2 Collaterals

This topic provides information about the Collaterals.

The Collateral Management module in Oracle Enterprise Collateral Management is designed to efficiently track, manage, and monitor all collateral assets pledged by borrowers against banking facilities. This module forms a core part of risk mitigation and credit management for financial institutions.

The key features are:
  • Collateral Recording: Supports the creation and maintenance of detailed records for all types of Collateral (e.g. Cash, Real Estate, Securities, Guarantees and so on)
  • Collateral Valuation: Facilitates the capture of collateral value and periodic revaluation to ensure accurate Loan-to-Value (LTV) ratios.
  • Lien/Charge Creation: Allows linking of collaterals to specific facilities/loans and creation of charges or liens, ensuring legal enforceability.
  • Collateral Pools & Sharing: Enables pooling of collateral to support multiple credit facilities, and management of shared collateral scenarios.
  • Monitoring & Alerts: Automates triggers for revaluation, collateral expiry/renewal, and regulatory compliances.
  • Integration: Tightly integrated with lending, limits, and risk modules for streamlined processing and reporting.
Benefits:
  • Risk Management: Better control on secured exposures, helping limit credit risk and meet regulatory guidelines.
  • Operational Efficiency: Automated processes for management, monitoring, and reporting reduce manual intervention.
  • Comprehensive Audit Trail: Maintains historical transaction logs and documentation for compliance and audit purposes.

The topic covered in this User manual provides information about the Collaterals. The functions and actions provided by the Oracle Banking Enterprise Collateral Management are explained below. All functions explained in this document comes under Collaterals in the Menu Browser.