Certificate of Deposit Issued
Bank issues a negotiable Certificate of Deposit (CD) to a wholesale investor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Nostro / Settlement Account | Asset (+) | 500,000.00 | - |
| Certificates of Deposit Issued (Liability) | Liability (+) | - | 500,000.00 |
💡 Accountant's Note
A CD is a negotiable instrument representing a fixed-term deposit. It is classified as a separate liability from retail deposits on the bank's balance sheet. It typically carries a higher rate due to its wholesale and negotiable nature.
Practitioner & Systems Framework
💻 ERP Architecture
In SAP Bank Analyzer, CDs are managed under the Treasury module as money market instruments with ISIN assignment if listed. In Oracle FLEXCUBE, the MM (Money Market) module handles CD issuance. Bloomberg/Reuters integration may be required for market rate reference on issuance day.
⚠️ Audit Flags
Auditors confirm that the CD is registered in the CD registry maintained by the bank and that duplicate issuances have not occurred. CBJ requires CDs above certain thresholds to be reported in the weekly liquidity return.
📄 Required Documentation
Signed CD application, physical or electronic CD certificate with serial number, SWIFT MT199 or equivalent confirmation for wholesale counterparties, CBJ issuance notification (if required), and settlement confirmation.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.