9 OFSAA Rate Management

OFSAA Rate Management is a comprehensive utility enabling you to manage currencies, yield curves, interest rates, and currency exchange rate data with a high degree of security and. OFSAA Rate Management also allows you to maintain economic forecasts such as GDP growth, inflation rates, or unemployment projections that can be linked to your models for interest rates, exchange rates, or new business growth.

Historical rate data obtained from OFSAA Rate Management is utilized by the Enterprise Performance Management (EPM) applications (OFS Funds Transfer Pricing, OFS Profitability Management, OFS Asset Liability Management, OFS Balance Sheet Planning, and OFS Cash Flow Engine).

• Interest Rates
• Currency
• Currency Rates
• Economic Indicators

• Interest Rates
  The quality and availability of interest rate information vary throughout the world. In many markets, gathering comprehensive rate information is a challenge because of insufficient security types, inconsistent quoting conventions, and lack of liquidity. The Interest Rates module in OFSAA Rate Management allows you to define and manage complex yield curve definitions using multiple rate formats and other rate attributes to give you data storage capabilities appropriate to your market. The Interest Rates module also supports the creation and maintenance of historical rate data for each yield curve you define.
• Interest Rates Details
  When you Add, Edit, or View an interest rate curve, the Interest Rate Code Details window is displayed. The Interest Rate Code Details window includes an Interest Rate Code Details pane, five Interest Rate Code tabs, and an Audit Trail pane.
• Currency
  Financial institutions transact business in more than one currency. Transacting business in multiple currencies demands functional capabilities for multi-currency accounting and currency rate management.
• Currency Rates
  OFSAA Rate Management's Currency Rates module uses the currencies defined and activated in the Currency module to support the creation and maintenance of historical exchange rates. Currency exchange rates are utilized in:
• Currency Exchange Rate Validation
  Exchange Rate Validation has the following features:
• Economic Indicators Summary Page
  An economic indicator is any economic statistic such as the Consumer Price Index (CPI), growth rate of the Gross Domestic Product (GDP), unemployment rate, Purchasing Managers Index, indices of consumer confidence, and so on. Such macroeconomic statistics tell us how well the economy has behaved in the past. Some economic indicators are referred to as lagging indicators while others are classified as leading indicators. Leading indicators can provide insights into the future direction of the economy.