3.5 Interest Reallocation

This topic describes the information about the Interest Reallocation methods.

Interest Reallocation is applicable only to Central Distribution model of Interest allocation. The interest / advantage interest credited to the central account that can be a treasury account is re-distributed amongst the participant accounts using any of the above discussed allocation models.

In allocation models, the debit happens on Bank GL. In Reallocation model, the debit happens on central treasury.

Note:

• Interest for the pool is calculated in the base currency of the pool header.
• Interest Reallocation from the header accounts is in the account currency.
• If the beneficiary account of a notional pool is in a different currency to that of the pool header, the interest amount posted is converted from the header account currency to the beneficiary account currency using the agreed FX rate between the two currencies.