if the exposure codes that you are specifying should be allowed or disallowed From the option list available select the exposure codes The system defaults the description of the chosen exposure codes To remove an exposure code from the list highlight the code and click on the Minus button To add to the list click on the Plus button and choose the exposure code from the option list available While saving the record if the exposures disallowed here are found to be linked to existing Facility Exposures or Customer Liability Exposures the system will display an error message and will not save the details Maintaining Product Restrictions for a Line You can define the types of products that should be allowed or disallowed for a line To add a product to the list of allowed products click on the Plus button and select the Source and Product Code from the adjoining option lists The system defaults the description of the chosen source and product code 20 gt ORACLE Limit Restnctions Disallowed Disallowed Customer Restrictions Currency Restrictions L 3 E Customer Number Short Name m Currency Code Currency Name Restriction Type Allowed Restriction Type Allowed Disallowed Disallowed Branch Restrictions Product Restrictions To remove a product from the list of Allowed Products select the Product Code and click on the Minus button No
9. Record Status Authorization Status Enter the following details User Defined Status Provide a name ID for the status here Description Give a brief description of the status Liability Maintenance This section contains the following topics e Section 2 5 1 Maintaining Liability Maintenance e Section 2 5 2 Scores Button e Section 2 5 3 Credit Rating Button Maintaining Liability Maintenance Every customer of your bank who enjoys credit facilities should be assigned or linked to a Liability Code category Several customers can be linked to the same Liability Code Liability linkage can be in two ways e Single Liability linked to multiple customers i e a Customer Group e Single Liability linked to only one customer Single Liability Linked To Multiple Customers Here multiple customers are linked to same the Liability Code and all restrictions facilities maintained at liability level are shared to all the customers 24 ORACLE Liability Code Customer A Customer B Customer C Single Liability Linked To Only One Customer Here a liability is linked to only one customer and all restrictions facilities maintained at liability level are applicable to that customer alone Liability with Single Customer You can create or modify the Liabilities using the Liability Maintenance screen You can invoke the Liability Maintenance screen by typing GEDMLIAB in the field at the top ri
10. ceeeeeeeee 2 75 GEDADREV eeeeeeeeeeee 2 80 GEDQUEMN ceee 2 73 GEDBLOCK eee 2 69 GEDSECTY s e0e0 0 2 18 GEDCOLCA e0e000 2 13 GEDTAUTH eeeeeeeeee 2 74 GEDCOLLT 0 eee 2 21 GEDTRANS ou eeeeeeeeeee 2 79 GEDCOLTY eeeeeeeeeeeeee 2 12 GEDTREXP oo eeeeeeeeeeee 2 65 GEDCOVNT eeeeeeeeeee 2 11 GEDUDENS eeeeeeeeeeeeee 2 4 GEDCREDT cceeeeoes 2 3 GESQCCNV o eeeeeeeeeeeeeeee 3 6 GEDCRSCR oooeeeeeeeeeeseeeeee 2 2 GESQFONV eeeeeeeeeeeeeeeee 3 5 GEDCULIK sccseeeeeeeeee 2 9 GESQHLIA ices tesaeeiacectes 3 3 GEDDAUTH c eeeeeeeeee 2 81 GESQLIAB o eeeeeeeeeeeeeeeee 3 1 GEDEXPBL eeeeeeeeeeeee 2 70 GESQSLIA wooeeeeseeeeeeeeeeee 3 4 GEDFACLT eeeeeeeeeee 2 38 GESQYFAC wo 2 61 GEDISSUR eeseeeeeeeeee 2 16 PI ORACLE
11. 206 ORACLE 2 16 2 16 1 Value Date Exposure Value Date Exposure E value Date Exposure Amount For each record added here you must specify the following e Exposure Amount The value dated Exposure amount e Value Date The value date post which the mentioned amount is valid Account Contract Balance Maintenance for Netting This section contains the following topics e Section 2 16 1 Invoking the Account Contract Balance for Netting screen Invoking the Account Contract Balance for Netting screen To pool balances across accounts contracts for netting account contract balance information has to be maintained You can perform this maintenance in the Account Contract Balance for Netting screen abr ORACLE You can invoke the Account Contract Balance for Netting screen by typing GEDACCNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Account Contract Balance For Netting yh Reference Number Customer Number Currency Amount Value Date Booking Date Expiry Date Liability Number Line Code Serial Number O Netting Required Contract Type Reference Number Specify the reference number which is the account number or the contract reference number for which the balance has to be considered Contract Type The Contract Type
12. Date Time Checker Date Time Mod No Record Status Authorization Status Enter the following details Agency Name Specify the name of the credit rating agency here Agency Description Give a brief description of the credit rating agency here Credit Rating Details Specify the following here Credit Rating Specify the unique Credit Rating code ID Credit Rating Description Give a brief description of the Credit Rating code ID Note This is only for information and not for processing 2 4 User Defined Status This section contains the following topics e Section 2 4 1 Invoking User Defined Status Maintenance Screen 2 4 1 Invoking User Defined Status Maintenance Screen You may wish to specify certain statuses for liabilities such as Normal Partially Defaulting Defaulting etc Such statuses can be maintained first in the User Define Status Maintenance oe ORACLE 2 5 2 5 1 screen You can name and describe statuses here This can later be linked to Liability Maintenance GEDMLIAB amp Facilities Maintenance GEDFACLT for choosing the status of the liability or facility respectively You can invoke the User Define Status Maintenance screen by typing GEDUDFNS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button User Defined Status Maintenance H save User Defined Status Description Date Time Date Time
13. Fe Gateway Batch naa a E E E E a 7 2 7 2 1 Gateway Batch FProCoSS noises ioraisi dreisi iaiiiei e Erno Eai er Saini EEk iii Ent 7 2 7 2 2 Batch Inbound PLOCeSS eccccecseeteee cee tiari ia a r ai aE E AE i AEA 7 2 L23 Batch Outbound FrocaSS nises raiter eiar aaa e AA a Aa AE 7 3 VE n o i EE EE E E et cece E E E E AEE EE 7 4 F nction ID Glossary ssn a e a a aiaa 8 1 1 1 1 2 1 3 1 4 1 Preface Introduction This manual is designed to help you to quickly get acquainted with the Limits and Collateral Management module It provides an overview and takes you through the various steps involved in setting up and maintaining the Limits and Collateral Management module You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt on the keyboard Audience This manual is intended for the following User User Roles Role Function Back office data entry clerk Input functions for funds Back office managers Authorization functions officers Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http Awww oracle com pls topic lookup ctx acc amp id docacc Organization This manual
14. Line Check this box to close the non revolving line automatically on expiry date Exposure Tracking Check this check box if exposure tracking is to be enabled in the system Customer Mask If you have selected Generate Customer Number option you need to specify the customer mask The customer mask will be maximum nine characters length out of which it is mandatory to use three characters from the branch code of the customer number and the rest six can be numbers E g bbbnnnnnn If branch code is not part of customer mask then maximum characters of number digit will be nine else it would be six characters and minimum characters of number digit would be four E g nnnnnnnnn If the customer number is less than nine digits then the system will left pad it with 0 i e zero Note Character b indicates the branch code and character n indicates number digits Bank Capital Specify the amount to calculate internal lending equivalent amount Limit Currency The System defaults the local currency of the bank 218 ORACLE Central Bank Lending Limit Specify the percentage of central bank lending limit Central Bank Lending Limit percentage of the bank capital is considered as limit amount allowed by the central bank The central bank lending limit percentage should be between 0 and 100 Internal lending Limit Specify the percentage of internal lending limit The internal lending limit percentage s
15. Loan USD 100 50 000 1 05million s A Rise in Value The market value of Debentures2008 has increased to 55 which is a 10 increase over the old market price of 50 At the time you update the Market price of Debentures 2008 in the Securities Maintenance screen the revaluation process is triggered off as the increase 10 is higher than the Increase sensitivity 8 defined for Debentures 2008 The value of this collateral now stands at 55 000 As this amount is less than the Cap Amount you specified for the collateral the Credit Limit available to the XYZ has increased by 5 000 as a result of the revaluation ORACLE Collateral Collateral pee Cap POOL i Pool Code Amount code Pool amount amount linkage ABB 55 000 60 000 Pool1 100 55 000 6 6 Pool contribution to the line Line Pool Fool Line Pool Pool Line Line contribution 5 Currenc available Code Currency Code linkage amount to y iine amount Pool1 USD Loan USD 100 55 000 1 055 Ss million A Rise in Value beyond the Cap Amount The market value of Debentures2008 has increased to 65 which is a 30 increase over the old market price of 50 At the time you update the Market price of Debentures2008 in the Securities Maintenance screen the revaluation process is triggered off as the increase 30 is higher than the Increase Sensitivity 8 defined for
16. Multi Authorization Maintenance Screen Multi authorisation maintenance can be done via the Multi Authorisation Maintenance screen You can invoke the Multi Authorization Maintenance screen by typing GEDDAUTH in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Multi Authorization Maintenance E Execute Query Utilisation Details u Utilisation Branch Utilisation Product Value Dates Source Remarks Utilisation Status Serial Number Error Code Error Params Delete Status Utilisation ID Customer Number Transaction date Util Amount Utilisation Currency Liability Currency Liability Utilisation Exception Queue Liability Number Line Code Line Serial Facility Currency Facility Utilisation Whenever Utilization Transactions has been breached then the utilization transaction would require multiple authorizations Transactions which are breached could be either authorized using BPEL process flow Credit Exception management or using UI multi Auth screen Note During implementation either the BPEL process needs to be used or the screen here needs to be used Both can t be used at the same time Whenever utilization transaction has been breached this screen has to be used by the authorizer to either Accept or Reject the breached transaction The following fields mentioned below indicate all the values that will associated with the transact
17. Price Last Price Change Maker Date Time Checker Date Time Mod No Record Status Authorization Status Details of the marketable security that your bank accepts as collateral can specified in the above screen Security Code Assign a unique ID to identify the security This ID is called the Security Code This ID is used while maintaining Collateral for a market value based Security Description Describe in brief the security maintained 28 ORACLE Equity Base Here you can specify the equity base for the security i e the total amount raised by the issue of this security This entry is for information purposes only For example Gem granites have come out with Debentures 98 and have raised US 1 Million through this issue This US 1M that Gem Granites has raised constitutes the equity base for Debentures 98 Price Increase Sensitivity and Price Decrease Sensitivity If the value of collateral is backed by a marketable security whose value is driven by market forces you may want to revalue the collateral so that its value reflects the current market price of the security which backs it To do so you should specify your sensitivity to the security The price sensitivity of a security is expressed as a percentage You should specify the percentage increase or decrease the upper and lower limits above or below the current market price which should trigger the revaluation process The revaluation process re
18. amount amount linkage 6 7 ORACLE 6 2 2 ABB 45 000 60 000 Pool1 100 45 000 Pool contribution to the line Pool Pool Pool Line Line Line Pool a Line A contribution available Code Currency Code Currency linkage 3 amount to line amount Pool1 USD Loans USD 100 45 000 1 045 mil lion This process explained above is online process where in the change in the Security Price immediately revaluates all the collateral linked to these securities If at the LCM Global Parameter maintenance the option for Revaluate Market Online has been selected as batch then the collateral revaluation as explained above will be taken up as part of revaluation batch process Adhoc Revaluation of Market Based Collaterals In the Adhoc Revaluation screen specific market based collaterals can be chosen to forcefully run the revaluation process If such collateral values have to be revised then an input file containing the latest security price has to be sent to system prior running the Collateral Force Revalue Ad hoc Revaluation Security Id Security Price Collateral Revaluation of Non Market Based Securities Collateral revaluation of non market based securities is not subjected to market fluctuation Hence if such collateral values have to be revised then an input file containing the collateral code of all such collaterals and the latest revised collateral
19. characters are allowed in this field You may also provide a brief description of the covenant maintained Mandatory Indicate whether convent defined is mandatory as part of the process or not You may change this preference when this convent is linked to a Collateral Facility Frequency Select a frequency according to which the Convent has to collected revised You may select any one of the following frequencies e Yearly e Half Yearly e Quarterly e Monthly e Weekly e Daily Start Month If the Frequency select is Yearly Half Yearly Quarterly or Monthly then specify the start month here Due Date On Specify the number of days after which the covenant needs to be reviewed Grace days Specify the Grace days past the next due revision date allowed for renewal of the covenant a1 ORACLE 2 8 2 8 1 Notice days Specify the number of days in the notice period The notice period will start this many days prior to the revision date of the covenant Remarks Specify the remarks about the covenant maintenance This can be linked to Collateral Category Maintenance screen GEDCOLCA Collaterals Maintenance screen GEDCOLLT and Facilities Maintenance screen GEDFACLT for choosing the covenant that is to be linked to the Collateral Category Collaterals and Facilities respectively On choosing the covenant in these screens the values maintained for the covenant is defaulted You can modify these defaulted valu
20. code from the adjoining list The list displays all the pool codes associated for that liability Id Pool Description System displays the pool description based on the selected pool code Pool Currency System displays the pool currency based on the selected pool code Pool Amt System displays the pool amount based on the selected pool code ao ORACLE 2 14 9 Facility Branch Code Select the branch code from the adjoining list Pool System displays the pool Facility Amount In Pool CCY System displays the facility amount In Pool currency Facility Currency System displays the facility currency Facility Amount System displays the facility amount Type System displays the type Percentage Of Contract System displays the percentage of contract Pool Linkages multi entry block does two functions Firstly on clicking Plus button you can link one row of the available pool amount i e Pool amount Pool Utilized to that Line code for which the collateral contribution is required Secondly it displays at any point in time the pool amount in percentage terms utilized by various Line Codes and Contracts Limit Restriction Button By default all customers branches and products maintained in your bank can utilize the limit defined for a credit line You can also define the limit for a line in any currency However you can opt to restrict the limit available under a credit line to specific customers b
21. corner of the Application tool bar and clicking the adjoining arrow button Collateral Pools Maintenance Ej Save Liability No ae Branch Pool Code E Mortgage Initiated Pool Description E Auto Facility Create Pool Currency az Pool Amount Pool Utilized Available Amount Block Amount Collateral Pool Linkage 1 0Of1 E Collateral Code Collateral Description Collateral Currency Limit Contribution Linked Percent Number Linked Amount Date Time Date Time Record Status Authorization Status Liability Number Specify the liability to which the collaterals need to be linked Pool Code Specify the Pool Code here The pool code assigned to each collateral pool can be linked to a Liability while creating credit limits Pool Description Specify a brief description of the collateral pool here Pool Currency Specify the currency in which the Collateral Pool has to be maintained Available Amount On save of the collateral pool record system defaults the available amount for the collateral pool It is the difference between Pool Amount and Pool Utilized Description Collateral Pool Linkages The description for the collateral as maintained in the Collaterals Maintenance screen gets defaulted here based on the selected Collateral Code Order Specify the order for collateral utilization Type The type for the collateral as maintained in the Collaterals
22. field will show AC by default for the account netting facility In this case you must also define the facility code Line Code to which the netting amount is to be added If the account is a Term Deposit account which you wish to link as collateral to a collateral pool then specify a Contract Type other than AC Here you need not specify the facility code For more details on linking Term Deposit accounts contracts as collaterals refer the section Collaterals Maintenance Customer Number Specify the customer number to which the Reference number belongs to Currency Specify the currency based on which the balance amount of the account contact has to be considered Once authorized this entry will be non amendable Amount Specify the account contract balance amount for netting Value Date Specify the date from when this account contract is valid for netting Booking Date Specify the booking date when the account contract was created Expiry Date Specify the date till when this account contract is valid for netting 208 ORACLE 2 17 2 17 1 Liability Number Specify the liability number to which the Reference number is linked Line Code Specify the line code for the account contract Serial Number System displays the Serial Number for the line chosen in the field Line Code Netting Required Select this check box to indicate that the netting amount defined in the Account Contract Balance fo
23. have defined a line for Loans on 01 January 2008 and linked the Liability Code Symphony Group to it The credit limit assigned to the credit line is USD 100 000 the facility currency is USD No currency restrictions have been maintained for the facility Let us say that the Loans line has been backed by Collateral ABC and its maximum contribution amount that can be linked to the limit is GBP 10 000 1 GBP 2 USD Max Collater P Collatera ool Collateral Collateral al as I ae amount y y linkage ABC 10 000 GBP Pool1 USD 100 20 000 Pool contribution to the line Line peo Pool Pool Pool Line Line aor Line Avl Currenc 5 contributio Code Currency Code linkage amount y n Pool1 USD Loans USD 100 20 000 120 000 On 01 February 2008 the exchange rates have changed After the exchange rate revision has been changed and authorized the revaluation process online process scans all the pools where this collateral has been linked and having the above exchange pair will be revaluated 1 GBP 1 5 USD Max Collater Poo Collater Pool Collater Line Collateral al l al inte alCode Code Contributi Currenc cod Curren pool a on amount y e cy linkage ABC Loans 10 000 GBP Pool USD 100 15 000 Pool contribution to the line Line Pool Pool Line Pool Pool Line Line contribution Currenc z available Cod
24. in which the Customer to liability link Maintenance is done gets defaulted here Customer Number Specify customer s number to whom the liability has to be linked Liability Number and Liability Name Specify the number and name of the Liability to be linked to the customer ea ORACLE 2 7 2 7 1 Customer Exposures Here you can specify different Exposure Types for the customer This allows you to track the exposure of a customer Multiple exposure names can be linked e g IT for Sector exposure INDIA for country exposure to track exposures e Exposure Type The exposure type for the exposure as maintained in the Track Exposure Maintenance screen gets defaulted here based on the Exposure Name chosen e Exposure Name Specify an exposure name which is maintained in the Track Exposure Maintenance screen e Exposure Description The description for the exposure as maintained in the Track Exposure Maintenance screen gets defaulted here based on the Exposure Name chosen Note The Customer to Liability Link Maintenance is mandatory when limits tracking are required under any of the Oracle FLEXCUBE modules Inthe Customer Exposures section the exposure name LOV will display the exposures having utilization type as Customer maintained in the Track Exposure Maintenance GEDTREXP screen The Customer to Liability Link Maintenance is mandatory when account for the customer is crea
25. is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It p also lists the various chapters covered in this User Manual Chapter 2 Limits amp Collaterals explains a series of maintenance options facil P itated in Limits and Collateral Management module Queries explains about the query functions and helps you to query Chapter 3 records on Liabilities Transactions Collateral Covenants and so on Reports provide a list of reports that can be generated in this mod Chapter 4 l ule and also explains their contents Annexure 1 Value Dated Facility describes how to track and Chapter 5 maintain all facility utilizations based on the value date of the transaction Annexure 2 Revaluation describes how to maintain the fluctuat Chapter 6 ing exchange rates of marketable securities such as currency and collateral over a period of time t1 ORACLE 1 5 1 6 Annexure 3 Gateway Processes amp Interfaces details on how an Chapter 7 external system can be integrated with LCM module for communi cation Chapter 8 Function ID Glossary has alphabetical listing of Function Screen ID s used in the module with page references for quick navigation Acronyms and Abbreviations You may find the following acronyms abbreviations in this manual UI User Interface LCM Limits and Collateral M
