Loan to Deposit Ratio

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2 , Inc. or its affiliates. All rights reserved. This work is confidential and its use is strictly limited. Use is permitted only in accordance with the terms of the agreement under which it was furnished. Any other use, duplication, or dissemination without the prior written consent of, Inc. or its affiliates is strictly prohibited. The information contained herein is subject to change without notice. Except as specified by the agreement under which the materials are furnished,, Inc. and its affiliates do not accept any liabilities with respect to the information contained herein and is not responsible for any direct, indirect, special, consequential or exemplary damages resulting from the use of this information. No warranties, either express or implied, are granted or extended by this document. is a registered trademark of, Inc. Other brands and their products are trademarks or registered trademarks of their respective holders and should be noted as such. Loan to Deposit Ratio 2

3 Overview: This Application would provide graphical snapshot for current Loan (bank owned loans) to deposit ratio in terms of percentage along with distribution of Principal balance which is bank owned and sold, Principal balance for each (bank owned and sold) in non-performing status and deposit portfolio. The Application also provides the Financial Institutions with an option to explore what if scenarios, i.e. if the FI wants to see in order to achieve a desired Loan to Deposit ratio, what change they should make to the current value of deposits OR bank owned loans. Key Benefits: Helps view & plan Loan to Deposit Ratio at institution level This application provides the snapshot of the Loans and Deposits ratios of the Financial Institution which can be used for further processing It provides graphical representation of the data for better understanding. Provides information related to bank owned loan and bank sold loan, bank owned and sold non performing balance, deposit classification by balance and Loan to Deposit ratio. It also let the Financial Institution to know the change in Deposit value or change in Bank owned Loan value to get the desired Loan to Deposit ratio. Processing: This application is available from the new screen Loan to Deposit Ratio. This application enables the financial institution to: View the current share of Principal Balance that is bank owned and sold. View the Principal Balance amount that is bank owned, sold, and is currently in Non- Performing status. View the deposit classification showing Principal balance for each of the majors. View the current Loan to Deposit ratio in terms of percentage. Provide an option for the user to enter the desired percentage level < or > the current percentage. The new Loan To Deposit screen has the following four graphical representations: Bank Owned VS Sold Loan Balance: This graph displays the total Principal Balance amount that is bank owned and sold to investors, for all the Loan accounts (for majors CNS/CML/MTG) and that are currently in Active (ACT) or Non-Performing (NPFM) status. Bank Owned and Sold Non-Performing Balance: This graph displays the total Principal Balance amount that is bank owned and sold to investors, for all the Loan accounts (for majors CNS/CML/MTG) and that are currently in Non-Performing (NPFM) status. Loan to Deposit Ratio 3

4 Deposit Classification by Principal Balance: This graph displays the sum of Principal Balance amount for all the majors Time Deposit (TD), Checking (CK) and Savings (SAV) and that are in Active (ACT) and Dormant status. Current Loan to Deposit Percentage: This graph is generated real time on the basis of the data already fetched and displayed for the above-mentioned graphs, Bank Owned VS Sold Loans and Deposit Classification by Principal Balance. This section considers the Principal Balance amount for bank owned loans and then divides the same by combined value (sum) of total deposit Principal balances (TD/CK/SAV). The resultant amount is then displayed in the percentage format up to 2 decimal places only. This application considers only those: Loan accounts which belong to majors Consumer (CNS), Commercial (CML) and Mortgage (MTG) that are in Active and Non-Performing status. Deposit accounts which belong to majors Time Deposit (TD), Checking (CK) and Savings (SAV) those are in Active or Dormant status. Screens: A new screen Loan to Deposit Ratio has been introduced, which will be available at the following navigation: Navigation (Loan to Deposit Ratio) Services > Services > Inquiries > Loan to Deposit Ratio This screen also has a quick panel, View Data. On click, this panel displays the information correspondent to the graphical representations in a grid format. This helps the users to quickly analyze the data in form of figures for various business purposes. The user can also copy this data by selecting the required rows. Loan to Deposit Ratio 4

5 Screen Appearance (Loan to Deposit Ratio): Note: As the screen fetches a lot of information for the entire FI, the screen may take a little longer to load and display the data. The actual time would depend on the amount of data to be fetched. Loan to Deposit Ratio 5

6 When View Data panel is opened: Field Listing: Field Description Computed Values This group box enables the user to enter the appropriate values in the respective fields. Required Loan to Deposit Percentage Suggest change to Deposit Value Suggest change to Bank Owned Loan Value This field enables the user to enter the appropriate value for the what if scenarios. On the click of Query button and based on the selected radio button, the required value change will be displayed in either of the fields, Deposits or Loans. On selection, this radio button suggests a value for update i.e. to reduce or increase the deposits. On selection, this radio button suggests a value for update i.e. to reduce or increase the bank owned loan Principal Balance amount. By default, this radio button will be selected. Loan to Deposit Ratio 6

7 Field Deposit Bank Owned Loan Description This is a disabled field and if user selects the radio button Suggest change to Deposit Value then the application will check the current Loan to Deposit ratio and then compare it with the value that the user has entered in the field Required Loan to Deposit Percentage. Based on the differences, the application will compute and display the value in the corresponding field. To meet the entered value, in case, if the financial institution is required to increase the Deposits then the required value increase will be displayed along with an increase sign and if the financial institution is required to decrease the Deposits then the required value will be displayed along with a decrease sign. This is a disabled field and if user selects the radio button Suggest change to Bank Owned Loan Value then the application will check the current Loan to Deposit ratio and then compare it with the value that user has entered in the field Required Loan to Deposit Percentage. Based on the differences, the application will compute and display the value in the corresponding field. To meet the entered value, in case, if the financial institution is required to increase the Bank Owned Loan level then the required value increase would be displayed along with an increase sign and if the financial institution is required to decrease the Bank Owned Loan level then the required value will be displayed along with a decrease sign. Application Message: An application message The Value must be greater than zero will be displayed on the screen if user enters invalid data, such as 0. The user will not be able to enter a negative value in the text box. Additional Requirements: Before executing this application, the financial institution will require the following prerequisites in their environment: The appropriate AuthKey from has been obtained. Either DNA 3.2 or the higher version of DNA is available. The required set-up script/ steps have been executed before running this application. Loan to Deposit Ratio 7

8 Revisions: Date App Change Version # 03/ User Manual updated based on format 06/ Added Major Account Type Parameter 05/ Added the ability to write output to a local temporary directory 04/ Application Created Loan to Deposit Ratio 8