15.1.5 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 must 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
| Sl. No. | 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 Occurred In The Payment And Settlement System
| Sl. No. | 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 an actual time basis.
Table 15-7 Metrics Calculated on an Actual Time Basis
| Sl. No, | Reporting Requirement | Output as per Illustration |
|---|---|---|
| 1 | Total Number of Time-Specific and Other Obligations | The 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 | The 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:
For 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.