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Higher Risk Commercial And Industrial Loans (Doc ID 2701593.1)

Last updated on AUGUST 24, 2020

Applies to:

Oracle Financial Services - Regulatory Reporting for US Federal Reserve - Lombard Risk Integration Pack - Version 8.0.9 and later
Information in this document applies to any platform.

Goal

Multiple issue:


RC-O Memo Line 9: Higher-risk commercial and industrial loans and securities” as defined for assessment purposes only in FDIC regulations:

1. It has a filter of V_REG_PROD_TYPE_CODE=DEBTSEC. How is the system filtering only for C&I debt security here.
2. There are 3 rules in rule mapping for higher risk categorization (RLUS_FRAS_REG_RISK_CLASS_01, RLUS_FRAS_REG_RISK_CLASS_02, RLUS_FRAS_REG_RISK_CLASS_03) which uses DIM_REG_RISK_CLASS.V_REG_RISK_CLASS_CODE. However these rules are not used in lineage.
3. Lineage for RCFDN029WORK has a BP: BPRG2253 (MAX(FCT_REG_ACCOUNT_SUMMARY.F_HIGH_RISK_ACCOUNT_IND))which uses max condition. However it’s not clear from where is the solution picking FRAS.F_HIGH_RISK_ACCOUNT_IND.
Also this BP BPRG2253 is associated with a Derived entity DERG1610 related to ultimate credit line. How about high risk categorization of non credit line C & I loans.
4. Regulatory conditions for a higher risk C&I loan are extensive and can be found here:
https://www.fdic.gov/regulations/laws/rules/2000-5000.html#fdic2000appendixctopart327
How are these conditions being met.
 

Solution

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In this Document
Goal
Solution


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