7.4 Product Code - MCP5
MCP5 – Islamic Money Market Business Scenario
Introduction
This product MCP5, Islamic Banks obtain short-term funds to meet their statutory obligations. This product is meant for short duration viz., overnight borrowings to one year.
Business Scenario
This financial product, MCP5, enables one Islamic Bank to obtain short-term funds (overnight to one year) from other Islamic banks to meet statutory requirements like SLR, CRR, etc.
Target audience/beneficiaries: Banks
Coverage in FLEXCUBE: MC Module
Synopsis (ex. High level features etc.)
- Inter-bank financial product.
- Tenor varies from overnight borrowings to one year.
- Profit rate is fixed.
- Fulfills the short term fund requirements of the financial sector.
- Commodity tracking is captured.
Summary
MCP5 is used to cater to Islamic banks' short-term needs, who require funds to maintain the statutory requirements like SLR, CRR, etc., and for the counterparty to deploy the excess liquid cash available with it to earn a profit without much risk. This product is meant exclusively for commercial banks in the Islamic financial sector. The maximum duration of the lending is one year.
Detailed Coverage
MCP5 covers the following features,
Table 7-10 Detailed Coverage
| Main | Description |
|---|---|
| Currency | Local Currency (GBP) |
| Book date – past/current/future | Trade Deal |
| User Maturity date | Enabled |
| Notice Days | 1 week |
| Fund Identification | Enabled |
| Liquidation | Auto |
| Maturity Type | Fixed |
| Rollover | No |
| Rounding rule | Truncate |
| Profit period basis | Include From date |
| Special Rollover | Principal |
| ICCF Rollover | Product |
| Schedule basis | Product |
| Mode | Auto |
| Roll by | Days |
| Holiday Treatment for Schedule | Consider Branch Holiday |
| Track Receivable | Manual liquidation |
| Liquidate back valued schedules | Enabled |
| Brokerage details - Broker Code | Enabled |
Events Covered (including brief information on accounting)
Table 7-11 Events Covered
| Events Covered | Terminology |
|---|---|
| ACCR | Contract Accrual |
| BOOK | Booking of contract |
| CAMD | Contract Amendment |
| CONF | Confirmation of contract |
| INT | Contract Initiation |
| LIQD | Contract Liquidation |
| REAS | Reassign User |
| REVC | Contract Reversal |
| REVP | Reversal of Payment |
| ROLL | Rollover of Contract |
| VAMB | Value Dated Amendment Booking |
| VAMI | Value Dated Amendment Initiation |
Advices Supported
Table 7-12 Supported Advices
| Advices | Details |
|---|---|
| MM_DEAL_SLIP | Deal Slip |
| PAYMENT_MESSAGE | Payment message |
| MM_CONT_ADV | Contract advice |
| MMAMDADV | Amendment advice |
| MM_ROLL_ADV | Rollover advice |
| MMCONPLA | MM placement confirmation |
| BILLNOTC | Billing Notice |
Special/Other Features
Supports Clean LC
Additional information
- Branch Parameter
- General Ledger Parameter
- Interest and Charges Parameter
- Journal Entry Parameter
- Messaging Parameter
- Local Holidays
- Batch file for running EOD
Parent topic: Product Catalog - Treasury – Islamic Money Market