26. limits will be effective Specify the Effective To Date of transfer i e the date till when the transfer of limits will be effective This date must be greater than the Effective From Date Transfer Amount Specify the transfer amount to be transferred from the From Line to the To Line from the Effective From Date onwards Force Collateral Revaluation This section contains the following topics e Section 2 23 1 Invoking the Ad Hoc Revaluation Screen Invoking the Ad Hoc Revaluation Screen You can run the Ad hoc revaluation process for market based collaterals using the Ad Hoc Revaluation screen For such collateral values to be revised an input file containing the latest security prices must to be given to the system before using this facility You can invoke the Ad hoc Revaluation screen by typing GEDADREV in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Ad hoc Revaluation Security Id Security Price Security Id Specify the security id for which Ad hoc Revaluation is to be done Security Price System displays the price code as maintained in the Securities screen Click the Process button to process the Ad hoc Revaluation Multi Authorization Maintenance This section contains the following topics 2 80 ORACLE e Section 2 24 1 Invoking the Multi Authorization Maintenance Screen 2 24 1 Invoking the
27. the bank accepts as collateral Cap Amount As the price of marketable securities tend to fluctuate based on the forces of demand and supply specify an upper limit on the contribution of this security to the collateral value as a result of an increase in the price of the security This upper limit is called the Cap Amount The Cap Amount indicates that at any point in time the limit contribution of the collateral cannot exceed this amount even though its actual computed value is much higher However if the actual computed value of the collateral is lower than the Cap Amount then the system picks up the collateral value as the actual computed value eee ORACLE 2 12 2 Price Code Specify the market price code E g NYSE NASDAQ based on which the revaluation price for collateral value calculation should be considered Last Revaluation Price The last market price based on which the collateral value was revaluated will be displayed here Next Reval Date Select the next revaluation date for the security Specifying Details for Guarantee Based Type Guarantor Specify the customer number CIF ID of the guarantor This field is alpha numeric and a maximum of 50 characters can be entered Rating You can assign a credit rating to each Guarantor Here specify the rating assigned to the Guarantor This Field is of numeric and maximum of 50 digits can be entered Revocable Indicate whether the Guarantor can revoke withdraw
28. the collateral record the Revision Date for the covenant is defaulted based on the Frequency and Due Date maintained in the Covenant Maintenance screen 2 14 4 Value Date Button To maintain details regarding value dates click Value Date button Value Date Details Value Date Details E Limit Amount Value Date Main Line Code L Value dated limits for a particular facility are automatically populated in the above screen when you save the Facility The following are the details available e Value dated Limit Amount e Value Date after which the mentioned amount is valid You may modify this when required e Main Line to which the limit amount is linked to 2 14 5 Exposure Button The facility defined can be tracked for particular exposures 246 ORACLE 2 14 6 The exposure details can be captured for facility in the Exposure Details screen Click Exposure to invoke this screen Exposure Exposure Details Exposure Name Exposure Name Exposure Description Select the exposure name from the list available here The list displays the exposure names maintained in Exposure Maintenance screen Based on the exposure selected all other details of the exposure maintenance will be displayed here Charges Button To capture facility maintenance charge details click Charges button Charge Details Admin Charge Type Admin Charge Per
29. this guarantee provided or not Revoke Date Indicate the date when the Guarantor will revoke the guarantee This field is enabled only when the Revoke check box is selected Insurance Details Button You may enter the Insurance details for a Collateral via the Insurance Details screen Click Insurance button to invoke this screen Insurance Insurance E insurance Name Insurance No Insurance Owner Insurance Type I Customer You can specify the following details Insurance Name Specify the name of the Insurance Insurance Company associated with the collateral Aab ORACLE Insurance No Specify the insurance number under which that insurance has been issued Insurance Owner Select the owner of the insurance policy from the adjoining drop down list This list displays the following values e Bank e Customer Insurance Type Specify the type of the insurance e g FIRE DAMAGE THIEFT etc that has been associated for that collateral Start Date Specify the start date for that insurance End Date Specify the end date for that insurance Revision Date Specify the date of revision of the insurance Notice Days On choosing a covenant name system defaults the Notice Days details i e the number of days prior to next revision date of the covenant You can modify this value The period during the notice days will be the notice period Insurance Premium Periodicity Sel
30. validated that the limit amount in the Facilities maintenance booking dated is same as the limit amount in the latest record value dated in the maintenance Whenever a new Limit Line is created a new record will be automatically created by the system with the value date as the Limit Start Date The Main Line and the Limit Amount will be same as the booking dated limit maintenance Whenever the Mainline or the Limit amount is changed in the facility a new record will be created in the maintenance with value date as the application date The mainline and limit amount values will be same as in the booking dated Limits maintenance You can manually change the value to an older value date by clicking Value Date button The Conversion Date contains the date when facility was migrated from the external system to LCM In the Facility screen this date will be displayed Back Valued Static Maintenance Changes The value dated utilization details will be rebuilt from the value date of the change whenever the following static maintenances are done al ORACLE 5 2 5 2 1 5 2 2 e Limit Amount Change e Mainline Sub Line Linkage If the facility has been migrated then back valued static maintenance cannot be prior to the conversion date Value Date Based Utilization This section contains the following topics e Section 5 2 1 Processing Value Date Based Utilization e Section 5 2 2 Back Valued Transactions e Sectio
31. value must be sent to the system The revaluation process takes place online when ever there is a change in the collateral value Example oe ORACLE Non market Based collateral Fixed Deposit having 100 lendable margin has been linked to a facility on 15t January 2008 owned by a XYZ customer having the liability Symphony Group ar Line Liability Liability Code Code Limit Symphony Loans 1million Group Caibiera Collatera ollatera l a ives Contribution ee P Pool Amount amount Pool linkage Fixed Deposit 50 000 50 000 Pool1 100 50 000 Pool contribution to the line Line Pool Pool Line Pool Pool Line Line contribution a Currenc z available Code Currency Code linkage amount to y line amount Pool1 USD Loan USD 100 50 000 1 05million Ss After one Year on 1S January 2009 the Fixed Deposit amount has increased due to interest earned Now having a revised value as 55 000 Now the latest value has to be sent to the LCM system via input file and then the Collateral Force Revalue for this collateral has to be triggered manually The revaluation increases the overall limit amount as shown below rae Line Liability Liability Code Code Limit Symphony Loans 1million Group Pool amount Collateral Pool code Collateral Collateral Code Contribution amount Collateral Value Pool linkage Fixed Deposit 55 000
32. 000 Now the pool currency specified is USD Therefore the system does the necessary calculations and converts the linked amount into the currency of the pool and displays the pool amount in the respective field Linked Percent Number The part of the collateral amount which has to be linked to the pool can be specified as a percentage here On save of the record if Linked Percent Number is specified system defaults the Linked Amount calculated as Linked Percent Number Percentage of Collateral Contribution Available Interest Rate The interest rate maintained for the collateral code in Collateral Type Maintenance screen gets defaulted here Interest Spread Specify the interest spread to be applied on the customer account The interest spread can be zero However if the collateral attached is a term deposit then on rollover of the term 236 ORACLE deposit the interest spread is defaulted to the spread applicable for the term deposit on rollover Rate of Interest The rate of interest applicable on the customer account when customer uses the overdraft facility against the collateral type is derived as follows Rate of Interest Available Interest Rate Interest Spread Customer spread Expiry Date On save of the record system defaults the expiry date based on the end date of the collateral maintained However if the collateral attached is of a deposit then on rollover of the term deposit the m
33. 100 Pool1 55 000 55 000 os ORACLE Pool contribution to the line Line Line Line Pool Pool available Pool Pool Line contributio amount Cod Currenc eee Code Currency linkag n amount credit limit y e to line Pool contribution Pool1 USD Loan USD 100 55 000 1 055million s 6 10 ORACLE 7 Annexure 3 Gateway Processes amp Interfaces Limits and Collateral Management Gateway provides two main kinds of processes e Gateway Online process e Gateway Batch process This chapter contains the following sections e Section 7 1 Gateway Online e Section 7 2 Gateway Batch e Section 7 3 Interfaces 7 4 Gateway Online This section contains the following topics e Section 7 1 1 Gateway Online Process e Section 7 1 2 Maintenance Transactions e Section 7 1 3 Batch Process e Section 7 1 3 Batch Process e Section 7 1 4 Reprocessing Locked Online Transactions e Section 7 1 5 Technical undo Functional Rollback 7 1 1 Gateway Online Process Gateway Online process provides following process e Online Inbound process e Online Outbound process e Embedded process Following are the transactions supported by Gateway process e Maintenance transactions e Utilization transactions e Batch process 7 1 2 Maintenance Transactions Below table specifies the maintenance transactions supported by Gateway Online Process
34. 3 below the old market value of the security the revaluation process will be triggered off so that the Collateral value of the security reflects it s current market price Currency Specify the currency to be associated with the Security using the list available here Once authorized this entry cannot be changed Face Value Specify the face value of the security A maximum of 50 numeric characters are allowed here Collateral Type Specify the collateral type here Issuer Code Specify the issuer code for the customer for whom the securities are collected The list of issuers is available here Start Date and Expiry Date Specify Start date and Expiry Date of the security in these fields alg ORACLE 2 12 2 12 1 Limit Amount Specify the limit amount for the particular security Nominal Value Based Select this check box if the collateral value is to be calculated on the nominal value based for a particular security Security Price If the security is quoted in different markets its value would differ in different markets You can maintain the various market prices of the security under the Security Price table You can specify the following details here e Price Code Indicates the market place for which the price is quoted e Market Price Price of the security in that market e Last Price Change Date on which the price was last changed This can later be linked to Collaterals Maintenance screen GEDCOLLT fo
35. Debentures 1999 The value of this collateral now stands at 65 000 As this amount is more than the Cap Amount of 60 000 that you specified for the collateral the Credit Limit available to the XYZ will be increased However the increase will not exceed the Cap Amount XYZ s maximum amount that is contributed to the overall limit will now stand at 60 000 cap Amount and not at 65 000 market value as a result of the revaluation Collateral Collateral den Cap POOL i Pool Code Amount code Pool amount amount linkage ABB 60 000 60 000 Pool1 100 60 000 Pool contribution to the line Line Pool Pool Line Pool Pool Line Line contribution Currenc available Code Currency Code linkage amount to y line amount Pool1 USD Loan USD 100 60 000 1 06 mil Ss lion A fall in value The market value of Debentures2008 has decreased to 45 which is a 10 decrease from the old market price of 50 At the time you update the Market price of Debentures2008 in the Securities Maintenance screen the revaluation process is triggered off as the decrease 11 11 is higher than the decrease sensitivity 5 defined for Debentures 1999 The market value of this collateral now stands at 45 000 XYZ s credit limit will stand decreased by 5 000 as a result of the revaluation Collateral Collateral arm Cap POOL i Pool Code Amount code Pool
36. Maintenance screen gets defaulted here based on the selected Collateral Code Branch Code The branch code for the branch where the collateral is maintained in the Collaterals Maintenance screen gets defaulted here based on the selected Collateral Code Aga ORACLE Collateral Utilization System updates the collateral utilization for each of the collateral codes linked in the Collateral Pool Linkages based on the utilization when the collateral pool comprising the collateral is linked to the facility Mortgage Initiated This option will be checked automatically for collateral and collateral pool created as a result of authorization of mortgage account and you cannot modify it Auto Facility Create Check this box to indicate that a facility should be created automatically for the given Liability number with line code as pool code Note This automatically created line code can be used to maintain limits for customer account in Account Limits screen if required For more details on maintaining Account Limits refer Core Entities User Manual Creating Collateral Pool Linkages Under Collateral Pool Linkages you can add the different collaterals pooled in for the particular Liability To add a new collateral click Plus button specify the relevant details and save the record To delete an existing collateral select it and then click Minus button and save the record While creatin
37. ORACLE Limits and Collateral Management User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 2 10 Part No E53393 01 February 2015 Limits and Collateral Management User Guide January 2015 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2015 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or in
38. Specify the product details of the commitment Commitment Settlement Branch Specify the settlement branch details of the commitment Commitment Settlement Account Specify the settlement account details of the commitment PPC Project Id The system displays the PPC Project ID to which the facility is linked to PPC Ref No The system displays the PPC reference number to which the facility is linked to UDE Values UDE ID Specify the UDE ID of the commitment UDE Value Specify the UDE value of the commitment 200 ORACLE 2 14 8 Rate Code Specify the rate code of the commitment Code Usage Specify the code usage of the commitment Commitment Ref No Specify the reference number of the commitment Effective Date Specify the effective date of the commitment Note You can use the above UDE details to upload commitment details to Oracle FLEXCUBE as a part of facility maintenance While uploading the commitment details you need to use the batch ELBCOMNT which is configured as part of EOD process Pool Links Button For collateral Contribution in Total Effective line amount the pool code maintained for that particular Liability id has to been linked which can be achieved using this sub screen From the Facilities Maintenance screen click on the Pool Links button Pool Links Pool Links E Pool Code Pool Description Pool Currency Pool Amt Pool Code Select the pool
39. ability is associated If Liability currency is different from Limit currency specified in Global Exposure Parameter then the Liability amount is converted to the limit currency System displays an override message if the LCY equivalent of overall limit of the customer liability is greater than 35000 USD Overall limit amount 1 of the customer liability exceeds the maintained Internal Lending Limit Equivalent Amount 2 Note You can modify the Liability Currency after authorization if There are no lines collaterals or collateral pools linked to the liability The liability is not utilized The liability is not the parent liability for another child liability Utilization Amount This field displays the utilized amount for that liability Id at any point in time You cannot edit this display Revision Date Specify the date on which your bank would wish to revise the limit for the liability The limit check will continue irrespective of the date maintained here The revision date must be greater than the start date and can also be left blank Credit Rating The primary credit rating maintained in the credit rating sub screen is displayed here Note These details are maintained only for information and have no processing impact 26 ORACLE Overall Score Specify the overall credit score for the liability The given credit score is supplemented by the multiple credit score details if any entered in the Cr
40. alue field of the Collaterals Maintenance screen Note You are allowed to link contracts associated to LC BC and MM modules as part collateral maintenance in LCM The amount which is contributed to the collateral is the sum of the contract amounts specified under Contract Contribution of the contracts linked UDE Values Button You can capture UDE values details for a collateral in the UDE Value Details screen Click UDE Values button in Collateral Maintenance screen to invoke the below screen Commitment Branch Commitment Product SettlementAccount Settlement Branch Commitment Reference UDE Values E User Defined Element Id UDE Value Rate Code Code Usage Effective Date Commitment Branch Select the branch from the adjoining option list in which the commitment contract needs to be created Commitment Product Select the product code from the adjoining option list to be used for creating the commitment contract Note If the commitment contract is created in FCUBS then the system will not allow modify the product code Commitment Settlement Account Select the settlement account number from the adjoining option list used in commitment contract for passing the accounting entries Aal ORACLE 2 12 7 2 12 8 Commitment Settlement Branch Specify the commitment settlement branch code used in commitment contract for passing the accounting en
41. anagement FCUBS Oracle FLEXCUBE Universal Banking Solution GW Gateway HTTP Hyper Text Transfer Protocol XML eXtensible Mark up Language XSD XML Schema Definition XSLT eXtensible Stylesheet Language Transformations BPEL Business Process Execution Language SMS Security Services ID Identification Number PK Primary Key RDBMS Relational Data Base Management System VD Value Date Mark Mark End of Transaction Input EOTI Mark TI Mark Transaction Input TD Term Deposits CIF Customer Information File Related Documents e The Procedures User Manual ORACLE Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function J Exit Add row Delete row a Option List ORACLE 2 1 2 2 2 2 1 2 Limits amp Collaterals Introduction The functions and actions provided by the Limits and Collateral Management are explained below All functions explained below come under Limits amp Collaterals in the Menu Browser This chapter contains the following sections e Section 2 2 Credit Score Maintenance e Section 2 3 Agency Details for Credit Rating e Section 2 4 User Defined Status e Section 2 5 Liability Maintenance e Section 2 6 Customer to Liability Link e Section 2 7 Covenant Maintenance e Section 2 8 Collateral Types Maintenance e Section 2 9 Collateral Category Maintenance e Section 2 10
42. andatory Grace Days Revision Date Notice Days Frequer The Collateral Covenants Query allows you to query the covenants associated with a particular collateral Details including the collateral code liability number last revision date notice days for the covenant can be viewed You can invoke the Collateral Covenants Query screen by typing GESQCCNV in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button oe ORACLE Collateral Covenants Query Covenant Name Description le Liability Number Collateral Code az Mandatory kz Grace Days kz Revision Date az notes Days fa Frequency kz Due Date On kz Stan Month kz Covenant Reference kz Records per page 15 M EEN Os of 1 eee Gal Covenant Name Description Liability Number Collateral Code Mandatory Grace Days Revision Date Notice Days Frequency Due D ai ORACLE 4 1 4 2 4 Reports This manual lists the details of various reports that you can generate for Limits and Collateral Management module of Oracle FLEXCUBE During the day or at the end of the day you may want to retrieve information on any of the several operations that were performed during the day in your bank You can generate this information in the form of reports in Oracle FLEXCUBE For every module you can generate reports which give you data about the various events in the life of a specific cont
43. ant Button uresen a a aa a a eerie 2 28 2 12 4 Shared Details ButtON ccccccccceeeee tees eects teneeee eee enneeeeeetaaeeeeeetaaeeeenenae 2 29 2 12 5 Link Contract BUUON sia ceccceceecctvenesede dudbescdeitev ad detuvennincevyeebeiddecderegiindeveed 2 30 2 42 0 UDE Values Butloniisisccctsegsittigsardetisti atietliguaieeaderans aadiadta edie ties 2 31 2 12 7 Source Restrictions ButtONn sorres esiteini cee ener isere E an Si EEE 2 32 2 12 8 Haircut Schedules BUttON mererin einet tena Cane enri aT E ROTETE EAE A 2 32 2 13 Collateral Pool Maintenance ssseeeseeeeeeesseerrrestrrrsstttrrsssttnrrsstttnnsssttnnnsteennntt 2 33 2 13 1 Invoking Collateral Pool Maintenance Screen 2 34 2 14 Facilities Maintenance cece eeeeeeeeeeeeeeaeeeeeeeeaaeeeeeeeaaeeeeseeeaeeeeeeenaeeeeeeneaes 2 37 2 14 1 Invoking the Facilities Maintenance Screen ccccceccceeccttteeeeetntteeeeneeee 2 37 2 14 2 SCHEQUICS BUT ON esasta AE E iceened E 2 45 2 14 3 Covenant BUO aesir A A a 2 47 2 14 4 Value Date Button oc cccccceeececceseeenecteseeeneeeuennbaccteeuenesseetevsenssenteerbaneteeeen 2 48 2 14 5 Expos re B tton rrna aniraa apa aeiae aa aaa ae eeaeee Eada aaa 2 48 2 14 60 Charges Button acses ded vei erii AEA aR EE AEN EE EAE EEE EEE 2 49 2 14 UDE Details BUOM ro rieni EEEE te eee aie nie T 2 50 2 148 POO LINKS BURON oriei E nE aR O a EE EEO EA 2 51 2 14 9 Limit Restriction BUUON eener e E AEE peo nisteee 2 52 2 14 10 Tenor Re
