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Limits and Collateral Management Version-11.0 9NT1316

1. Pool Code Pool Currency Line Line Pool Pool Line Code Currency Line contribution available linkage amount to line amount Pool USD Loans USD 100 45 000 1 045 million 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 Collateral during Offline batch has been selected 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 gt Adhoc Revaluation Web Page Dialog Security Code ABCDSECURITY Security Price NSE Process 5 8 ORACLE 5 3 2 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 value must be sent to the system The revaluation process takes
2. 2 27 2 12 5 Specifying Shared Details esses eene E EEEE t 2 28 2 12 6 Linking Contracts as Collaterals eese eene nennen nennen rennen nette nnne 2 28 2 13 COLLATERAL POOL MAINTENANCE e teen nete 2 30 2 13 1 Creating Collateral Pool Linkages ne iere on ite eiii uotis I HD 2 31 2 14 FAGCIEITIES M AINTENANGE siete eerte e i OI HER RE 2 32 2 14 1 Maintaining Value Dates Details eite eere en leute a tee ode leeks 2 37 2 142 Tracing Exposure Restrictions for a Line eese 2 37 2 14 35 Capturing Facility Maintenance Charges Details 2 38 2144 Specifying Covenant Det ils i4 snc redii i erii y on pecie Hir tre etie Ere ide edere 2 38 2 14 5 Maintaining Restrictions for a Line eese eene enne nennen 2 14 5 1 Maintaining Customer Restrictions for a Line 2 14 5 2 Maintaining Branch Restrictions for a Line 2 14 5 3 Maintaining Currency Restrictions for a Line 2 14 5 4 Maintaining Exposure Restrictions for a Line 2 14 6 Maintaining Limit Schedules 2 14 7 Maintaining Collateral Pool Linkages eese eene nennen 2 14 8 Defining Tenor based Restrictions eese eerte nennen
3. 6 2 2 Batch Process 6 1 ORACLE 6 2 3 6 2 4 6 3 6 3 1 The Batch processes which can be triggered using Gateway Online Process e EOD Process nput 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 Example Assume that New utilization transaction has been uploaded from Loan system and at the same time there is another New utilization transaction treasury system Assume that country exposure for both the transaction is same and parameter for update country exposure online is set to Yes In this case first transaction would be processed and other transaction would be failed because of lock in the country exposure To handle this case LOM provides reprocessing for 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 Process Gateway Batch Process provides two kinds of process e Batch Inbound Process e Batch Outbound Process Batch Inbound Process LCM Bat
4. 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 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 You can change the Revision Date Details which are displayed here on choosing a covenant name Conversion Date Conversion Date is the date when facility has been migrated from other system to LCM 2 14 5 Maintaining Restrictions for a Line 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 branches products and currencies 2 39 ORACLE You can define these restrictions in the Limits Restrictions screen To invoke this screen click Limit Restrictions button from the Limits Maintena
5. IB Tenor Days Limit Utilization 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 8 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 restrictions 2 14 8 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 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 2 46 ORACLE 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 1million Main Line Cod
6. Pool contribution to the line 5 9 ORACLE Pool Code Pool Currency Line Line Pool Pool Line available Code Currency Line contribution amount credit linkage amount to limit Pool line contribution Pool1 USD Loans USD 10096 55 000 1 055million 5 10 ORACLE 6 Annexure 3 Gateway Processes amp Interfaces 6 1 Introduction Limits and Collateral Management Gateway provides two main kinds of processes e Gateway Online process e Gateway Batch process 6 2 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 6 2 1 Maintenance Transactions Below table specifies the maintenance transactions supported by Gateway Online Process Transaction Creation amp Delete Auth Close amp Reopen Query Notify Tech Modification undo 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 Collateral Pool Yes Yes Yes Yes Yes No No Issuers Yes Yes Yes Yes Yes No No Securities Yes Yes Yes Yes Yes No No Limits Transfer Yes Yes Yes Yes Yes No No Account Yes Yes Yes Yes Yes No No Service
7. EXPQUED1 100 200 EXPQUEO2 300 400 Date 008 16 14 46 Modification Number 2 Date Time Authorized The transaction 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 Code Specify the branch for which the maintenance is being done Category Specify the category of the branch here 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 specifying 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 59 ORACLE 2 21 Limits amp Collaterals Parameter Details You
8. E 2 65 ORACLE 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 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 transaction 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 SL 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 module Transaction Date Indicates the date and time when the transaction was entered in the external system 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 mo
9. S no Value date Line code Utilization Component Increase 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 date 10 apr 200 5 Utilization Log S no Value date Line code Utilization Component Increase 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 6 10 Apr 05 LINE1 1400000 PRINCIPAL Decrease Line Utilization 4 4 ORACLE S no Line code Value date Utilization 1 LINE1 10 Jan 05 1000000 2 LINE1 10 Feb 05 900000 3 LINE1 15 Feb 05 1400000 4 LINE1 10 Mar 05 1400000 5 LINE1 10 Apr 05 0 4 5 ORACLE 5 1 5 2 5 2 1 5 Annexure 2 Revaluation Introduction Limits and Collateral Management module 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 ess
10. 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 Revision Date Specify the date on which this collateral has to be revisited for review 2 12 1 Specifying Details for Market Value Based Type For a market value based security you must maintain the following security related details Security Code Specify the security code for which the collateral is linked On specifying the security code 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 en
11. Account Netting When you authorise an account netting transaction with contract type AC and netting enabled then the netting amount will be included in the facility in facility currency Here both the Available Amount and 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 the 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 W
12. 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 Details Web Page Dialog xj Covenant n Covenant Mandatory On Frequency GraceDays NoticeDays StartDste Revision Date Covenant Reference No EJ 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 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 2 27 ORACLE 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 You can change the Revision Date Details which are displayed here on choosing a covenant name 2 12 5 Specifying Shared Details 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 Shared Detail
13. 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 2 42 ORACLE 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 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 processing if there are any errors or overrides it should be logged The following are the possible errors e Available amount is negative for the facility e The Tenor Limit Amount exceeds the Line Limit Amount e The amount cannot exceed the overall limit spe
14. 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 Collateral Linked Percentage is set at 100 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 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 e Pledge Hypothecation e Mortgage e Assignment Haircut Specify the bank s margin Haircut to be assigned for 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
15. 2 LAND USD 125000 00 n Collateral Type Limit Currency Limit Amount Fields Modification Number 1 Td Authorized Limits for the issuers of Collateral 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 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 Specify the Issuer Identification Number if any here 2 15 ORACLE 2 11 Issuer Details Specify in brief any additional details of the issuer Issuer Limits for Collateral
16. Component Increase decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase 2 10 Feb 05 LINE1 100000 PRINCIPAL Decrease Line Utilization S no Line code Value date Utilization 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 no Value date Line code Utilization Component Increase 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 Line Utilization S no Line code Value date Utilization 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 4 3 ORACLE S no Value date Line code Utilization Component Increase 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 no Line code Value date Utilization 1 LINE1 10 Jan 05 1000000 2 LINE1 10 Feb 05 900000 3 LINE1 15 Feb 05 1400000 4 LINE1 10 Mar 05 1200000 Step 5 Reversal of Payment of 0 2M value date 10 mar 2005 on 15 mar 2005 Utilization Log
17. 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 Securities Maintenance 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 effec
18. 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 Z User Define Status Maintenance Web Page Dialog 24 xl E User Defined Status NORMAL Description NORMAL STATUS Input By VIM Date Time 9 17 2008 14 43 07 Modification Number 1 open Authorized 2 Date Time 9 17 2008 14 45 46 Authorized User Defined Status Provide a name ID for the status here Description Give a brief description of the status Maintaining Customer to Liability Link 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 Maintenance screen by typing GEDCULIK in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 4 ORACLE E Customer to liability link Maintenance Web Page Dialog E xl Branch Code SMS Customer No 004 Liability No HANIOO4 Liability Name 004 Source SOURCE14 User Reference Number Customer Exposure F O Exposure Type Exposure Name Exposure Description Input By 1 Date Time 9 Modification Number 1 Authorized By HANIT Date Time 9 Customer No Specify customer s number to whom the
