Limits Review User Manual
Limits Review Origination User Guide
Oracle FLEXCUBE Enterprise Limits and Collateral Management
Release 12.1
Part No. E59502-01
December 2014
Limits Review User Guide
December 2014
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Contents
1. Preface
1.1 Introduction
A limit is reviewed when it is about to expire or has to be renewed. This manual is designed to help you maintain and process Limit Review in Oracle FLEXCUBE. It also assists you in handling all the necessary activities in the life cycle of limit review process.
1.2 Audience
This manual is intended for the following Users/User Roles:
Role Function
Back office data entry clerk Input functions for funds
Back office managers/ officers
Authorization functions
Product Managers
End of day operators
Product definition and authorization
Processing during end of day/ beginning of day
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Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.
1.4 Acronyms and Abbreviations
The following are some of the acronyms and abbreviations you are likely to find in the manual:
FCUBS Oracle FLEXCUBE Universal Banking Solution
ELCM
CAM
Enterprise Limits and Collateral Management
Credit Appraisal Management
OBIEE
System
RM
Oracle Business Intelligence Enterprise Edition
Oracle FLEXCUBE system (unless otherwise specified).
Relationship Manager
1.5 Organization
This manual is organized as follows:
Chapter 1
Chapter 2
Preface gives information on the intended audience. It also lists the various chapters covered in this User Manual.
Reviewing Limits describes about the stages in a limit review process.
1-1
Chapter 3
Function ID Glossary has alphabetical listing of Function/Screen ID's used in the module with page references for quick navigation.
The Procedures User Manual
The Enterprise Limits and Collateral Management User Manual
The Products User Manual
The Credit Appraisal Management User Manual
1.7 Glossary of Icons
This User Manual may refer to all or some of the following icons.
Icons Function
Exit
Add row
Delete row
Option List
1-2
2. Reviewing Limits
2.1 Introduction
Limit refers to credit limit which is the maximum amount of credit that a financial institution offers to its customer. These credit limits are determined based on the information provided by the customer in the application.
A limit is reviewed under following circumstances:
periodical review if an existing customer’s facility is about to expire if freezing or termination of any limit is breached if there is an increase or decrease of limit amount if there is an addition of collateral or covenant to a facility
In the first section, the chapter briefs on the stages involved. The next section talks about the steps involved in detail.
2.2 Stages in Limits Review
The limit review process involves various stages to perform different tasks. At every stage, the users (with requisite rights) need to fetch the relevant transactions from their task lists and act upon them. Appropriate web services will be called in at certain stages to complete the transaction.
Stages
Initiation
Mandatory/Optional/
Exceptional
Mandatory
Description
Limit review process can be initiated in three ways.
-- Directly launching the initiation screen through BPEL (ORDLRWIN) and BPMN (ORDLMRIN) models.
-- By an automated alert system available in ELCM upon which the limits for review will be made available in Limits
Review screen or the user can visit
‘Tasks’ tab and click the Limit Review
Process under Origination.
-- You can also process a limit review through OBIEE.
During the initiation stage, you can upload the related documents received from customers and external information agents. At this stage system also allows you to revalue the collateral details submitted.
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Stages Mandatory/Optional/
Exceptional
External Credit Rating Optional
Description
Credit Review and
Decision
Approval
Pending with Customer
Manual Retry
Mandatory
Mandatory
Optional
Exceptional
During the initial stage you can initiate external credit rating to get the credit rating of the customer through external agencies.
The credit officer reviews the limit performance of the customer like their linked accounts, collaterals, customer characteristics, utilization trends, credit rating migration, exposure analysis, external credit rating and so on. Based on this review the officer decides whether to initiate further steps of limits review process. At this stage of decision the officer can update the remarks with statuses like Status Quo, Renew,
Freeze, Terminate, Additional Information, Additional Collateral and Limit
Revision.
At this stage the approver will review the decision taken by the credit user and provides his/her decision. The approver can either approve the decision or send back the task.
This stage is applicable only when the approver decision is Additional Information, Additional Collaterals, Limit
Freeze and Termination. Here the customer response is captured with justification to re-consider the approvers decision.
During the facility hand-off to ELCM after approval, if a technical or business error occurs then you can manually retry the process again.
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2.3 Process Flow Diagram
The process flow diagram given below illustrates the activities carried out during various stages of a collateral creation.
