In general, a credit facility account will be classified from time to time based on its repayment movement, dependent on the related Central Bank’s ruling. For example, if there has been past due in the account for more than 90 days, the account will be classified as 'Special Mentioned'.

However, depending on the types of financing facilities, the practice of the respective bank or financial institution, governed by its central bank, there can be different account classes for performing and non-performing credit facilities.

This function basically allows user to maintain the repayment past due days' buckets to classify each of the credit account in the system to the relevant performing or non-performing account class.

In addition, the following conditions can also be maintained in this function:-

The account classes maintained this in function will be used throughout the system on all credit accounts, across various credit products.

In view of the above, after each credit facility account has been disbursed, and repayment becomes due, system will look up the settings in this function, to class or re-class the account, accordingly.

However, the credit accounts classification and re-classification will only take place, upon each End-of-Month (EOM) periodic process.

Each account class maintained in this function, can be deleted, anytime. Therefore, user needs to be careful an assured a particular account class is no longer required, before confirming to delete the selected account class.