19. 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 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 2 24 ORACLE 2 12 3 Specifying the Insurance Details You may enter the Insurance details for a Collateral via the Insurance Details screen Click Insurance button to invoke this screen Insurance Details Web Page Dialog 1 Insurance Insurance Name Insuranmce Number Insurance Owner Insurance Type Start Date EndDate Revision Date Notice Days zJ You can specify the following details Insurance Name Specify the name of the Insurance Insurance Company associated with the collateral Insurance Number 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 2 25 ORACLE End Date Specify the end date for tha
20. 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 Details screen by typing GEDPARAM in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 Global Exposure Parameter Detail Web Page Dialog Maximum No of Processes Rate Type Currency System CRM System STANDARD Maximum Retry Lock 5 System MakerlD System CheckerlD Auto Closure Of Non Revolving Lines Exposure Tracking Revaluate Currency Online Revaluate Market Online Rate Range Holiday Treatment UPD Utils Batch Online Batch Online Mid Rate Buy Rate Sell Rate System Date Next Working Day 1 Batch Online Block Facility on Status Yes No Batch Process Application Server Database Server Fields Input By Date Time Modification number Open Authorized By Date Time Wi Authorized The following details are maintained here 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 Treading feature in LCM can be controlled by specifying the max number of processes here In
21. 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 ORACLE 2 60 CRM System Specify the external CRM system if the Bank is using an external CRM system other than the one provided in LCM 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 Applicati
22. dated limits for a particular facility can be specified using the Value Date Exposure details screen Click Value Date Exposure to invoke this screen Value Date Exposure Web Page Dialog Value Date Exposure 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 2 52 ORACLE 2 16 Account Contract Balance Maintenance for Netting 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 You can invoke the Account Contract Balance for Netting screen by typing GEDACCNT the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Account Contact Balance For Netting Web Page Dialog 2 51 xl Reference Number Contract Type Liability Number Line Code ES Serial Number 0 jm Customer Number 25 Currency az m Amount Value Date Booking Date E Expiry Date E Netting Required El Fields Input By OFSSELDOC1 Date Time Modification Number Open 222 Reference Number Specify the reference number which is the account number or the contract reference number for which the balance has
23. e Yearly 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 2 10 ORACLE 2 8 2 9 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 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 Collateral Types Maintenance 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 Web Page Dialog 1 21x Collateral Type BONDS Description BONDS COLLATERAL Fields Modification Number 1 Ell Authorized Collateral Type Specify the Collateral Type A maximum of 20 characters are allowed in this field Collatera
24. 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 2 14 6 Maintaining Limit Schedules 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 Web Page Dialog E b Ix Ste 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 The limits maintained for a tenor are for information purposes It will not become automatically effective to the line liability combination when the tenor begins However the Limit Date should not be earlier than the Limit start date and later than the Limit Expiry Date 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
25. liability has to be linked Liability No and Liability Name Specify the number and name of the Liability to be linked to the customer Customer Exposure Exposure Type and Exposure Name 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 Specify the exposure type which needs to be linked for the customer e Exposure Name Specify a particular exposure name under the exposure type which is maintained under track exposures Note the following e The Customer to Liability Link Maintenance is mandatory when limits tracking are required under any of the Oracle FLEXCUBE modules e The Customer to Liability Link Maintenance is mandatory when account for the customer is created using account class for which limit check flag is set as Y at preference sub system screen 2 5 ORACLE 2 6 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 Single Liability linked to multiple customers i e a Customer Group Single Liability linked to only one customer Single Liability Linked To Multiple Customers Here multiple customers are linked to same th
26. 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 Limit Transaction Amount Specify the limit transaction amount During utilization transaction when utilization amount crosses the specified limit transaction amount it will trigger BEPL process for Credit Exception Management to authorize the credit utilization amount The limit transaction amount specified must be below the total effective line amount specified for that facility Breached Transaction Amount Specify the Breached transaction amount During utilization transaction when utilization amount crosses the specified limit transaction amount it will trigger BEPL process for Credit Exception Management to authorize the credit utilization amount The limit transaction amount specified must be below the total effective line amount specified for that facility 2 14 4 Specifying Covenant Details The covenant details can be captured for facility in the Covenant Details screen Click Covenants to invoke this screen 2 38 ORACLE Multiple covenants can be entered in the screen shown below You can customize the details of each covenant recorded here Covenant Details Web Page Dialog xj Covenant Details r Covenant Name Description Mandatory Frequency Period Date Grace Days Revision Date Notice Days coven B
27. the main line Refer Annexure 1 for more details on Utilization Transactions 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 rate 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 4 3 2 EOD Processing 4 2 ORACLE 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 no Value date Line code Utilization Component Increase decrease 1 10 Jan 05 LINE1 1000000 PRINCIPAL Increase Line Utilization S no Value date Line code Utilization 1 10 Jan 05 LINE1 1000000 Step 2 Payment of 0 1M Principal value date 10 Feb 2005 Utilization Log S no Value date Line code Utilization
28. this field Liability Branch Specify the branch in which liability is associated Liability Currency Specify the currency with which the liability is associated This cannot be changed post authorization 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 selected in the credit rating sub screen is displayed here 2 7 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 Credit Score sub screen 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 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
29. to be considered Contract Type The Contract Type 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 Liability Number Specify the liability number to which the Reference number is linked Customer Number Specify the customer number to which the Reference number belongs to 2 53 ORACLE Line Code Specify the line code for the account contract 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 Booking Date Specify the booking date when the account contract was created Value Date Specify the date from when this account contract is valid for netting Expiry date Specify the date till when this account contract is valid for netting Netting Required Select this check box to indicate that all facility amounts linked to the liability should be consolidated You can set the available amount u
30. 0 25 000 000 00 000 000 00 000 000 00 60 000 000 00 672 1 000 000 00 672 15 000 000 00 672 10 000 000 00 672 25 000 000 00 672 30 000 000 00 6 672 1 000 000 000 6 6 Collateral Amount 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 69 700 00 3 362 250 00 0 00 0 00 Facility Query Webpage Dialog Utilisation Reporting 220 000 25 000 0 00 1 000 00 0 00 1 000 000 0 00 50 000 00 4 602 200 00 50 000 00 0 00 25 000 00 0 00 25 000 00 0 00 25 000 00 4 602 200 00 60 000 00 0 00 0 00 15 000 00 0 00 10 000 00 0 00 25 000 00 4 010 000 00 30 000 00 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 3 2 ORACLE M Utilization Query Webpage Dialog Lt stomer No lability No Line Code erial No Booking 0 2 C00003 COCACOLA ACOLA 1 2008 zi A ESS gt j 3 3 Liability History The Liability History Query screen allows you to query for records based on the following parameters e Liability Identification e Overall limit issued to the liability ID e Utilization amount e Credit rating over a period of time You can invoke the Liability History Query screen by typing G
31. 0 2 22 FACILITIES AMOUNT TRANSFER MAINTENANCE cccccccecssssseeceeececsenseaeeecececeessnaesececeesessuaeseseeseeeseneaeeeeess 2 62 2 23 FORCE COLLATERAL REVALUATION cssccccccscccsesssseeececeesesssaeceeececsesesesecececeeseaaeseeecessessaasseseesceesensnaeeeeees 2 65 2 24 MULTI AUTHORIZATION MAINTENANCE cccccsessssececececsesscaeceescecsesssaeeecececeeseaasseeeeeesessaaeseseesecesenseaeeeeess 2 65 2 25 DUAL AUTHORIZATION OF UTILIZATION TRANSACTION 1 1 00000000000000000000000 0 2 68 2 260 MERGINGILTABILITIES FERE RE RES 2 69 2 26 1 Liability Merger 5 ette seen nest tenente ette nentes nnne 2 70 2 20 2 Liability Merger Process bau Fd SEE YR ETE SE dB eee PEN n REIR Ted 2 71 M PE 3 1 3 1 INTRODUCTION ccccssssscccececeessssececccecsenesaececceeceesessssesecececseueaeceeececeeseaaeceeececsesesasseeececeeseaeaesececeesenssaeeeeess 3 1 3 2 LIABILITIES QUERY RR 3 1 3 3 LIABILITY HISTORY cccccccccecsessscecccecsesesnesecececsesesesececececseseaeceeececsessaaeeeeececsesesaeeeeececseseaeeeeeccesesenssaeeeeees 3 3 3 4 LIABILITY EXPOSURE QUERY SRM 3 4 3 5 GOD VENNNEOIUU MR 3 5 ANNEXURE 1 VALUE DATED 2 s setas eese s