2-3
Limit review can be processed through BPEL and BPMN business models. The process matrix given below lists out the different stages, function IDs, condition to move to next stage, target stage and remarks for each condition.
Sl.N
o.
1
2
Source
Stage
Initiation
External
Rating
Function ID
ORDLRWIN/
ORDLMRIN
ORDLMREC
Outcome
PROCEED
REJECTED
PROCEED
Target
Stage
Credit
Review and Decision/
External
Rating
Termination
Credit
Review and Decision
Remarks
If the outcome is
PROCEED and the task is saved, then the system validates mandatory fields and proceeds to next stage.
If the outcome is
REJECTED, the task will go to termination stage.
If the external rating is fetched by an interface then the system automatically moves to
Credit
Review and
Decision stage.
If the external rating is manually entered then the user should select the outcome as
‘PROCEED’ and save the task to move to the next stage.
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Sl.N
o.
3
Source
Stage
Credit
Review and Decision
Function ID
ORDLMRCR
Outcome
PROCEED
Decision=
Renewal
PROCEED
Decision= Status
Quo
PROCEED
Decision= Freeze
Target
Stage
Approval
Approval
Approval
Remarks
If the outcome of this stage is
PROCEED and the decision is
‘Renewal’, then the task will be moved to next stage after validating the ‘Next
Renewal
Date’.
If the outcome of this stage is
PROCEED and the decision is ‘Status Quo’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
If the outcome of this stage is
PROCEED and the decision is
‘Freeze’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
2-5
Sl.N
o.
Source
Stage
Function ID Outcome
PROCEED
Decision= Terminate
PROCEED
Decision= Additional Info.
PROCEED
Decision= Additional Collateral
Target
Stage
Approval
Remarks
Approval
Approval
If the outcome of this stage is
PROCEED and the decision is ‘Terminate’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
If the outcome of this stage is
PROCEED and the decision is ‘Additional Info’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
If the outcome of this stage is
PROCEED and the decision is ‘Additional
Collateral’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
2-6
Sl.N
o.
Source
Stage
Function ID Outcome
PROCEED
Decision= Revision
RETURN
ADDITIONAL
INFO
REJECTED
Target
Stage
Approval
Termination of
Task
Initiation
Termination of task
Remarks
If the outcome of the stage is
ADDI-
TIONAL
INFO and the task is saved, then the task will be moved to initiation stage.
If the outcome of the stage is
REJECTED and the task is saved, then the task will be moved to termination stage.
If the outcome of this stage is
PROCEED and the decision is ‘Revision’, then the task will be moved to next stage once all the mandatory fields are specified in the screen.
If the outcome of the stage is
RETURN and the task is saved, then the task will be moved to termination stage.
2-7
Sl.N
o.
4
Source
Stage
Approval
Function ID
ORDLMRAP
Outcome
ADDITIONAL
INFO
PROCEED
Decision =
Freeze
PROCEED
Decision = Terminate
Target
Stage
Credit
Review and Decision
Hand off to ELCM
Hand off to ELCM
Remarks
If the outcome of the stage is
ADDI-
TIONAL
INFO, the system will move the task back to
Credit
Review be moved to termination stage.
If the outcome of the stage is
PROCEED and the decision is
‘Freeze’, then the task is saved and moved to
‘Hand off to
ELCM’ stage.
If the outcome of the stage is
PROCEED and the decision is ‘Terminate’, then the task is saved and moved to
‘Hand off to
ELCM’ stage.
2-8
Sl.N
o.
Source
Stage
Function ID Outcome
CUST_INFO
Decision =
Freeze
CUST_INFO
Decision = Terminate
PROCEED
Decision = Additional Info
Target
Stage
Pending with Customer
Pending with Customer
Pending with Customer
Remarks
If the outcome of the stage is
CUST_INFO and the decision is
‘Freeze’, then the task is saved and moved to
‘Pending with Customer’ stage.
If the outcome of the stage is
CUST_INFO and the decision is ‘Terminate’, then the task is saved and moved to
‘Pending with Customer’ stage.
If the outcome of the stage is
PROCEED and the decision is ‘Additional Info’, then the task is saved and moved to
‘Pending with Customer’ stage.
2-9
Sl.N
o.
Source
Stage
Function ID Outcome
PROCEED
Decision = Additional Collateral
PROCEED
Decision = Status Quo
PROCEED
Decision =
Renewal
Target
Stage
Remarks
Pending with Customer
Handoff to
ELCM
Handoff to
ELCM
If the outcome of the stage is
PROCEED and the decision is ‘Additional
Collateral’, then the task is saved and moved to
‘Pending with Customer’ stage.
