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How to Setup Tiered Balance Rate Changes in ALM (Doc ID 2405819.1)

Last updated on DECEMBER 22, 2020

Applies to:

Oracle Financial Services Asset Liability Management - Version 5.6 and later
Information in this document applies to any platform.
Oracle Financial Services Asset Liability Management (ALM)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)


Currently attempting to configure ALM to handle tiered balance rate changes.

Question 1: For loan accounts that have different rates applicable for different balance tier, how can the final rate be calculated and principal amortized first from highest rate tier?

How can the above case be handled/achieved in OFSAA ALM?

Question 2: The suggested workaround, provided in "Answer 1" (where one could break each tier into a separate record and then consolidate the cash flows post processing), will still not provide expected output.

Reason is that when the accounts are broken into sub accounts, all sub accounts will amortize together.

Requirement is the highest rate tiered sub account will amortize first. Please provide a tentative timeline on when such enhancement can be expected?


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