32. 0 ANNUAL REVIEW ANNUAL REVIEW TATA INRB001 M 10 1 1 2011 10 COLLATERAL NOTIFICATION Collateral Notification COCACOLA _ 058002 5 10 15 2009 10 5 Bank Statement COCACOLA BCOCACOLA USD001 N 5 10 15 2010 5 BANK STATEMENT Bank Statement COCACOLA COCACOLA USD001 N 5 10 15 2011 5 MONTHLY_REVIEW Monthly Review COCACOLA COCACOLA_USE0001 10 10 1 2008 10 COLLATERAL NOTIFICATION Collateral Notification NESTLE NESTLE USD001 N 5 10 15 2009 10 4 3 7 ORACLE 4 1 4 2 4 Annexure 1 Value Dated Facility Introduction 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 Linkage 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 the following e Tenor wise limits will continue to be based on booking date e Booking dated limit revaluation only will be done e Booking dated based overrides only will be provided e No validations based on the value dated balances will be done e Auto limits transfer limits transfer will be based on booking date Value Date Based Facility Maintenance LCM facilitates maintaining Facility details based on a parti
33. 00 36 00 2 000 00 2 000 00 3100 00 Total 46900 00 3100 00 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 Amount Exchange Rate Facility Currency Utilization Availability Equivalent USD 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 INR 72 000 36 00 2 000 00 2 000 00 1600 00 Total 48400 00 1600 00 5 2 ORACLE 5 2 2 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
34. 2 14 8 1 Maintaining Tenor Restrictions for a Main Line esee 2 46 2 14 8 2 Maintaining Tenor Restrictions for a Sub Line essent eene 2 46 2 14 9 Capturing UDE Details suit edi te SD tess Ut Deine diet RE E 2 48 2 14 10 Including Netting Amount in Facility s Available Amount eene 2 49 2 15 TRACK EXPOSURE MAINTENANCE TENE ana enra einen nennen 2 50 2 15 1 Maintaining Value Date Exposure Details eese eene 2 52 2 16 ACCOUNT CONTRACT BALANCE MAINTENANCE FOR NETTING eee eee ene enn enne 2 53 ORACLE m 2 17 EAR MARKING MAINTENANCE ccccccececececececececececececececececececececececececececececececesecececececececeeecececeeeceeeeeeeeess 2 55 2 18 GLOBAL BLOCK EXPOSURE MAINTENANCE ssssssssssceceesessseeceeececsesseaesecececeeseaaesececessessuaeaesececeenensnaeeeeess 2 56 2 18 1 Additional Information eese eene entente enne E EE E E tnn 2 57 2 19 EXCEPTION QUEUE 22 2 2 22 2 000000000 nns 2 57 2 20 TRANSACTION AUTHORIZE MAINTENANCE 2 58 2 21 LIMITS amp COLLATERALS PARAMETER DETAILS 2 6
35. CEPTION 106 If particular limit is not closed on expiry date due to the above exception then same limit is taken up for auto closure process on next EOD Facilities Amount Transfer Maintenance Transfer of full or partial limit amounts from one facility to other within 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 For the above functionality you must do the following maintenances Limit transfer details can be defined through the Facilities Amount Transfer Maintenance screen You can invoke the Facilities Amount Transfer Maintenance screen by typing GEDTRANS in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 62 ORACLE Facilities Amount Transfer Maintenance Web Page Dialog Branch Transfer Reference Number From Liability To Liability Liability No Liability No Liability Name Liability Name Line Line Line Serial Line Serial Facility Currency Facility Currency Facility Limit Amount Facility Limit Amount Facility Available Amount Available Amount Facility Start Date Facility Start Date Facility End Date Facility End Date Transfer Amount Transfer Amount Effective From Date Effective To Date Expiry Stat
36. ESQHLIA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 3 3 ORACLE Liability History Query Web Page Dialog Authorization Status Unauthorized Liability No Search Advanced Search Reset Authorization Status Record Status ID 161 164 156 159 164 213 157 167 142 4 u u u u 4 4 u u Records per page 15 vi Record Status Open Liability Branch CHO Go to Page Liability No Liability Name Liability Branch Liability Currency Utilization Amount Revision Date Credit L123 L123 Name MMM VSDF GGG VDSF TYG VDF MMM SCSD RRT4 ASHI GTY DVDF ccc DFDFDFDF LIABS87 DFDFDF CHO CHO CHO CHO CHO CHO CHO CHO CHO INR GBP GBP GBP GBP INR GBP GBP GBP 7119 2000 7 9 2000 0 8 20 2008 7119 2000 Authorization Status Record Status A Authorized C Closed U Unauthorized O Open 3 4 Liability Exposure Query The Customer Liability Exposure Query screen allows you to query for records based a customer number 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 Liability Exposure Query screen by typing GESQSLIA in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button a Liability Expos
37. HLY REVEW BANK STATEMENT FACILITY NOTFIICATION ANNUAL REVIEW ANNUAL REVIEW BANK STATEMENT Monthly Review Facility Notification ANNUAL REVIEW Facility Notification Facility Notification ANNUAL REVIEW Annual Statement ANNUAL REVIEW Monthly Review Bank Statement Facility Notification ANNUAL REVIEW ANNUAL REVIEW Bank Statement Search Advanced Search Reset Covenant Name Description Liability No MANDATE MANDATE COVENANT LARSENTBC COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA COCACOLA LARSENTB Description 5 Line Code Mandatory 2 LE Revision Date EHI Frequency E 2 Start Date EH 25 Records per page 15 of 2 Wr Go to Page Line Code SerialNo Mandatory GraceDays Revision Date No LARSENTBC FIN2 1 Y 5 COCACOLA USACCOUNT Ay 10 COCACOLA USACCOUNT 1 N 5 COCACOLA LONGTERM as 10 10 15 2009 COCACOLA UKACCOUNT 1 N 5 11 15 2008 COCACOLA_FUNDED 1 N 5 11 15 2008 COCACOLA_FUNDED 10 COCACOLA GUARANTEES 10 4 1 2009 COCACOLA LC 10 10 15 2009 COCACOLA_SHORTTERM 10 11 15 2008 COCACOLA_OVERDRAFT 5 10 15 2009 COCACOLA_NONFUND 1 N 5 11 15 2008 COCACOLA_NONFUND 10 10 15 2009 COCACOLA_JPACCOUNT 10 10 15 2009 LARSENTBNF_FX 1 Y 5 11 15 2008 EO ee b Ix The Collateral Covenants Query allows you to query the covenants associated with a pa
38. HO 722 A 0 10 000 000 00 AAA 10 31 2008 11179 USD CHO 724 0 10 000 000 00 AA 10 15 2010 TATA INR CHO 675 A 0 90 000 000 00 AAA 7 14 2009 001000107 USD CHO 718 0 1 000 000 00 AAA RA1000282 USD RAI 719 0 100 000 00 Ra1000284 USD RAI 720 A 0 100 000 00 COCACOLA USD CHO 672 A 0 100 000 000 00 AAA 1 2 2009 NESTLE USD CHO 673 0 2 000 000 000 00 AAA 1 2 2009 8 USD CHO 674 0 300 000 000 00 AAA 1 2 2009 ul WIPRO INR CHO 676 A 0 300 000 000 00 AAA E Facility Detail 3 1 ORACLE 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 Faciity List r Line Code COCACOLA JPACCOUNT 7 COCALINE1 COCACOLA MAINLINE COCACOLA NONFUND COCACOLA_OVERDRAFT COCACOLA SHORTTERM m COCACOLA LC COCACOLA GUARANTEES E COCACOLA_FUNDED COCACOLA_USD_L1 OCACOLA_UKACCOUNT COCACOLA_USLOAN COCACOLA LONGTERM COCACOLA USACCOUNT Serial No Line Currency 1 JPY 1050 1USD 1USD 1USD 1USD 1USD 1USD 1 USD 1 USD 1 GBP 1USD 1 USD 1 USD Liability ID Utilization Details Limit Amount 672 25 000 000 672 1 000 000 00 672 50 000 000 00 50 000 000 0
39. Limits and Collateral Management Version 11 0 9NT1316 ORACLE FCUBSV UM 11 0 0 0 0 0 0 January 2010 ORACLE FINANCIAL SERVICES ORACLE Document Control Author Documentation Team Group UBPG Created on September 30 2008 Revision No Final Updated Documentation Team Reviewed Development Approved by Software Quality Testing teams Assurance Team Updated on January 04 2010 Reviewed on January 04 Approved on January 04 2010 2010 ORACLE Limits and Collateral Management 1 Table of Contents EVIOUWMVCINBUEVLUY E 1 1 1 1 INTER ODUCTION ER 1 1 222 AUDIENCE E 1 1 1 3 ORGANIZATION 1 1 1 4 ACRONYMS 5 nante is hn 1 1 LIMITS amp COLLATERALS 004 reu aE Ca OAS ereo n STE Ee ASETSES OE ESSEE 2 2 2 1 INTRODUCTION EEEE 2 2 2 2 MAINTAINING CREDIT SCORE eva vas EL ese Pea eee Sii EENI EROE OENES 2 2 2 3 MAINTAINING AGENCY DETAILS FOR CREDIT RATING 2 3 2 4 MAINTAINING USER DEFINED STATUS ccccscs
40. Line facility is available then this check box will be checked 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 Approved Limit Amount This is the maximum limit amount allowed for the facility and must be specified whenever you maintain schedule limits The system ensures that neither the Limit Amount maintained here nor the schedule Limit Amount maintained as part of the limits schedule is equal to or greater than the limit specified here Once the above entry is authorized then you cannot modify it 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 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 The effective line amount basis will be validated for the following criteria e Effective line amount basis will be defaulted from the template e Effective line amount basis will be made as a mand
41. 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 Specifies the branch code of the liabilities Effective Date Specify the date from which the merger of liabilities must take effect 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 Liability Customer e Collateral e Collateral Pool Facility Netting e Facility Transfer Ear Marking 2 70 ORACLE 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 Facility Merger Log e Transfer Merger Log EarMarking Merger Log e Utilization Merger Log 2 26 2 Liability Merger Process Once you maintained the details of liabilities to be merged you can initiate the process of merger using the Liability Merger Process screen You can invoke the Liability Merger Process screen by typing GEDMRGTR the
42. The Effective From Date of transfer is defaulted to the application date and is allowed for modification only during contract amendment 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 Liability from the Effective Date onwards 2 64 ORACLE 2 23 2 24 Force Collateral Revaluation 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 Adhoc Revaluation screen by typing GEDADREV the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 Adhoc Revaluation Web Page Dialog 324 xl Security Code Security Price Specify the Security Code for revaluation Then click Process Multi Authorization Maintenance 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 Authorisation Maintenance Web Page Dialog
43. a Base Management System VD Value Date Mark EOTI Mark End of Transaction Input Mark TI Mark Transaction Input TD Term Deposits CIF Customer Information File 2 Limits amp Collaterals 2 1 Introduction The functions and actions provided by the Limits and Collateral Management module are explained below All functions explained below come under Limits amp Collaterals in the Menu Browser 2 2 Maintaining Credit Score 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 Score Maintenance screen These credit scores can later be linked to liability maintenance for assessing the liability score Credit Score Maintenance is a bank level maintenance and will be accessible in all Branches You can invoke the Score Maintenance screen by typing GEDCRSCR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 2 ORACLE Score Maintenance Web Page Dialog E E Score Name SCR4 Score Description SCORE4 Authorize 2 Date Time 9 Date Time 9 49 49 Modification Number 1 Score Name Specify a unique credit score name here Score Description Give a brief description of the score 2 2 ORACLE 2 3 Maintaining Agency Details for Credit Rating You can maintain details regarding cr
