Does ALM Consider Late or Delayed Payment in Interest Cash Flow Calculations? (Doc ID 1611051.1)

Last updated on DECEMBER 30, 2013

Applies to:

Oracle Financial Services Asset Liability Management Analytics - Version 5.6 and later
Oracle Risk Manager - Version 4.5.39 and later
Information in this document applies to any platform.
Oracle Financial Services Applications (OFSA) - Version 4.5
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)

Goal

ALM calculates interest cash flows considering the contractual last payment date and contractual next payment date.

In the case of delayed payment, does ALM handle this?  If the principal amount is not received on the contractual last payment date, it is expected that the interest calculation should include the interest for the delayed payment in the interest cash flow bucket.  For example, considering the outstanding balance on an As_of_Date = 30/11/2013. For one loan the contractual principal payment date is 15/11/2013 but the payment is not received on that date and instead it is late by 10 days i.e., it is received on 25/11/2013.  Will ALM calculate 10 days of extra interest and show this on the next payment date?

Solution

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