If the outcome of the stage is
PROCEED and the decision is ‘Status Quo’, then the task is saved and moved to
‘Handoff to
ELCM’ stage.
If the outcome of the stage is
PROCEED and the decision is
‘Renewal’, then the task is saved and moved to
‘Handoff to
ELCM’ stage.
2-10
Sl.N
o.
Source
Stage
5
6
Pending with Customer
Handoff to
ELCM
Function ID
ORDLMRPC
ORDLMRMR
Outcome Target
Stage
Remarks
PROCEED
Decision = Revision
REVIEW
Exceptions like unavailability of
ELCM services or error while handing off the details
Handoff to
ELCM
Credit
Review and Decision
Handoff
Retry
If the outcome of the stage is
PROCEED and the decision is ‘Revision’, then the task is saved and moved to
‘Handoff to
ELCM’ stage.
Based on the customer response, submission of additional docs and additional collaterals, the outcome of this stage is selected as REVIEW and the task will be moved to
Credit
Review and
Decision stage
At this stage the system will handoff the limit details including the changes to be made to
ELCM system.
For any exceptions the task will be moved to
Handoff
Retry stage.
2-11
Sl.N
o.
7
Source
Stage
Handoff
Retry
Function ID Outcome
PROCEED
Target
Stage
DB Handoff
Remarks
The system invokes DB adapter calls to handoff limit details to ELCM.
To acquire the next stage, you need to go to the ‘Task’ menu and select ‘Assigned’ under
‘Standard’ option.
All tasks that have been successfully completed are listed in the right side of the screen.
Select the check box against your ‘Workflow Ref No’ and click ‘Acquire’ button at the top of the screen to acquire the next stage of the task.
The system displays the message as ‘Acquire Successful’ on successful acquisition of the task.
Click ‘Ok’ to proceed to the next stage. To select the acquired task for the next stage, select
‘Acquired’ under ‘Standard’ option in the ‘Task’ menu. All the tasks that have been successfully acquired are displayed in the right side of the screen. Search for your workflow reference number and click the ‘Workflow Ref No’ to open the required screen.
2.5 Processing Limit Review
If you have the required access rights, you can enter details for a new customer in the ‘Limit
Review Initiation’ screen.
In BPEL business model, you can invoke the initiation screen by typing ‘ORDLRWIN’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
To invoke initiation screen through BPMN model, type ‘ORDLMRIN’ in the field at the top right corner of the Application tool bar and click the adjoining arrow button. Apart from the initiation stage screen, rest of the stages remains same for both BPEL and BPMN.
2-12
You can review, revaluate, decide and approve the credit limit of a customer using Limit
Review screen.
Application Number
The system displays the application number.
Application Category
Select the application category from the adjoining option list.
Application Branch
The system displays the application branch.
Application Date
The system displays application date.
Channel
Select the channel from the adjoining option list.
Channel Reference No.
The system displays the channel reference number.
External Source
Select the external source from the adjoining option list.
External Source Reference No
The system displays the external source reference number.
Priority
Select the priority from the adjoining drop-down list. The options available are:
Low
Medium
High
User Reference
The system displays the user reference number.
2-13
Application Status
The status of the application is displayed here.
Liability Number
Select the liability number from the adjoining option list.
Customer Number
Select the customer number from the adjoining option list.
Customer Name
The system displays the name of the customer.
Line Branch
Select the line branch from the adjoining option list.
Line Code
Select the line code from the adjoining option list.
Line Serial
The system displays the line serial number.
Click ‘Fetch Limits’ to fetch the limit details.
Alert Code
Select the alert code from the adjoining option list.
Description
The system displays the alert description.
Main Line Code
The system displays the main line code.
Limit Currency
The currency of the limit is displayed here.
Sanctioned Amount
The system displays the sanctioned limit amount.
Total Utilization
The system displays the total utilization limit.
Blocked Amount
The system displays the total blocked amount for the limit.
Collateral Amount
The system displays the collateral amount.
Limit Basis
The system displays the limit basis.
Sanctioned Date
The system displays the date when limit was sanctioned.
Expiry Date
The system displays the limit expiry date.
2-14
Next Review Date
The system displays the next review date of the limit.