44. as it is reduced by 300 000 on account of the loan The repayment schedule for the loan as follows e USD 100 000 to be repaid on 01 February 1998 e USD 100 000 to be repaid on 01 March 1998 e USD 100 000 to be repaid on 01 April 1998 On 1 February 1999 when ABC repays 100 000 its credit limit is reinstated by 100 000 Therefore on 01 February 1998 the available Credit Limit of ABC stands reinstated at 800 000 You can define a credit line as Non revolving for a special transaction line or to allot a one time credit facility to a customer This will ensure that the line is used for just one transaction and repayments on that transaction will not make the limit available again Example You have defined the Credit Line for your customer ABC Corporation for Loans to be 1 Million You also define the credit line to be non revolving 2 34 ORACLE ABC Corporation takes a loan for 300 000 on 01 January 1998 ABC s credit limit now stands at 700 000 as it is reduced by 300 000 on account of the loan The repayment schedule for the loan as follows US 100 000 to be repaid on 01 February 1998 US 100 000 to be repaid 01 March 1998 e US 100 000 to be repaid on 01 April 1998 On 1 February 1999 when ABC repays US 100 000 its credit limit will not be reinstated by US 100 000 repayment Therefore on 01 February 1998 the Credit Limit available to ABC will remain at US 700 000 Availability Available If the
45. as to manually 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 2 20 ORACLE Note the following As apart 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 e Collateral which was Available and which has been linked to pool pools can modified as unavailable later on Unavailable collateral will not be available for subsequent 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 Lendable Margin Specify the bank s lendable margin assigned for the Collateral This value will be 100 Haircut Collateral Value The collateral value depends on whether the security is Market Value based or Non Market Value based If it is marke
46. ated 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 Main Line to which the limit amount is linked to 2 14 2 Tracing Exposure Restrictions for a Line The facility defined can be restricted for particular Tracing exposures Sector Code maintained as part of sector type maintenance has to be selected and associated for the facility to specify sector code restrictions The selected sector code and line code will not be allowed to be a part of sector maintenance and sector exposure calculation 2 37 ORACLE 2 14 3 Capturing Facility Maintenance Charges Details To capture facility maintenance charge details click Charges button Details Web Page Dialog E Charge Details Admin Charge Type Admin Charge Percent Admin Charge Amount Utilized Charge Type Utilized Charge Percent Utilized Charge B b Ix E Admin Charge 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 Amount Charge 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 Utilized Amount Charge Specify
47. ateral 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 2 12 ORACLE 2 9 1 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 Maintaining Covenant Details for Collateral Category 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 co
48. atory field e Effective line amount basis will be allowed to change only before first authorization of line The Effective Limit Amount can be modified only before the first authorization of the Line Availment Expiry Date Specify the expiry date on which first utilization should happen 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 2 85 ORACLE The freezing of the line code will be part of the LCM EOD Batch 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 in 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 Last New Utilization Date The system updates the Last New Utilization Date for the respective facility record as and when the transaction is processed You are not allowed to amend it 2 36 ORACLE 2 14 1 Maintaining Value Dates Details To maintain details regarding value dates click Value Date button Value Date Details Web Page Dialog x Value Date Details m Limit Amount Value Date Main Line Code O 500000 00 7 3 2000 Value dated limits for a particular facility automatically popul
49. ch 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 Batch Operations gt In Bound Batch gt detailed The following operations via input files will be supported as an Input Files Batch Operations e Customer upload e Utilization Upload e Liability upload e Facility upload e Collateral upload e Securities upload e Rates upload Utilization Upload 6 2 ORACLE 6 3 2 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 Limits Upload Limits creation as part of batch upload is provided for Liability upload allows more than one Limits record to be uploaded in a single upload process Collateral Upload Collateral creation as part of batch upload is provided for Liability 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 Liability upload allows more than one Securities record to be uploaded in a single up
50. cified for the liability id Main Line Limit cannot be less than any of its Sub Line Limit e Sub Line Limit cannot exceed the Main Line Limit Example Assume the following e Liability GROUPLIAB e Line SHTLLIMIT e Serial 1 e Start Date 01 Jul 2009 e Limit Currency USD e Limit Amount 50000 2 43 ORACLE Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 2009 80000 e System Date 14 Jul 2009 e 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 e System Date 15 Jul 2009 e Limit Amount 60000 Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 2009 80000 e System Date 27 Jul 2009 e Limit Amount 60000 e Next working Day 30 Jul 2009 On 27 Jul 2009 EOD the limit revision process picks 28 Jul 2009 and 30 Jul 2009 schedules and update 75000 as limit amount The revised limit is enforced effective on 30 Jul 2009 e System Date 30 Jul 2009 e Limit Amount 75000 Schedules Limit Date Limit Amount 15 Jul 2009 60000 28 Jul 2009 65000 30 Jul 2009 75000 15 Aug 2009 80000 2 44 ORACLE 2 14 7 Maintaining Collateral Pool Linkages For collateral Co
51. cular 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 Limit Amount The limit amount for the facility 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 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 syst
52. 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 2 14 5 2 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 When you invoke this screen for the first time and have not maintained branch restrictions for the line in the Limits template a list of all the branches of your bank is displayed under the Branches Allowed list indicating that all branches of your bank can use the line From this list of allowed branches you can restrict a certain branch s from using the line If you have already specified branch restrictions for the line in the Limits Template these restrictions will be defaulted here You can modify the branch restrictions defaulted from the Limits Template You can disallow a branch s from using 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 2 14 5 3 Maintaining Currency Res
53. cy of the pool This is essential because the collaterals linked to a pool can be in different currencies 2 31 ORACLE 2 14 For Example you have linked the pool LOANP001 to the liability BIRLAO001 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 1 500 000 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 Pool Amount The entire Collateral Linked amount will be displayed in this field Utilization 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 Facilities Maintenance You can maintain credit limits for a Line Code Liability Code combination in the Facilities Maintenance screen 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 arrow button 2 32 ORACLE Facilities Maintenanc
54. des Select the appropriate one Description The system defaults the exposure description here 2 56 ORACLE 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 It is also updated as the Exposure Block Amount the Track Exposure Maintenance screen Effective Date This is the date from which the amount block should be applied for the exposure The system defaults the current branch date You can however change it Expiry Date This is the date till which the amount block for the exposure is enforced Auto Block The system automatically checks this option on the date the block on the exposure comes into force i e the Effective Date 2 18 1 Additional Information 2 19 As part of additional information for the exposure you can capture the following details e Customer Number e Liability Number e Remarks e Facility Code The system displays the Serial Number Exception Queue Maintenance You can maintain exception queue records with their respective transaction authorizer details in the Exception Queue Maintenance screen You can invoke the Exception Queue Maintenance screen by typing GEDQUEMN in the f
55. dule Liability Number Specifies the Liability Number of the utilization transaction Liability Number entered should be valid Liability Number in LCM module Line Code Specifies the Facility Code of the utilization transaction Facility Code entered should be valid Facility Code in LCM module Serial Number Specifies the Facility Serial number of the utilization transaction Facility Currency Specifies the Facility currency 2 66 ORACLE Facility utilization Indicates the Facility utilization amount Utilization Amount Indicates the Utilization Amount Utilization Branch Indicates the transaction branch Utilization Product Indicates External product code of the utilization transaction 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 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 Err
56. e 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 you 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 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 2 47 ORACLE 2 14 9 Capturing UDE Details To capture the UDE details click UDE Details button User Data Element Details Webpage Dialog Commitment Product Commitment Settlement Account Facility UDE Valu
