Model Bank

Islamic Banking
Pre-Sales Demo User Guide
(R19AMR)

Information in this document is subject to change without notice.

No part of this document may be reproduced or transmitted in any form or by any means,
for any purpose, without the express written permission of TEMENOS HEADQUARTERS SA.
© 2016 Temenos Headquarters SA - all rights reserved.
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Presales User guide

Document History

Version Date Author Description

0.1 08-April-2019 Sourabh Arora Updated R19 AMR Screenshots

1.0 08-April-2019 Sudhir Babu Baselined

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Contents
1.0 Introduction ............................................................................................................................. 4
2.0 General Guidelines ................................................................................................................. 4
2.1 Navigation/Screen Resolution ................................................................................................ 4
3.0 Role Based Home Pages ....................................................................................................... 4
3.1 Islamic Credit Officer .............................................................................................................. 4
3.2 Islamic Credit Manager .......................................................................................................... 5
4.0 Demo Data ............................................................................................................................. 5
4.1 Islamic Customers .................................................................................................................. 5
4.2 Vendor .................................................................................................................................... 6
4.3 Brokers ................................................................................................................................... 6
4.4 Reviewers ............................................................................................................................... 6
4.5 IS Purchase Details ................................................................................................................ 7
4.6 Vendor Murabaha Finance Arrangements ............................................................................. 7
5.0 Single Customer View- Islamic Customer .............................................................................. 8
6.0 List of Islamic Products Available in Model Bank ................................................................... 8
6.1 Accounts ................................................................................................................................. 8
6.2 Deposits .................................................................................................................................. 8
6.3 Finance ................................................................................................................................... 8
7.0 Profit Distribution System ....................................................................................................... 9

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1.0 Introduction
“Model Bank Reference System” is released with demo data to enable the Pre-Sales to
demonstrate T24 Model bank with Islamic functionality.

2.0 General Guidelines

While demonstrating the Islamic functionalities, please login with the User Name/password
provided for each Role – refer to below for the details

2.1 Navigation/Screen Resolution

Please avoid using the Command line while demonstrating enquiries, versions etc., instead
use the Menu.

3.0 Role Based Home Pages

The following Role Based Home pages are present in Islamic Banking operations with default
password with 123456.

Roles User Name Password

Islamic Credit Officer ISCREDITOFFICER 123456
Islamic Credit Manager ISCREDITMANAGER 123456

3.1 Islamic Credit Officer

Islamic Credit Officer is responsible for processing and maintaining Islamic Finances. The home
page for Islamic Credit Officer in Model Bank has been designed with a Custom set of enquiries
and menus required by the User to carry on the Day-to-day activities.

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3.2 Islamic Credit Manager

Islamic Credit Manager is responsible for monitoring Islamic Finances and Finance related
activities. He verifies the transactions done by Islamic Credit Officer and either authorises or rejects
them. The home page for Islamic Credit Manager in Model Bank has been designed slightly
different from other role based home pages. All enquiries and transactions are accommodated in
tabs and there are no menu items in this home page.

4.0 Demo Data

4.1 Islamic Customers

Following is the list of Islamic Customers. These customers are involved in Islamic Operations.

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4.2 Vendor
Following is the list of Vendors (Customers) involved in Islamic Operations.

4.3 Brokers
Following is the list of Brokers (Customers) for handling Treasury related Islamic Operations.

4.4 Reviewers
Following is the list of Reviewers (Customers) involved in Review activities.

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4.5 IS Purchase Details

Following are the list of IS Contracts created for the Islamic Customers.

4.6 Vendor Murabaha Finance Arrangements

Following Finance Arrangements are created for the Product Retail Murabaha,

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5.0 Single Customer View- Islamic Customer

This frame in the Single Customer view displays the basic Customer Details including the
photograph and signature of the Islamic Customers

6.0 List of Islamic Products Available in Model Bank

These are the following Islamic products available in Model Bank

6.1 Accounts
Following Islamic account products are available in the Model Bank
 Mudaraba Accounts

6.2 Deposits
Following Islamic deposits products are available in the Model Bank
 Mudaraba Deposits
 Wakala Deposits

6.3 Finance
Following Islamic finance products are available in the Model Bank
 Commodity Murabaha Finance
 Ijara Finance
 Murabaha Finance
 Musawama Finance
 Wakala Finance
 Bai Salam Finance
 Construction Finance
 Diminishing Musharaka Finance
 Forward Ijara Finance
 Mudaraba Financing
 Qard Hassan Finance

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7.0 Profit Distribution System

Arrangement Architecture is enhanced to support the Profit distribution system (PDS) functionality
and it’s used to distribute profit amount for Islamic deposits/ accounts. Profit Distribution System
covers the mechanism used for calculation and distribution of profit by Islamic banks.

Banks setup pools, which is a combination of assets and liabilities to facilitate profit distribution for
each deposit and account linked to the Pool. The Pool Management helps the bank to manage
funds by accepting Deposits & Accounts and deploying funds appropriately for financing and
investment, which helps in Profit sharing among Customers and the Equity holders.

PDS has set of steps to calculate the Profit rate used for distribution to Mudaraba deposits/
Mudaraba savings accounts and Wakala deposits. Calculation of Income and Expenses from the
Finance contracts/ arrangements participating in Pool calculation and apply the reserves for
distributable profit amount. Ability to simulate the PDS calculation by setting up different parameter.
Once satisfied the simulated record used to distribute profit amount to the Deposit/ Account
holders.

1. PDS Simulation: Net profit amount from Income/ expenses is calculated. Based upon the
contribution made by Mudaraba deposits/ Mudaraba Accounts/ Wakala
deposits/Shareholder equity by using weighted average balance the calculated net profit
amount needs split. The IRR%, PER%, Mudarib share% setup in ID.PDS.WEIGHT is used
to reduce the split net profit for each deposit before arriving at the distributable profit
amount. This profit amount converted into Profit rate.

2. Target Rate Update: User can amend the Profit rate calculated to match the market
expectations. This amendment results in recalculation of the distributable profit amount.

3. PDS Distribution: Once the profit rate is finalised it can apply to underlying Mudaraba
deposits/ Mudaraba accounts. Based upon the Profit pay method available in Mudaraba
deposits paid to the Customer Account. For Mudaraba accounts profit paid by using profit
distribution frequency setup in ID.POOL.PARAMETER. For Wakala deposits generate
profit adjustment accounting entries if chosen; otherwise, the average Wakala deposit
balances added to shareholder equity.

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