44. ate Customer Number Block Facility On Status Yes CIF Mask 1 No Bank Capital Limit Currency GBP Central Bank Lending Percent Intemal Lending Percent Maker Date Time Checker Date Time Mod No Record Status Authorization Status The following details are maintained here da ORACLE System Maker ID and System Checker ID During the processing of user entries if the maker ID and checker ID is not mentioned then IDs specified here will be recorded Maximum Retry Lock Transaction Specify the number of times authorization can be tried before the transaction is locked Maximum Number of Processes Multi threading feature in LCM can be controlled by specifying the max number of processes here In case of load balancer during End Of Day batch operations the maximum process for load sharing can be specified using this field Rate Type Specify the rate type that has to be considered for all amount conversions in LCM Currency System Specify the external currency system if the Bank is using a external currency system other than the one provided in LCM CRM System Specify the external CRM system if the Bank is using an external CRM system other than the one provided in LCM Generate Customer Number Check this box to generate the customer number automatically at the time of customer creation and customer replication from the Oracle FLEXCUBE as per the specified customer mask Auto CNR Auto Closure of Non Revolving
45. ate of first OD a ORACLE Date of Last OD The system displays the date of last OD Netting Contribution The system displays the netting contribution if e the facility is linked in the Netting Account screen e Netting Required is checked at Liability level Facility level and Netting Account level Last New Utilized Date The system displays the last date when a utilization increase is done for a particular facility The utilization can be either a new utilization or an increase in the existing utilization Amount Utilized Today The system displays the amount utilized on the current date Utilization Amount The system displays the utilization amount Tanked Utilization The system displays the tanked utilization Availability Specify the following details Line Start Date Specify the line start date If not specified system defaults the line start date as the current application date Expiry Date Specify the expiry date for the facility If the limit amount assigned to the facility is not utilized within the specified expiry date then the Available check box will remain un selected This freezes the line for the respective liability The freezing of the line code will be part of the LCM EOD Batch The LCM module will not allow the expiry date of a facility to exceed the expiry date of linked collateral s When a Facility record is saved the system will compare the expiry date of all the collaterals i
46. aturity date of the term deposit is updated as the expiry date of the collateral Note The batch program CASABAT is used to update the overdraft utilization at collateral level Ifa rollover happens for a TD linked as collateral during BOD the interest rate ap plied on the TD gets updated to the interest rate value maintained at the collateral pool level 2 14 Facilities Maintenance This section contains the following topics e Section 2 14 1 Invoking the Facilities Maintenance Screen e Section 2 14 2 Schedules Button e Section 2 14 3 Covenant Button e Section 2 14 4 Value Date Button e Section 2 14 5 Exposure Button e Section 2 14 6 Charges Button e Section 2 14 7 UDE Details Button e Section 2 14 8 Pool Links Button e Section 2 14 9 Limit Restriction Button e Section 2 14 10 Tenor Restrictions Button e Section 2 14 11 Source Restrictions Button e Section 2 14 12 Mandate Button e Section 2 14 13 Including Netting Amount in Facility s Netting Contribution e Section 2 14 14 Viewing Previous Credit Limit Changes 2 14 1 Invoking the Facilities Maintenance Screen You can maintain credit limits for a Line Code Liability Code combination in the Facilities Maintenance screen zat ORACLE You can invoke the Facilities Maintenance screen by typing GEDFACLT in the field at the top right corner of the Application tool bar and clicking the adjoining ar
47. ay Batch Process e Section 7 2 2 Batch Inbound Process e Section 7 2 3 Batch Outbound Process Gateway Batch Process Gateway Batch Process provides two kinds of process Batch Inbound Process Batch Outbound Process Batch Inbound Process LCM Batch Inbound process is used to upload large records As a batch operation the necessary input files will be fetched from the mentioned location path The Batch Inbound process can also be initiated from the following screen tee ORACLE 7 2 3 Batch Operations gt In Bound Batch gt detailed The following operations via input files will be supported as an Input Files Batch Operations Customer upload Utilization Upload Liability upload Facility upload Collateral upload Securities upload Rates upload Utilization Upload All the utilizations as part of LCM Transaction functions are provided for as a part of Batch Inbound operations Utilization upload allows more than one utilization record to be uploaded in a single upload process Liability Upload Liability creation as a part of batch upload is provided for Liability upload allows more than one Liability record to be uploaded in a single upload process Facility Upload Facility creation as part of batch upload is provided for Facility upload allows more than one Facility record to be uploaded in a single upload process Collateral Upload Collateral creation as part of bat
48. be done The customer s who fall under this Liability Code will in turn avail credit facilities under this Credit line By linking a Credit Line to a Liability code the customer also gets linked to the Credit Line This is true because a Liability code has been assigned to every credit seeking customer and the credit facilities granted to the customer are defined and tracked against this code Serial Number Each time a customer line code combination is specified LCM module assigns a unique serial number to the combination This serial number is unique to the line liability code combination Thus for every new record entered for a Line Liability combination a new serial number is generated The Line Liability Serial number forms a unique combination 238 ORACLE Facility Branch By default the system displays the branch code in which facility has been created You can change the branch code from the adjoining option list before saving the facility Once the facility is saved you cannot modify the branch code Description Give a brief description of the facility here Main Line Code Specify the main line code if the created facility is a sub line If the main line code is not specified then the system defaults the facility code as the main line code Line Currency Specify the currency in which the facility is defined The currency that has been selected will have the following implications e The limit amount that has been
49. bers of all Term Deposits you wish to link Linked Contract Linked Contract E Contract Reference Branch Contract Contribution Modification of existing linked contracts can also be done in the above screen Contract Reference You can link the Term Deposit Account Number or Contract Reference Number as collateral for a Liability by specifying the Contract Reference No here The adjoining list of options in this field displays all contract types other than Contract Type AC Note The Term Deposit contract needed for Collateral Linkage must be maintained in Netting Maintenance with any contract type other than AC Once the contract is linked as collateral then its collateral value cannot exceed its contract amount as maintained in the Account Netting screen The start date of the collateral should be later than the value date of the respective contract netting maintenance Likewise the expiry date of the collateral should be earlier than the expiry date of the respective contract netting maintenance The system blocks marks Lien on the linked Term Deposit contract 200 ORACLE 2 12 6 Contract Contribution Specify here the amount being contributed from the contract as a collateral for the liability On saving the above maintenance the system computes the sum of all the collateral values specified under Contract Contribution and updates the same in the Collateral V
50. bution will be calculated Start Date and End Date Specify the tenor of the collateral using the Start Date and End Date fields The collateral is considered effective only during this period The start date indicates the date from which the collateral becomes effective The end date that you specify indicates the date on which the collateral ceases to exist On the end date the credit limit of the credit line backed by the collateral will be reduced by the amount that the collateral contributes to the credit line Revaluate Collateral Select the check box if the collateral is to be revaluated Revaluation Date Specify the date on which the next revaluation has to be done eat ORACLE Revision Date Specify the date on which this collateral has to be revisited for review Taken Over Collateral Taken Over Collateral is checked if the collateral linked to CI CL account is taken over Interest Rate The interest rate to be applied if the customer uses overdraft facility against the collateral gets defaulted here when you select the Collateral Category Block Amount When the collateral is linked to the collateral pool the system computes and displays the amount to be blocked The blocked amount is computed based on the linked percentage or linked amount specified when a collateral is linked to a Collateral Pool For example Collateral Collat1 is created with collateral value of 10000 USD And 60 of Collat1 is lin
51. cate whether the line is fund based or non fund based Shadow Limit Select this check box to indicate that utilization amounts should be updated only for the facility and mainlines for the facility Thus when a utilization request is processed the system agy ORACLE updates the utilization amount only at the facility level and leaves the utilization amount at the liability level untouched The mainline and sub lines of a facility need to have the same preference This implies that you can enable this option for a sub line only if the mainline has this option already enabled Similarly you cannot create a sub line as a Shadow Limit if the mainline does not have this facility Note You cannot modify this option after you authorize the facility Bulk Payment Required Check this box to indicate if bulk payment is required If you specify here that bulk payment is required for the liner then the same is maintained at the Bulk Payments screen For more information about the Bulk Payments screen please refer to the section Making Bulk Payments against loan or commitment under the Chapter Operations of the Retail Lending user manual User Defined Status Specify status of the facility e g NORM for normal BLOCKED etc from the list available here The list displayed here is based on maintenance done in User Define Status Summary screen Status Changed Date Specify the date on which you wis
52. cent Admin Charge Amount Utilized Charge Type Utilized Charge Percent Utilized Charge Amount Admin Charge Type Unutilized Charge Type Unutilized Charge Percent Unutilized Charge Amount Administrations charges as a part of creation of new line can be specified here Charge can be a fixed amount or a percentage of the Limits amount Unutilized Charge Amount Specify the charge amount that has to be collected on a certain frequency daily monthly etc based on the unutilized amount Charge can be a fixed amount or a percentage of the unutilized amount 2 49 ORACLE 2 14 7 Utilized Charge Amount Specify the charge amount that has to be collected on a certain frequency daily monthly etc based on the utilized amount Charge can be a fixed amount or a percentage of the utilized amount UDE Details Button To capture the UDE details click UDE Details button User Data Element Details Commitment Branch PPC RefNo Commitment Product z PPC Project Id Settlement Account Commitment Reference Settlement Branch UDE Values UDE Value Rate Code Code Usage You need to capture the following details here Commitment Branch Specify the branch in which the commitment contract needs to be created By default it will be the same branch in which the facility has been created Commitment Product
53. ch upload is provided for Collateral upload allows more than one Collateral record to be uploaded in a single upload process Securities Upload Securities creation as part of batch upload is provided for Securities upload allows more than one Securities record to be uploaded in a single upload process Customer Upload Customer creation as part of batch upload is provided for Customer upload allows more than one Customer record to be uploaded in a single upload process Rates Upload Rates creation as part of batch upload is provided for Rates upload allows more than one Customer record to be uploaded in a single upload process Batch Outbound Process LCM Batch Outbound process is used to upload large records As a batch operation the necessary output files will be generated into the mentioned work path You can initiate the Batch Outbound Process using the following screen Batch Operations gt Out Bond Batch gt Detailed The following operations will be supported as an Input Files Batch Operations e Utilization e Liability e Facility e Collateral a ORACLE 7 3 Utilization Handoff For the Current Day All the utilizations which have occurred during the day can be grouped into a file This file is a part of batch handoff operation This file will contain only the current day s utilization records Liability Handoff Zero Based All the Liabilities created in LCM can be grouped in to file via the Batch Facil
54. cifying the amount range Breached Details Here for each record you can specify the following e Queue Name Specifying this will in turn fetch all the user roles attached to the queue name During utilization transaction users having these roles will have to perform the authorization on Breached Transaction amount blocks e From Amount and To Amount For specifying the amount range to define the block of amount 2 21 Limits amp Collaterals Parameter Details This section contains the following topics e Section 2 21 1 Invoking the Global Exposure Parameter Detail 2 21 1 Invoking the Global Exposure Parameter Detail You can specify certain parameters relating to the End Of Day operations in the Limits amp Collaterals Parameter Details screen You can invoke the Global Exposure Parameter Detail screen by typing GEDPARAM in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Global Exposure Parameter Detail H save Maximum No of Processes 1 Revaluate Currency Online Batch Rate Type STANDARD Online Currency System Revaluate Market Online Batch Online on Rate Range Mid Rate Maximum Retry Lock 5 A 5 Buy Rate Transaction Sell Rate ee S Holiday Treatment System Date System Checker ID Next Working Day 1 M Auto CNR UPD Utils Batch Exposure Tracking Online F Gener
55. covenant name from the list available here The list displays the covenant names maintained in Covenant Maintenance screen Based on the covenant selected all other details of the covenant maintenance will be brought here Description Description of the specified covenant is displayed here based on the details maintained at Covenant Maintenance level Mandatory Mandatory Non mandatory details will be shown on choosing a covenant name You may change this Frequency You may change the frequency shown here on choosing a covenant name Grace Days You can change the Grace Days details which are displayed here on choosing a covenant name 2an ORACLE 2 12 4 Notice Days Once you select the covenant name system defaults the Notice Days details i e the number of days prior to next revision date of the covenant You can modify the value The period during the notice days will be the notice period Revision Date System defaults the Revision Date for the covenant on save of the collateral category record based on the Frequency and Due Date of the covenant maintained in the Covenant Maintenance screen Due date Due date of the specified covenant is defaulted here based on the details maintained at Covenant Maintenance level Start Month Starting month of the specified covenant is defaulted here based on the details maintained at Covenant Maintenance level Remarks Remarks if any specified for the cove
56. ct the Credit Rating Agency its Credit Rating for the liability Out of all the Credit Ratings you may select one as the primary rating for the Liability You can maintain multiple score parameters for a single Liability zs ORACLE Agency Name Select the credit rating agency name from the adjoining option list Credit Rating Select the credit rating from the adjoining option list Primary Select one of the Credit ratings as the primary rating for liability 2 6 Customer to Liability Link This section contains the following topics e Section 2 6 1 Invoking the Customer to Liability Link Maintenance Screen 2 6 1 Invoking the Customer to Liability Link Maintenance Screen You can link customers to liabilities using the Customer to Liability Link Maintenance screen Multiple customers can be linked to a liability But a customer cannot be linked to multiple liabilities You can invoke the Customer to Liability Link Maintenance screen by typing GEDCULIK in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button amp Customer to liability link Maintenance Branch Code 000 Customer No Liability No Liability Name Customer Exposure 1 Of 1 E Exposure Name Exposure Description Exposure Type Maker Date Time Checker Date Time Mod No Record Status Authorization Status Branch Code The branch code of the branch
57. curities screen GEDSECTY for choosing the collateral type 2 9 Collateral Category Maintenance This section contains the following topics e Section 2 9 1 Invoking Collateral Category Maintenance Screen e Section 2 9 2 Covenant Button 2 9 1 Invoking Collateral Category Maintenance Screen You can define the category to which collateral belongs to using the Collateral Category Maintenance screen You can invoke the Collateral Category Maintenance screen by typing GEDCOLCA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Collateral Category Maintenance H save Collateral Category Category Description Collateral Type pl Collateral Description Revision Date E Collateral Exposure Type Secured Corporate Deposits Category Sovereigns UnSecured Type Maintenance Banks Liquid Corporates Asset Type Tangible Reval Frequency Yeary Untangible Due Date On Reval Stat Month f Type i Collateral Haircut Category 1 Of 1 30 Type Name Description Haircut Percentage x Primary Covenant Fields Maker Checker Mod No Date Time Date Time Record Status Authorization Status Category Name and Category Description Specify the Category name and a brief category description of the category anig ORACLE Collateral Type and Collateral Descr
58. date will be considered for revaluation e Next Working Date 1 Choose this to indicate that all the collaterals with the Reval Date prior to or same as the day before the next working date will be considered The EOD process closes all the active non revolving lines automatically when the check box Auto CNR is checked Example Limits Revolvin Facility Expiry Date g aut ORACLE 2 22 2 22 1 FACILI 15 Jul 2009 N TY1 FACILI 16 Jul 2009 Y TY2 FACILI 16 Jul 2009 N TY3 FACILI 15 Aug N TY4 2009 System Date 15 Jul 2009 Next Working Day 17 Jul 2009 On 15 Jul 2009 EOD the system closes FACILITY1 and FACILITY3 Note This process does not close the following lines If there are any underlying active transactions on that line If there are any active sub lines reporting to this main line If line is not closed due to the above exceptions then the system logs the same into an exception table GETB_EXCEPTION_LOG If particular line is not closed on expiry date due to the above exception then same line is taken up for auto closure process on next EOD Facilities Amount Transfer Maintenance This section contains the following topics e Section 2 22 1 Invoking the Facilities Amount Transfer Maintenance Invoking the Facilities Amount Transfer Maintenance Transfer of full or partial limit amounts from one facility to other within
59. e Customer Number Specify the customer for whom the amount block is to be done Line Code Specify the Line code for which the amount block is to be done Serial Number System displays the serial number for the line chosen in the field Line Code Block Currency Specify the currency based on which the Block amount for the facility has to be considered Once authorized this entry will be non amendable Block Amount Specify the amount to be blocked for ear marking Effective Date Specify the date from when this block amount for that facility becomes effective Expiry Date Specify the date till when this block amount for that facility is applicable Auto Block Check this box to indicate that the system should automatically create block for the specified amount for the specified facility This check box will be unchecked by default indicating that the block on the facility will be manual Remarks Add remarks about the ear marking maintenance if any Global Block Exposure Maintenance This section contains the following topics e Section 2 18 1 Invoking the Global Exposure Block Maintenance Screen Invoking the Global Exposure Block Maintenance Screen You can block earmark a certain amount of an exposure limit using the Global Block Exposure Maintenance screen You can invoke the Global Exposure Block Maintenance screen by typing GEDEXPBL in the field at the top right corner of the Appl
60. e Revision Date Ez iiaii zl j Collateral Type Market Value Based Revaluation Date E Guarantee Based Revaluate Collateral Normal Grace Days Mortgage Initiated Collateral Category lad Interest Rate Utilization Amount F Taken Over Available Amount Block Amount Commitment Reference Number farket Value Based Guarantee Based Security Id FS Guarantor Id FI Number Of Units Nominal Rating h B 3 E Revokeable hie Revoke Date Ez Market Price Code az Last Reval Price Next reval Date Ez Issuer Details Issuer Reference No Issuer Name Source Code Insurance Covenant Shared Link Contract UDE Values Source Restrictions Fields Haircut Schedule Date Time Date Time Record Status Authorization Status In the above screen you can specify the contribution that the collateral should make to the limit assigned to a customer under a credit line The collateral details which are associated with a collateral code can be picked up during collateral pool maintenance Liability Number Collaterals issued have to be linked to a liability Specify the liability Number for which the collateral is linked Collateral Code Specify the Collateral Code here A maximum of 20 alphanumeric characters are allowed in this field Each Collateral code should be unique Collateral Description Give a brief description of the collateral here Collateral Type Indicate the type of collateral Market Based Type Guarantee Type o