57. e Webpage Dialog Amounts Liability Id Approved Limit Amount Line Code Limit Amount Collateral Amount Transfer Amount Effective Line Amount Line Currency Eff Line Amount Basis Category internal Remarks Block Amount User Defined Status Max Daily Limit Status Changed Date Day Light Limit Uncollected Amount Revolving Line Utilization Available Amount Date Of First OD Netting Required Unadvised Date Of Last OD Funded Amount Utilised Today Shadow Limit Utilization Amount Bulk Payment Required Tanked Utilization Availability Netting Utilization Available Exception Exception Txn Amount Line Start Date Expiry Date Exception Breach Percentage Last Available Date Availment Date Limit Restrictions Tenor Restrictions Schedules Value Dates Charges Covenants Pool Links Exposures UDE Details User Defined Status Log Fields Input By Date Time Modification Number Authorized Authorized By Date Time Open Liability ID Specify the Liability ID 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 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 seekin
58. e Liability Code and all restrictions facilities maintained at liability level are shared to all the customers Liability Code Eu Customer A Customer B Cusiomer C Customer Group 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 right corner of the Application tool bar and clicking the adjoining arrow button 2 6 ORACLE E Liability Maintenance Web Page Dialog E Aj xl Liability Number LIAB723 Liability Name LIABILITY TWO Liability Branch LIM Liability Currency USD Utilization Amount 0 00 Revision Date Credit Rating Overall Score User Defined Status Overall Limit 300000 00 Liability Category Unadvised Netting Required User Reference Number Score Credit Rating Fields 1 Date Tim 55 Modification Number 1 open Date Tim 0 49 Authorized 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
59. e 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 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 2 18 ORACLE e Price Code Indicates the market place for which the price is quoted e Market Price Price of the security in that market Last Price Change Date on which the price was last changed 2 12 Collaterals Maintenance 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 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 Webpage Dialog Collateral Details Liability No Liability Branch Lendable Margin Limit Contribution Collateral Currency Revision Date Collateral Value Start Da
60. e eene eto seen sesto seta sesta ue 6 1 6 1 INTRODUCTION 6 1 6 2 GATEWAY ONLINE PROCESS c cccccccecsessssscecececeesesesececececsesnsaeceeececsessaaececececsesnsasseeececseneaeaeeeeeesesenseaeeeeese 6 1 6 2 1 Maintenance TrANSACTIONS cccccccccccsecccccccccccsseseecececccsuseseececececuuseseececessuuuseseececessauaneceeceseusaueneeceseeeaeas 6 1 6 2 2 Utilization Transactions eese eee Error Bookmark not defined 6 2 3 Batch PLOCESS eie tt it DIES EE IEEE uke soa De SE EO pe coe ito ses eat sedes ERS 6 1 6 2 4 Reprocessing Locked Online Transactions eese eerte teen 6 2 6 2 5 Technical undo Functional Rollback eese sees enne ennt 6 2 6 3 GATEWAY BATCH PROCESS ccsssscsccecsessssececececeesesecececececsesnsseceeececeeaaeceeececeesesassesececseneaeaeeeeceeesenssaeeeeecs 6 2 6 3 1 Batch Inbound Proc s S aar 6 2 6 3 2 Bath 01718770711 T7 PHOCESS 6 3 6 4 INTERFACES Ro AT M m I ee ae 6 4 ORACLE 1 About this Manual 1 1 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 LCM module Besides this User Manual you can find answers to specific features and procedure
61. ean esos P eoe e eas eoe seta uS 4 1 4 1 INTRODUCTION ETUR Pee EE a AE AE RECEN RES 4 1 4 2 VALUE DATE BASED FACILITY 1 222040041100 0000100000000000000000000000000000000000 4 1 4 3 VALUE DATE BASED UTILIZATION PROCESSING eese sen entren nnne 4 2 4 3 1 Back Valued Transactions s e eue o ene oen eue ee een a e uen ee e ue o aea e uen ey Cue Nea RON e uen eO eue PE eun vo 4 2 4 3 2 EOD Processing DAD HEN ERR 4 2 ANNEXURE 2 REVALUATION oscsssisessssecsscscsosnectsscsseansssdnsesoosssesesecctessscpencssatdvsonseesnessocssnessssceusescovenesesssss 5 1 5 1 INTRODUCTION NER TT EXE 5 1 5 2 CURRENCY REVALUATION cccsssscscceceesesseseeececeeseeeseceeececseuaeseeececeeseaaeeeeececeessaeesececsesesesueaesecececeesesaseeeees 5 1 5 2 1 Facility Currency and Utilization 5 1 3 2 2 Facility Currency and Collateral Currency eee eese eene eene 5 3 5 3 COLLATERAL REVALUATION c c cccccscsessssssesececsessssncesecececsesseaesecececsessnaeseeeceseessuaeaesecsesenesaeaeseeeeseeesenaeeeeses 5 4 3 344 Collateral Revaluation of Market Based Securities esee 5 4 5 3 2 Collateral Revaluation of Non Market Based Securities eese 5 9 ANNEXURE 3 GATEWAY PROCESSES amp INTERFACES 4 ee ee e eert
62. ecified 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 Code Collateral Cap POOL Collateral Pool Contribution amount Amount code amount Pool linkage ABB 60 000 60 000 Pool1 100 60 000 Pool contribution to the line Pool Code Pool Currency Line Line Pool Pool Line Code Currency Line contribution available linkage amount line amount Pool1 USD Loans USD 100 60 000 1 06 million 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 Code Collateral Cap POOL Collateral Pool Contribution amount Amount code amount Pool linkage ABB 45 000 60 000 Pool1 10096 45 000 Pool contribution to the line 5 7 ORACLE
63. edit rating agencies in the Credit Rating 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 for specifying customer rating published by an agency You can invoke the Credit Rating Maintenance screen by typing GEDCREDT the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 Credit Rating Maintenance Web Page Dialog Agency Name CRERATAG1 Agency Description CREDIT RATING Agency1 Credit Rating Details O Credit Rating Credit Rating Description CRERAT1 CREDIT RATING1 Input By VIM2 Date Time 9 17 2008 14 35 39 Modification Number 1 iv Open Authorized By VIM Date Time 9 17 2008 14 37 18 Authorized 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 Specify the unique Credit Rating code ID Credit Rating Give a brief description of the Credit Rating code ID 2 3 Ad xl ORACLE 2 4 2 5 Maintaining User Defined Status 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 screen You can name and describe statuses here You can invoke the
64. em into one single liability LCM allows you to merge one liability into another Upon merger both liabilities will assume the same liability code The structure of the liabilities will not change The merging of liabilities is done in the following two steps Step 1 Liability Merger Maintenance e Step 2 Liability Merger Process The above steps are described in the sections below 2 69 ORACLE 2 26 1 Liability Merger Maintenance 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 Web Page Dialog 2 o xl z Branch Code CHO From Liability Code 25 Liability Code a Effective Date E Remarks e Customer Link Merger Log Collateral Merger Log Collateral Pool Merger Log Hetting Merger Log Facility Merger Log Transfer Merger Log EarMarking Merger Log Utilization Merger Log y Date Time Modification Number E Open Authorized By Date Time Authorized In the above screen you must maintain the following details for merger of two liabilities 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
65. em to LCM In the Facility screen this date will be displayed 4 4 ORACLE 4 3 4 3 1 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 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 Processing 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 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 fthe 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
66. ency Line Line Pool Pool Line Code Currency Line contribution available linkage amount to line amount Poolt USD Loans USD 100 15 000 115 000 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 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 Collateral Revaluation will be of two types These types are explained in the sections below Collateral Revaluation of Market Based Securities 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 security affects its collateral value Therefore the value of a collateral should reflect the changes in the value of the securities backing it 5 4 ORACLE R
67. ential 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 security backing collateral causes a revaluation of the collateral amount Currency Revaluation Currency revaluation is triggered off as a result of the cases explained in the sections explained below Facility Currency and Utilization Currency 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
68. erwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
69. es 8 UDE Value Rate Code Code Usage You need to capture the following details here Commitment Product 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 UDE ID Specify the UDE ID of the commitment UDE Value Specify the UDE value of the commitment Rate Code Specify the rate code of the commitment Code Usage Specify the code usage of the commitment 2 48 ORACLE You use the above UDE details to upload commitment details to Oracle FLEXCUBE as part of facility maintenance While uploading the commitment details you need to use the batch ELBCOMNT which is configured as part of EOD process 2 14 10 Including Netting Amount in Facility s Available Amount 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 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 added with the new netting amount in facility currency
70. evaluation 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 the Collateral Maintenance Screen e fthe 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 fthe 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 line increases e If it exceeds the Cap amount then the cap amount will be taken as the collateral contribution Similarly if the market p
71. field at the top right corner of the Application tool bar and clicking the adjoining arrow button Liability Merger Process Web Page Dialog zj x Process Click Process button to initiate the merger of maintained liabilities 2 71 ORACLE 3 Queries 3 1 Introduction The Queries module under the Menu Browser provides query functions for the following Liabilities e Liability Exposure e Liability History 3 2 Liabilities Query The Liability Query screen allows you to query for records based on the following parameters e Liability Identification e Overall limit issued to the liability ID e Credit rating e Revision date e Utilization amount e Branch to which the liability belongs to e Customer name of the liability ID 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 x Liability No 22 Liability Currency gt Liability Branch Ld Search Advanced Search Reset Records per page is v 1of 1 Goto Page LiabiityNo Liability Currency Liability Branch id Authorization Status Record Status Overall Limit Credit Rating Revision Dz LARSENTBC USD CHO 694 0 50 000 000 00 11 15 2008 LARSENTVT GBP CHO 695 A 0 50 000 000 00 12 15 2008 00016 USD CHO 717 0 9 999 999 999 999 00 AAA 10 15 2015 RELIANCE INR C