Review Frequency
Select the limit review frequency from the adjoining drop-down list. The options available are:
Monthly
Quarterly
Half Yearly
Yearly
Revolving Line
Check this box to indicate that the limit is a revolving line.
Funded
Check this box to indicate that the limit is funded.
External Rating Required
Check this box if external review is required as part of limit review process.
Click ‘Decision’ tab to provide the officers decision on the limit review.
Decision
Select the decision from the adjoining drop-down list. The options available are:
Status Quo - This option is selected as the decision if the credit user is satisfied with the limit performance and there are no changes proposed to existing limit arrangements.
Renew - Select this option to renew the limit if the same is nearing expiry.
Freeze - Select this option if there are any issues with the limit performance. Once this option is chosen, the system blocks the entire limit.
Terminate - Select this option to cancel he limit facility. You can terminate a limit if there are an covenant breach, irregularities like frequent excess utilization, irregular payments etc.
Additional Information - Select this option if you require additional information.
2-15
Additional Collateral - Select this option if you require an additional collateral. Additional collateral can be opted when there is a possibility of existing collateral erosion. The financial institution thus requires an additional collateral for security.
Limit Revision - Select this option if you want to revise the limit.
Reason
Specify the reason for the decision.
New Expiry Date
Specify the new expiry date for the limit. New Expiry date is mandatory if Renew option is selected.
Revised Limit Amount
Specify the revised limit amount.
Additional Information Required
Check this box if additional information is required.
Additional Collateral Amount Required
Check this box if additional collateral amount is required.
Create RM Reminder
Check this box to create reminder for RM of the customer
Reminder Frequency
Select the reminder frequency from the adjoining option list.
Reminder Text
Specify the reminder text.
Renewal Letter
Check this box to generate renewal letter.
Termination Letter
Check this box to generate termination letter.
Additional Information Letter
Check this box to generate the letter asking for additional information.
Additional Collateral Letter
Check this box to generate letter requesting additional collateral.
Limit Freeze Letter
Check this box to generate limit freeze letter.
Limit Revision Letter
Check this box to generate limit revision letter
Reviewer Remarks
Specify the remarks of the reviewer.
Approver Remarks
Specify the remarks of the approver.
Customer Response
Specify the response of the customer.
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Reason for Change in Decision
Specify the reason for change in decision.
Click ‘Stage Remarks’ to specify previous remarks and stage remarks.
Click ‘Remarks History’ to view the remarks which were updated in the past.
You can upload and view the documents related to customer and facility through the
‘Documents’ screen. Click ‘Documents’ button from ‘Limit Review Initiation’ screen to invoke the following screen.
Application Number
The system displays the application number.
Application Category
The system displays the application category.
2-17
Documents
Document Category
Select the document category from the adjoining option list.
Document Reference
Specify the document reference number.
Document Type
Select the type of document.The adjoining option list displays all the document types maintained in the system. Select the appropriate one.
Mandatory
Check this box to indicate whether the document is mandatory.
Remarks
Specify remarks, if any.
Ratio Upload
Check this box if you require ratio upload.
Upload
Click ‘Upload’ button to open the ‘Document Upload’ sub-screen. The ‘Document Upload’ sub-screen is displayed below:
In the ‘Document Upload’ sub-screen, specify the corresponding document path and click the
‘Submit’ button. Once the document is uploaded through the upload button, the system displays the document reference number.
View
Click ‘View’ to view the document uploaded.
2-18
Advices
Click ‘Advices’ tab in Documents screen to view advice details.
Report Name
The system displays the report name.
Template
The system displays the template.
View
Click ‘View’ to view the document.
Checklist
Click ‘Checklist’ tab in Documents screen to view checklist details.
Checklist Item
The system displays the checklist details.
Mandatory
This field is updated based on the maintenances in Documents sub screen.
Verified
Check this box to indicate whether the documents are verified.
Comments
Specify comments, if any.
2-19
Click ‘External Rating’ to view external credit rating agency’s rating details.
The system displays the following details based on the maintenances in ‘Facilities
Maintenances’ (GEDFACLT) screen.
External Credit Rating
Reference ID
Credit Agency
Liability Score
Recommended
Request Status
Credit Rating History
Credit Rating From
Credit Rating To
Agency Name
Date of Migration
Remarks
2-20
Click ‘Limit Review History’ to know about the history of previous limit review process. These details helps the credit manager to assess when and why limit review was triggered in the past.
