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Is ALM Capable of Cash Flow Generation fpr Tiered / Slabbed Amount After Principal Is Zero? (Doc ID 2527596.1)

Last updated on SEPTEMBER 18, 2019

Applies to:

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


For ALM 806, need assistance in setting up the following business scenario for cash flow generation for tiered/slabbed amount :

Use case for staff loans given by bank:
Suppose 50L is given as loan to staff,with the rates are as below.
1. 0-10L rate is 5%
2. 10-20L rate is 6%
3. 20L above rate is 7%.

For example, suppose the total term is for three years then principal is recovered in two years (that is 2/3rd term), then in the remaining 1/3rd period they take the interest amount which was calculated in 2/3rd period when principal was only taken.

How to generate cash flow and use that for effective interest rate (EIR) calculation and use it further in International Financial Reporting Standards (IFRS9). How to achieve this in ALM?


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