72. g 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 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 specified for this Line Liability combination is taken to be in this currency 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 2 33 ORACLE 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 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 updates the utilization amount on
73. hen 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 2 49 ORACLE 2 15 Track Exposure Maintenance Maintenances for exposure tracking can be done via the Track Exposure 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 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 31 Exposure Exposure Exposure Description Utilisation type Customer Exposure Currency Transaction Exposure Amount m Revolving Exposure Block Amount Exposure Utilisation Exposure Effective Date Exposure RenewalDate Exposure ExpityDate Freeze Exposure rating Remarks Exposure Available Amount Value Date Exposure Fields Input By Date Time Modification Number Open Authorized By Date Time Authorized Exposure Name Specify the Exposure name The name main
74. hich 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 896 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 Collateral Code Collateral Cap POOL Collateral Pool Contribution amount Amount code amount Pool 96 linkage ABB 55 000 60 000 Pool1 100 55 000 5 6 ORACLE Pool contribution to the line Pool Code Pool Currency Line Line Pool Pool Line Code Currency Line contribution available linkage amount to line amount Pool USD Loans USD 100 55 000 1 055 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 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 sp
75. ield at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 57 ORACLE 2 20 3 Exception Queue Maintenance Web Page Dialog 2 x Queue Name EXPQUEO2 Description EXPQUE02 n Role Name Role Description B TXNBRH TRANSACTION BREACH ROLE g Modification Number 1 Iv Open fl Authorized Queue Name Specify the Queue Name Description Give a brief description of the queue here Queue Details Here you can specify multiple user roles for a Queue name For each record you must specify the following Role Name User role allowed for authorization Role Description Transaction Authorize Maintenance As apart of BEPL process for Credit Exception management the Transaction authorizer details and breached authorizer details can be entered in the Transaction Authorize Maintenance screen You can invoke the Transaction Authorize Maintenance screen by typing GEDTAUTH the field at the top right corner of the Application tool bar and clicking the adjoining arrow button 2 58 ORACLE Transaction Authorize Maintenance Web Page Dialog E 2x Branch Description BANK OF INDIA Category CUSTCAT EE Transaction Details F Queue From Amount To Amount E EXPQUEO1 100 200 7 2 500 600 Breached Detaits s8 Queue From Amount To Amount E
76. isting linked contracts can also be done the above screen Contract Reference No 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 following e The Term Deposit contract needed for Collateral Linkage must be maintained in Netting Maintenance with any contract type other than AC the contract is linked as collateral then its collateral value cannot exceed its contract amount as maintained in the Account Netting screen e 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 e The system blocks marks Lien on the linked Term Deposit contract Contract Contribution Specify here the amount being contributed from the contract as a collateral for the liability 2 29 ORACLE 2 13 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 Value field of the Collaterals Maintenance screen You are allowed to link contracts associated to LC BC and MM modules as part collateral main
77. l Type Description Give a brief description of Collateral Type A maximum of 50 characters are allowed in this field Collateral Category Maintenance 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 2 11 ORACLE Collateral Category Maintenance Web Page Dialog E 2 xl Category LAND100 Category Description LAND100 Collateral Type LAND Collateral Description LAND COLLATERAL Revision Date 7 3 2001 Secured Type Category Type Secured Sovereigns Unsecured Banks Liquid Corporates Tangible Type Frequency Monthly v Tangible Due Date On 4 Untangible Start Month July Y Remarks Collateral Haircut Category r Haircut Name Description Haircut Percentage Primary HAIRCUT MARGINS 15 HAIRCUT MARGIN2 13 20 HAIRCUT MARGINI 10 15 E Covenant Fields N on Number 3 Category Name and Description Specify the Category name and a brief description of the category Collateral Type and Description Specify the collateral type and a brief description of it Category Type Indicate the category type from the following e Sovereigns e Bank e Corporate Revision Date Specify the date on which the Coll
78. l created in LCM can be grouped into file via the Batch Facility Handoff This handoff will contain all the details of the records 6 4 Interfaces The following interfaces are available as part of the LCM module 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 ORACLE Limits and Collateral Management January 2010 Version 11 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial services Copyright 2010 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or oth
79. liability is as shown in the table Liability Code Line Code Liability Limit Liability Liability Availability Currency D Utilization Symphony Group Loans 100 000 USD 46900 00 53100 00 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 Liability Code Line Code Liability Limit Liability Liability Availability Currency Utilization Symphony Group Loans 100 000 USD 48400 00 51600 00 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 containing the pool amount will be linked to the Facility Hence any revaluation at collateral level will affect the pool amount Example This pool You have defined a line for L
80. load process Customer Upload Customer creation as part of batch upload is provided for Liability 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 Liability upload allows more than one Rates 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 Out Bond Batch Detailed The following operations will be supported as an Input Files Batch Operations e Utilization e Liability e Facility e Collateral 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 6 3 ORACLE Liability Handoff Zero Based All the Liabilities created in LCM can be grouped in to file via the Batch Facility 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 Collatera
81. ly 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 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 Funded Indicate whether the line is fund based or non fund based Revolving Line Select this check 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 Example You have defined the Credit Line for your customer ABC Corporation for Loans to be 1 Million You also define the credit line to be revolving ABC Corporation takes a loan for 300 000 on 01 January 1998 ABC s credit limit now stands at 700 000
82. nce Detailed screen E Limit Restrictions Web Page Dialog Restriction Type Allowed Disallowed Restriction Type Allowed Disallowed Customer Restrictions T Customer No Short Name Restriction Type Allowed Disallowed Currency Restrictions p r Currency Code Currency Restriction Type Allowed Disallowed 85 Bt System Restrictions Branch Restrictions Branch Code Branch Restriction Type Allowed Disallowed Exposure Restrictions exposure Name Description rr Ext System Description Restriction Type Allowed Disallowed 31 product Code Product Description 2 40 ORACLE 2 14 5 1 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 are maintaining restrictions for the first time the list of customers that are linked to a liability code is displayed under the Customers Allowed list indicating that they are allowed to use the line You can restrict a customer s from using the credit under a line by highlighting the code that identifies the
83. nder a Facility to include the Netting Amount too For more details on this feature refer the section Including Netting Amount in Facility s Available Amount in this document 2 54 ORACLE 2 17 Ear Marking Maintenance 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 the field at the top right corner of the Application tool bar and clicking the adjoining arrow button EN Marking Maintenance Web Page Dialog Block Number Branch code CHO Liability Code Customer No Line Code Serial Number Block Currency Block Amount Effective Date Expiry Date Auto Block Remarks Fields Input By Date Time Modification number open Authorized By Date Time tuthorizea 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 Liability Code Specify the liability code for which the amount block is to be done 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 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 ma
84. ntribution 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 Limits Maintenance screen click on the Pool Links button Z Pool Links Web Page Dialog Ix Pool Links Pool Code Pool Description Pool Currency Pool Amt Facility Branch Code Pool Facility Amount In Pool CCY Facility car ll KI 2 The LOV button for pool code will display all the pool codes associated for that liability Id On choosing a pool code the pool amount pool description and the pool currency will get displayed Pool Linkages multi entry block does two functions Firstly on clicking Plus button we can link one row of the available pool amount i e Pool amount Pool Utilized to that a Line code for which the collateral contribution is required Secondly it displays at all point in time the pool amount utilized by various Line Codes and Contracts 2 45 ORACLE 2 14 8 Defining Tenor based Restrictions You can define Limits based on the tenor of the contracts that utilize the limit Click Tenor Restrictions button from the Limits Maintenance Detailed screen to maintain Tenor restrictions for the limit you have specified for the Line Liability combination E Tenor Restrictions Web Page Dialog b Restriction Type Allowed Disallowed Tenor Restrictions zi
85. ntures 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 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 33 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 ar