61. e Code az Utilization Price hz Branch Code laz Customer Number Advanced Search Reset Records per page 15 t L Pres 4 of 1 Liability Number Liability Name Branch Liability Currency Overall Limit Line Code Serial Number Utilization Amount Utilization Price Authorization Status A Authorized U Unauthorized Record Status C Close O Open Covenants Queries This section contains the following topics e Section 3 4 1 Invoking the Facility Covenants Query Screen Invoking the Facility Covenants Query Screen You can perform the following queries for covenants in the system The Facility Covenants Query allows you to query the covenants associated with a particular facility Details including the line code liability number last revision date notice days and so on for the covenant can be viewed You can invoke the Facility Covenants Query screen by typing GESQFCNV in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button ORACLE Facility Covenants Query Covenant Name Liability Number Serial Number Description Line Code Mandatory Revision Date E Frequency Start Date E Grace Days Notice Days Due Date On Covenant Reference li AEA Advanced Search Records per page 15 iret previous 4 Of 1 Last m Covenant Name Description Liability Number Line Code Serial Number M
62. e Currency Code linkage amount to y line amount Pool1 USD Loan USD 100 15 000 115 000 s The revaluation in both cases is triggered off automatically whenever there is a change in the exchange rates i e online process The process explained above is an online process wherein the change in the currency exchange rate immediately revaluates all the contracts and the collaterals having this on ORACLE 6 2 6 2 1 exchange pair with the facility currency If at the LCM Global Parameter maintenance the option for Revaluate Currency during Offline batch has been selected then the currency revaluation as explained above will be taken up as part of revaluation batch process Collateral Revaluation This section contains the following topics e Section 6 2 1 Collateral Revaluation of Market Based Securities e Section 6 2 2 Collateral Revaluation of Non Market Based Securities Collateral Revaluation of Market Based Securities Collateral Revaluation will be of two types These types are explained in the sections below The assets that are offered as collateral generally back the credit facilities that the bank grants a customer Your customers can offer marketable securities as collateral As Marketable Securities are by nature given to fluctuations based on the forces of short term demand and supply their value also tends to fluctuate A rise or fall in the market value of a securit
63. e Exception Queue Maintenance SCreen cccceeieeeee 2 72 2 20 Exception Queue Slab Maintenance cecceceeeeeceecceceeeeeeeeeteesenenenaeeeeeeeeeeeens 2 73 2 20 1 Invoking the Exception Queue Slab Maintenance csecceeetteeeeeeeeee 2 73 2 21 Limits amp Collaterals Parameter Details 000 000 eeceeeeeeeeeeteeeeeeeecaeeeeeeeaeeeeeeneaaes 2 75 2 21 1 Invoking the Global Exposure Parameter Detall 0000 c cscccesseeeeerees 2 75 2 22 Facilities Amount Transfer Maintenance ccceeeeeeeeeeeneeeeeeeeeneeeeeeeenaeeeeeeeaaes 2 78 2 22 1 Invoking the Facilities Amount Transfer Maintenance ccccecenee 2 78 2 23 Force Collateral Revaluation ccceccccceeeeeseeeeeeeeenneeeeeeenceeeeeeeeneeeeeneeiaeeeeeseaes 2 80 2 23 1 Invoking the Ad Hoc Revaluation SCre n cccccccccsceecetstieeeeeetnsteeeeneea 2 80 2 24 Multi Authorization Maintenance 000 ce cceceeeeeeeeeeeeeeenneeeeeeeenaeeeeseeeaeeeeeeeesaeeeeeneaaes 2 80 2 24 1 Invoking the Multi Authorization Maintenance SCIree n ccccceeeee 2 81 2 25 Dual Authorization of Utilization Transaction ccc cceeceeeeeeeeeteeeeeeetteeeeeeenaaees 2 83 2 26 LiabilitieS Merga siaren T T T 2 84 2 26 1 Invoking Liability Merger Maintenance Screen essssseeeeeneeeeeenneeeenn 2 84 2 26 2 Invoking Liability Merger Process Screen seesissseeeeiinneerrnnseerrrnnneenen 2 85 QUGTIOS aeaa E rE E E eee A rene enna es 3 1 gT L
64. e from which the merger of liabilities must take effect Remarks Specify the remarks about the Liability Merger Maintenance Once you have maintained the above merger details you must initiate the Merger Batch Process using an Intra Day Process so as to complete the merger During this batch process all liability IDs for all the related maintenances will be modified These include the following maintenances e Liability Customer e Collateral e Collateral Pool e Facility e Netting e Facility Transfer e Ear Marking Upon merger all the Utilizations will to point at the new liability The liability utilization will then be moved from the old liability to the new liability and the old liability will be closed You may view the following merger logs from the above screen e Customer Link Merger Log e Collateral Merger Log e Collateral Pool Merger Log e Netting Merger Log e Facility Merger Log e Transfer Merger Log e EarMarking Merger Log e Utilization Merger Log 2 26 2 Invoking Liability Merger Process Screen Once you maintained the details of liabilities to be merged you can initiate the process of merger using the Liability Merger Process screen aes ORACLE You can invoke the Liability Merger Process screen by typing GEDMRGTR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Liability Merger Process Click Process button to init
65. ect the premium periodicity of the insurance The list displays the following values e Daily e Weekly e Monthly e Quarterly e Half Yearly e Yearly Premium Status Specify the insurance premium status where in the premium status like normal overdue premium payment failure status etc can be specified Premium End Date Specify the end date of the premium payment Insurance Amount Specify the insured amount of the policy Insurance Currency Specify the insurance currency of the policy Cover Date Specify the date from which the insurance policy is valid The insurance cover date cannot be greater than the collateral expiry date Insurance Code Specify the insurance code of the policy for which you want to capture insurance details dar ORACLE 2 12 3 Premium Currency Specify the currency of the premium to be paid Premium Amount Specify the amount of the premium to be paid Remarks Specify the remarks about the insurance details Coverage Specify the coverage details of the insurance Covenant Button The covenant details can be captured for a collateral in the Covenant Details screen Click Covenant button to invoke this screen Multiple covenants can be entered in the screen shown below You can customize the details of each covenant recorded here Covenant Covenant E Covenant Name Description Revision Date Mandatory Grace Days Notice Days Covenant Name Select the
66. ed on the selected Currency Code Branch Restrictions Branch Code Specify the branch code for the Branch Restriction Branch Name System displays the branch name for the branch as maintained in the Branch Parameters Maintenance screen based on the selected Branch Code Ext System Restrictions External System Specify the external system for the External System Restriction Description System displays the description for the external system as maintained in the External System Maintenance screen based on the selected External System chosen Exposure Restrictions Exposure Name Specify the exposure name for the Exposure Restriction Exposure Description System displays the description for the exposure as maintained in the Track Exposure Maintenance screen based on the selected Exposure Name Product Restrictions Product Code Specify the product code for the Product Restriction Product Description System displays the description for the product based on the selected Product Code Maintaining Customer Restrictions for a Line To recall you can assign a limit to a Line Liability combination A liability code can have several customers linked to it By default the line that you define is available to all customers linked to the liability code You can restrict the limit available under this line liability combination to specific customers If you choose the restriction type as Al
67. edit Score sub screen Note These details are maintained only for information and have no processing impact Overall Limit Specify the overall limit amount for that liability Value entered in the field will be in the currency stated above If liability is of customer group then overall limits stated will be common to all the customers Note System validates the overall limit amount against the internal lending limit equivalent amount If the overall limit amount is greater than the Internal Lending Limit Equivalent Amount then the system displays an override message as Overall limit amount 1 of the customer liability exceeds the maintained Internal Lending Limit Equivalent Amount 2 Liability Category Select the Liability Category from the list available here User Defined Status Specify status of the liability e g NORM for normal BLOCKED etc Unadvised Select this check box if the Liability is unadvised For any transaction involving an unadvised liability you will be notified so Netting Required Select this check box to indicate that the netting amount defined in the Account Contract Balance for Netting screen will be updated in the Netting Contribution field for the specific facility for which Netting required checkbox is enabled This is only for information and not for processing You can have the Facility to display the Netting Amount in the Netting Contribution screen For m
68. en the field gets disabled Facility Creation Fee Check this box to apply fee for facility creation If Facility Creation Fee is checked and authorized then the field gets disabled You can achieve service fee for facility sanction if the charge basis for charge product is selected as LINE_CREATION and the periodicity is Daily Facility Renewal Fee Check this box to apply fee for facility renewal ats ORACLE You can achieve service fee for facility renewal if the charge basis for charge product is selected as LINE RENEWAL and the periodicity is Daily Facility Increase Fee Check this box to apply fee for facility amount increase You can achieve service fee for facility increase if the charge basis for charge product is selected as LINE_INCREASE and the periodicity is Daily Facility Expiry Fee Check this box to apply fee for facility expiry You can achieve service fee for facility expiry if the charge basis for charge product is selected as LINE_EXPIRY and the periodicity is Daily Expiry Upfront Fee Check this box for upfront collection of facility expiry fee Expiry Upfront Fee is disabled if Expiry Fee Frequency is selected Expiry Fee Frequency Select the expiry fee frequency from the adjoining drop down list The options available are e Daily e Monthly e Quarterly e Half Yearly e Yearly Expiry Fee Frequency is disabled if Facility Upfront Fee is selected On save the
69. ent Required Main Line Code Line Currency GBP Category Internal Remarks BEEEBEo0 o026B82 Limit Amount Uncoll Collateral Amount Block Amount Transfer Amount Approved Amount Effective Line Amount Day Light OD Limit Eff Line Amount Basis Day Light Limit Limit Amount Collateral Contribution x tilization Available Amount Amount Utilized Today Date Of First OD Utilized Amount Date Of Last OD Tanked Utilization Netting Contribution Last New Utilization Date Availability Line Start Date 2011 01 04 Available Line Expiry Date Availment Date Renewal Date xception Exception Transaction Amount Exception Breach Facility Fee Preferences E Interest Fee Required Fee Calculation Account C Facility Creation Fee 7 Facility Expiry Fee Limit Restrictions Tenor Restrictions Source Restrictions Schedules Value Date Charges Covenents PoolLinks Maker Date Time Checker Date Time Mod No Record Status Authorization Status Note This is a view only screen hence you cannot make any modifications in this screen Track Exposure Maintenance This section contains the following topics e Section 2 15 1 Invoking Track Exposure Maintenance Screen e Section 2 15 2 Value Date Exposure Button Invoking Track Exposure Maintenance Screen Maintenances for exposure tracking can be done via the Track Expo
70. es Collateral Types Maintenance This section contains the following topics e Section 2 8 1 Invoking Collateral Types Maintenance Screen Invoking Collateral Types Maintenance Screen Collateral Types maintenance is used to capture all types of Collateral which your bank accepts Collateral Types information would be required when creating a new collateral in the system You can maintain Collateral Types in the Collateral Types Maintenance screen You can invoke the Collateral Types Maintenance screen by typing GEDCOLTY in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button This maintenance is at done at the bank level and all branches would be able to access this information Collateral Types Maintenance Collateral Type Description Interest Rate Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status Collateral Type Specify the Collateral Type A maximum of 20 characters are allowed in this field ale ORACLE Description Give a brief description of Collateral Type A maximum of 50 characters are allowed in this field Interest Rate Specify the interest rate to be applied on the customer account when customer uses the overdraft facility against the collateral type This can later be linked to Collateral Category Maintenance screen GEDCOLCA Issuer Maintenance screen GEDISSUR and Se
71. freeze this collateral If the Available check box is unchecked then the collateral will be frozen i e it will not be available for subsequent linkages to new collateral pools The collateral s current links to collateral pools will not be affected Note Asa part of Collateral Pool creation for a Liability only those collaterals which are checked as Available will be displayed in the list for collateral pool linkage Collateral which was Available and which has been linked to pool pools can mod ified as unavailable later on Unavailable collateral will not be available for subse quent new collateral pool linkages but the old linkages will not be affected Sharing Required Check this box to indicate that the collateral can be shared among several liabilities If you choose this option you can specify the details of such liabilities in the Shared Details screen If this option is chosen then in collateral maintenance for a collateral pool the list of collaterals will include shared collaterals too As part of Collateral Revaluation pools with the shared collaterals will be considered for revaluation Branch By default the branch code in which collateral is created is displayed here and you cannot modify this value Lendable Margin On save of the collateral system calculates the lendable margin for the collateral This value will be 100 Haircut Collateral Value The collate
72. g collateral pools remember the following e Collateral can be linked to more than one pool if the collateral amount available is not zero e A credit line can be backed by only one pool but a single pool can back multiple credit lines You must maintain the following details for each of the collateral Collateral Code Select the collateral code from the adjoining option list If the Linked Percent Number is specified on save of the record system defaults the Linked Amount calculated as Linked Percentage of Collateral Contribution If the Linked Amount is specified on save of the record system defaults the Linked Percent calculated as percentage of Linked Amount out of the Collateral Contribution Collateral Currency The currency in which the collateral has been maintained will be displayed when a collateral code has been picked Collateral Contribution The collateral amount which has been maintained will be displayed when a collateral code has been picked 29 gt ORACLE Linked Amount When a collateral pool comprising the collateral is linked to the facility the system computes and displays the amount to be linked The linked amount of Collateral pool is computed based on the pool percentage or pool amount specified when a collateral pool is linked to a Facility For example Collateral Pool Pool1 is created with pool amount of 6000 USD And 60 of Pool is linked to a Facility then the l
73. ggered for Credit Exception Management to authorize the credit utilization amount The limit transaction amount specified should be below the total effective line amount specified for that facility Note The utilization transaction can also be authorized or rejected using the Multi Authorization Maintenance screen based on the system configuration Exception Breach Percentage Specify the Exception Breach Percentage During utilization transaction when utilization amount crosses the specified Exception Breach Percentage BEPL process is triggered for Credit Exception Management to authorize the credit utilization amount The limit transaction amount specified should be below the total effective line amount specified for that facility Note The utilization transaction can also be authorized or rejected using the Multi Authorization Maintenance screen based on the system configuration Facility Fee Preferences You can maintain a facility fee on the customer OD accounts Interest Fee Required Check this box to indicate the facility is applicable for interest calculation If Interest Fee Required is checked and authorized then the field gets disabled Fee Calculation Account Fee calculation account is used for fee calculation Specify the account which is linked with the facility The same account will be applicable for interest calculation based on LCM facility If Fee calculation account is selected and authorized th
74. ght corner of the Application tool bar and clicking the adjoining arrow button Liability Maintenance Liability Name Main Liability Number Main Liability Name Liability Branch 000 Liability Currency GBP Overall Limit Utilization Amount Revision Date Credit Rating Overall Score User Defined Status Liability Category Liability Clean Risk Limit Secondary Clean Risk Limit Secondary PSTL Risk Limit F UnAdvised E Netting Required fis fis 0 fs O User Reference Score Credit Rating Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status ORACLE Liability Number Specify the Liability Number If the Liability Number is customer group then all customers under this group should have same Liability Number Liability Name Specify the Liability Name here A maximum of 35 characters are allowed in this field Main Liability Number Specify the main liability number The adjoining option list displays a list of liability numbers maintained in the system Choose the appropriate one The child liability s overall limit amount should not exceed the parent liability s overall limit amount During Utilization transaction the utilization is tracked for both the specified Liability and also the parent Liability to which it is linked Liability Branch Specify the branch in which liability is associated Liability Currency Specify the currency with which the li
75. h to change the status You can specify a date before the line start date to block the line till the specified date Also you can set a date prior to the application date Internal Remarks Specify the internal remarks as limits terms and conditions Amounts Specify the following details Limit Amount Specify the limit for the facility If you have maintained schedules for limits the system automatically updates the limit amount here on the dates specified for each limit in the schedule Note The charges can be collected on facility limit amount change In this case commitment contract created should be capable of charging the customer on the facility limit amount change For this purpose SDE INCREASED_PRINCIPAL can be used while setting up the charge rule at the CL product creation level LIMIT_AMOUNT can be used while setting up the IC rule for interest calculation based on facility limit amount Collateral Amount System defaults the Collateral Amount on save based on the pools linked in the Pool Links sub screen Aao ORACLE Transfer Amount System displays the transfer amount resulting from Facilities Amount Transfer transactions The value displayed has either the sign or indicating whether the amount is transferred from or to the line If the sign is then the amount is transferred from the line and if it is then the amount is transferred to the line Effective Line Amount The syste
76. he system will automatically subtract the netting amount from Available Amount and the Netting Amount for the corresponding facility When an Account Netting Record is re opened and authorised the system should automatically add the netting amount to Available Amount and the Netting Amount for the corresponding facility Facility When the Netting option is un checked and the modification is authorised the system will automatically set the netting amount to zero and recalculate the available amount Likewise when the netting option is enabled the system will update the netting amount based on all the Account Nettings which have Netting option enabled for the facility Liability When the Netting option is un checked and the modification is authorised the system will automatically set the netting amount of all its facilities to zero and recalculate the available amount Similarly when the netting option is enabled the system will update the netting amount based on all the Facilities and Account Nettings records which have Netting option enabled for the liability Viewing Previous Credit Limit Changes You can view previous changes made to the credit limit using the Facilities Summary screen You can invoke this screen by typing GESQYFAC in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button ap ORACLE Facilities Summary E gt search Ct Advanced Search 9 Reset Y C
77. heckbox Issuer Customer enabled Issuer Details Specify in brief any additional details of the issuer Issuer Limits for Collateral Types An Issuer of Securities may issue different types of securities These can be used by a customer as collateral for credit availed from the bank The securities used as collateral can be debentures shares bonds commercial papers etc These securities can therefore be classified under different Collateral Types too For each security type that your bank accepts as collateral from the issuer you can specify a limit indicating the maximum exposure amount in value to the issuer for this security type When the total of the collateral given by the customer in the form of a particular collateral type exceeds the limit set for the Issuer the system will show you a notification You can define Issuer Limits for different collateral types under Issuer Limits You can maintain several collateral types here with their respective Limit Currencies and Limit Amounts Collateral Type Select the collateral type for which issuer limits are being specified Limit Currency Select the limit currency from the adjoining option list Limit Amount Specify the limit amount for that collateral type in the limit currency This can later be linked to Securities Maintenance screen GEDSECTY for choosing the issuer code while maintaining the security Securities Maintenance This section contains the foll
