3.2 Maintain Branch wise Forward Profit Rates

This topic provides systematic instruction to maintain branch wise forward profit rates.

Specify User ID and Password, and login to Homepage.

Branch level maintenance of forward profit rates is necessary for revaluing the contracts which have indicated that revaluation is according to the Branch Rates.

Oracle Banking Treasury Management identifies those contracts, which are to be revalued according to the forward profit rates maintained at the branch level and creates records in the Revaluation Branch Profit Rates screen based on the revaluation date. You have to unlock each record and indicate appropriate profit rates for specific profit periods.

If you are calling a branch profit rate record that has already been defined, choose the Summary option under Branch Rates. From the ‘Summary’ screen double click a record of your choice to open it.

To modify or update existing profit rates click the ‘Unlock’ icon from the tool bar or choose Unlock from the menu. After indicating the new profit rate, the currency of the profit rate and the period for which the new rate is valid, save the record. After indicating the new profit rate, the currency of the profit rate and the period for which the new rate is valid, save the record.

1. On the Homepage, type DVDBRRAT in the text box, and click next arrow.

   The Derivatives Revaluation Branch Interest Rates screen is displayed.

   Note:

   The advantage in maintaining branch-wise profit rates is that when there are multiple contracts which require the same rate(s) for processing revaluation (the tenor and currency combination should be the same) the BOD function identifies all the required rates and inserts a single record into this screen.

   Figure 3-3 Derivatives Revaluation Branch Interest Rates

   
2. On the Actions menu, click New icon.

   You can maintain details of new profit rate for your branch.

   The Branch Profit Rates Maintenance screen is displayed without any details.

   Table 3-2 Derivatives Revaluation Branch Interest Rates

   Field	Description
   Rate Code and Rate Source	If you are maintaining the details of a new profit rate for your branch you have to indicate the rate code that is to be associated with the profit rate. You can identify a valid code from the list of rate codes available. Subsequently you also have to indicate the source to which the rate code belongs. When you indicate the codes linked to the rate code and source the description assigned to them is defaulted in the adjacent fields. This field is mandatory.
   Revaluation Date	Select the Revaluation Date by clicking the calendar icon. All those contracts, which should be revalued as per the profit rates maintained at the branch level, will be revalued as of the revaluation date. While maintaining details of a new profit rate you have to indicate the date based on which contracts should be revalued. This field is mandatory.
   Profit Revision	Click either Auto or Manual. The system revises profit rates automatically when the daily batch for derivatives is run using the Branch specific Profit rate revaluation method. This field is optional.
   Confirmation	Select the Confirmation check box to confirm that the profit rate entered is correct. The current system date is displayed in the Date field once you select the check box. Note: If you leave this box unchecked then this record will not be taken up for revaluation processing. This field is optional.
   Rate Details	The system identifies the currency and tenor of forward rates required for each revaluation date, on the Revaluation Date only those contracts with the particular Rate Code, Rate Source and Currency combination will be considered for revaluation. This field is optional.
   Currency Code	Choose the currency in which you want to maintain the Profit Rate. Note: Once you select the Currency Code, the currency description is displayed automatically in the Currency Description field. This field is mandatory.
   Period Start and End Date	Specify the start and end dates for the interest rate you are defining. This field is mandatory.
   Profit Rate	Specify the profit rate for the particular rate code. The profit rate that you specify here is meant for your branch and is used to determine the Fair Value of all those contracts for which you have indicated that branch level profit rates are to be used for revaluation. Revaluation is done for only those contracts with the particular Rate Code, Rate Source and Currency combination for the particular Revaluation Date. To define a new forward profit rate for a specific profit period, click add button from the screen and enter the relevant details. To delete an existing rate, highlight the rate and click on delete button from the screen.

• Operations on the Branch wise Forward Profit Rate Maintenance Record
  This topic provides systematic instruction about the operations that you can perform on an existing record to maintain a new forward profit rate.
• View Branch Rates Summary Details
  This topic provides systematic instruction to view details of all Branch Rates maintained in the system.