86. oans 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 Collateral Code Max Collateral Collateral POOL Pool Collateral Pool Contribution Currency code Currency Pool amount amount linkage ABC 10 000 GBP Poolt USD 100 20 000 Pool contribution to the line 5 3 ORACLE 5 3 5 3 1 Pool Code Pool Currency Line Line Pool Line Pool Line Avl Code Currency linkage contribution amount Pool1 USD Loans USD 10096 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 2 5 USD Collateral Line Max Collateral Pool Pool Collateral Pool Code Code Collateral Cuvee code Currency Pools amount Contribution y y linka amount 9 Loans 10 000 GBP USD 100 15 000 Pool contribution to the line Pool Code Pool Curr
87. on 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 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 Auto Closure of Non Revolving Line Check this box to close the non revolving limit automatically on expiry date The EOD process closes all the active non revolving limits automatically based on the value of Auto Closure Non Revolving Line Example Limits Facility Expiry Date Revolving 2 61 ORACLE 2 22 FACILITY1 15 Jul 2009 N FACILITY2 16 Jul 2009 Y FACILITY3 16 Jul 2009 N FACILITY4 15 Aug 2009 N e System Date 15 Jul 2009 e Next Working Day 17 Jul 2009 On 15 Jul 2009 EOD the system closes FACILITY1 and FACILITY3 This process does not close the following limits e If there are any underlying active transactions on that limit e If there any active sub lines reporting to this main line If limit is not closed due to the above exceptions then the system logs the same into an exception table GETB EX
88. or Code Specifies the Error code of the transaction Error parameter Specifies the Error parameters associated to the transaction Remarks You can enter your remarks associated with the transaction 2 67 ORACLE 2 25 Dual Authorization of Utilization Transaction During Utilization Transaction process if the utilization amount crosses the breach amount specified then the transaction requires dual authorization You have to perform dual authorization of utilization related transactions in LCM only 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 2 68 ORACLE 2 26 Example Assume that for liabilit
89. ount 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 amount Exposure Block Amount The value of the Block Amount field in the Block Exposure Maintenance screen is displayed 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 Exposure 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 2 51 ORACLE 2 15 1 Maintaining Value Date Exposure Details Value
90. place online when ever there is a change in the collateral value Example Non market Based collateral Fixed Deposit having 100 lendable margin has been linked to a facility on 1 January 2008 owned by a XYZ customer having the liability Symphony Group Liability Code Line Code Liability Limit Symphony Group Loans 1 million Collateral Collateral Collateral Pool Collateral Pool Amount Code Value Contribution code amount poole linkage Fixed Deposit 50 000 50 000 Pool 100 50 000 Pool Code Pool Line Line Pool Pool Line Currency Code Currency Line contribution available linkage amount to line amount 96 Pool1 USD Loans USD 100 50 000 1 05million Pool contribution to the line After one Year on 1 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 module 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 Liability Code Line Code Liability Limit Collateral Code Collateral Collateral Pool Collateral Pool Value Contribution amount code amount Pool 96 linkage Fixed Deposit 55 000 55 000 Pool1 10096 55 000 Symphony Group Loans 1million
91. ral 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 creating collateral pools remember the following e Collateral can be linked to more than one pool if the collateral amount available is not zero e Acredit 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 Identifier Specify the collateral code here Collateral Currency The currency in which the collateral has been maintained will be displayed when a collateral code has been picked Collateral Amount The collateral amount which has been maintained will be displayed when a collateral code has been picked Linked Amount Specify the part of the collateral amount which has to be linked to the pool This indicates whether the pool contribution amount is less than or equal to the collateral amount Hence for every collateral that you choose to include in the pool you can indicate whether the entire collateral amount or only a part it should be contributed to the pool amount Linked Amount Pool Currency In addition to specifying the linked amount you also have to specify the curren
92. re parameters for a single Liability 2 9 ORACLE 2 7 Covenant Maintenance 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 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 E Covenant maintenance Web Page Dialog E E 2 xi Covenant Name MANDATE Description MANDATE COVENANT Mandatory Yes C No Frequency Month Start Month July Due Date On 3 Notice Days 10 Grace Days 5 Remarks MANDATE COVENANT Modification Number 1 Covenant Name and Description Specify the Covenant Name for which information is entered A maximum of 50 alpha numeric 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
93. rice 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 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 Liability Code Line Code Liability Limit Symphony Group Loans 1million Collateral Code Collateral Cap POOL Collateral Pool Contribution amount Amount code amount Pool 96 linkage ABB 50 000 60 000 Pool1 100 50 000 Pool contribution to the line 5 5 ORACLE Pool Code Pool Currency Line Line Pool Pool Line available Code Currency Line contribution amount credit linkage amount to limit Pool 96 line contribution Pool1 USD Loans USD 100 50 000 1 05million A Rise in Value The market value of Debentures2008 has increased to 55 w
94. rking 2 55 ORACLE 2 18 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 Global Block Exposure Maintenance 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 Application tool bar and clicking the adjoining arrow button E Global Exposure Block Maintenance Web Page Dialog 4 181 ioj xj EJ Block Number Branch Exposure Name 2z Exposure Description Block Currency Block Amount Effective Date E Expiry Date EP Auto Block Additional Inforamtions Customer No 5 Liability Remarks e Line Code 5 Serial No un El Fields OFSSELDOC1 Date Time Modification Number o Authorized By Date Time Bl Authorized 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 The current branch is displayed here You can change it to a branch that you require 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 co
95. rticular collateral Details including the collateral code liability number last revision date notice days for the covenant can be viewed 3 6 ORACLE 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 Collateral Covenants Query Dialog a Covenant Name Description al Liability No Collateral Code Mandatory Grace Days Revision Date Notice Days Frequency Due Date On Start Month Covenant Reference No A Search Advanced Search Reset Records 15 1of2 gt bl Go to Page Covenant Name Description Liability No Collateral Code Mandatory GraceDays Revision Date Notice Days COLLATERAL NOTIFICATION Collateral Notification LARSENTBC LARSENTBC_EQUITY001 Y 5 11 1 2008 10 STATEMENT Annual Statement LARSENTBC LARSENTBC BULIDOO2 Y 10 4 1 2009 5 FACILITY NOTIFICATION Facility Notification LARSENTBC LARSENTBC 002 Y 5 1 1 2010 10 COLLATERAL NOTIFICATION Collateral Notification LARSENTBC LARSENTBC BULID002 Y 5 1 1 2010 10 BANK_STATEMENT Bank Statement LARSENTVT LARSENTVT_GUAROO1 Y 5 1 1 2008 5 ANNUAL_REVIEW ANNUAL REVIEW 111179 LAND Y 10 10 1 2010 10 ANNUAL REVIEW ANNUAL REVIEW TATA USD001 Y 10 10 1 2010 10 ANNUAL REVIEW ANNUAL REVIEW TATA INRMOO1 xi 10 1 1 2011 10 ANNUAL REVIEW ANNUAL REVIEW TATA TATA_INRLOO1 LA 10 1 1 2010 1
96. s Web Page Dialog E El Brera penis r Liability No Shared Percentage a 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 2 12 6 Linking Contracts as Collaterals Limits and Collateral Management 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 2 28 ORACLE 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 Numbers of all Term Deposits you wish to link A LINKED CONTRACT Web Page Dialog j Linked Contract Contract Reference No Contract Contribution Modification of ex
97. s in the Online Help which can be invoked by choosing Help Contents from the Help Menu of the software You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt the keyboard 1 2 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 officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day 1 3 Organization This manual is organized into the following chapters Chapter 1 About This Manual Chapter 2 Limits amp Collaterals Chapter 3 Queries Chapter 4 Value Dated Facility Chapter 5 Revaluation Chapter 6 Gateway Processes amp Interfaces 1 4 Acronyms and Abbreviations You may find the following acronyms abbreviations in this manual UI User Interface LCM Limits and Collateral Management 1 1 ORACLE 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 Dat
98. scsssssssscssessvsssssssscnsesesssessavsessassessssssssessevsessasessenoasenssensasanes 2 4 2 5 MAINTAINING CUSTOMER TO LIABILITY 2 4 P REB BC baud Nui we M M 2 6 2 6 1 Specifying Liability SCOYOS oci o t CER EUR EI EU ES 2 9 2 6 2 Specifying Liability Credit Rating 2 9 2 7 COVENANT MAINTENANCE 2 10 2 8 COLLATERAL TYPES MAINTENANCE bere eeu eese concen Pes a RENE 2 11 2 9 COLLATERAL CATEGORY MAINTENANCE 2 2 11 2 9 1 Maintaining Covenant Details for Collateral Category eene ene 2 13 2 10 ISSUER MAINTENANCE T Sesika is 2 14 211 SECURITIES MAINTENANCE sssi ieee eroon htt eno eere depo s teo Pee ER ke ee he repe bun Eee ER PERPE 2 16 2 12 COLLATERALS MAINTENANCE etre ea te EX eee erratis 2 19 2 12 1 Specifying Details for Market Value Based 2 23 2 12 2 Specifying Details for Guarantee Based 20202 een eem eene 2 24 2 12 3 Specifying the Insurance Details eese eee neen nennen rennen enne 2 25 2 12 4 Specifying Covenant Details
99. so Netting Required Select this check box to indicate that all facility amounts linked to the liability should be consolidated You can set the available amount under a Facility to include the Netting Amount too For more details on this feature refer the section Including Netting Amount in Facility s Available Amount in this document 2 8 ORACLE 2 6 1 2 6 2 Specifying Liability Scores 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 can maintain multiple score parameters for the single Liability To invoke the Liability Score screen click Score button E Liability Score Web Page Dialog E Liabilty Score 12 Score Name Score Description Score Specifying Liability Credit Rating 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 Web Page Dialog BE erem EJ Agency Credit Rating Primary Here you can select 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 sco