78. hould be between 0 and 100 Note If Bank Capital is specified then Central Bank Lending Limit and Internal Lending Limit fields are mandatory Revaluate Currency Online Indicate whether the currency revaluation should be an online or a Batch EOD process Revaluation of the line amount takes place online if the parameter is set to online Revaluate Market Online Indicate whether Market price revaluation should be Online or Batch Market price based security Revaluation takes place online if the parameter is set to online UPD Utils Specify whether Value date utilization updating can be Online or Batch Value date updating takes place online if the parameter is set to online Block Facility on Status Indicate whether depending on the worst status of a liability the EOD process should block the facility or not Rate Range Specify the rate Mid Rate Buy rate Sell rate which has to be considered during all Conversion Amount calculations in LCM Batch Process Indicate whether the EOD Batch Process should be set up as part of the Database Server or the Application Server Application server is the recommended choice Holiday Treatment The revaluation process for the securities collaterals and covenants may fall on a bank holiday You can specify which of the following actions must be taken in such cases e System Date Choose this to indicate that only collaterals with a Reval Date prior to or same as the system
79. iabilities QUE encia ae Er E E APA ila eee a a 3 1 3 1 1 Invoking the Liability Query Screen essseeesesnnneesrrnerrrrrnnneerrrnnrernnnnnenna 3 1 22e Maby FISTO ait aE A E ladehiGiets 3 3 3 2 1 Invoking the Liability History Query Screen sssssssesneesrnesrrerrrerrnene 3 3 3 3 Utilization Transaction Query cece cette eee eeeeeeeeeeteeeeeeeeeeeeeeeeeeeteeaaeeeeteeaees 3 4 3 3 1 Invoking the Utilization Transaction Query SCION cccccceeesteeeeteeneeees 3 4 3 4 Covenants QUerieS cccceececceeeeeeececeeeeeeeeeeeeeseeaaedeeseduedeeeeeecaedeseeeaedeeeeeeeeenetees 3 5 3 4 1 Invoking the Facility Covenants Query SCIO N cccceeeettteeeeeeenneeeees 3 5 FRG PON ES cis sis assed cee dance wi danse dues iaaea Eaa E Ea Naaa a E Aa aaa e eie E Enana Eaa 4 1 4 1 Generating REports vciiec cetsiencccteciidctei tastee diane aie eee 4 1 4 2 Covenant History Reports orir aa AT AE ANIE E AEE a 4 1 4 2 1 Generating Covenant History REPOSts cccccccceeeeeeeeestteeeeeeetnneeeeeeeae 4 2 4 2 2 Contents of the Report 1 ccccccccccceecnccneeseceeeeeeeeeeceseetecseaaaesaeeeeeeeeeneteteees 4 2 Annexure 1 Value Dated Facility sssssssssssnunnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn 5 1 5 1 Value Date Based Facility Maintenance eessseseeessesrressesrrrsssrrrsssrirrsssrrrnsseeen 5 1 52 Value Date Based UtiliZation igresia eA Enn r AE TEA EEA EER SEERE 5 2 5 2 1 Processing Value Date Based Utilization
80. iate the merger of maintained liabilities Note Merger between Liabilities that form part of a hierarchy is not allowed zee ORACLE 3 1 3 Queries The Queries module under the Menu Browser provides query functions for the following Liabilities Liability History Facilities Utilizations Utilization Transactions Utilization Log Collateral Covenants Facility Covenants This chapter contains the following sections Section 3 1 Liabilities Query Section 3 2 Liability History Section 3 3 Utilization Transaction Query Section 3 4 Covenants Queries Liabilities Query This section contains the following topics Section 3 1 1 Invoking the Liability Query Screen Invoking the Liability Query Screen The Liability Query screen allows you to query for records based on the following parameters Authorization Status Liability Number Liability Branch Record Status Liability Currency You can invoke the Liability Query screen by typing GESQLIAB in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button a ORACLE Liability Query Authorization Status x Record Status Liability Currency kz Liability Number kz Branch kz Advanced Search Records per pagel 15 za E IE Authorization Status Record Status Overall Limit Credit Rating Revision Date Utilization Amount lUnadvised Liability Number Liability
81. ication tool bar and clicking the adjoining arrow button 210 ORACLE Global Exposure Block Maintenance Branch 000 Exposure Code Exposure Description Block Currency Block Amount Effective Date 2011 01 04 Expiry Date Auto Block Additional Information Customer No Liability No Remarks Line Code Serial No Maker Date Time Checker Date Time Mod No Record Status Authorization Status Block Number Specify a unique number for the block you are creating The system will not allow you to modify it after authorization of the maintenance Branch Specify the branch from which the block is being maintained You cannot change the branch after authorization of the maintenance Exposure Name Specify the exposure code for which the amount block is to be done The adjoining option list contains all the relevant codes Select the appropriate one Exposure Description The system defaults the exposure description here Block Currency Specify the currency in which the amount block is to be applied You cannot modify this once the maintenance has been authorized Block Amount Specify the amount to be earmarked This amount is deducted from the existing utilization of an exposure before additional utilization requests are processed Note It is also updated as the Block Amount in the Track Exposure Maintenance screen Effective Date Specify the date from wh
82. ices Oracle Corporation and its affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents Preface iine iaaa aaraa a Paa aae E Eara anaieri Eoaea amaa Eie 1 1 Ti UMTMOMUGHON apa cectaded okies acti n E EA E baa EE AEN 1 1 12 Auden a E A O A E AE E UES 1 1 1 3 Documentation Accessibility raniad ai eNi NEE 1 1 TA OFGANIZ ANON ora oat a A AA AEAT ARE L AAE RE 1 1 1 5 Acronyms and Abbreviations ccccceeeeeeeeeeecneeeeeeennaeeeeeeeaaeeeeseeaeeeeeeenaeeeeseeaas 1 2 16 Related Documents rene nnan a eal a a a ade diets det atest 1 2 ef Glossary O lcoOns raa r sade ene aae eat cael ad EEE EA cas se EE 1 3 Limits amp Collate tals e osc ose eee amame Saan aE cca 2 1 Li WATROCUCtION ner a ea a ee acai aioe ee 2 1 2 2 Credit Score Maintenance nreo mei EAE A EEA RE 2 1 2 2 1 Invoking the Credit Score Maintenance Screen eeuisseeeiisneeeineneeeennne 2 1 2 3 Agency Details for Credit Rating eeessssseeesrrnesesrrnessrrnnesetnnnestennnasnnnnneeennannesnnnnnae 2 2 2 3 1 Invoking the Credit Rating Agency Maintenance Screen ccceecee 2 2 24 Us rDetined Status snra ntti ah abies AAT EE 2 3 2 4 1 Invoking User Defined Status Maintenance Screen ccsccccisieeeeeeenes 2 3 2 5 Liability Maintenance enne ea a T A RA 2 4 2 5 1 Maintaining Liability Maintenance eeesseeeesseeeennnserrnnnnernnnneerrnn
83. ich the amount block should be applied for the exposure Expiry Date This is the date till which the amount block for the exposure is enforced ae ORACLE 2 19 2 19 1 Auto Block The system automatically checks this option on the date the block on the exposure comes into force i e the Effective Date Additional Information As part of additional information for the exposure you can capture the following details Customer Number Specify the customer number for the global exposure block maintenance Liability Number Specify the liability number for the global exposure block maintenance Remarks Add remarks about the global block exposure maintenance if any Line Code Specify the line code for the global exposure block maintenance Line Serial System displays the serial number for the line chosen in the field Line Code Exception Queue Maintenance This section contains the following topics e Section 2 19 1 Invoking the Exception Queue Maintenance Screen Invoking the Exception Queue Maintenance Screen You can maintain exception queue records with their respective user roles allowed for authorization in the Exception Queue Maintenance screen ale ORACLE You can invoke the Exception Queue Maintenance screen by typing GEDQUEMN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Exception Queue Maintenance Q
84. ilit Liabilit PSAN Availabilit MEES ine iability iability ee vailabili Liability Code Code Limit Currency Utilizatio y n Symphony Loans 100 000 USD 46900 0 53100 00 Group 0 After the change in the exchange rate between the line currency and the currency of a contract utilizing the limit under the line due to this the utilization at the facility level is will changed Due to this change the utilization at the Liability level also gets changed as shown in the table below Li Liabilit Liabilit pened Availabilit ere ine iability iability oy vailabili Liability Code Code Limit Currency Utilizatio y n Symphony Loans 100 000 USD 48400 0 51600 00 Group 0 Facility Currency and Collateral Currency Change in exchange rates between the Credit Line currency and the currency of the collateral When you update and authorize the exchange rates in the currency table the system scans all the collateral linked to a line bearing different currencies The collateral contribution is then converted the into the line currency using the latest exchange rates After the conversion the collateral contribution to the line is updated The calculated limit contribution of the collateral has to be linked to the pool This pool containing the pool amount will be linked to the Facility Hence any revaluation at collateral level will affect the pool amount ca ORACLE Example You
85. inked amount of the collateral pool is updated as 3600 i e 60 of 6000 The available amount of collateral pool is updated as 2400 6000 3600 The available amount of the collateral pool is arrived by using the below mentioned calculation Available amount pool amount pool utilization linked amount The available amount of facility is increased to the extent of linked amount in the facility currency Any utilization to the facility will only impact the available amount and the utilization of the facility and not the collateral pool or the underlying collateral Pool Amount The system computes and displays the utilization amount to the Collateral Pool if a collateral Pool is attached to a contract or account and not through a facility Pool Utilized This field displays the pool amount that has been linked to a various credit lines hence displaying the total pool amount utilized at any point in time Linked Amount Pool Currency System defaults the Linked Amount Pool Currency for each of the collaterals added in the Collateral Pool Linkages as the linked amount in the pool currency For Example you have linked the pool LOANP001 to the liability BIRLA0001 LOANPOO1 is in turn backed by the following collaterals Collateral Code Ccy Collateral Amount Linked Amount ISDP16924 DEM 100 000 75 000 AC777228 GBP 55 000 55 000 COLSHRS15 INR 2 000 000 1 500 000 COLHS819 USD 1 500 000 1 500
86. ion The fields are all display fields and cannot be edited for a transaction using this screen Only Accept or Reject for authorization of the breached transaction is allowed Serial No Indicates the LCM generated unique identifier for the transaction Utilization Reference Number Specifies the LCM utilization reference number Customer Number Specifies the Customer Number of the utilization transaction Customer Number entered should be valid Customer Number in LCM system Transaction Date Indicates the date and time when the transaction was entered in the external system ap ORACLE Utilization Amount Indicates the Utilization Amount Utilization Currency Indicates the currency of the utilization transaction Currency code entered should be a valid currency code in LCM system Liability Number Specifies the liability number of the utilization transaction Liability Number entered should be valid Liability Number in LCM system Line Code Specifies the facility code of the utilization transaction Facility Code entered should be valid Facility Code in LCM system Serial Number Specifies the facility serial number of the utilization transaction Facility Currency Specifies the facility currency Facility utilization Indicates the facility utilization amount Utilization Branch Indicates the transaction branch Utilization Product Indicates external product code of the utilization transaction This is only if
87. ion authorizer queue first checks for authorizers maintained for that particular branch and category during a utilization transaction for that branch If no authorizers are maintained for that branch then a default authorizer will be assigned to all branches The Default Authorizer details will be used for processing Credit Exception management Branch Specify the branch for which the maintenance is being done Description The description for the branch chosen in the field Branch is displayed here Remarks Specify the remarks about the Transaction Authorize Maintenance Category Specify the category for which the transactions authorize maintenance is being done Having specified the category for the liability and the facility the transaction authorize maintenance can be done for the same category When the Exception Txn Amount or Exception Breach Percentage gets breached for a line belonging to the same category as defined in the transaction authorize maintenance the transaction will be available in the queue defined in the transaction authorize maintenance for the specific category an ORACLE Transaction Details Here for each record you can specify the following e Queue Name Specifying this will in turn fetch all the user roles attached to the queue name During utilization transaction users having these roles will have to perform the authorization for the corresponding amount range e From Amount and To Amount For spe
88. ions 2 14 10 2 Maintaining Tenor Restrictions for a Sub Line You can define a sub line tenor list and also define limits for each of them To recall a sub line falls under the umbrella of the Main Line to which it is linked Therefore the maximum tenor that you define for a sub line should not exceed the maximum tenor defined for the main line to which it is linked The limit amount that you define for each sub line tenor cannot be higher than the tenor limit defined for the main line to which it is linked A ORACLE Tenors and limits can be placed at both the sub line and main line levels But the maximum tenor of a sub line cannot exceed the maximum tenor defined for the main line to which it is linked Example You define a Line LOANS and link it to the Liability Code CREATIVITY INC the Liability and the Customer Code in this case are the same The limit set for this line LOANS is 1 million Main Line Code LOANS You define a credit limit of 1 million for Creativity Inc under this Credit Line You also specify the tenor Restrictions for the line to be the following 30D 60D and 90D Main Line Tenor List Limit 30D 0 5M 60D 0 3M 90D 0 25M The loans that this customer can avail can be further classified into Short Medium and Long Term Loans For our example we shall make Short Term Medium Term and Long Term loans as sub lines under the Main Line Loans It is only when y
89. iption Specify the collateral type Collateral description will default from the Collateral Types Maintenance screen based on Collateral type chosen Category Type Indicate the category type from the following e Sovereigns e Bank e Corporate Revision Date Specify the date on which the Collateral Category has to be revised Secured Type Indicate the Collateral Exposure Type from the following e Secured e Unsecured e Liquid Type Tangible Type Specify the asset type here Tangible or intangible Frequency Select the frequency with which the collateral has to be revaluated You can select one of the following e Yearly e Half Yearly e Quarterly e Monthly e Weekly e Daily Start Month If the Frequency select is Yearly Half Yearly Quarterly or Monthly then specify the start month here Due Date On Specify the number of days after which the covenant needs to be reviewed Collateral Haircut Category Here you can maintain several collateral haircut categories for use in the credit risk mitigation process Multiple haircut records for same collateral category can be maintained Specify the following haircut details for each record e Haircut Name and Description e Haircut Percentage Specify the final Haircut offset margin e Primary Select a haircut as the primary haircut value for the Collateral Category Remarks Specify the remarks about the collateral category maintenance as ORACLE 2 9 2 Covenan
90. ity Handoff This handoff will contain all the details of the records Facility Handoff Zero Based All the facilities created in LCM can be grouped into file via the Batch Facility Handoff This handoff will contain all the details of the records Collateral Handoff Zero Based All the Collateral created in LCM can be grouped into file via the Batch Facility Handoff This handoff will contain all the details of the records Interfaces The following interfaces are available as part of the LCM system Module Interface Name Interface Type Currency Rates Interface Online incoming Core Product Interface Batch Incoming Branch Holiday Holiday Interface Batch Incoming SMS User Interface Batch Incoming Account Account Interface Online Incoming TD TD Interface Online Batch Incoming TD TD block unblock Interface Online Batch Outgoing Core Liability Link Interface Online Batch Outgoing Limits Facility Interface Batch Outgoing Limits Utilization interface Batch Outgoing Limits Dual Authorization Online Outgoing For more details on maintaining External Systems and Interfaces refer the chapter titled Gateway Maintenance ORACLE 8 Function ID Glossary E GEDMERGE eeeeeeeeee 2 84 ELRPCONH ccccccccecceeeee 4 2 GEDMLIAB eceeeeee 2 5 GEDMPOOL eeeeeeeeee 2 34 G GEDMRGTR on eeeeeeeeeeee 2 86 GEDACCNT eeeeeseeeeeeee 2 68 GEDPARAM
91. ked to a Collateral Pool then the blocked amount of the collateral is updated as 6000 i e 60 of 10000 The available amount of collateral is updated as 4000 10000 6000 The available amount of the collateral is arrived by using the below mentioned calculation Available amount Collateral value utilization blocked amount The available amount of pool is increased to the extent of linked amount in the pool currency Any utilization to the pool will only impact the available amount and the utilization of the pool and not the collateral Specifying Details for Market Value Based Type For a market value based security you must maintain the following security related details Security Id Specify the security Id for which the collateral is linked On specifying the security Id the price details and Market where security is traded are displayed Number of Units Nominal Value The collateral value of Marketable Securities will be computed by multiplying its market value which is picked up from the Securities maintenance screen by the number of units of the security that constitutes the collateral Therefore while maintaining details of Marketable Collateral it is mandatory to specify the number of units of the marketable asset that constitutes the collateral If the security is nominal value based input the nominal value of the security If it is a units quoted security then enter the number of units of the security that
92. lear All Case Sensitive Authorization Status X Record Status C E Mod Number Line Code Serial No Liability No Line Currency Records per page 15 10f1 Authorization Status Record Status ID Mod Number Line Code Serial No Liability No Line Currency O g mr AAEE E mT You can query on records based on all or any of the following criteria e Authorization Status e Mod No e Serial No e Line Currency e Limit Amount e Utilisation e Avi Flag e Expiry Date e Record Status e Line Code e Liability No e Eff Line Amount Basis e Eff Line Amount e Available Amount e Start Date e ID Click Search button The system identifies all records satisfying the specified criteria and displays the following details for each one of them e Authorization Status e Record Status abi ORACLE e Mod No e Line Code e Serial No e Liability No e Line Currency e Eff Line Amount Basis e Limit Amount e Eff Line Amount e Utilisation e Available Amount e Avi Fig e Start Date e Expiry Date e ID To view any previous changes made to the credit limit double click the corresponding record A detailed screen appears containing changes made a ORACLE 2 15 2 15 1 Facilities Maintenance Branch Code 000 User Defined Status Liability No Status Changed On Line Code Revolving Line Serial No 1 Netting Required Description UnAdvised Fund Shadow Limit Bulk Paym
93. lize the limit under the credit line The revaluation process is applicable for such a line If the above conditions hold good then a change in the exchange rate will trigger of the revaluation process The system calculates the Facility currency equivalent of all the contracts linked to the facility using the new exchange rates and updates the utilization and available amount under the line Example oal ORACLE You have defined a line for Loans and linked the Liability Code Symphony Group to it The credit limit assigned to the credit line is USD 100 000 the facility currency is USD No currency restrictions have been maintained for the facility PETE Line Facility Facility Liability Gode Code Limit Currency Symphony Loans 100 000 USD Group On 01 January 2008 the following Loan contracts has been sent to LCM system for utilization which are linked to this Credit Line At the time of saving these utilization details the line utilization will be computed based on the exchange rates as of the transaction date i e 01 January 2008 of these contracts The following table contains the details Loan Exchange Facility Currency Utilizatio Availabilit Amount Rate Equivalent USD n y AUD 15 000 1 50 22500 00 22500 00 27500 00 DEM 2 000 1 20 2400 00 2400 00 25100 00 GBP10 000 0 5 20000 00 20000 00 5100 00 INR 72 000 36 00 2 000 00 2 000 00 3100 00 Total 46900 0 3100 00 0
94. lowed click on the Plus button and select the customer code from the list to indicate that they are allowed to use the line If you choose the restriction type as Disallowed click on the Plus button and select the customer code from ant ORACLE 2 14 9 2 2 14 9 3 2 14 9 4 2 14 9 5 the list to indicate that they are not allowed to use the line Once you choose restriction type as Allowed you can restrict a customer s from using the credit under a line by highlighting the code that identifies the customer and clicking on the Minus button You can remove the restrictions earlier imposed on a customer i e allow a restricted customer usage of the limit under a line To allow a restricted customer usage of a line select the customer code from the list and click on the Plus button Maintaining Branch Restrictions for a Line You can restrict the usage of a credit line that you have defined to certain branches of your bank If you choose the restriction type as Allowed click on the Plus button and select the branch code from the list to indicate that those branches of your bank can use the line If you are choose the restriction type as Disallowed click on the Plus button and select the branch code from the list to indicate that those branches of your bank are not allowed to use the line Once you choose restriction type as Allowed you can disallow a branch s from using
