31 Break Identification Process

Breaks are associated with Assets and Liabilities that have fixed maturities and have experienced a full prepayment or pre-closure, partial prepayment, or restructuring. Any event that causes the bank to receive a change to scheduled contractual cash flows on a fixed maturity instrument results in a Break Funding Event and should be evaluated. Transactions that could cause a change in future cash flows would include full loan prepayments, partial loan prepayments, early withdrawal of term deposits, or a change in maturity tenor, payment amount, payment frequency, or other contractual terms.

The Break Identification Process allows you to perform the following tasks:

• Determine the data that you want to process (Product Selection block).
• Specify the parameters for the process. The parameters include break types like a full break, partial break, and change in attributes.
• Execute or Run the Break Identification Request and generate results (Break Identification Process summary page).