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Calculation of Total Portfolio for Savings Item General introduc tion / Role in Simfi

Description This section explains how savings are allocated over clients in the SIMFI.

Where?

Financial statement > Balance sheet > Liabilities > Current liabilities > Short term time deposits (< 1 year) Financial statement > Balance sheet > Liabilities > Long term liabilities > Long term time deposits > 1 year Financial statement > Projected balance > Liabilities > Current liabilities > Short term time deposits (< 1 year) Financial statement > Projected balance > Liabilities > Long term liabilities > Long term time deposits > 1 year Detailed portfolio > Short term deposits > Short term time deposits < 1 year Detailed portfolio > Long term deposits > Long term time deposits > 1 year Participant i gets a percentage Psaving ( p, i ) of total clients NC ( p ) . The number of clients allocated

Calculations

to participant i is used to determine the new savings portfolio in period p . In the decision screen, the participant fills out the average savings amount. Each client does not have the same savings amount. His savings amount Am real (i, p ) is determined by:

Amreal (i, p ) = Am(i, p ) + Rand × Var ( p ) × Am(i, p ) where:

Amreal (i, p ) = Real savings amount Am(i, p ) = Average savings amount Rand = Random number between -1 and 1 Var ( p ) = Variation percentage with respect to average savings amount

In the menu item “Market information”, within submenu “Other parameters” the Var ( p ) can be filled in for each deposit- and savings product. The new savings are added to the total savings portfolio in the balance sheet. The total original amount and the amount outstanding for each savings product can be found under menu item “Detailed portfolio” in the participant site. The repayments are subtracted from the total amount outstanding.


In the menu item “Detailed portfolio”, in the participant site, the outstanding amount

TotOutst end ( p ) has been calculated for each savings product separately. In the balance sheet TotOutst end ( p ) is determined for the total savings portfolio of short term time deposits and long term time deposits. TotOutst begin ( p ) and TotOutst end ( p ) are calculated in the same way as for loans, but without the possibility of default, so that:

TotOutst end ( p ) = TotOutst begin ( p ) − TotPayb( p ) Where:

TotPayb( p ) is the total amount paid back by the institution, because a saving is a liability. Each new amount is paid back by a constant amount each month or quarter. This constant amount is equal to the contract amount, divided by the total months or quarters of the contract period.


06 Calculation of Total Portfolio for Savings