2. Configurations for Oracle Banking Corporate Lending Process Management

2.1 Maintenance

The entire process of corporate lending middle office function depends mainly based on the loan category (Business Process Code) to which the loan application belongs to. The Corporate Lending process will be driven based on the below two maintenances for every life cycle combination.

• Business Product Code Maintenance
• Business Process Code Maintenance
• Condition Subsequent
• Covenant
• Party Maintenance

Following features are supported as part of the Business Process Business Product maintenance:

• Ability to capture the CONDUCTOR process for a Business product and lifecycle combination and define the list of stages and corresponding data segments for the combination.
• For a combination of a business process code and lifecycle:
  • Capture the list of mandatory and non-mandatory documents and checklist that are required at every stage level
  • Capture the list of advices that needs to be generated and list of clauses that needs to be specified at every stage level

• Capture the list of products that are allowed for a business product such that appropriate product can be used as part of loan origination process that caters to customer needs.
• Ability to capture the multiple Investigation agencies for various external checks at business product level.
• Ability to handle the holiday preferences at business product when a maturity date / value date /
• Payment schedule date falls on a holiday.

2.1.1 Business Product Code

How to reach here:

Corporate Lending > Maintenance > Business Product Code

 

How to configure a business product code:

1. In the Create Business Product screen, provide the required details:

• Business Product Code: Enter the code of the Business product.
• Description: Enter additional information about the Business product.

Mapped Products

 

• Product Code: Select the back office product code that are to be mapped for the Business product from the list of values. System will allow to map multiple product codes and appropriate product code can be selected as part of loan origination/drawdown process that caters to customer needs.

Agency Preferences

 

• Agency Code: Enter the agency code that is required for field investigation. The adjoining list fetches and displays all valid agency codes maintained in the system.
• Agency Description: System default the description of the selected agency code.
• Verification Type: Enter the type of verification. The valid options are Address, Business and Collateral

Holiday Preferences

This section provide information about the handling holiday preferences if the maturity date, schedule date or revision date falls on a holiday. Holidays can be either on a local holiday or currency holiday. - Holiday Treatment Type: System displays the type of holiday treatment as Payment Schedule, Revision Schedule and Maturity Date.

• Ignore Holidays: No holiday treatment is considered if the maturity date, schedule date or revision date falls on holiday. System processes the entries on the specified date.
• Holiday Check: Enter the basis of holiday check, if you have indicated that the holiday should not be ignored for the loan contract.
• Move Across Months: If selected, allow movement of schedule date, maturity date or rate revision date of the contract across months, if you have indicated that the holiday should not be ignored for the loan contract. If you have chosen to move the schedule date/maturity date of a contract falling due on a currency holiday, either forward or backward to a working day and it crosses over into a different month, the schedule date/maturity date is moved to the next month only if you indicate so in this field.
• Schedule Movement: If selected, indicates the movement of schedule date, maturity date or rate revision date either move forward to a next working day or move backward to the previous working date.

2. Click Save. You can view the configured Business product code details in the Business Product View Screen.

2.1.2 Business Process

How to reach here:

Corporate Lending > Maintenance > Business Process

 

How to configure a business process code:

 

1. In the Business Process screen, provide the required details:

• Business Process Code: Enter the business process code.
• Business Process Description: Enter the description of the business process code.
• Lifecycle: Select the lifecycle code from the list of values.
• Lifecycle Description: Display the description of the lifecycle selected.
• Process Code: Select the business process flow that needs to be mapped for the business process code and lifecycle combination.
• Business Product Code: Select the business product code from the list of values. A business process code can be mapped to a particular business product code or to 'ALL'.

2. On click of tab, the list of stages defined for a process code will be shown. You can select a stage and define the set of data segments that are required for a stage and its corresponding documents, checklist and advices.

 

• Data Segments: Select the required data segments listed for the stage and specify if the data segment is mandatory or non-mandatory. User can click on Preview to view the data segment. User can also restrict a data segment to a single product or list of products.
• Documents: Select the required documents at every stage. The adjoining list fetches and displays all valid document IDs maintained in the system. User can also restrict the documents to a single product or list of products.
• Checklist: Enter the checklists that must be validated as part of every stage and specify if the checklist is mandatory or non-mandatory. User can also restrict the documents to a single product or list of products.
• Advices: Select the required advice must be mapped for the stage. The adjoining list fetches and displays all valid advices maintained. Advices can be assigned to All the business products or specific to each Business Products. Also the user can configure the advices for specific party roles and in such cases the selected advice type will be generated only for that particular role contact of the Party.
• Clauses: Enter the clause code, clause name and clause description details. User can also restrict the documents to a single product or list of products.

Click Save. You can view the configured business process code details in the Business Process View screen. After maintaining the business product and business process codes, you can go ahead and create a corporate loan.

2.1.3 Condition Subsequent

Condition Subsequent is an event or a condition which needs to be complied or monitored during the life of a Loan Contract. Conditions Subsequent will have an expected completion date. OBCLPM user can capture the respective Conditions Subsequent in a Loan Agreement along with the target date of completion. User will be able to capture the remainder days to trigger the notification to the respective RM regarding the upcoming Condition Subsequent prior to the completion date

How to reach here:

 

Corporate Lending > Maintenance > Condition Subsequent

 

How to configure a Condition Subsequent:

 

1. In the Create Condition Subsequent screen, provide the required details:

• Party: Click Search to view and select the required party.
• Project Name: Click Search to view and select the required project name.

2.1.4 Covenant

Covenant is an event or a condition which needs to be complied or monitored during the life of a Loan Contract at desired frequency. The frequency can be weeks, months or years. Covenant will have an expected completion date for every frequency. OBCLPM user can capture the respective Covenant in a Loan Agreement along with the target date of completion. Upon completion of one Covenant for a particular frequency, the status can be captured accordingly and a new pending Covenant will be created for the next frequency. User will be able to capture the remainder days to trigger the notification to the respective RM regarding the upcoming Covenant prior to the completion date.

How to reach here:

 

Corporate Lending > Maintenance > Covenant

 

How to configure a Covenant:

 

1. In the Create Covenant screen, provide the required details:

• Party: Click Search to view and select the required party.
• Project Name: Click Search to view and select the required project name.

2.1.5 Party Maintenance

How to reach here:

Corporate Lending > Maintenance > Party Maintenance

 

How to configure a Party Maintenance:

 

1. In the Create Party screen, provide the required details:

• Party Number: Click Search to view and select the required party.
• Party Name: Party name gets auto-populated.
• Party Type: Select the type from the drop-down list.
• Country Of Incorporation: Click Search to view and select the required country.
• Date of Incorporation: Select the date from the drop-down calendar.
• Place of Incorporation: Enter the place.
• Demographic Type: Select the type from the drop-down list.
• Holding Pattern: Select the pattern from the drop-down list.
• Organization Type: Select the type from the drop-down list.
• KYC Status: Select the status from the drop-down list.
• Preferred Language: Capture the preferred Language of the Party
• Report Locale: Select the preferred advice language for the Party
• Address Type: Select the type from the drop-down list.
• Area: Enter the area.
• Building: Enter the Building.
• Street: Enter the street.
• Landmark: Enter the landmark.
• Locality: Enter the locality.
• City: Enter the city.
• State: Enter the state.
• Country: Click Search to view and select the required country.
• Zip Code: Enter the code.
• Contacts: Click to add the contacts.