3.5 Issuer Maintenance

This topic provides systematic instructions on issuer maintenance.

A customer is granted credit on the basis of his/her credit worthiness. The credit worthiness of a customer depends on the assets constituting the customer’s portfolio. The type of collateral that a customer offers can be in the form of marketable or non-marketable securities.

Marketable collaterals, driven by market forces, tend to fluctuate unpredictably. You may hence need to monitor your bank’s exposure to issuers of such collateral. The details of the issuer and limit for his securities can be defined using the Issuer Maintenance screen.

  1. From Menu, select Limits and Collaterals. Under Limits and Collaterals, select Collaterals.
  2. Under Collaterals, select Maintenances. Under Maintenances, select Issuer.
  3. Under Issuer, select Issuer Maintenance.
    The Issuer Maintenance screen is displayed.

    Figure 3-13 Issuer Maintenance


    Description of Figure 3-13 follows
    Description of "Figure 3-13 Issuer Maintenance"

  4. On Issuer Maintenance screen, specify the fields.
    For more information on fields, refer to the field description table.
    Limits for the issuers of Collateral can be setup at the following two levels:
    • Overall limit for each Issuer.
    • Limit for the Securities issued by an Issuer.

    Table 3-13 Issuer Maintenance - Field Description.

    Field Description
    Issuer Code Specify the unique code for the issuer whose securities the bank accepts. The Issuer is identified by this code. This code can also be used to retrieve information about the issuer,.
    Issuer Name Specify the issuer name.
    Issuer Identification Number Click the Search icon and select the identification number from the list.

    If the issuer is bank's customer, details can be fetched from external customer maintenance.
    Issuer Details Specify the additional details of the issuer.
    Issuer Contact Details Specify the contact details of the issuer.
    Overall Limit Currency Click the Search icon and select the currency in which the Overall Limit is specified.
    Overall Limit Specify an overall limit for the issuer. This limit indicates the maximum limit beyond which your bank would not like to expose itself to the Issuer.

    An issuer can issue different types of market based securities; these could be debentures, shares, bonds, and so on. By defining an overall limit for an Issuer, the bank can limit its exposure to the issuer.

    When the total of all the collateral given by the customer in the form of market- based securities exceeds the overall limit specified for the Issuer, the system shows an appropriate message indicating that the limit has been exceeded.
    Collateral Type Click the Search icon and select the collateral type for which issuer limits are being specified for collateral types.

    Note: In this Section, the Sub limits can be specified Security wise like Bonds, Stocks, Funds for the selected Issuer.

    Limit Currency Click the icon and select the limit currency from the list. This currency can be different from the Overall limit currency.

    When collateral type limit currency is different from issuer limit currency, system considers HO branch rate for conversion and validating total limit of collateral types is within overall limit of the issuer
    Limit Amount Specify the limit amount in selected limit currency.
  5. Click Save to save the record.

Parent topic: Maintenances