7.1.3.1 Computational Time Buckets

Computational time buckets are defined to enable business assumption definition and for carrying out liquidity risk calculations. LRS supports multiple sets of computational buckets with each set containing multiple time bucket levels. Users can define and maintain a library of such time bucket definitions and use it across business assumptions and runs for satisfying the varied regulatory as well as management requirements.

Time buckets are defined in terms of days and displayed in hierarchical format. The definition of a day, whether business day or calendar day, will be a set-up parameter.

Note:

• There is no restriction on the permitted number of bucket sets to be defined.
• Number of bucket levels is restricted to five for a given computational bucket set.
• You are allowed to provide bucket names for all bucket levels other than level 0. Level 0 bucket names will be displayed as a combination of the start and end days as the bucket. For instance, 2 - 2 Day for a 1-day bucket starting on day 2.

The example of Computational Time Bucket Definition 1 is as follows:

Table 6-1 Computational Time Bucket Definition Example 1

Level 2	Level 1	Level 0
1 Year	0 – 6 Months	0 – 3 Months
		3 – 6 Months
	6 – 12 Months	6 – 8 Months
		8 – 10 Months
		10 – 12 Months

The example of Computational Time Bucket Definition 2 is as follows:

Table 6-2 Computational Time Bucket Definition Example 2

Level 2	Level 1	Level 0
1 Year	1 – 3 Months	0 – 1 Week
		1 – 4 Week
		1 – 3 Months
	4 – 6 Months	12 – 16 Weeks
		4 – 6 Months
	7 – 12 Months	6 – 9 Months
		9 – 12Months