Capturing Currency Sub-limits

4.25.1 Capturing Currency Sub-limits

You can define the sublimit for a combination of Customer, Currency, and Products for commitment contract.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to Loans and Commitment - Contract Input screen.

On the Loans and Commitment - Contract Input screen, click Borrower tab.
The Borrower Details screen is displayed.

Figure 4-33 Borrower Details
You can maintain the list of products for a borrower and the combination of product and currency wise limits in this screen.
The following details are displayed here from the parent contract screen:
- Product Code
- Contract Reference Number
- User Reference Number
- Customer

You can enter below details in this screen. For information on fields, refer to the field description table.

Table 4-37 Borrower Details

Fields	Description
Borrower	Select the name of the borrower for whom you want to maintain the sublimit from the option list.
Loan Product	Select the loan product you want to map the borrower from the option list. The description of the selected loan product gets displayed in the adjacent text box.
Currency	Select the currency for which you want to maintain the limit amount. The description of the currency gets displayed in the adjacent text box.
FM Reference Number	Specify the FM Reference Number for the sub-limit.
Facility ID	Specify the Facility Identification for the sub-limit.
Modified Date	The system displays the date on which the sub-limit is created or modified.

You can also specify the field Limit amount in Currencywise Drawing Limit of this screen.

Limit amount

Specify the limit amount for the currency selected against the loan product combination.

The limits can be defined for individual contract currency and the limit amount is specified in the commitment currency.

During the Loan Linkage, at the contract Level system validates whether the loan linkage amount is exceeding the sub-limit defined at the commitment level, for the combination of Borrower, product and currency. This validation is run during Loan Booking also.

In case of counterparty change system validates that transfer amount is within the available sub-limit amount defined for the new counterparty for the contract currency.

If you want to maintain the limit across products for a particular Borrower, the same can be maintained against ALL Product. In this case, you cannot define sublimit for the individual product.

Similarly, if you want to maintain the limit across currencies for a particular borrower and product combination, the same can be maintained against ALL Currency. In this case, you cannot define sublimit for the individual currency.

Revolving and Non – Revolving attribute of the commitment is considered for tracking the utilization against the limit maintained for the combination of borrower, product, and currency.

Sub-limit validations are also to be done during value dated amendment, payment reversal (for non-revolving), exchange rate amendment and split reprice (for the additional amount, if any).

Example

The maintenance given below is done at the commitment level.

Table 4-38 Commitment Level Maintenance

Borrower	Product	Currency	Amount
B1	D1	USD	50MM
-	D3	GBP	100MM
B2	D5	USD	75MM

As per the maintenance given above , borrower B1 have a limit of EUR 50MM for the product D1 and currency USD. For the product D3 and currency GBP, he have a limit of EUR 100 MM. Commitment currency in the above case is EUR.

Note:

The system uploads the fields FM Ref number and Facility ID during new sub-limit upload and sub-limit amendment. It updates the Modified Date whenever a sub-limit is created or modified through upload.

Parent topic: Capturing customer relationships for every loan