8.6.6 Time Bucket Definition Selection

The three steps to select Time Buckets are as follows:

• Time Bucket Definition Selection: One time bucket definition can be selected from a list of definitions displayed in the time bucket definition browser. Here it is a single selection. Only one time bucket can be selected. The values which are defined in the Time Bucket definition window are displayed here. For more information refer Time Buckets section. On selection of the time bucket definition, it is displayed in the time bucket definition selection against both <Time Bucket 1> Selection and <Time Bucket 2> Selection.
• <Time Bucket 1> Selection: One or multiple time buckets from the given time bucket definition can be selected as part of <Time Bucket 1> Selection. The selected time buckets are displayed as row items in the assumption specification table. The name of this parameter changes depending upon on the assumption category selected as per the mapping provided below:

  Table 7-95 Time Bucket 1 Selection

  Assumption Category	<Time Bucket 1> Selection
  Cash Flow Movement	From Bucket Selection
  Incremental Cash Flows	Primary Bucket Selection
  Encumbrance	Not Applicable
  Value Change	Not Applicable

• <Time Bucket 2> Selection: One or multiple time buckets defined as part of the selected time bucket definition can be selected as part of <Time Bucket 2> Selection. The time buckets selected are displayed as drop-down values in the <Time Bucket 2> column in each row of the assumption specification table. The name of this parameter changes depending upon the assumption category selected as per the mapping provided below:

  Table 7-96 Time Bucket 2 Selection

  Assumption Category	<Time Bucket 2> Selection
  Cash Flow Movement	To Bucket Selection
  Incremental Cash Flows	Off-set Bucket Selection
  Encumbrance	Not Applicable
  Value Change	Not Applicable

• For assumption category Incremental Cash Flow, sub-category Liability Run-Off, the below time buckets are available:
  • Inaccessibility End Bucket - This is a single selection from a list of time buckets selected as part of the Inaccessibility End Bucket parameter in the Time Bucket Definition Selection section. The last day of the Inaccessibility End Bucket is the end of the market inaccessibility period. Day 1 is the start of the inaccessibility period. If no time bucket is selected, then market inaccessibility period is 0.
  • Restoration End Bucket - This is a single selection from a list of time buckets selected as part of the Restoration End Bucket parameter in the Time Bucket Definition Selection section. This time bucket is greater than the Inaccessibility End Bucket. The last day of the Restoration End Bucket is the end of the restoration period. Inaccessibility End Day+1 is the start of the restoration period.
    • The minimum Balance is specified as an amount (in terms of the assumption currency).
    • The Restoration percentage is specified as a percentage.

  Note:

  • Time Bucket Selection is not applicable when the assumption category is selected as value change.
  • The values which are defined in the Time Bucket definition window are displayed as part of Time Bucket Definition Selection section in the Business Assumptions Definitions window.
  • When the Intraday Assumption is selected as Yes in the Business Assumption Definition window, only the Intraday Time Buckets are displayed in this section