Is Compounding Interest Calculation for Islamic Banking Product Supported (Doc ID 2225971.1)

Last updated on MARCH 24, 2017

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Goal

Is compounding interest for Islamic Banking product supported using below formula?

a. Profit = Principal * ( (1+rate%)^(t/365) – 1 )
b. Profit = Principal * ( (1+rate%)^(t/360) – 1 )

The accrual factor in all above such accounts are – Act/ 360.
 

Solution

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