2 About Collateral Liquidation
This topic describes about the Collateral Liquidation process in OBCFPM.
As part of Credit Portfolio management, whenever the customer’s liability account/contract is not performing well or overdue, the underlying collateral linked to the transaction accounts must be liquidated and the accounts must be settled. The various activities performed in the Collateral Liquidation process are:
- Capturing liquidation details
- Sending liquidation notice to the customer
- Valuating collateral
- Fixing collateral base price
- Bid publication and identifying buyer
- Settlement of non-performing account based on proceeds from buyer
- Field investigation
- Transfer of asset to the Buyer
The Collateral Liquidation process has the following stages handled by users authorized to perform the task under these stages.
- Collateral Liquidation Initiation
- Notice to Customer And RM
- External Valuation
- Base Price Fixation
- Base Price Review
- Base Price Approval
- Bid Publication
- Bid Capture
- Buyer Recommendation
- Buyer Approval
- Buyer Confirmation
- Document Retrieval
- Asset Transfer to Buyer
- Assignment of Settlement Account
- Fund Allocation and Liquidation
- Await for Collateral Release
The flowchart illustrating the stages in Collateral Liquidation process is provided below for reference.
