Sub-Limits
The sub-limits or restriction limits represent maximum utilisation caps under the facility, by restricting or allocating a shadow limit within the facility or utilisation limit as per the sub-limit structure decided at the origination stage. Sub-limits or restriction limits are designated to limit the risk based on the borrower, currency, product line, product group and product.
Sub-limit – Allow maximum of USD 2 M for Borrower A
Sub-limit – Allow up to USD 8 M for Stand By Letter of Credit
Sub-limit – Allow up to USD 5 M for long-term loans
When a new facility is created, new restriction or sub-limits (i.e., with a new Limit type as ‘Restriction’) for each criterion is created in the Limit based on the sub limit definition. Whenever the limit check is done for the utilisation limit, limit check will also be done for the sub-limits or restriction limits.
Product Lines
The Sub-Limits Property Class is used by the following product lines:
- Facility
- Lending
Property Class type
The Sub-Limits Property Class is an optional Property Class associated with the following types:
- DATED
- NON TRACKING
Property Type
The Sub-Limits Property Class is not associated with any Property Type.
Balance Prefix
The Sub-Limits Property Class is not associated with balance prefix and suffix.
Attributes
Risk Criterion
Specifies the risk criteria framing the sub-limit definition. This also defines the order of the sub-limit combination based on which the underlying sub-limit criterion values are set.
This is a multi-value field that allows a maximum of 10 multi-values. The value in this field is a valid data element record of AA.DATA.ELEMENT. The associated fields of Risk Criterion are:
- Criterion
- Sub Limits Ccy
- Sub Limits Amount
Criterion 1
It is an associated field of Risk Criterion that allows up to 10 criterions as selected by the user. The respective value(s) of Risk Criterion are stored in this field.
Sub Limits Ccy
Specifies the currency in which the sub-limit restriction or allocation is defined. For now, the facility currency is defaulted as sub-limit currency.
The acceptable values are as follows:
- Facility Currency – Facility currency is the sub-limit currency.
- Restriction Currency – Currency of the sub-limit is different from the facility currency. Sub-limits value input in the currency criterion is the restriction currency.
Sub Limits Amount
Specifies the amount for which the sub-limit restriction or allocation is defined. The amount defined can be more than the facility or utilisation limit amount but cannot be zero or negative.
Periodic Attribute Classes
The Sub-Limits Property Class is not associated with any periodic attribute class.
Actions
Individual AA.PROPERTY.CLASS.ACTION records control which Product Line it is associated with. The Sub-limits Property Class performs the following actions:
| Action | Description |
|---|---|
| DATA.CAPTURE | Used during data capture from legacy application to sub-limit |
| UPDATE | This is initiated manually and allows the user to change any of the sub-limit attributes. |
Accounting Events
The Sub-Limits Property does not perform any actions that generate accounting events.
Limits Interaction
Actions associated with the Sub-Limits Property Class do not have an impact on the Limits.
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