8.2.120.2 Module Usage

Oracle ALM

Oracle ALM references RATE_CHG_MIN when calculating a Forecasted Interest Rate.

• For existing Business Adjustable-Rate Records, the Cash Flow Engine matches the REPRICE_ FREQ, INTEREST_RATE_CD, and the Reprice Date to the information contained in the Forecast Rates Assumption Rule to assign a Forecasted Rate. The margin is then added to this Forecasted Rate. Any rounding is applied, followed by a check of the RATE_CHG_MIN when determining the fully Indexed Rate.

Note:

If the Absolute Value of [(forecasted rate + margin) - (previous rate + margin)] < RATE_CHG_MIN, the Cash Flow Engine sets the New Forecasted Rate = Previous Rate. The Cash Flow Engine does not change the Previous Rate to the New Forecasted Rate. The previous rate is defined as either the rate on the detail record (CUR_ NET_RATE or CUR_GROSS_RATE) or the Previous Forecasted Rate from the Forecast Rates Assumption Rule. After the RATE_CHG_MIN is calculated any other cap/floor, rounding, and tease periods are then applied.

Oracle Funds Transfer Pricing

Oracle Funds Transfer Pricing does not reference RATE_CHG_MIN because it processes Cash Flows within the Repricing Periods.