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- Collateral
- Regular incoming payments
- Irregular incoming payments
The definition of collateral recoveries is part of collateral management. Please refer to For more information on collateral, see the section Collateral Management.
Irregular and regular expected incoming payments can be allocated in the Customer Impairment Workbench on the basis of configurable segments (refer to Segmentation for details) .
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"Recoveries" can be delivered to FlexFinance or alternatively entered and maintained in the "Customer Impairment Workbench".
You can define in the processing setup whether the initial assignment of a significant financial asset to level 3
- triggers the immediate, fully automatic individual specific provision or
- triggers the processing of a workflow that requires manual interaction.
For details about on the Customer Impairment Workbench, please refer to see "Customer Impairment Workbench". (For details about on the UI, please read more in the manual: user interface, see the Customer Impairment Workbench manual.)
In the case the case of fully automated treatmentautomatic handling of specific risk provisioning:
a) After objective evidence has been identified during Once objective evidence of impairment has been identified in the stage assignment, expected recovery cash flows are generated on the basis of configured recovery sources in the Collective Impairment Workbenchb) If the static data of collateral.
(b) Where no individual information has been capturedrecorded, the maturity of a recovery cash flow is shall be based on the “Time time to liquidation” liquidation configured for the collateral.
If When a specific particular workflow is initialised in the customer impairment workbench
a) A record in a task list is written and notifications are sent to users with a specific role.
b) The aim of this workflow is to review recovery information first before the calculation of expected credit losses and the posting of risk provisions. The workflow includes options to edit the validity of recoveries and to allocate recoveries to specific individual deals for one customer or various deals for customers which belong to the same economic unit.
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initialized in the Customer Impairment Workbench.
If no individual adjustment is made, the recovery cash flow plan is equal to the one considered in the fully automated initial treatment explained above. |
c) All sources of recoveries such as liquidation of collateral as well as irregular and regular payments are supported.
In both cases
- A fully automated impairment processing is provided at subsequent measurement dates
- At any point in time, recovery cash flows can be viewed and edited and simulation runs performed
- The entire functionality of the Customer Impairment Workbench is available. Please refer to section Customer Impairment Workbench