16.1.5 Time-specific Obligations
This metric calculates the time-specific and critical obligations like payments that result in financial penalty, reputational damage or loss of future business if not serviced in time. Time specific obligations are payments that have to be made at or by a particular time.
The following is an example for this metric:
For instance, Bank A has to settle the following 8 payments Intraday:
Table 15-5 Example of Time-specific Obligations
| SN | Payments | Details | Time-specific obligation flag |
|---|---|---|---|
| 1 | 19 | No | |
| 2 | 223 | Paid on behalf of a customer bank to which it has extended a secured line of credit of $500 | No |
| 3 | 99 | To be settled by 11:00 | Yes |
| 4 | 108 | To settle obligations in an auxiliary net retail payment system | Yes |
| 5 | 10 | No | |
| 6 | 45 | To be settled by 14:00 | Yes |
| 7 | 379 | No | |
| 8 | 11 | No |
The intraday transactions that occurred in the payment and settlement system are as follows:
Table 15-6 Intraday Transactions - Time Specific Obligations
| SN | Cash Flow Timing | Payments Sent | Time-specific obligation flag | Success Flag |
|---|---|---|---|---|
| 1 | 9:30 | 19 | No | NA |
| 2 | 10:15 | 223 | No | NA |
| 3 | 10:45 | 99 | Yes | Yes |
| 4 | 11:00 | 108 | Yes | Yes |
| 5 | 14:00 | 10 | No | NA |
| 6 | 14:20 | 45 | Yes | No |
| 7 | 15:00 | 379 | No | NA |
| 8 | 17:00 | 11 | No | NA |
The following metrics are calculated on actual time basis:
Table 15-7 Calculation of Metrics
| SN | Reporting Requirement | Output as per Illustration |
|---|---|---|
| 1 | Total Number of Time-Specific and Other Obligations |
Total number is 3 obligations (SN 3, 4 and 6) |
| 2 | Total Value of Time-Specific and Other Obligations |
This value is $252 (i.e. $99 + $108 + $45) |
| 3 | Total Number of Time-Specific and Other Obligations Settled |
Total number is 2 obligations (SN 3 and 4) |
| 4 | Total Value of Time-Specific and Other Obligations Settled |
This value is $207 (i.e. $99 + $108) |
| 5 | Total Number of Failed Time-Specific and Other Obligations |
1 obligation was not settled on time (SN 6) |
| 6 | Total Value of Failed Time-Specific and Other Obligations |
The value of the obligation not settled on time is $45 (SN 6) |
| 7 | 15:00 | 379 |
| 8 | 17:00 | 11 |
Note:
In case of partial payment of time specific obligations, the partially paid obligation is considered as a failed transaction for the purpose of reporting the metric Total Number of Failed Time-Specific and Other Obligations. The paid up portion is reported as part of the metric Total Value of Time-Specific and Other Obligations Settled. The unpaid portion is reported as part of the metric Total Value of Failed Time-Specific and Other Obligations.