2.2.2 Facility Utilization

This topic provides information about Facility Utilization.

In Enterprise Limits Management, Utilization is a change in the Facility Available Amount. Whenever a contract is booked using a particular Line Code, then the respective line/main line’s Available Amount should be altered in Oracle Banking ELM. The utilization details for each transaction taking place in the external product processor must be sent to Oracle Banking ELM through Gateway online process.

Below is an example of actual business case for utilization.

When a bank’s customer draws down on a facility such as by disbursing a loan, completing a trade finance transaction, or using a portion of a credit line this action is recorded as a “utilization.” Utilizations reflect the actual, real-time usage of a customer’s available limit. Utilization tracking enables:

• Accurate Exposure Management: Banks ensure that credit exposures are updated promptly and reflect the latest obligations, supporting better risk management.
• Real-Time Availability: The remaining available limit is always clear, preventing over-commitment and providing customers with up-to-date information.
• Lifecycle Tracking: Utilizations typically have a lifecycle (e.g., a loan being fully repaid) after which the limit is released and becomes available for further use.
• Regulatory Compliance: Proper tracking supports reporting requirements and helps ensure the bank operates within prescribed exposure limits.

• Utilization Transaction Actions
  This topic provides information about Utilization Transaction Actions.