4.1 Collateral/Collateral Pool Utilization
This topic describes about Collateral/Collateral Pool Utilization.
In Enterprise Collaterals Management, Utilization is a change in the Collateral Available Amount. Whenever a Collateral is linked against a particular contract/account, then the respective collateral’s available Amount will be altered in Oracle Banking ECM. The utilization details for each transaction taking place in the external product processor are sent to Oracle Banking ECM through Gateway online process.
Below is an example of actual business case for utilization.
When a collateral is directly linked to a contract as part of disbursing a loan, the action is recorded as a “utilization” transaction against the linked collateral. Utilizations reflect the actual, real-time usage of a customer’s available collateral amount.
- Real-Time Availability: The remaining available collateral amount is always clear, preventing over-utilization and providing customers with up-to-date information.
- Lifecycle Tracking: Utilizations typically have a lifecycle (e.g., a loan being fully repaid) after which the collateral is released and becomes available for further use.
- Regulatory Compliance: Proper tracking of collateral utilization supports regulatory reporting requirements and helps ensure the bank maintains adequate security coverage in line with prescribed collateral limits
- Utilization Transaction Action
This topic provides information about Utilization Transaction Action. - Collateral / Collateral Pool Utilization Screen
This topic provides information on Collateral Pool Utilization .
Parent topic: Transactions