16.1.7 Intraday Credit Lines Extended to Customers

This metric is applicable for those banks which provide correspondent banking services and extend intraday credit lines to its customers. Intraday credit lines are those in which drawdown and repayment occurs during the same day.

Intraday Credit Lines have two features, Secured and Committed. The secured lines are those which are extended by the correspondent bank to its customer upon placement of any collateral against the same. The committed lines are irrevocable.

OFS LRMM application enables to monitor the scale of a correspondent bank’s provision of intraday credit to its customers. This metric is calculated at a Legal Entity- Currency granularity.

The following are reported as a part of this metric:

• Total value of credit lines extended
  1. Of which total secured
  2. Of which total committed
• Total value of credit lines used
  1. Of which total secured
  2. Of which total committed
• Peak Usage values
• Peak Usage is calculated by the application as follows:
• At the most granular Time bucket level (level 0), the net usage i.e., Total drawdown –Total Repayment is calculated. At the end of the day, the most negative value of this net usage is reported as Peak Usage.