4 Transactions

This topic provides information about transactions.

Oracle Banking Enterprise Collateral Management (OBECM) is an enterprise level application which facilitates in monitoring overall utilization of collateral entities considering that the borrower might have given different types of collaterals as security against limits which are created as contracts/accounts in different product processors.

For example, Bank sanctioned Funded limit of 8000000 to a customer against property collateral worth 10000000, which is maintained in enterprise collateral management system as Collateral. By utilizing the collateral, borrower can avail loans as well as working capital limits.

Transactions in Enterprise Collateral Management are basically initiated from other product processors as part of operations at their end pertaining to linkage of collateral to customer contracts/accounts depending on requirement as under.
  • Block transactions to reserve a collateral for specific contract disbursements
  • Utilization transactions on collateral to the extent of contract disbursements.
Together, these transaction types help both banks and customers stay informed about how much collateral is available, what is used, and what is reserved, leading to better credit management and risk control.

Table 4-1 Transactions

Customer's Collateral(e.g., $100,000)
Utilizations Block

Loan Drawdown

$30,000

Bank Guarantee

$20,000
Amount already used Amount reserved/blocked

Available Collateral

$50,000 - Available for New Transactions

Available Collateral

$50,000 - Available for New Transactions