8.1.1.3 Regulation Addressed through Business Assumptions

The application supports multiple pre-configured rules and scenarios based on BNM specified scenario parameters. The table displays the assumptions for Investment accounts.

Table 7-2 Assumptions for Investment accounts

Sl. No.	Business Assumption Name	Business Assumption Description	Regulatory Requirement Addressed	Regulatory Reference BNM/RH/PD 029-13
1	BNM-Funds Fully Invested in Liquid Assets	Outflows on the total value of the funds which are fully invested in liquid assets	The outflow rate on the total value of fund which is fully invested in liquid assets is pre-defined as part of this assumption. This assumption applies a 10% run-off on these balances	Paragraph 27.7
2	BNM-Funds Not Fully Invested In Liquid Assets-Based on Party	Outflows on funding provided by corporate, sovereign, central bank, MDB and PSE, retail, unsecured wholesale counterparties for UA funds that are not fully invested in liquid assets	The outflow rate on the value of fund, received from retail, central bank, corporates, SMEs, sovereign, PSE, and MDB, where the fund is not fully invested in liquid assets are pre-defined as part of this assumption. This assumption applies a 10% run-off on the outflows from retail and SME's treated as retail and customers and 40% for all other customers.	Paragraph 27.7