1.13 Treasury Customer Spread Maintenance

This topic describes the systematic instructions to maintain customer spread.

For each customer of your bank you can define buy and sell margins for a specific currency. This spread is applied to floating interest components that involve the customer and currency combination. The margin that you define is appropriately picked up and applied to arrive at the final rate that is applied to floating components of contracts that involve the customer- currency combination.

The buy and sell margins that you define are for a customer and currency combination. You can select the customer and currency combination from the option lists available. For the selected currency– customer combination, you can define amount slabs and specify a Borrow and Lend margin for each slab. To add a slab to the list click add icon and enter the slab details.

To remove a slab from the list, highlight it and click delete icon. Whenever you enter a contract in Treasury that involves the customer and currency combination, the appropriate spread is applied to arrive at the floating rate to be charged. The slab is selected based on the contract amount and depending on the nature of the contract, the Borrow or Lend spread is applied.

1. On the Home page, specify CFDTRCSM in the text box, and click next arrow.

   The Treasury Customer Spread Maintenance screen is displayed.

   Figure 1-15 Treasury Customer Spread Maintenance

   
   Description of "Figure 1-15 Treasury Customer Spread Maintenance"
2. On the Treasury Customer Spread Maintenance screen, specify the fields.

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

   Table 1-15 Treasury Customer Spread Maintenance

   Field	Description
   Customer	Select the customer from the available list of values.
   Currency	Select the currency from the available list of values.
   Amount Slab	Specify the amount slab.
   Spreads	Specify the spread value.
   Borrow/Lend	Select the borrow or lend, as per the requirement.