95. m displays the effective line amount Effective Line Amount Basis For defining drawing power of line the elements mentioned below are treated as the basis for the effective line amount calculation e Line Amount Collateral e Line Amount e Minimum of Line Amount and Collateral Note EFF_LIMIT_AMOUNT can be used while setting up the IC rule for interest calculation based on facility effective limit amount Uncollected Amount The system displays the uncollected amount Approved Limit Amount This is the maximum limit amount allowed for the facility and must be specified whenever you maintain schedule limits System ensures that neither the Limit Amount maintained here nor the schedule Limit Amount maintained as part of the limits schedule is greater than the limit specified here Block Amount Specify the block amount Approved Limit Amount This is the maximum limit amount allowed for the facility and must be specified whenever you maintain schedule limits System ensures that neither the Limit Amount maintained here nor the schedule Limit Amount maintained as part of the limits schedule is greater than the limit specified here Max Daily Limit Specify the maximum daily limit Daily Light Limit Specify the daily light limit Utilization This section contains the following details Available Amount The system displays the available amount Date of First OD The system displays the d
96. mount in Facility s Netting Contribution You can set the available amount under a Facility to include the Netting Amount too To enable this feature you must check the Netting Required check box in the following levels e Account Netting level e Liability level e Facility level 200 ORACLE 2 14 14 Once the netting option is enabled in the above levels the Netting amount maintained as a part of Account Netting screen will be added to the available amount of the facility in facility currency The netting amount field in the facility screen will be displayed in the Netting Contribution field for the facility in facility currency Account Netting When you authorize an account netting transaction with contract type AC and netting enabled then the netting amount will be included in the facility in facility currency after netting has been enabled in Liability level amp Facility level Here the Netting Amount will be updated accordingly When you modify an Account Netting Record and un check the Netting check box then the system will automatically subtract the netting amount from the Available Amount and the Netting Amount for the corresponding facility When you modify an Account Netting Record and check the Netting check box then the system will automatically add the netting amount to the Available Amount and the Netting amount for the corresponding facility When an Account Netting Record is closed and authorised t
97. n 5 2 3 EOD Processing Processing Value Date Based Utilization LCM also tracks all the utilizations of the facility based on the value date of the transaction The utilizations will take effect from the value date of the transaction onwards The following transactions are supported for Value dated processing e New utilization e Increase utilization e Decrease utilization e Alter utilization As part of the above utilization transactions the Value Date will be the value date of the transaction Updating of value dated utilization can be set to be online or to be a part of EOD process This parameter is maintained in LCM Parameter Maintenance e Ifthe parameter is set to update Value Date online then during the transaction process the Value Date utilization details will be updated online Otherwise it will be updated during EOD process e Inthe case of main lines the system will identify all the sub lines linked and track the utilization This utilization will be tracked in addition to the contracts that are directly linked to the main line Back Valued Transactions The following back valued operations will cause a rebuild of value dated utilization details e New utilization e Increase utilization e Decrease utilization e Alter utilization If the utilization currency is not same as the line amount currency then the system will convert the utilization into line amount currency and update the utilization The exchange ra
98. n of the exposure here Exposure Type Specify what kind of exposure it is The exposure types will be as maintained in the Static Maintenance screen Exposure Maintenance having function id CODEXPTY Utilization Type Indicate whether exposure is linked with customer or transaction As part of utilization a maximum of five exposures can be linked to customer and another five exposures can be linked to a facility Revolving Check this box if the exposure is a revolving exposure This implies that each time a repayment is made revolving amount against the exposure the available limit for the exposure is increased by the amount of repayment In case of non revolving exposure the available limit is the amount of exposure reduced by the loans already availed by the customer if any repayment does not increase the limit This can be denoted in terms of utilized amounts as follows For revolving exposure New Exposure utilization Exposure utilization Revolving amount For non revolving exposure New Exposure utilization Exposure utilization 20 ORACLE 2 15 2 Exposure Currency Specify the currency in which the Tracking of Exposure has to be maintained Once authorized this field will be non amendable Exposure Amount Specify the exposure limit amount which is to be maintained for each exposure tracking maintenance A confirmation will be sought during utilization when the utilization amount crosses the exposure amou
99. n the Pool which is linked to the Facility An error message will be shown if any expiry dates are less than the expiry date of the Facility If the expiry date falls on a holiday maintained in the branch then system displays the error message Facility Expiry Date falls on a branch Holiday The facility shall not be available on the maturity expiry but you can modify the facility on the expiry date if required Available If the Line facility is available then this check box will be checked The LCM module tracks the status of both the Contract and the Facility When the status of the Contract changes to PDO then the Facility will become unavailable The product processor will give an ASCII file including all the facilities which need to be frozen LCM will initiate an amendment event and then un checks the Available check box AA ORACLE Availment Date Specify the availment date on which the first utilization should take place If the limit amount assigned to the facility is not utilized within the specified availment date then the available check box will be disabled This freezes the line for the respective liability Renewal Date Specify the facility renewal date from the adjoining calendar Exception Specify the following details Exception Transaction Amount Specify the Exception Txn Amount During utilization transaction when utilization amount crosses the specified Exception Txn Amount BEPL process is tri
100. nant Name OAI Single Liability Report HHE m EH Covenant Name Select the covenant name from the adjoining option list Liability Number Select the liability number for which you want to rertive the covenanat data 4 2 2 Contents of the Report The contents of this report are discussed under the following heads Header The Header carries the title of the report information on the branch and branch date user id the date and time the page number and module of the report Body of the Report This report contains details of Covenant Name This is the name of the covenant Transaction Type This is the facility or collateral type of transaction Mandatory This is to specify whether the Covenant is mandatory or not Frequency This is to specify the frequency of the Covenant submission Start Date This is the start date of the covenant End date This is the end date of the covenant Grace days This is the grace days of the Covenant Notice days This is the notice days of the Covenant ORACLE Remarks This is the additional comments associated with the covenant ta ORACLE 5 1 5 Annexure 1 Value Dated Facility Limits and Collateral Management module provides a feature to maintain Facility details based on a particular value date This is called the Vale Dated Facility This facilitates the changes in the Limits Amount Main Line Li
101. nant at the Covenant Maintenance level are defaulted here Shared Details Button The details of the liabilities sharing the collateral can be captured for a collateral in the Shared Details screen Click Shared Details button to invoke this screen Sharing Details d Liability Number Share Percentage Liability Number Specify the liability number of the liability that is sharing the collateral Each liability mapped here cannot be more than 100 of the total collateral value Shared Percentage Specify the percentage share of the liability in the collateral You can modify the above retails post authorization However the modification must be authorized Aad ORACLE 2 12 5 Link Contract Button The LCM module supports linking of Term Deposit Accounts or Contracts as collaterals You can link the Term Deposit Account Number or Contract Reference Number as collateral to a Liability in the Collateral Maintenance screen The system subsequently blocks marks Lien on the linked Term Deposit Note Once a Term Deposit has been linked as collateral the system will generate an output batch file to block mark Lien on the linked Term deposits Accounts Contracts This output batch file will be generated as a part of Out Bound Batch Transaction For linking a contract as collateral click Linked Contract The following screen appears where in you can link the Term Deposit Contract Reference Num
102. ne increases e If it exceeds the Cap amount then the cap amount will be taken as the collateral contribution Similarly if the market price of the security decreases the collateral contribution to the overall limit of the customer also decreases and as a result the available amount under the credit line reduces Example Your customer XYZ has 1000 units of Debentures 08 that have been issued by Reliance as part of her portfolio which you consider as Collateral The Market value of the Debentures 08 is 50 per unit You have defined the Price Increase and Decrease Sensitivity for this security to be 8 and 5 respectively Let the customer have credit limit of USD 1 million for the facility of line code Loans g ORACLE You have specified that this collateral s contribution to the overall Limit of the customer should be 50 000 The maximum amount that it can contribute to the overall limit of the customer as 60 000 Cap Amount pg eh Line Liability Liability Code Code Limit Symphony Loans 1million Group Pool amount Collateral POOL code Cap Amount Collateral Code Collateral Contribution amount Pool linkage ABB 50 000 100 Pool1 60 000 50 000 Pool contribution to the line Line Line Line Pool Pool available Pool Pool Line contributio amount Cod Currenc aa Code Currency linkag n amount credit limit y e to line Pool contribution Pool1 USD
103. needs to be used or the screen here needs to be used Both can t be used at the same time You can specify the facility maintenance breach amount and breach percentage in LCM When the transaction amount inputted is more than breach amount or percentage during utilization process LCM would flag dual authorized indicator and updates the dual authorization error code as part of response If response from the LCM contains dual authorization error code then Oracle FLEXCUBE logs the transaction details in dual authorization tables and processes it completely The authorization for the breached dual auth transactions will be authorized using function ID GEDDAUTH of LCM However till the dual authorization happens Oracle FLEXCUBE does not allow you to authorize the main transaction You can also perform dual authorization using Oracle FLEXCUBE screen but system performs certain validations to ensure that Oracle FLEXCUBE does not authorize the LCM breach transactions Example Assume that for liability TATA line TATABILL is created with below details Limit amount 10 000 00 Collateral amount 0 00 Breach percentage 110 which is equal to 11 000 Brach amount 15 000 The system calculated values Available amount 10 000 00 Utilized amount 0 Assume that as part of BC a contact line TATABILL is linked As part of the contact data input when you link the line TATABILL and press Save button d
104. nformation and not for processing Haircut Specify the bank s margin Haircut to be assigned for Collateral Haircut applied by the system as per the Haircut schedule would be displayed here Collateral Category Specify a collateral category which is maintained in the Collateral Category Maintenance screen Available Amount The system defaults the available amount for the collateral on save of the collateral record Utilization Amount The system computes and displays the utilization amount to the Collateral if a collateral is directly linked to a contract or account and not through a pool ae ORACLE Grace Days The grace days for the covenant as maintained in the Covenant Maintenance screen gets defaulted here based on the Covenant Name chosen Liability Branch The liability branch for the Liability Number specified as maintained in the Liability Maintenance screen gets defaulted here based on the Liability Number chosen User Reference Number Specify the User Reference Number for the collateral Issuer Name Specify the Issuer Name for the collateral in the case of a Market Value Based collateral Issuer Reference Number Specify the Issuer Reference Number for the collateral in the case of Market Value Based collateral Available This check box will be checked by default indicating that the collateral is available for linking to the collateral pool You can uncheck this so as to manually
105. nkage etc to take effect from the particular date LCM also tracks all the Utilizations of the Facility based on the value date of the transaction The utilizations will take effect from the value date of the transaction onwards Note Tenor wise limits will continue to be based on booking date Booking dated limit revaluation only will be done Booking dated based overrides only will be provided No validations based on the value dated balances will be done Auto limits transfer limits transfer will be based on booking date This chapter contains the following sections e Section 5 1 Value Date Based Facility Maintenance e Section 5 2 Value Date Based Utilization Value Date Based Facility Maintenance LCM facilitates maintaining Facility details based on a particular value date The changes in the Limits amount Main line linkage etc would take effect from the particular date The following parameters will be taken from the Facility Maintenance screen e Value date Any valid date in the past can be maintained No future valued records can be maintained and the value date cannot be before the conversion date e Main Line Code It is the main line that the Line reports to It will be validated that the main line in the Facilities maintenance booking dated is same as the main line in the latest record value dated in the maintenance e Limit Amount The limit amount for the facility It will be
106. nt Block Amount The value of the Block Amount field in the Global Exposure Block Maintenance screen is displayed here Utilization System displays utilization for the exposure here Exposure Effective Date Specify the effective date after which the maintained exposure becomes valid or applicable Exposure Renewal Date Specify the exposure Renewal date This is only for information purposes Exposure Expiry Date Specify the expiry date after which the maintained exposure is not applicable for tracking Freeze Select this check box to indicate that the exposure will be frozen and during utilization Exposure tracking will not be allowed for such an exposure i e Utilization under such exposures will not be allowed Exposure Rating Specify the rating of the exposure e g Sovereign rating This is only for information purposes Remarks Add remarks about the track exposure maintenance if any Available Amount This is the limit amount that is considered when processing utilization requests for an exposure It is the amount available after taking into account previous utilizations and amount block earmark in force for an exposure It is calculated as shown below Exposure Available Amount Exposure Limit Amount Utilization Exposure block amount Value Date Exposure Button Value dated exposure can be specified using the Value Date Exposure screen Click Value Date Exposure to invoke this screen
107. ntenance screen gets defaulted here based on the Covenant Name chosen This can later be linked to Collaterals Maintenance screen GEDCOLLT for choosing the collateral category while maintaining the collateral ao ORACLE 2 10 2 10 1 Issuer Maintenance This section contains the following topics e Section 2 10 1 Invoking the Issuer Maintenance Screen Invoking the Issuer Maintenance Screen A customer is granted credit on the basis of his her credit worthiness The credit worthiness of a customer depends on the assets constituting the customer s portfolio The type of collateral that a customer offers can be in the form of marketable or non marketable securities Marketable collaterals driven by market forces tend to fluctuate unpredictably You may hence need to monitor your bank s exposure to issuers of such collateral The details of the issuer and limit for his securities can be defined using the Issuer Maintenance screen You can invoke the Issuer Maintenance screen by typing GEDISSUR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Issuer Maintenance H save Issuer Code Issuer Identification Number Issuer Details Overall Limit Currency Overall Limit Issuer Limits 1 Of 1 E Collateral Type Limit Currency Limit Amount Maker Date Time Checker Date Time Mod No Record Status Authoriza
108. o i e to whom the liability amount is allocated From Liability Name and To Liability Name System will default the names of the From Liability and To Liability when the From Liability Number and To Liability Number are chosen respectively From Line and To Line Specify the From Line i e the Line from which the line amount is transferred Specify the To Line i e the Line to which the line amount is transferred to for a specified period From and To Facility Currencies System will default the names of the from facility currency and to facility currency when the From Line amp To Line are chosen respectively For effective line transfer from one line to another the currency of both the lines has to be the same From Facility Start Date and End Date System will default the from facility start date and from facility end date when the From Line is chosen To Facility Start Date and End Date System will default the To Facility Start Date and To Facility End Date when the To Line is chosen From Facility Available Amount and To Facility Available Amount System will default the From Facility Available Amount and To Facility Available Amount when the From Line amp To Line are chosen respectively ag ORACLE 2 23 2 23 1 2 24 Effective From Date and Effective To Date Specify the Effective From Date of transfer i e the date from when the transfer of
109. or across liabilities for certain periods is possible It is also possible to close cancel this transfer operation before a specified End Date Upon manual closure cancellation or on automatic expiry the system will transfer the transferred amount back to the original line Limit transfer details can be defined through the Facilities Amount Transfer Maintenance screen You can invoke the Facilities Amount Transfer Maintenance screen by typing 218 ORACLE GEDTRANS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Facilities Amount Transfer Maintenance Transfer Reference From Liability Details To Liability Details From Liability Number To Liability Number From Liability Name To Liab Name From Line To Line From Line Serial To Line Serial From Facility Currency To Facility Currency From Facility Amount To Facility Amount From Facility Available Amount To Facility Available Amount From Facility Start Date To Facility Start Date From Facility End Date To Facility End Date ransfer Amount Transfer Amount Effective From Date Effective To Date Expiry Status Source Code User Reference Remarks Date Time Date Time Record Status Authorization Status From Liability Number and To Liability Number Specify the From Liability No i e for whom the limit amount is to be transferred Specify the To Liability N
110. ore details on this feature refer the section Including Netting Amount in Facility s Netting Contribution in this document Note Limits tracking at liability level is based on liability tracking at the parameterization level Ifthe liability tracking is enabled then the system allows you to track the limit at the liability level Disabling liability tracking does not allow tracking limits at liability level 2 5 2 Scores Button When a Liability is created Bank will assess the credit score for the liability You can link score parameters in the Liability Score screen Here you can also assign a score value to each You at ORACLE 2 5 3 can maintain multiple score parameters for the single Liability To invoke the Liability Score screen click Score button Liability Score Liability Score E Score Name Score Description Score Name Select the score name from the adjoining option list Score Description Give a brief description on the liability score Score Specify the liability score here Credit Rating Button When Liability is created Bank will assess the credit rating for the liability You can link all the rating parameters to which the liability is associated to in the Liability Credit Rating screen Click Credit Rating button to invoke this screen Credit Rating Credit Rating a Agency Name Credit Rating Here you can sele
