4 Group Concentration Limit Review and Recommendation

This topic provides systematic insructions about the Limit Review and Recommendation of the Group Concentration Limit Proposal.

In this stage, the Credit Reviewer must review the proposed Group Concentration Limit and recommend a liability limit for the group entity

Note:

In this chapter, only the procedure to recommend Liability limit is explained. For field level explanation, refer the Initiation chapter.
  1. To acquire and edit the review and recommendation task, from Home screen, click Tasks. Under Tasks, click Free Tasks.
    The Free Task screen is displayed.

    Figure 4-1 Free Tasks


    Description of Figure 4-1 follows
    Description of "Figure 4-1 Free Tasks"

  2. Click Acquire & Edit in the required review and recommendation task. The GC Review and Recommendation - Customer Summary page is displayed.
  3. View the Customer Summary and click Next. The Liability Details page is displayed.
  4. Click the Hamburger icon in required liability record and select Edit.
    The Liability Details screen is displays.

    Figure 4-4 Liability Details


    Description of Figure 4-4 follows
    Description of "Figure 4-4 Liability Details"

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

    Table 4-1 Liability Details

    Fields Description
    Requested Liability Amount Specify the liability amount requested by the entity.
    Return On Capital select the 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.
    Total gross facility Displays the total gross facility.
    Total net facility Displays the total net facility.
    Next Review Date Select the review date.
    Requested Expiry Date Select the requested expiry date.

    Note:

    For more information on fields, refer Field Configuration Parameters
  5. Search and select the Proposed Liability Currency.
  6. Propose the following amounts in Proposed Liability Currency, based on details specified in the Amount section:
    • Proposed Liability Amount
    • Proposed Funded Sell Down
    • Proposed Unfunded Sell Down

Dates

In this section, you can change the Next Review Date specified in the initiation / enrichment stage and propose an expiry date for the liability.

  1. Click the calendar icon and select the Proposed Expiry Date.
  2. Click Audit.
    The Audit screen displays.

    Figure 4-5 Audit


    Description of Figure 4-5 follows
    Description of "Figure 4-5 Audit"

  3. Click Save. The information is saved and displayed in the Liability Details page.
  4. Click Next to go to the Comments page.
  5. Post the Comments for this stage.
  6. Click Submit. The Policy Exception Summary or Business window appears based on Business Process Maintenance.

    Figure 4-7 Policy Exceptions

    Description of Figure 4-7 follows
    Description of "Figure 4-7 Policy Exceptions"
  7. Click the Checklist data segment.
  8. Select the required Outcome. The options available are Proceed, Send Back, and Reject.
  9. Click Submit.
    If the Outcome is selected as Proceed, the Group Concentration Limit proposal is moved to the Approval stage.

    If the Outcome is selected as Send Back, the Group Concentration Limit proposal is sent back to the Enrichment stage.

    If the Outcome is selected as Reject, the Group Concentration Limit proposal is rejected.