Risk with loan condition updates

Which changes affect the reset of the payment structure, and which do not?

When a loan is created, a payment structure is automatically generated based on the specified conditions. Sometimes it may be necessary to manually adjust the payments, for example, to align them with the correct date. If you then update the loan conditions and the original information, there is a risk that the manual adjustments in the payment structure will be reset.

Summary of changes that reset the payment structure:

  • Start and end dates
  • Business day convention
  • Interest type
  • Reference interest rate
  • Interest fixing interval
  • Payment period
  • Amortization
  • Capitalization of interest costs

Summary of changes that do not reset the payment structure:

  • Name
  • Reference number
  • Counterparty
  • Amount
  • Portfolio
  • Fictional/internal loan
  • Linked credit facility
  • Day count basis
  • Collateral security
  • Interest rate floor
  • Received credit margin
  • Rounding of credit margin
  • Interest calculation period
  • Specify invoice date