111. ory Query screen by typing GESQHLIA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button ORACLE 3 3 3 3 1 Liability History Query Authorization Status z Record Status z Liability Number kz Branch az Advanced Search Records per pagel 15 ea Authorization Status Record Status ld Liability Number Liability Name Branch Liability Currency Utilization Amount Revision Date Cr Authorization Status A Authorized U Unauthorized Record Status C Closed O Open Utilization Transaction Query This section contains the following topics e Section 3 3 1 Invoking the Utilization Transaction Query Screen Invoking the Utilization Transaction Query Screen The Utilization Transaction Query screen allows you to query for records based on the following parameters e Liability Number e Line Code e Branch Code e Customer Number e Liability Branch e Utilization Price e Auth status e Record Status The total number of exposure for the customer can be viewed It also shows the Sum of Amount Utilization in local currency branch currency You can invoke the Utilization Transaction Query screen by typing GESQSLIA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button ORACLE 3 4 3 4 1 Utilization Transactions Query Liability Number FE Branch az Lin
112. ou link these credit lines to the Credit Line Loans that it becomes a Main line Sub line Code STLOANS MTLOANS LTLOANS You can define a tenor list and have tenor based limits for both the Main Line and Sub lines So we shall also maintain tenor based limits for the sub line STLOANS as shown in the table below Sub line Tenor List Limit 30D 0 3M 60D 0 2M 90D 0 1M 208 ORACLE 2 14 11 You can add to the list of tenors maintained for a Main Line by specifying the Tenor restriction under the head Tenor and clicking on the Plus button If you want to remove a tenor restriction from the list of tenor restrictions highlight it and click on the Minus button Source Restrictions Button You can specify which sources are allowed or restricted to access the facility in Source Restrictions screen Click on Source Restrictions button in Facilities Maintenance screen to invoke this screen Source Kestnctons a Restriction Type Allowed Disallowed Ext System Restrictions 3 heal E Restriction Type To maintain an allowed list of liability restrictions choose the Allowed option To maintain a disallowed list of liability restrictions choose the Disallowed option Default value of this field will be Disallowed If you select restriction type as allowed then you will have to input at least one record Sou
113. owing topics e Section 2 11 1 Invoking the Securities Maintenance Screen aut ORACLE 2 11 1 Invoking the Securities Maintenance Screen The credit facilities granted to the customers of the bank under a credit line can be backed by the securities that the customer offers as collateral You can maintain the details of all such securities in the LCM module These details can then be used for determining the e Limit granted under a particular security e Credit worthiness of a security when it s used as collateral Since market based securities Marketable Securities are driven by market forces the price of such securities tends to rise or fall in value These fluctuations have a direct effect on the collateral value of the security You can update the value of the collateral if the value of the security that backs it fluctuates beyond the increase and decrease sensitivity that has been specified You can capture details of marketable securities in the Securities screen as shown below You can invoke the Securities Maintenance screen by typing GEDSECTY in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Securities Description Currency Start Date Equity Base Expiry Date Face Value Limit Amount Price Increase Sensitivity F Nominal Value Based Price Decrease Sensitivity Issuer Number Type 10f1 F Market Price Code Market
114. processing if there are any errors or overrides it should be logged The following are the possible errors Available amount is negative for the facility The Tenor Limit Amount exceeds the Line Approved Limit Amount as the validation of the Tenor Limit Amount is against the Approved Limit Amount The amount cannot exceed the overall limit specified for the liability id The Main Line Limit cannot be less than any of its Sub Line Limit The Sub Line Limit cannot exceed the Main Line Limit Example Assume the following Liability GROUPLIAB Line SHTLLIMIT Serial 1 Start Date 01 Jul 2009 Limit Currency USD Limit Amount 50000 Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 80000 2009 System Date 14 Jul 2009 Limit Amount 50000 On 14 Jul 2009 EOD limit revision process picks the 15 Jul 2009 schedule and update 60000 as limit amount The revised limit is enforced or effective on 15 Jul 2009 System Date 15 Jul 2009 Limit Amount 60000 Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 80000 2009 System Date 27 Jul 2009 246 ORACLE 2 14 3 e Limit Amount 60000 e Next working Day 30 Jul 2009 e On 27 Jul 2009 EOD the limit revision process picks 28 Jul 2009 and 30 Jul 2009 schedules and update 75000 as limi
115. r Netting screen will be updated in the Netting Contribution field for the specific facility for which Netting Required check box is checked You can have the Facility to display the Netting Amount in the Netting Contribution screen For more details on this feature refer the section Including Netting Amount in Facility s Netting Contribution in this document Ear Marking Maintenance This section contains the following topics e Section 2 17 1 Invoking the Ear Marking Maintenance Screen Invoking the Ear Marking Maintenance Screen You can use the Ear Marking Maintenance screen for blocking of funds for a Facility You can invoke the Ear Marking Maintenance screen by typing GEDBLOCK in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button EAR Marking Maintenance lex Save Amount Block Number Branch 000 Liability No Customer No Line Code Serial No Block Currency Block Amount Effective Date Expiry Date Auto Block Remarks Maker Date Time Checker Date Time Mod No Record Status Authorization Status Block Number Specify the unique number which is to be assigned for every block that has been created Branch Specify the branch in which the block has been created 209 ORACLE 2 18 2 18 1 Liability Code Specify the liability code for which the amount block is to be don
116. r Normal Type 2a ORACLE Secured Type Indicate the Collateral Exposure Type here A particular collateral category can be of a Secured or Unsecured or Liquid Type Auto Pool Create Check this box if you wish to automatically create a collateral pool as and when you create collateral To facilitate this it is essential that the Available option be checked for the collateral The system then creates a collateral pool with the following characteristics when you save the record e The Pool Code Pool Description and Pool Currency are the Collateral Code Collateral Description and Collateral Currency respectively e The Collateral Linked Percentage is set at 100 Note You cannot modify this option after you authorize the collateral Mortgage Initiated On authorizing a mortgage loan account the system creates collateral and collateral pool based on the property details maintained in the Mortgage Tab and Mortgage Initiated option will be checked automatically For more information about the Mortgage Initiated field please refer to the section Linkages Tab under the Chapter Account Creation of the Mortgages user manual Collateral Currency Specify the currency in which the Collateral has to be maintained Once authorized you cannot change this entry Charge Type Select the charge type from the following list e Lien e Pledge e Hypothecation e Mortgage e Assignment e This is only for i
117. r maintaining market value based collaterals Collaterals Maintenance This section contains the following topics e Section 2 12 1 Invoking Collaterals Maintenance Screen e Section 2 12 2 Insurance Details Button e Section 2 12 3 Covenant Button e Section 2 12 4 Shared Details Button e Section 2 12 5 Link Contract Button e Section 2 12 6 UDE Values Button e Section 2 12 7 Source Restrictions Button e Section 2 12 8 Haircut Schedules Button Invoking Collaterals Maintenance Screen In the Collaterals Maintenance screen you can maintain the details of collateral offered by customers for the credit that the bank grants under a credit line The collateral can either be market value based or non market value based 220 ORACLE You can invoke the Collaterals Maintenance screen by typing GEDCOLLT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Collaterals Maintenance A i Page Number ollateral Details ED Branch Liability No lazi Lendable Margin Collateral Code Charge Type Collateral Description P TAANE A Remarks i Secured Secured Collateral Currency GBP la i UnSecured Collateral Value Liquid Limit Contribution W Available Start Date B Shairing Required End Date E i E Auto Pool Creat
118. ract or across contracts at a specific point in time You can have analysis reports daily reports exception reports reports on events that ought to have taken place on the contract but have not due to various reasons history reports and so on A set of report formats is pre defined for every module This chapter contains the following sections e Section 4 1 Generating Reports e Section 4 2 Covenant History Reports Generating Reports From the Application Browser select the Reports option A list of all the modules to which you have access rights are displayed in the screen When you click on a module all the reports for which you have access rights under the selected module are displayed Click on the report you want to generate You will be given a selection Criteria based on which the report would be generated Click OK button when you have specified your preferences The Print Options screen gets displayed where you can specify the preferences for printing the report Covenant History Reports This section contains the following topics e Section 4 2 1 Generating Covenant History Reports e Section 4 2 2 Contents of the Report 4 ORACLE 4 2 1 Generating Covenant History Reports You can invoke the Covenant History Reports screen by typing ELRPCONH in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Covenant Report Cove
119. ral value depends on whether the security is Market Value based or Non Market Value based Aaa ORACLE If it is market value based then the collateral value is calculated as shown in the following examples Example Input in case of a nominal quoted security Nominal Price Market Collateral Value Market price 100 Nominal Amount Code Price Amount 10 00 000 BOM1 65 65 100 10 00 000 650000 5 00 000 BOM2 70 70 100 5 00 000 350000 7 00 000 BOM3 80 80 100 7 00 000 560000 Input in case of a unit quoted security Number of Price Code Market Collateral Value Number of Units x Market Units Price price 65 BOM1 120 7800 70 BOM2 130 9100 40 CALI 95 3800 If it is Non Market Value based then the user has to enter the collateral value manually Limit Contribution On save of the collateral system calculates the amount contribution that will be applicable for the collateral after applying the hair cut percentage on the collateral value Example Collateral is valued at 1000 and you wish to offer the customer credit only worth 980 This amount is 98 of the collateral contribution 1000 980 1000 2 is the Hair cut percentage This means you want to have a lendable margin of 98 For instance if you enter the lendable margin percentage then based on the value you enter the hair cut will be calculated as described above and the limit contri
120. ranches products and currencies You can define these restrictions in the Limits Restrictions screen To invoke this screen click Limit Restrictions button from the Facilities Maintenance screen aoe ORACLE Limit Restrictions Restriction Type Allowed Restriction Type Allowed Disallowed Disallowed Customer Restrictions Currency Restrictions E customer Number Short Name d Currency Code Currency Name Restriction Type Allowed Restriction Type Allowed Disallowed Disallowed Branch Restrictions Product Restrictions E Branch Code Branch Name E Source Product Code Product Des diii ol la ol az a Restriction Type Allowed Disallowed Exposure Restrictions MSE A d Exposure Name Exposure Description ol t Restriction Type Select the restriction type for each restrictions defined for the facility from the following options e Allowed e Disallowed e Customer Restrictions Customer Number Specify the customer number for the Customer Restriction 208 ORACLE 2 14 9 1 Short Name System displays the short name for the customer as maintained in the Customer Maintenance screen based on the selected Customer Number Currency Restrictions Currency Code Specify the currency code for the Currency Restriction Currency Name System displays the currency name for the currency as maintained in the Currency Definition screen bas
121. rce Specify the source from the adjoining option list Description Give a brief description about the System restriction here 208 ORACLE 2 14 12 2 14 13 Mandate Button You can maintain mandate information for specific line codes using Mandate screen Click Mandate button on Facility Maintenance screen Line Code Serial Number Facility Mandates Collateral Type Min Available ol a You can specify the following details here Line Code Specify the line code for which the mandate has to be maintained The system displays the line code from the main screen of facility Serial Number The system displays the line serial number of the line code maintained Mandate Collateral Type Specify the collateral type required for validating mandate for the utilization transaction The option list displays all valid collateral types maintained in the system Choose the appropriate one You can add more rows to the list using add button Min Available Specify the minimum percentage of the specific collateral type to be collected while processing the utilization transaction against the line code specified The system verifies whether the mandate percentage of the line utilization amount is greater than the collateral limit contribution If the mandate percentage is higher the system displays an override message You may choose to continue or cancel the maintenance Including Netting A
122. re Maintenance screen by typing GEDCRSCR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Credit Score Maintenance Score Name Score Description Maker Date Time Checker Date Time Mod No Record Status Authorization Status Enter the following details Credit Score Name Specify a unique credit score name here Credit Score Description Give a brief description of the score Note This is only for information and not for processing 2 3 Agency Details for Credit Rating This section contains the following topics e Section 2 3 1 Invoking the Credit Rating Agency Maintenance Screen 2 3 1 Invoking the Credit Rating Agency Maintenance Screen You can maintain details regarding credit rating agencies in the Credit Rating Agency Maintenance screen Using this maintenance you can record the credit rating codes published by each credit rating agency This can later be linked to Liability Maintenance GEDMLIAB for specifying customer rating published by an agency ee ORACLE You can invoke the Credit Rating Agency Maintenance screen by typing GEDCREDT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button eS Credit Rating Agency Maintenance Agency Name Agency Description Credit Rating Details 10f1 E Credit Rating Credit Rating Description Maker
123. reneenne 2 4 25 2 SCOLES BUUON 35 n a EE A AA S 2 7 2 5 3 Credit Rating BUttON ees busnatarea n a aaa t A 2 8 2 6 Customer to Liability LINK ieronscniiiinas iere ara edi 2 9 2 6 1 Invoking the Customer to Liability Link Maintenance Screen 00 2 9 2 f Covenant Maintenance siara T a A T 2 10 2 7 1 Invoking the Convenant Maintenance Screen eeeisseeeeneeeeeeennneeeen 2 10 2 8 Collateral Types Maintenance 0 ceeeececeeeesenneeeeeeenneeeeeeeeceeeeeeeeaeeeeeeeeiaeeeeeeenaas 2 12 2 8 1 Invoking Collateral Types Maintenance Screen ssseeeiiseeeeenneeeeeenn 2 12 2 9 Collateral Category Maintenance 0000 0 ececceeeeeeeeeeeeneeeeeeeenneeeeeeeeaaeeeeeeeneeeeeeeeaas 2 13 2 9 1 Invoking Collateral Category Maintenance Screen eeseissseeeeneneeeenn 2 13 292Z Covenan BUHOD capairo a E a set A 2 15 2 10 Issuer Maintenance nerean ana a E need alee eee 2 16 2 10 1 Invoking the Issuer Maintenance Screen 0 ccccccseccceeesteeeeeeenteeteeeenaaes 2 16 2 11 Securities Maintenance cc eececee eee eeee eee ee entrees eeetaeeeeeeetaeeeeeeeeneeeeeneetaeeeeeeeaas 2 17 2 11 1 Invoking the Securities Maintenance Screen ccccccccctteeeeeenteteeeeeeaes 2 18 2 12 Collaterals Maintenance seareiro rrinin EEE ANEELA REAREA EE ARAE Ra 2 20 2 12 1 Invoking Collaterals Maintenance Screen sesseseeeisneeeinnnesrrnneenens 2 20 2 12 2 Insurance Details BURON rsson srren nainen en A A 2 26 d T23 Coven
124. rity backing collateral causes a revaluation of the collateral amount This section contains the following topics e Section 6 1 Currency Revaluation e Section 6 2 Collateral Revaluation Currency Revaluation This section contains the following topics e Section 6 1 1 Facility Currency and Utilization Currency e Section 6 1 2 Facility Currency and Collateral Currency Facility Currency and Utilization Currency Currency revaluation is triggered off as a result of the cases explained in the sections explained below Consider that a change takes place in the exchange rate between the line currency and the currency of a contract utilizing the limit under the line Due to this change in exchange rate revaluation takes place in two in the following two stages Stage 1 Currency Revaluation occurs between utilized contract and the credit line of the facility In the Currency Rates Screen of the Core services module you can maintain exchange rates for currency pairs that your bank deals with Along with this you can also specify the Mid Rate and the Buy or Sell Spread for various currency pairs After you update and authorize the new exchange rates they become effective While defining a credit line for a facility you have the option of maintaining currency restrictions for the line If you do not specify currency restrictions for a facility then contracts having currencies other than the facility currency can uti
125. row button Facilities Maintenance Branch Code Liability No Line Code Serial No 000 el lal 1 Description Main Line Code Line Currency Category Limit Amount Collateral Amount Transfer Amount Effective Line Amount Eff Line Amount Basis GBP Limit Amount Collateral Contribution Utilization Available Amount Date Of First OD Date Of Last OD Netting Contribution User Defined Status Status Changed On Internal Remarks Uncoll Block Amount Approved Amount Day Light OD Limit Day Light Limit Amount Utilized Today Utilized Amount Tanked Utilization Last New Utilization Date Ez Revolving Line Netting Required UnAdvised Fund F Shadow Limit Bulk Payment Required Availability Line Start Date 2011 01 04 Line Expiry Date T Available Availment Date Renewal Date Exception Exception Transaction Amount Exception Breach acility Fee Preferences Interest Fee Required Fee Calculation Account M Facility Creation Fee Facility Expiry Fee Maker Checker Mod No Date Time Date Time Record Status Authorization Status Specify the following details Liability Number Specify the Liability number here Line Code Specify the Line Code to which the liability ID is to be associated with Allocating credit limits for the Line Liability combination can
126. specified for this Line Liability combination is taken to be in this currency e The line that has been defined will be available for Utilization only in the line currency unless specified otherwise under Currency Restrictions in this screen Once the entry is authorized you cannot change the currency If the limit allotted to this Line Liability combination can be utilized by accounts and transactions in currencies other than the limit currency the limit utilization will be arrived at by using the mid rate for the currency pair as of that day Category Select the facility category from the list available here The list displayed here is based on maintenance done in Category Maintenance screen Revolving Line Check this box to indicate that the credit line is Revolving A revolving credit line indicates that a repayment of the utilized credit should reinstate the credit limit of the customer You can modify the preference as required Netting Required This check box will be unchecked by default indicating that netting is not required for the facility You can check this box to enable netting for the facility Unadvised Check this box to indicate that the facility is unadvised Note Charges can be collected on the utilization transactions for facilities that are unadvised For this purpose SDEs ADVISED_LINE and COMMITMENT_CUR_UTIL can be used while setting up the charge rule at the CL product creation level Funded Indi
127. strictions Button sesiernssrinnnenrnnnnnnrnnnnnnnnnnnnrnnrnnnnrernnnnnnnnana 2 56 2 14 11 Source Restrictions Button 0cccccccceceteeeeeenteeeeeeetnneeeeetetnaeeeeeetiaeeeenenaaa 2 59 2 14 12 Mandate Button csset iirieniens tiri eE RENERE E ARA AREAS AEA AE RE dea 2 60 2 14 13 Including Netting Amount in Facility s Netting Contribution 000 0004 2 60 2 14 14 Viewing Previous Credit Limit Changes ccccccceeeeeetttteeeeetntteeeeteeee 2 61 2 15 Track Exposure Maintenance cccccccccceceeeeneeeeeeeeeneeeeeecnaeeeeeeeeiaeeeeeeeieeeeenenaas 2 64 2 15 1 Invoking Track Exposure Maintenance SCIree n cccccccciceeeetttteeeeeenee 2 64 2 15 2 Value Date Exposure Button 2 cscccccccecceeeeeeceecneecaeeeeeeeeeeeteteeesentesaeeas 2 66 2 16 Account Contract Balance Maintenance for Netting cceeeseeeeeeeeeeeteeeeeeeeaes 2 67 2 16 1 Invoking the Account Contract Balance for Netting screen 0c 2 67 2 17 Ear Marking Maintenance 0 cccceeeeeeeeeeeeeeneeeeeeeeeaeeeeeeeeaeeeeeeeeaeeeeeeeesaeeeeeeeaas 2 69 2 17 1 Invoking the Ear Marking Maintenance Screen 2 69 2 18 Global Block Exposure Maintenance ccecccceecceeceeeeeeeeeeeeeeeeeecnaeeeeeeeeeenees 2 70 2 18 1 Invoking the Global Exposure Block Maintenance SCreen 0ccc 2 70 2 19 Exception Queue Maintenance ccecceceeeeeccecceeeeeeeeeeeeeeeeneneneeeeeeeeeeneeeeeetees 2 72 2 19 1 Invoking th
128. sure Maintenance screen This screen not only allows tracking but also allows you to define a limit for a particular exposure This means that when the utilization exceeds the limit you will have to provide a confirmation for process to proceed ae ORACLE You can invoke the Track Exposure Maintenance screen by typing GEDTREXP in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Track Exposure Maintenance Exposure Code Exposure Type Description Utilisation type Customer Exposure Currency Transaction Exposure Amount F Revolving Block Amount Utilization Exposure Effective Date Exposure Renewal Date Exposure Expiry Date Exposure Rating Remarks Available Amount Value Date Exposure Fields Maker Date Time Checker Date Time Mod No Record Status Authorization Status Exposure Name Specify the Exposure name The name maintained in this screen can be linked in the Customer to liability link Maintenance screen if the Utilization type is Customer and it can be linked in the Facilities Maintenance screen if the Utilization type is Transaction to make exposure tracking possible It is possible to track a customer in multiple exposures For this multiple exposure names should be linked to the Customer to liability link Maintenance screen Description Provide a brief descriptio
