ECL Method Enhancements

• Cash Flow Indicator at Account Level: The Cash Flow Indicator has been moved from the product level to the account level.
  • When the indicator is set to Yes, but cash flows cannot be generated due to an issue, the system will automatically follow the behavior of Cash Flow Indicator = No.
  • In such cases, the outstanding balance will be used as a fixed forward exposure across all maturity buckets.
• Enhanced Forward Exposure Calculation Options: Forward exposure can now be calculated using multiple components, in addition to principal. Users may select one of the following options:
  • Interest from all buckets
  • Interest from 1st bucket
  • Accrued Interest

This enhancement provides users with increased flexibility for Advanced Forward Exposure Method.

Steps to Enable and Configure

You don't need to do anything to enable this feature.