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Regulatory Reserve ​

The regulatory reserve calculation is based on data from three Brainysoft directories:

  1. Loan Category
  2. Overdue Degree
  3. Asset Classification by Points

Based on the combination of data from these directories, each loan is assigned a specific classification that corresponds to a reserve rate.

Below is a description of working with these directories and the reserve calculation logic.

1. Loan Category ​

This directory is used to determine the loan category. The loan category is determined by the following criteria:

  1. Borrower Type:
    • Individual.
    • Legal Entity.
    • Individual Entrepreneur.
  2. Collateral Availability:
    • Pledge.
    • Surety.
    • Guarantee.
    • Without Collateral.
  3. For restructured loans.

Loan Category Directory

Examples of Loan Categories: ​

  1. Individual with Pledge:
    • The borrower is an individual.
    • The loan application is secured by a pledge.
  2. Individual with Surety:
    • The borrower is an individual.
    • The loan application is secured by collateral of type Surety.
  3. Individual with Guarantee:
    • The borrower is an individual.
    • The loan application is secured by collateral of type Guarantee.
  4. Individual without Collateral:
    • The borrower is an individual.
    • The loan application is not secured by collateral.
  5. Legal Entity:
    • The borrower is a legal entity.
    • Other categories are similar to those for individuals.

Example: A loan without collateral (application for an individual without linked collateral) initially receives 10 points (see screenshot above).

2. Overdue Degree ​

During the contract lifecycle, depending on the overdue level (number of overdue days), the contract will be assigned a corresponding score.

Overdue Degree Directory

Example: ​

If a contract is overdue for 5 days, it will be assigned 2 points.

Total: If a loan has the category Individual without Collateral (10 points) and is overdue for 5 days (2 points), the total score will be: 10 + 2 = 12 points.

3. Asset Classification by Points ​

This directory is used to assign a classification to each loan. Each loan classification corresponds to a reserve rate. The rate is determined based on the sum of points from the loan category and overdue degree directories.

Asset Classification by Points Directory

Example: ​

Based on previous calculations (loan category + overdue degree = 12 points), find the entry in this directory that corresponds to 12 points.

Result: Classification Individual without Collateral/1-30 corresponds to a provision rate of 3%.

Reporting ​

For collecting reports on regulatory reserve accrual, Brainysoft provides the "Provision" report.

Link to documentation for the "Provision" report

This report shows:

  • Credit classification.
  • Reserve at the beginning of the period.
  • Changes in credit status during the period.
  • Reserve at the end of the period.

The report can be generated:

  • For each individual contract.
  • In summary mode.

Important: The report is interactive. Data on rate calculation and reserve amount are calculated on the report generation date and exist only in Excel format. When data in the program changes, the report itself changes accordingly.

Creating an Operation for Regulatory Reserve Accrual ​

To enable storing and exporting information on regulatory reserve accrual, the Brainysoft system provides the "Regular Reserve" process. The process can be run for an individual contract or for all contracts in the database.

Constant Configuration ​

Before running the process, ensure that the following constants are configured in the system:

ConstantDescriptionPossible Values
Accrue regular reserve on principalAccrual of reserve on the principal loan amount.Yes / No
Accrue regular reserve on interestAccrual of reserve on interest.Yes / No

Important: If the value of these parameters is No, reserve accrual will not occur.

Running the Process for an Individual Contract ​

To run the process for an individual contract, follow these steps:

  1. Go to the "Financial Information" page.
  2. Open the "Adjustments" window.

Adjustments Window

  1. Select the "Regular Reserve" process.
  2. Specify the process date.
  3. Run the process.

Running the Process for All Contracts ​

To run the reserve calculation for all contracts, follow these steps:

  1. Go to the menu Admin > Complex Processes.
  2. Select:
    • Process Type: Regular Reserve.
    • Operation Date: Specify the calculation date.
    • Operation Time: For batch processing, it is advisable to specify a time closer to the end of the day (e.g., 23:59:00).
  3. Click the Select Contracts button.
  4. Click the Run "Regular Reserve" Process button.

Running the "Regular Reserve" Process

Result: The "Regular Reserve" calculation process will be run for all contracts in the database. Reserve accrual operations will be created for the contracts.

Viewing Results ​

Reserve accrual operations are displayed in the Additional Contract Information block.

Reserve information is also displayed in the Total block.

Notes ​

  1. Reserve calculation can be run for a past date. To do this, specify the required date in Operation Date. Reserves will be calculated based on the contract status as of the operation date.

  2. Important:

    If the reserve was accrued for a past date, it is also necessary to run the complex process "Zeroing reserves and discount after loan completion" on the date of the "Regular Reserve" accrual.