You can view the following details in this screen:
Application Number
Application Category
Liability Number
Line Branch
Line Code
Line Serial
Review History
Last Review Date
Alert Code
Alert Description
Reviewer
Approver
Reviewer Notes
Approver Notes
Next Review Date
Review Decision
2.5.7 Collateral and Covenant Details
Click ‘Collateral and Covenant’ to view collateral and covenant details that are linked to the limit.
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The system displays the following details based on the maintenances in ‘Facilities
Maintenances’ (GEDFACLT) screen:
Collateral Detail
Collateral Code
Branch
Currency Code
Type
Value
Contribution
Utilization Percentage
Last Revaluation Date
Charge Type
Shared
Revalue
Details
Limit Covenant Details
Covenant Name
Description
Mandatory
Frequency
Period
2-22
Start Date
Grace Days
Revaluation Date
Notice Days
Covenant Reference Number
Remarks
The system also displays additional covenant details, if any.
Click ‘Exposure Analysis’ to view various types of exposure related to the limit.
The system displays the following details based on the maintenances in details based on the maintenances in ‘Facilities Maintenances’ (GEDFACLT) screen:
Counterparty Details
Counterparty Exposure
Currency Code
Total Sanctioned Amount
Head Room Limit
Total Utilization
Average Excess Utilization
Average Excess Utilization Pending Days
Largest Excess Utilization
Country
Country
Country Exposure
2-23
Currency
Head Room Limit
Industry
Industry Code
Industry Exposure
Currency
Head Room Limit
Sector
Security Code
Sector Exposure
Currency
Head Room Limit
2.6 Processing the Limit Review through OBIEE
The limit review can be processed through OBIEE from ‘Credit Desktop’ screen. You can access all the credit details from this screen. You can invoke this screen by typing
‘GEDSKTOP’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Users belonging to the user role RM_ROLE (Relationship Manager) can perform this activity.
The system displays the login ID of the user linked to the RM role in the ‘Relationship
Manager’ field. All the records linked with this relationship manager are defaulted in this screen.
In the header section you can filter your search based on the following criteria:
RM
Cust ID
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Cust Name
Cust Additional Info
Unique Identifier
Unique Identifier value
Liab No
Line Code
Comments
Collateral Code
Overdrawn Lines
Expiry Date Between
Exposure Type
Exposure Name
Advanced Search
When you click ‘Apply’ button the records matching the specified search criteria are displayed.
Liability ID
Cust ID
Customer Name
Liab No
Line Code
Line Currency
Main Liab ID
Main Line Code
Counterparty Appetite
Sanctioned Limit
Headroom
Sanctioned Date
Expiry Date
Utilized Today
Total Utilized
Available
Blocked Amount
Revolving Line
Secured
Committed
Funded
Next Review Due Date
Action
Exceptions/Warnings
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Click ‘Review’ under Action to review the limit associated with each liability ID. The system displays the following screen on invoking the review action:
Alert Desc
Specify the alert description to execute the action.
The system executes the review only if the limit review is incomplete or if the limit is newly initiated. The system suspends the limit review if the review request raised by OBIEE is based on the duplicate details.
Select the ‘Report Type’ as ‘Limit and Collateral Details’ to default the limit and collateral details of selected line or liability ID.
For more information on ‘Credit Desktop’, refer ‘Credit Desktop’ chapter in ‘Enterprise Limits and Collateral Management’ user manual.
2.7 Processing the Limit Review through ELCM
You can trigger a limit review through an automated alert mechanism. The system provides limit review alerts on the dashboard. You can invoke this screen by typing ‘ITSALEDB’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
A mandatory alert is generated in the ‘Alerts’ section of the dashboard based on the review rule maintained in ELCM. The alerts displayed on the dashboard can be either dismissed or reviewed. Click ‘Review’ to initiate the review task from ‘Limit Review Initiation’ screen. The system displays the details of the limit to be reviewed from ‘Collateral Maintenance’ and
‘Facilities Maintenance’ screen.
Refer section ‘Processing Limit Review’ for details on limit review work flow.
For more information on limit review rules and alerts refer sections ‘Maintaining Rule Criteria
Code’ and ‘Defining Alerts’ in Enterprise Limits and Collateral Management user manual.
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G
GEDSKTOP
I
ITSALEDB
3. Function ID Glossary
O
ORDLMRIN
3-1
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