Distribution in Pool Agreements 

Use

This function distributes the collateral value of a pool agreement to its pool banks. The system determines the distribution both according to the maximum risk and the current risk of the receivables.

 

Features

The system uses the following parameters of the pool banks in the distribution of collateral value:

·        Priority (sequential or same) of the pool banks in the pool agreement

·        Percentage share of the pool banks

·        Fixed amount of collateral value for the pool banks

·        If overdrafts of the pool agreement also need to be collateralized

If you do not enter any distribution parameters, the system performs a proportional distribution of the collateral value.

 

Activities

The system first identifies the appropriate distribution parameters that would determine the appropriate equation for the distribution process. Subsequently, the system distributes the collateral value of the pool agreement to the individual pool banks using the distribution rules for pool agreements.

 

The system performs the distribution of collateral value using one of the following equations:

Distribution parameter	Collateral value is equal to:
No distribution parameter	Proportional distribution of collateral value to the pool agreements depending on the sum of the receivables for each pool bank
Priority	Minimum (collateral value for the pool agreement – collateral value distributed to pool banks) AND (sum of all the receivables of the pool bank)
Equal priority	Collateral value of the pool * sum of the receivables of the pool bank / sum of the receivables of all the pool banks in the pool agreement with the same priority
Priority with fixed amount	Minimum (collateral value of the pool agreement – collateral value distributed to pool banks) AND (fixed amount for the pool bank)
Fixed amount	Minimum (collateral value for the pool agreement * fixed amount for the pool bank / sum of the fixed amounts for all the pool banks) AND (fixed amount for the pool bank)
Percentage	Collateral value for the pool agreement * percentage for the pool bank / 100