Authority Code Function - Introduction

Credit decisions in banks, or financial institutions are often make by designated credit authorised persons or credit authority groups, depending on various criteria, such as follows:-

  • Decision Type : Credit Application Recommendation, or Credit Application Approval or Credit Facility Drawdown

  • Facility Type: Personal Loans, Commercial Loans, Corporate Loans

  • Facility Limit Amount

  • Transaction Limit Amount

  • Products

  • Credit Scores

The criteria for each authorisation definition may have some differences across banks and financial institutions, according to the many factors, namely, the target market or industry sector, local financial conditions, rules and regulation of the governing central bank, products offered, networth and size of the respective financing organisation.

Some examples of the credit authority groups are such as STRCO - Steering Committee, EXCO - Executive Committee, and BRNMGR - Branch Manager.

In view of the above, this function will be useful for system administrators to maintain the required credit authorisation for the following credit decisions:-

  • Credit Application Recommendation

  • Credit Application Approval

  • Credit Facility Drawdown

The authorisation allowed can be set by group (e.g., STRCO - Steering Committee, EXCO - Executive Committee, and BRNMGR - Branch Manager) or pool of users.

Within each authority group the available assignment options, are as follows:-

  • Parallel (all the Users within the group can concurrently make decision)

  • Sequence (each User within the group will be assigned to make decision by the sequence number maintained)

The available decision method allowed within each authority group, are as follows:-

  • All (All the members within the credit authority group requires to have made the same decision to be considered the final decision for the authority group)

  • Any (Any of the member’s decision will be considered the final decision for the authority group)

  • Half (Half of the members within the credit authority group requires to have made the same decision to be considered the final decision for the authority group)

  • Majority (More than half of the members within the credit authority group requires to have made the same decision to be considered the final decision for the authority group)

If the authorisation has been set by pool of User IDs, then each member within the pool will be assigned to make decision by round robin basis following the sequence number of each of the member.

Authority codes that are in the 'Active' status and have been tagged to business rule(s) cannot be deleted.