Setting Up Match Funding

Pages Used to Set Up Match Funding

Page Name	Definition Name	Navigation	Usage
Match Funding Rates	FI_IMFUND_TBL	select Financial Services Industries, then select Funds Transfer Pricing Rules, then select Funds Transfer Pricing Rules, then select Match Funding Rules, then select Match Funding Rates	Defines funds transfer rate and rule for a match-funded instrument.
Break Funding Rule	FI_IMFUND_BFSEQ	select Financial Services Industries, then select Funds Transfer Pricing Rules, then select Funds Transfer Pricing Rules, then select Match Funding Rules, then select Break Funding Rule	Defines a break funding rule for a match-funded instrument.

Match Funding Rates Page

Use the Match Funding Rates page (FI_IMFUND_TBL) to defines funds transfer rate and rule for a match-funded instrument.

Navigation

select Financial Services Industries, then select Funds Transfer Pricing Rules, then select Funds Transfer Pricing Rules, then select Match Funding Rules, then select Match Funding Rates

Image: Match Funding Rates page

This example illustrates the fields and controls on the Match Funding Rates page. You can find definitions for the fields and controls later on this page.

FTP Rate

Set up the base rate by entering an annual percentage rate.

Accrue as of Commitment Date

The funds transfer charges accrue as of the start date, if the commitment date is not selected.

FTP/RWC Balance Type

Select from the predefined values.

Ledger Event Code

Select the PF ledger (performance ledger) account to which the funding charge is to be posted.

Funding Center

Select the funding center that is to receive the offsetting funding charge for the instrument.

Adjustment Type

Select how you want the base funds transfer pricing rate to be adjusted.

Basis Point AdjustmentandFixed Amount

Select the appropriate radio button.

Adjustment Rate (bps)

For a basis point adjustment, enter a rate as an annual percentage in basis points.

Adjustment Amount

Enter the amount for a fixed amount adjustment.

Ledger Event Code

Select the PF ledger account to which the funding charge is to be posted.

Funding Center

Select the funding center that is to receive the offsetting funding charge for the instrument.

Apply at Origination Only

Select to make a one-time adjustment at origination. If you select this check box, the entire adjustment is applied in the origination reporting period. If this check box is not selected, then the adjustment accrues across all reporting periods while the instrument or account is active.

Break Funding Rule Page

Use the Break Funding Rule page (FI_IMFUND_BFSEQ) to defines a break funding rule for a match-funded instrument.

Navigation

select Financial Services Industries, then select Funds Transfer Pricing Rules, then select Funds Transfer Pricing Rules, then select Match Funding Rules, then select Break Funding Rule

Image: Break Funding Rule page

This example illustrates the fields and controls on the Break Funding Rule page. You can find definitions for the fields and controls later on this page.

Specify a calculation method. Your choices are Amount,Economic Loss,Fixed Rate, Fixed Rate,orRecalibrate FTP Rate. Depending upon your selection, the following fields appear:

Penalty Amount

Enter an amount in base currency units.

Break Fund Rate

Enter a rate in basis points to be applied to the amount of the payoff or cancelled drawdown.

Minimum Charge

Enter the minimum penalty amount in base currency units.

Ledger Event Code

Determines to which PF ledger account the funding charge is to post and is previously defined in the warehouse.

Funding Center

Specifies the department that is to receive the offsetting funding charge for the instrument.

Next specify when you want to calculate a break fund charge. Your can choose between: payoff events or cancelled drawdown events.

Finally, specify whether you want to amortize the break fund charges, and if so, how to amortize them. Depending on your selection, the following fields appear:

Amortize Charge

Select to amortize the break fund charge, rather than apply a one-time charge.

Accrue Over Remaining Term

Select to accrue the break fund charge over the remaining term of the loan. If selected, then the remaining term for the instrument is calculated at the time the break fund event occurs, and that term is used to amortize the break fund charge.

Accrual Term

If you want to amortize the break fund charge but you did not select Accrue overRemaining Term, then you must specify the period over which to amortize the charge. A period can be specified in terms ofDays,Months, orYears.