2 Banking Arrangement

This topic describes the systematic instructions to Create Banking Arrangement.

The Banking Arrangement functionality enables banks to define and manage how the Drawing Power is calculated for a facility or a group of facilities extended to a customer. For each customer, multiple banking arrangements can be created to accommodate different lending structures, such as sole or multiple banking relationships. Within each banking arrangement, users can configure specific parameters, including the inclusion or exclusion of variables in the drawing power calculation, applicable margins on individual variables, and the validity period for each arrangement. These configurable options allow banks to monitor and calculate drawing power effectively, ensuring that lending practices align with agreed-upon terms and regulatory requirements.

1. On Home screen, click Drawing Power. Under Drawing Power, click Banking Arrangements.
2. Under Banking Arrangements, click Create Banking Arrangements.
   The Banking Arrangement screen displays.

   Figure 2-1 Banking Arrangement

   
   

   
   Description of "Figure 2-1 Banking Arrangement"

   
   

   On Banking Arrangements screen, specify the fields. For more information on fields, refer to the field description table.

   Table 2-1 Banking Arrangement

   Field	Description
   Selected Customer	Click Search icon and select the customer.
   Bank Arrangement ID	Specify the Bank Arrangement ID.
   Bank Arrangement Name	Specify the Bank Arrangement Name.
   Liability ID	Specify the Liability ID.
   Facility ID	Specify the Facility ID.
   Facility Name	Specify the Facility Name.
   Banking Method	Specify the Banking Method. The available options are: Consortium Multiple Sole
   Total Fund Based Limit	Specify the Total Fund Based Limit.
   Own Bank Share (%)	Specify the Own Bank Share percentage

3. On Banking Arrangements screen, click + and Add Bank Arrangement.
   The Add Bank Arrangement screen displays.

   Figure 2-2 Add Bank Arrangement

   
   

   
   Description of "Figure 2-2 Add Bank Arrangement"

   
   

   On Add Bank Arrangements screen, specify the fields.For more information on fields, refer to the field description table.

   Table 2-2 Add Bank Arrangement

   Field	Description
   Own Bank	Switch to if the bank is Own Bank. Switch to if the bank is not Own Bank.
   Bank Name	Click Search icon and specify the Bank Name .
   Currency	Click Search icon and specify the Currency.
   Fund Based	Specify the Fund Based.
   Non Fund Based	Specify the Non Fund Based.
   Total Amount	Specify the Total Amount.
   Fund Based (%)	Specify the fund based percentage.
   Total (%)	Specify the total percentage.
   Close	Click Close to close the details without saving.
   Save	Click Save to save the details.

4. On Banking Arrangements screen, click Next.
   The Stock Statement Margin Details screen displays.

   Figure 2-3 Stock Statement Margin Details

   
   

   
   Description of "Figure 2-3 Stock Statement Margin Details"

   
   

   For more information on fields, refer to the field description table.

   Table 2-3 Stock Statement Margin Details

   Field	Description
   Max Eligible Cover Period	Specify the Max Eligible Cover Period.
   Notice Days	Specify the Notice Days.
   Grace Days	Specify the Grace Gays.
   Submission Due Days	Specify the Submission Due Days.
   Stock Statement Expiry Period	Specify the Stock Statement Expiry Period .
   Submission Frequency	Specify the Submission Frequency The available options are: Annually Monthly Quarterly Semi-Annually
   Statement Type	Specify the Statement Type. The available options are: Cash Budget Stock Statement

   Note:

   Users can choose the Component Name from the Inventory & Stock Margins, Deductions, and Account Receivable Margins tabs on the Stock Statement Margin Details screen.
5. On Stock Statement Margin Details screen, click Save and Close.