100. t insurance Revision Date Specify the date of revision of the insurance 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 Insurance Premium Periodicity Select the premium periodicity of the insurance The list displays the following values Daily e Weekly e Monthly e Quarterly 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 Premium Currency Specify the currency of the premium to be paid Premium Amount Specify the amount of the premium to be paid 2 26 ORACLE Remarks Specify the remarks about the insurance details Coverage Specify the coverage details of the insurance 2 12 4 Specifying Covenant Details The covenant details can be captured for a collateral in the Covenant Details screen Click
101. t 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 2 16 ORACLE e Securities Webpage Dialog Security Code 5 001 Equity Base 2500000 Start Date Currency GBP Expiry Date 12 31 2008 Face Value 10 00 Limit 1 000 000 000 00 Price Increase Sensitivity 5 00 Nominal Value Based Price Decrease Sensitivity 5 00 Issuer Code ISR001 Collateral Type MARKET Price Code Market Price Last Price Change 150 11 30 2007 Input By OFSSLM4 Date Time 12 10 2007 00 00 00 Modification Number 14 Authorized Authorized By OFSSLM4 Date Time 12 10 2007 00 00 00 Details of the marketable security that your bank accepts as collateral can specified in the above screen Security Code Assign a unique code to identify the security This code is called the Security Code This code is used while maintaining Collateral for a market value based Security Description Describe in brief the security maintained Equity Base Here you can specify the equity base for the security i e the total amo
102. t 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 1 65 65 100 10 00 000 650000 5 00 000 BOM2 70 70 100 5 00 000 350000 7 00 000 80 80 100 7 00 000 560000 Input in case of a unit quoted security Number of Price Market Collateral Value Number of Units x Market Units Code Price price 65 1 120 7800 70 2 130 9100 40 CAL1 95 3800 If it is Non Market Value based then the user has to enter the collateral value manually 2 21 ORACLE Limit Contribution Specify the final amount contribution that will be applicable for a Limit 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 contribution will be calculated 2 22 ORACLE 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
103. tained in this screen has to be linked in the customer Screen to make tracking effective It is possible to track a customer in multiple exposures For this multiple exposure names should be linked to the customer Exposure Description Provide a brief description 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 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 2 50 ORACLE 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 Exposure Currency Specify the currency in which the Tracking of Exposure has to be maintained Once authorized this field will be non amendable Exposure Am
104. te Revaluation Date End Date Revaluate Collateral Grace Days User Reference No Available Secured Type Secured Sharing Required Unsecured Collateral Category Liquid Auto Pool Create Collateral Type Market Value Based Mortgage Initiated Guarantee Based Normal Market Value Based Guarantee Based Security Code Guarantor Id Number of Units Nominal Value Rating Cap Amount Revokeable Price Code Revoke Date Last Revaluation Price Next Revaluation Date Issuer Details Issuer Name Issuer Reference No Insurance Covenant Shared Details Link Contract Fields Input By Date Time Modification Number Authorized Authorized By Date Time 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 There should be only one Collateral code for a given Liability Collateral Description Give a brief description of the collateral here 2 19 ORACLE Collateral Type Indicate the type of collateral Market Based Type Guarantee Type or Normal Type Secured Type
105. tenance in LCM The maximum amount which is contributed to the collateral is the contract amount Collateral Pool Maintenance 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 corner of the Application tool bar and clicking the adjoining arrow button Collateral Pools Maintenance Webpage Dialog Mortgage Intiated Pool Linkages Collateral Code Collateral Description CollateralCcy Limit Contribution Branch Co Order Linked Percent Number Linked Amount Linked Amount Pool Currency vl Fields Input By Modification Number Authorized By 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 Code Description Specify a brief description of the collateral pool here Pool Currency Specify the currency in which the Collateral Pool has to be maintained 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 2 30 ORACLE 2 13 1 Creating Collate
106. ter the number of units of the security that 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 Price Code Specify the market price code E g NYSE NASDAQ based on which the revaluation price for collateral value calculation should be considered 2 23 ORACLE Last Revaluation Price The last market price based on which the collateral value was revaluated will be displayed here Revaluation Due Date This field will indicate when value associated to Frequency It is a Number field and only Positive Integers should be keyed in This indicates the number of days after which the due date of collateral has to be revaluated 2 12 2 Specifying Details for Guarantee Based Type Guarantor ID Specify the customer number CIF ID of the guarantor This field is aloha numeric and a maximum of 50 characters can be entered Rating of Guarantor
107. then contracts having currencies other than the facility currency can utilize 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 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 Liability Code Line Code Facility Limit Facility Currency Symphony Group Loans 50 000 USD 5 1 ORACLE On 01 January 2008 the following Loan contracts has been sent to LCM module 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 Amount Exchange Rate Facility Currency Utilization Availability Equivalent USD 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 0
108. trictions 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 From the option list available choose the currencies to which you would like to restrict application The list of currency codes you choose in this field will be described in the adjacent column If you have already specified currency restrictions for the line in the Limits Template these restrictions will default here You can modify these default restrictions to suit your requirement 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 2 14 5 4 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 2 44 ORACLE 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
109. unt raised by the issue of this security This entry is for information purposes only 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 revaluates the collateral if the price of the securities that backs it fluctuates above or below the sensitivity you have defined 2 17 ORACLE 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 Example Consider a case wherein you have specified the price increase sensitivity for Debe
110. ure Query Web Page Dialog Liability No 181 Line Code LINECODE1 Utilisation Branch Customer No CUSTONOD1 Search Advanced Search Reset Records per page 15 Liability Branch Utilisation Currency Auth status Record Status of 1 P Go to Page Liability No Liability Name Liability Branch Liability Currency Overall Limit Line Code SerialNo Utilization Amount Utilisation Currency Utilisati 55 LINECODE1 LB1 LIAB CHO sm 050 Authorization Status Record Status A Authorized C Close U Unauthorized Open 1 100 USD 3 4 ORACLE 3 5 Covenants Queries 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 3 5 ORACLE 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 Covenant Name Liability No Serial No Grace Days Notice Days Due Date On Covenant Reference No Covenants Query Webpage Dialog MONTHLY_REVIEW FACILITY_NOTIFICATION ANNUAL REVIEW FACILITY NOTIFICATION FACILITY NOTIFICATION ANNUAL REVIEW STATEMENT ANNUAL REVIEW MONT
111. us Remarks Input By Date Time Modification number Authorized By Date Time 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 No i e to whom the liability amount is allocated From Liability Name and To Liability Name Specify the names of the respective Liabilities here 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 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 Specify the Start Date for line transfer when the allocation of certain portion or full amount becomes effective Specify the Expiry Date of the line transfer from the From Line To Facility Start Date and End Date Specify the Start Date for line transfer when the allocation of certain portion or full amount becomes effective Specify the Expiry Date of the line transfer to the To Line 2 63 ORACLE From Facility Available Amount and To Available Amount Specify the available amount for the To Line from the From Facility Specify the limit of the transferred amount allowed to the To Facility Effective From Date and Effective To Date
112. venant 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 2 13 ORACLE Collateral Covenant Category Web Page Dialog B Collateral Covenant Category Covenant Description Revision Date Covenant Reference No Mandatory Grace Days Notice Days Frequency mi 2 10 Issuer Maintenance 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 2 14 ORACLE Issuer Maintenance Web Page Dialog E Ax Issuer Code UPLDISSOS Issuer IDentification Number LIPDCUSTO1 Issuer Details UPLDISSOS SEL Overall Limit Currency LISD Overall Limit 125000 Issuer Limits F Ed
113. y TATA line TATABILL is created with below details e Limit amount 10 000 00 e Collateral amount 0 00 e Breach percentage 110 which is equal to 11 000 e amount 15 000 The system calculated values e Available amount 10 000 00 e 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 during 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 not be viewed using Oracle FLEXCUBE function OVDAUDET If you delete the dual authorization contact in Oracle FLEXCUBE then the system deletes the contact details in Oracle FLEXCUBE and LCM will delete the utilization LCM 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 Merging Liabilities You can merge any two liabilities existing in the syst

Limits and Collateral Management Version-11.0 9NT1316

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