3.6 Funding Requirement

This topic provides systematic instructions about the Funding Requirement of the Credit Initiation.

You can capture the new funding requirement of the Financial Institution (party) in this data segment by adding a new facility for the party or updating the limit of existing facilities.

The facility can be either directly created or created using the Facility Template maintained at the Maintenance module.

Before creating the facility, Liability details must be captured for the facility.

Figure 3-66 Funding Requirement

Description of Figure 3-66 follows
Description of "Figure 3-66 Funding Requirement"
  1. To update the liability details, expand and mouse hover on the Liability details section. The Edit icon is displayed.
  2. Click the Edit icon.
    The Liability Details screen is displayed.

    Figure 3-67 Liability Details

    Description of Figure 3-67 follows
    Description of "Figure 3-67 Liability Details"

    For information on fields in the Liability Details Details screen, refer the below table.

    Table 3-41 Liability Details

    Fields Description
    CurrencyRequested Liability Currency In the Requested Liability Currency field, search and select the currency in which the liability is requested by the party.
    Amount Specify the following details:
    • Requested Liability Amount - Liability amount requested by the party
    • Return On Capital - Ratio calculated by dividing the after tax operating income by the average book-value of the invested capital
    • Probability Of Default - Estimate of the likelihood that the entity will be unable to meet its debt obligations
    • Loss Given Default - Amount of money a bank or other financial institution loses when a borrower defaults on a loan
    • Cash Cover - Amount deposited by the entity in your bank
    Proposed and Approved Specify the following details:
    • Proposed Liability Currency - Currency in which the liability is proposed
    • Proposed Liability Amount - Liability amount proposed by your bank
    • Proposed Funded Sell Down - Funded sell down proposed for the entity
    • Proposed Unfunded Sell Down - Unfunded sell down proposed for the entity

For information on fields in the Dates Details screen, refer the below table.

Table 3-42 Dates

Fields Description
Next Review Date Select the Next Review Date for the FI Credit Proposal application.
Requested Expiry Date Select the Requested Expiry Date for the liability based on your customer request.
Proposed Expiry Date Select the Proposed Expiry Date for the liability. Proposed expiry date can be before or after the requested expiry date.
Save Click Save. Details are updated in the Liability details section.
View. To view the added Liability, mouse hover on the Liability details section and click View.

  1. To directly add the facility without using template, click the add icon.
    The New Facility screen is displayed.

    Figure 3-68 New Facility

    Description of Figure 3-68 follows
    Description of "Figure 3-68 New Facility"

    In the New Facility window, you can link the other bank facility and / or create new facility by adding the necessary information.

  2. To link the other bank facility with a facility, enable the Link existing facility check box.

    For information on fields in the New Facility Details screen, refer the below table.

    To add a new funding requirement:

    Table 3-43 New Facility

    Fields Description
    Line Code Type the Line Code.
    Line Serial Number Type the Line Serial Number.
    Facility Description Type the Facility Description.
    Parent Facility Id Select the Parent Facility Id from the drop down list.
    Facility Type Choose the Facility Type. The options available are Funded and Non Funded.

    You can restrict creation of sub-facility of type other than the selected type by enabling the Cascade check box. For example, if the Facility Type is selected as Funded and the Cascade check box is enabled, the sub-facility of type Non Funded cannot be created.

    Facility Category Select the Facility Category from the drop down list.
    Next Review Date Click the calendar icon and select the Next Review Date for the facility.
    Line Start Date and Line Expiry Date Specify the Line Start Date and Line Expiry Date.
    Currency Search and select the Currency in which the facility has to be offered.
    Requested Amount Specify the amount requested by the Financial Institution in Requested Amount field.
    Availability Period Specify the Availability Period for the facility.
    Commitment Status Choose the Commitment Status for the facility. The options available are Committed and Uncommitted.

    You can restrict creation of committed / uncommitted sub-facility for this facility by enabling the Cascade check box. For example, if the Commitment Status is selected as Committed and the Cascade check box is enabled, the uncommitted sub-facility cannot be created, and vice versa.

    Secured? Enable the Secured? switch, if collaterals are available for the facility.

    You can restrict creation of unsecured sub-facilities for this facility by enabling the Cascade check box along with the Secured? switch.

    Revaluation Required Enable the Revaluation Required check box, if the facility has to be re-valuated during EOD batch process using the exchange rate maintained at the facility level.
    Rate Agreement Required Enable the Rate Agreement Required check box, if the exchange rate maintained at the facility level has to be applied in case of cross currency utilization and block transactions and revaluation.
    Save To save the details and exit the New Facility window, click Save.
    Save & Configure To add further details about the facility, click Save & Configure.
    Cancel To exit the New Facility window without saving the information, click Cancel.
  3. Click Save & Configure in New Facility window or clicking Edit Facility under hamburger icon, the Facility Details window appears:

    Figure 3-69 Modifying Facility Details

    Description of Figure 3-69 follows
    Description of "Figure 3-69 Modifying Facility Details"
  4. Modify the facility details, if required.
  5. To add the details of the payment to be made on schedule basis, click Schedule from the left menu.

    Figure 3-70 Scheduling Details

    Description of Figure 3-70 follows
    Description of "Figure 3-70 Scheduling Details"
  6. Enable the Scheduling Required? switch. The Add button is enabled.
  7. Click the Add button. The Scheduling Details screen is displayed.

    Figure 3-71 Scheduling Details

    Description of Figure 3-71 follows
    Description of "Figure 3-71 Scheduling Details"

    For information on fields in the Scheduling Details Details screen, refer the below table.

    Table 3-44 Scheduling Details

    Fields Description
    Date Click the calendar icon in Date field and schedule the part of facility payment.
    Amount Specify the Amount to be paid to the Financial Institution on the scheduled date.
    Save Click Save. Scheduling details are added and listed as shown below:

    Figure 3-72 Scheduling details

    Description of Figure 3-72 follows
    Description of "Figure 3-72 Scheduling details"

    For information on fields in the Scheduling details Details screen, refer the below table.

    Table 3-45 Scheduling details

    Fields Description
    Add To add another scheduling detail, click the Add button again.
    edit To edit the scheduling detail, click the Edit button.
    delete To delete the scheduling detail, click the Delete button.
    Post Click Post. Comment is posted below the Comments text box.
  8. To capture exposure information, click Exposure from the left menu.

    Figure 3-73 Adding Exposure Details

    Description of Figure 3-73 follows
    Description of "Figure 3-73 Adding Exposure Details"

    You can associate any exposure maintained in OBELCM to the facility for tracking purpose.

    For information on fields in the Adding Exposure Details Details screen, refer the below table.

    Table 3-46 Adding Exposure Details

    Fields Description
    Add Click the + (add) icon. A record is created for capturing the exposure details.
    Exposure Type Type the Exposure Type and Exposure Code for the facility.
    delete To delete the scheduling detail, click the Delete button.
    Post Click Post. Comment is posted below the Comments text box.

    Figure 3-74 Exposure details

    Description of Figure 3-74 follows
    Description of "Figure 3-74 Exposure details"
  9. To delete the exposure record, click the delete icon in the Action column.
  10. To add fee preferences, click Fee from the left menu.

Parent topic: Credit Initiation