129. system validates and displays error messages if e the Interest Fee Required is checked and the Fee Calculation Account is null e an existing record is available for Fee Calculation Account e after the expiry date if Facility Expiry Fee is checked e after the expiry date if Facility Upfront Fee and Expiry Fee Frequency is modified e if renewal date is entered and expiry date is not entered if Facility Renewal Fee is checked and Renewal Date is entered or modified and Expiry Date is not changed Note The following SDEs will not be applicable for LCM based interest calculation LCM based interest calculation SDEs Limit_Amount Eff_Limit_Amount Matured_Amount If you repay the already utilized amount then the repay credit will update on the Matured_Util field of the Getm_facility table A ORACLE 2 14 2 Schedules Button The limit assigned to a customer under a revolving line can be reduced You can define these details while maintaining limits for a customer From the Limits Maintenance screen click Schedules button Schedules H Limit Date Limit Amount For a liability code and credit line combination you can define limit schedules and indicate the limit that is applicable for the period You can enter a negative limit amount However the Limit Date should not be earlier than the Limit start date and later than the Limit Expiry Date
130. t Button To maintain the Covenant details for the Collateral Category use the Collateral Category screen Invoke this screen by clicking Covenant button The Revision Date for the covenant is generated based on the Frequency and Due date For example if the collateral category covenant for a particular covenant name the frequency is monthly and the due date is 15 Based on the date of creation of the collateral covenant category say 20 JAN 2008 the revision date will be 15 feb 2008 Collateral Covenant Category Covenants E Covenant Name Description Revision Date Covenant Reference Mandatory GraceD Covenant Name Specify a covenant name which is maintained in the Covenant Maintenance screen Description The description for the covenant as maintained in the Covenant Maintenance screen gets defaulted here based on the Covenant Name chosen Revision Date The system defaults the Revision Date for the covenant on save of the collateral category record based on the Frequency and Due Date of the covenant maintained in the Covenant Maintenance screen Covenant Reference No Specify the covenant reference no for the collateral category being maintained Mandatory The mandatory field for the covenant as maintained in the Covenant Maintenance screen gets defaulted here based on the Covenant Name chosen Grace Days The grace days for the covenant as maintained in the Covenant Mai
131. t amount The revised limit is enforced effective on 30 Jul 2009 e System Date 30 Jul 2009 e Limit Amount 75000 e Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 80000 2009 Covenant Button The covenant details can be captured for facility in the Covenant Details screen Click Covenants to invoke this screen Multiple covenants can be entered in the screen shown below You can customize the details of each covenant recorded here Covenants Covenants E Covenant Name Description Mandatory Frequency Period Start Date ol Ten Yearly Covenant Name Select the covenant name from the list available here The list displays the covenant names maintained in Covenant Maintenance screen Based on the covenant selected all other details of the covenant maintenance will be brought here Mandatory Mandatory Non mandatory details will be shown on choosing a covenant name You may change this al ORACLE Frequency You may change the frequency shown here on choosing a covenant name Grace Days You can change the Grace Days details which are displayed here on choosing a covenant name Notice Days Specify the notice days i e the number of days prior to next revision date of the covenant The period during the notice days will be the notice period Revision Date On save of
132. te System considers both the source and the product code to validate the restriction 2 14 10 Tenor Restrictions Button You can define Limits based on the tenor of the contracts that utilize the limit 206 ORACLE Click Tenor Restrictions button from the Facilities Maintenance screen to maintain Tenor restrictions for the limit you have specified for the Line Liability combination Tenor Restrictions Tenor Restrictions E Tenor Tenor Days Limit Utilization Tenor Specify the name of the tenor Tenor Days Specify the number of days Limit Specify the limit for the tenor in days Utilization System displays the utilization amount for the specific tenor in days based on the utilization of the facility in Schedules sub screen Limit Date Specify the limit date on which the limit amount is updated in the Limit Amount field Limit Amount Specify the limit amount for the specific limit date You need to enter details in this screen only for transactions that involve a Tenor e g Loans Money market transactions etc Through this screen you can specify a list of Tenors and the associated limit that tenor based transactions can utilize under this line 2 14 10 1 Maintaining Tenor Restrictions for a Main Line For a main line you can e Specify the list of tenor restrictions for which you would like to limit your exposure e Assign limits for the Tenor restrict
133. te 10 apr 2005 Utilization Log S n o Value date Line code Utilizatio n Componen t Increase decrease ORACLE 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease 3 15 Feb 05 LINE1 500000 PRINCIPAL Increase 4 10 Mar 05 LINE1 200000 PRINCIPAL Decrease 5 10 Mar 05 LINE1 200000 PRINCIPAL Increase 6 10 Apr 05 LINE1 1400000 PRINCIPAL Decrease Line Utilization S n Line Value Utilizatio o code date n 1 LINE1 10 Jan 05 1000000 2 LINE1 10 Feb 05 900000 3 LINE1 15 Feb 05 1400000 4 LINE 10 Mar 05 1400000 5 LINE1 10 Apr 05 0 5 5 ORACLE 6 1 6 1 1 6 Annexure 2 Revaluation Limits and Collateral Management caters to different types of currencies and collaterals backed by marketable securities Exchange rates and the value of marketable securities are driven by market forces and hence tend to fluctuate over a period of time Revaluation is essential to keep set limits realistic and to reflect the current market trends Revaluation can be of two types e Currency Revaluation The changes in the exchange rates of currencies involved in the active contracts and collateral linked to the Facility affects the Credit Limit under the facility e Collateral Revaluation A change in the market price of a marketable secu
134. te will be that of the value date of the utilization So for back valued utilization the exchange rate on the value date of the back valued transaction will be used In case the Value Date is less than the conversion date then the rebuild of balances will be from the conversion date only a ORACLE 5 2 3 EOD Processing If the value date update is not online but as part of Facility EOD process it would be updated as shown in the following examples Example Let us consider a Loan of 1 Million USD Value date 10 Jan 2005 Revolving Line Step 1 Initiation Utilization Log S n Value Line Utilizatio Componen Increase o date code n t decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase Line Utilization S n Value Line Utilizatio o date code n 1 10 Jan 05 LINE1 1000000 Step 2 Payment of 0 1M Principal value date 10 Feb 2005 Utilization Log S n Value Line Utilizatio Componen Increase o date code n t decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease Line Utilization S n Line Value Utilizatio o code date n 1 LINE1 10 Jan 05 1000000 2 LINE1 10 Feb 05 900000 Step 3 Value dated amendment of 0 5M Principal increase value date 15 Feb 2005 Utilization Log S n Value Line Utilizatio Componen
135. ted using account class for which limit check flag is set as Y at preference sub system screen When account for the customer is created without maintaining liability and later the liability is created and linked to the customer the Limits tracking option at the cus tomer level would be automatically selected by the system Covenant Maintenance This section contains the following topics e Section 2 7 1 Invoking the Convenant Maintenance Screen Invoking the Convenant Maintenance Screen As a part of maintaining Collaterals Facilities you may collect certain required information and documents from the customer regularly Based on the information you may revise the collateral facility details The information or documents collected from the customer is termed as a Covenant ey ORACLE You can maintain Covenant details in the Covenant Maintenance screen You can invoke the Covenant Maintenance screen by typing GEDCOVNT in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Covenant maintenance Covenant Name Description Mandatory Yes No Frequency Yearly T statmonn Te Due Date On Notice Days Grace Days Remarks Maker Date Time Checker Date Time Mod No Record Status Authorization Status Covenant Name and Description Specify the Covenant Name for which information is entered A maximum of 50 alpha numeric
136. tended for use in any inherently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and serv
137. the collateral batch GEBCOLAT The following validations are performed during save For New operation e Effective date should be greater than the application date and start date of the collateral e Multiple Haircuts for the same effective date will not be allowed e Haircut chosen at the main screen gets defaulted as the first schedule with collateral start date as the effective date in the Haircut schedules sub screen For Modify operation e Effective date should be greater than the application date and start date of the collateral e Effective date should be less than the end date of the collateral e Deletion or Modification of existing Haircuts whose effective date are less than application date would not be allowed e Haircut schedules maintained in this sub screen would be applied on the effective date in the existing collateral batch process e Existing field Haircut would show the latest haircut of the collateral 2 13 Collateral Pool Maintenance This section contains the following topics e Section 2 13 1 Invoking Collateral Pool Maintenance Screen 238 ORACLE 2 13 1 Invoking Collateral Pool Maintenance Screen You may group together two or more collaterals to create a Collateral Pool You can create and maintain collateral pools in the Collateral Pools Maintenance screen You can invoke the Collateral Pools Maintenance screen by typing GEDMPOOL in the field at the top right
138. the utilization has been done from an external product Value Date Specifies the value date of the transaction If value is not passed then system will default to LCM present branch date Source Indicates the product processor name from where the transaction has been originated This field will be as part of Header section Source Code This is only if the utilization has been done from an external product Utilization status Indicates the utilization status possible values are A Active R Reverse L Liquated Delete Indicates whether the transaction is deleted or not If the check box is selected then it is deleted Liability Currency Specifies the liability currency Liability utilization Indicates the liability utilization amount Exception Queue Specifies the exception queue in which transaction has been parked Error Code Specifies the error code of the transaction aoa ORACLE 2 25 Error parameter Specifies the error parameters associated to the transaction Remarks You can enter your remarks associated with the transaction Dual Authorization of Utilization Transaction During Utilization Transaction process if the utilization amount crosses the breach amount specified then the transaction requires dual authorization Transactions which are breached could be either authorized using BPEL process flow Credit Exception management or using UI multi Auth screen During implementation either the BPEL process
139. this line by selecting code that identifies the branch and clicking on the Minus button You can remove the restrictions earlier imposed on a branch i e to allow a restricted branch usage of the limit under this line To allow a restricted branch usage of a line select the code that identifies the branch from the option list and click on the Plus button Maintaining Currency Restrictions for a Line Just as you can restrict the limit defined for a line to specific customers branches and products you can restrict it to specific currencies Once you choose the restriction type as Allowed select the currencies to which you would like to restrict application from the available option list The list of currency codes you choose in this field will be described in the adjacent column To remove a currency from the list of allowed currencies highlight the currency code and click on the Minus button To add a currency to the list of allowed currencies click on the Plus button and choose the currency from the option list available Maintaining Exposure Restrictions for a Line You can also define the types of exposures that should be allowed or disallowed for a line Based on the list you maintain the system will display an error message if a utilization request with a transaction exposure is received where the exposure for the facility is either disallowed or not maintained as part of the allowed exposures
140. tion Status Limits for the issuers of Collateral can be setup at the following two levels e Overall limit for each Issuer e Limit for the Securities issued by an Issuer Issuer Code Each Issuer whose securities the bank accepts should be assigned a unique code The Issuer will be identified by this code This code can also be used to retrieve information about the Issuer Specify the Issuer Code here Overall Limit Specify an Overall Limit for the issuer here This limit indicates the maximum limit beyond which your bank would not like to expose itself to the Issuer 216 ORACLE 2 11 An issuer can issue different types of market based securities these could be debentures shares bonds etc By defining an overall limit for an Issuer the bank can limit its exposure to the issuer When the total of all the collateral given by the customer in the form of market based securities exceeds the overall limit specified for the Issuer the system will show an appropriate message indicating that the limit has been exceeded Overall Limit Currency Specify the currency in which the Overall Limit is specified Issuer Identification Number Select the Issuer Identification Number if any from the adjoining option list The option list for lssuer Identification Number displays only those customers that belong to the bank and those that have been created in the application using the screen Customer Maintenance STDCIF with the c
141. tries Commitment Ref No Specify the Commitment reference number Source Restrictions Button You can specify which sources are allowed or restricted to access the collateral in Source Restrictions screen Click on Source Restrictions button to invoke this screen Source Restrictions External Restrictions Allowed Disallowed External System Restrictions E External System Description ol Restriction Type Choose the Allowed option to maintain an allowed list of liability restrictions Choose the Disallowed option to maintain a disallowed list of liability restrictions Default value of this field will be Disallowed If you select restriction type as allowed then you need to input at least one record Source Specify the source from the adjoining option list Haircut Schedules Button You can specify the hair cut revisions for the collateral in Haircut screen Click on Haircut Schedules button to invoke this screen aoe ORACLE Haircuts Based on Effective Dates Effective Date E Effective Date Haircut Percentage o ____ Bl Effective Date Specify the date on which the Haircut will become effective from the adjoining option list Haircut Specify the Hair cut of the Collateral You can enter values between 1 to 100 Note System applies the haircut to the collateral on the schedule effective date during the BOD process of
142. ueue Name Description Queue Details 10f1 Role Name Description Maker Date Time Checker Date Time Mod No Record Status Authorization Status Queue Name Specify the Queue Name Description Give a brief description of the queue here Queue Detail Here you can specify multiple user roles for a Queue name For each record you must specify the Role Name i e the user role allowed for authorization System then defaults the description for the role 2 20 Exception Queue Slab Maintenance This section contains the following topics e Section 2 20 1 Invoking the Exception Queue Slab Maintenance 2 20 1 Invoking the Exception Queue Slab Maintenance As a part of BEPL process for Credit Exception management the Transaction authorizer details and breached authorizer details can be entered in the Transaction Authorize Maintenance screen 218 ORACLE You can invoke the Exception Queue Slab Maintenance screen by typing GEDTAUTH in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Exception Queue Slab Maintenanace Branch 000 Description Category Transaction Details 1 Of 1 F Queue Name From Amount Breached Details 1 Of 1 F Queue Name From Amount Maker Date Time Checker Date Time Mod No Record Status Authorization Status The transact
143. uring transaction processing in LCM if the transaction requires dual authorization then the system displays this information to the user Till the dual authorization error code breached transaction is authorized in LCM Oracle FLEXCUBE does not allow the contact to be authorized In case if the breached transaction is rejected then you have to delete the contact Information irrespective of whether the error code has been authorized or Contracts requiring multilevel authorization can be viewed using Oracle FLEXCUBE function OVDAUDET aag ORACLE If you delete the dual authorization contract in Oracle FLEXCUBE then the system deletes the contract details in Oracle FLEXCUBE and LCM will delete the utilization LCM Note LCM deletes the utilization transaction if any dual authorization error is not authorized and the system updates the status as Ignored so that this information is not shown to the user However if the error code is authorized then this information is ignored 2 26 Liabilities Merger This section contains the following topics e Section 2 26 1 Invoking Liability Merger Maintenance Screen e Section 2 26 2 Invoking Liability Merger Process Screen 2 26 1 Invoking Liability Merger Maintenance Screen You can merge any two liabilities existing in the system into one single liability LCM allows you to merge one liability into another Upon merger both liabilities will assume the same liabilit
144. valuates the collateral if the price of the securities that backs it fluctuates above or below the sensitivity you have defined Price Increase Sensitivity denotes the percentage increase in the market price that should trigger a revaluation of the Collateral This means if the current market price of the security rises above the old market price by the percentage you have defined as the Increase sensitivity for the security then the revaluation process happens For example Consider a case wherein you have specified the price increase sensitivity for Debentures 98 to be 15 If the market price of the security has increased from 100 to 125 At this rise in the market price of the security which is 25 above the old market value the revaluation process will be triggered off so that the Collateral value of the security reflects its current market value Price Decrease Sensitivity denotes the percentage decrease in the market price of the security that should trigger a revaluation of the Collateral This means if the current market price of the security falls below the old market price by the percentage you have defined as the decrease sensitivity for the security the revaluation process happens For example Consider a case wherein you had specified the price decrease sensitivity of Debentures 98 to be 15 If the market price of the security has decreased from US 100 to US 75 At this fall in the market price of the security which is 33 3
145. y affects its collateral value Therefore the value of a collateral should reflect the changes in the value of the securities backing it Revaluation of a Collateral is caused only if the value of the marketable security that backs the collateral fluctuates beyond the price sensitivity you prescribed for the security in the Securities Maintenance screen and the Revaluate collateral check box has been checked for that collateral in the collateral maintenance Based on these changes the collateral contribution to the overall credit limit of the customer will increase or decrease Hence the availability under the line will also change After you authorize the price change e The price change is compared with the last price stored in the Collateral Maintenance screen e If the price change in percentage of the security is greater than the Price Increase Sensitivity defined for the collateral or less than the Price Decrease Sensitivity defined for the collateral the revaluation process will be triggered off Otherwise the price change will not affect the existing collateral value If the revaluation causes the collateral value to raise this new value is compared with the Cap Amount that you specified for the collateral in the Collateral Maintenance screen e Ifthe computed value is less than the cap amount then the collateral contribution will be increased to that effect on account of the revaluation The available amount under the credit li
146. y code The structure of the liabilities will not change The merging of liabilities is done in the following two steps e Step 1 Liability Merger Maintenance e Step 2 Liability Merger Process You must first maintain the details of liabilities to be merged using the Liability Merger Maintenance screen You can invoke the Liability Merger Maintenance screen by typing GEDMERGE in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Liability Merger Maintenance Branch Code 000 From Liability Code To Liability Code Effective Date Remarks ii fa ol Customer Link Merger Log Collateral Merger Log Collateral Pool Merger Log Netting Merger Log Facility Merger Log Maker Date Time Checker Date Time Mod No Record Status Authorization Status In the above screen you must maintain the following details for merger of two liabilities a ORACLE From Liability Code Specify using the adjoining list of options the code of the liability which is to be merged into another liability To Liability Code Specify using the adjoining list of options the code of the liability into which the liability specified under From Liability Code must be merged into Branch Code System defaults the branch code as the branch from which the Liability Merger Maintenance screen is launched and New button is clicked Effective Date Specify the dat

Oracle FLEXCUBE Universal Banking

Contents

Download Pdf Manuals

Related Search

Related Contents