Jethro Ltd

LD LOANS AND DEPOSITS

Knowledge Impact Center

www.jethroltd.com
Overview Of Module

• The Loans & Deposit module is used for:

 - Commercial clients
 - Retail clients

• The system can handle complicated repayment

schedules and multiple interest payments.

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Overview Of Module

• Fully integrated with Credit Risk (Limits)

• Standard Settlement Instructions automatically

default in (AGENCY)

• Advices automatically sent through Delivery

Module

• This a Contract application and will use

CUSTOMER and ACCOUNT records
established.
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Vocabulary

• Discounted
• Loan or Contract

• Drawdown Account
• Liquidation Account

• Call/Notice (No fixed Maturity Period)

• Liquidation Mode

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The
Basic
Product
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Basic Products

• Deposits
• Loans

• Loan Commitments

• Sundry Deposits (zero Interest Deposit)

• Sundry Loans (zero Interest Deposit)

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Basic Product Features

• Contracts can be in any currency

• Credit Line may be in a currency different from
the contract currency

• Interest rate can be fixed or floating

• Interest bearing and discounted

• Fixed maturity or Call/Notice

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Basic Product - Term (Tenor)

 FIXED:
 Maturity date is a specific date
 It can be entered as a number of days (D),
weeks (W) or months (M) from the value
date.
 CALL/NOTICE:
 Maturity date is a number in the Range
0 to 999
0 = Call
 1 to 999 = Number of Days Notice.
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Basic Product - Amendments

• Can only be made to Current contracts

Changes to:
Principal
Interest Rate
Spread
Commission amounts

• Actioned via Fields 127 - 136

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Basic Product - Linked to Limits

• Deposits

- No Limit is required.
- Updates the overall net position for Customer

• Loans
- Limit is updated at validation.
- If a loan limit is established on a revolving basis the
limit will be reinstated as principal repayments are
received.

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Loans and Deposits – Related Files.

INTEREST.BASIS
Defaults from CURRENCY record, e.g.
A - 360/360 B - 366/360
E - 366/365 F - 360/365
S - Special Conditions
In this case the amount of interest is
entered in TOTAL.INTEREST.AMT
BASIC.RATE.TEXT
BASIC.INTEREST & PERIODIC.INTEREST

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Interest Types

• Fixed

• Floating

• Periodic Automatic

• Periodic Manual

• Periodic Straight

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Fixed Interest Rate

• Interest rate fixed for life of contract.

• Fixed rate valid for discounted loans.
• Revision of schedules may be defined.
• Mandatory for Commitments.
• Amended using NEW.INT.RATE field.

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Floating Interest Rate

• Interest rate linked to valid key from

BASIC.RATE.TEXT and interest rate from
BASIC.INTEREST

• Input spread

• When rate changes contracts recalculated

automatically

• Not valid for Discounted contracts

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Tables

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Tables

• CATEGORY
Product range = 21001 - 21099

21001 - 21049 Deposit

21045 - 21049 Sundry Deposit
21050 - 21074 Loan
21090 - 21094 Sundry Receivable
21095 - 21099 Commitment

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Parameter Tables

• PROFIT AND LOSS –

User defines these parameters in files
– BASIC.RATE.TEXT and interest rate from
Kabarore EBU Basic Rate Text SEE

KEY............... 1
------------------------------------------------------------------------------
1. 1 GB DESCRIPTION. CBL PENALITY
1. 2 FR DESCRIPTION. Pénalité Pt CBL
11 CURR.NO........... 3

– BASIC.INTEREST
Kabarore EBU Basic Interest SEE

KEY............... 1 RWF 02 DEC 2013 CBL PENALITY Rwanda Franc

------------------------------------------------------------------------------
1 INTEREST.RATE..... 60.00
4 CURR.NO........... 1
5. 1 INPUTTER....... 49796_SYSTEM02
6. 1 DATE.TIME...... 14 DEC 13 13:01
7 AUTHORISER........ 49796_SYSTEM02
8 CO.CODE........... RW-001-0001 GLOBAL MODEL BUILD
9 DEPT.CODE......... 1 Implementation

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Parameter Tables

• LMM.INSTALL.CONDS
• Defines data/cycle on which interest should be
accrued

• LMM.CHARGE.CONDITIONS
• Defines the charging conditions.

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Parameter Tables (cont)

• LD.TXN.TYPE.CONDITION

• To define sets of rules governing specific LD

CATEGORY codes, like minimum / maximum
values for:-
– Term of contract
– Draw down Amount
– Default interest rates etc

• The input of a contract is validated against the

values and overrides are generated if exceeded.
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Special Features

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Special Features

• Flexible repayment schedules

• Principal increases/decreases, including partial

or early redemptions

• Deposit Rollovers

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Functionality Comparison

MM LD
 Call; Notice; Fixed Maturity Yes Yes

 Manual Rollover Yes Yes

 Auto-Rollover Yes No

 Interest Schedules Frequency Yes

 Principal Schedules No Yes

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Question

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THANK YOU

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