To make a funded credit decision for a customer it is essential to have a correct and timely assessment of all available collaterals. For the decision the coverage of the customer commitment by the collaterals is one of the key variables. On the one hand collaterals are assets in the commitment itself, on the other hand of course not directly associated with the transaction collaterals, so-called additional collaterals.
To optimize the capital kept available for the loan portfolio, a precise determination of margin in the credit decision is a very important component. CAS with its security module is able to determine this data in real-time at the point of credit decision, directly taking into account property values and repayment histories. These calculations are not only made for the customers themselves, but also for complex borrowing entities (associations) where the overall context for a credit decision must always be regarded.
This "just in time" calculated collaterals effectively provides the credit decision makers with the assurance not to miss any recent developments of the customer and ultimately removes the need to perform any complicated manual calculations.
The property securities are usually (especially for lease transactions) the main securities. Therefore, it is necessary to apply the current securities value of these objects at any given time with in the overall result.
CAS determines the current values at any time from the stocks, the pendency and the new exposure. For this purpose, each object is evaluated when reading the customer data based on current value curves and the corresponding securities value is summed for all objects.
In addition to the actual objects, it is customary to take other assets into account for a business. In CAS additional collaterals can be added at any time to an application. It may be personal guarantees (e.g. bails), or to other property collateral (e.g. a chattel mortgage). These assets are configurable in the security-module of CAS. If additional securities are available via the exposure relevant guarantor , then the situation of that guarantor in relation to the entire decision must be taken into account. Ultimately, by the additional security position, a risk reduction is aspired, that only really comes into play when the situation and especially the credit rating of the guarantor can be adequately assessed.
To achieve this goal, CAS automatically creates another log in the request, the so-called secondary liability protocol in these cases. There may be several of them, if there are different additional collateral covered by various security guarantors. The secondary liability protocol is automatically assigned to the guarantor of the additional security. He too must undergo a credit decision and the appropriate credit check.
Consequences for the credit decision
Based on data obtained automatically by the security module, core parameters of the credit decision like collateral ratio, blank contingent, provided collateral, etc. can be taken into account in seconds. These functions are the basis for all automated as well as a manual credit decision processes and are essential for a high-quality data base.