Monitor Negative Balance Coverage

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Prerequisites

To monitor Negative Balance Coverage (NBC) for an FBO, you need:

• Access to the Treasury Prime Console with any Banker role
• The FBO account number for the program you want to monitor
• NBC must be enabled for the FBO

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About Negative Balance Coverage

Negative Balance Coverage (NBC) automatically reconciles ledger accounts that carry a negative balance within an FBO. Each eligible FBO has two associated on-core accounts:

• NBC account: Holds funds that cover negative ledger balances within the FBO. The NBC account is owned by the bank’s organization, and the program never has access to it.
• Loss reserve account: Funded by the program. At the direction of the Bank, Treasury Prime’s software instructs a transfer from the loss reserve to replenish the NBC account when negative balances exceed the current NBC coverage.

Each business night, Treasury Prime’s software totals the negative ledger balances within every eligible FBO and reconciles the difference between the NBC and loss reserve accounts. At the direction of the Bank, the software instructs a transfer from the loss reserve to the NBC account when negative balances exceed the NBC balance, and a transfer of any excess back to the loss reserve when the NBC balance is more than sufficient. For a detailed walkthrough of the underlying flow of funds, see the Negative Balance Coverage API guide.

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How to monitor Negative Balance Coverage

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1. Navigate to the FBO

1. Log into the Treasury Prime Console
2. Click Accounts in the left navigation menu
3. Select FBOs from the accounts submenu
4. Click the FBO for the program you want to review

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2. Open the Negative Balance Coverage tab

1. From the FBO detail screen, click the Negative Balance Coverage tab
2. The tab displays the FBO’s current NBC status, historical balances, and recent NBC activity

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3. Review the summary metrics

The top of the tab displays four NBC summary metrics for the FBO:

• Current NBC Balance: The current balance in the FBO’s NBC account. This is the buffer available to cover negative ledger balances.
• Loss Reserve Balance: The current balance in the associated loss reserve account. The program funds this account. At the direction of the Bank, Treasury Prime’s software instructs a transfer from this account to replenish the NBC account when needed.
• Coverage Ratio Used (today): The NBC account balance as a percentage of the FBO’s total coverage funds (the NBC account balance plus the loss reserve balance). For example, an NBC balance of $6,513.62 against$105,765.15 in total coverage funds equals 6.16%.
• Peak NBC Balance (30d): The highest NBC account balance observed during the past 30 days. Use this metric to gauge the maximum coverage required during the period.

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4. Review the Coverage & Loss Reserve Balance chart

The Coverage & Loss Reserve Balance chart plots daily NBC and loss reserve balances over time. Click and drag across the chart to filter the view by date range. Use the chart to identify trends, spikes in NBC consumption, or sustained periods of high coverage.

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5. Review the Top Negative Balances section

The Top Negative Balances section lists the five most severe negative balance accounts over the past 30 days. Each row shows the account number, account name, account ID, negative balance amount, and date.

• Click any account row to open the account detail screen.
• Click View all to open the Negative Balances tab for the full list.

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6. Review the NBC ↔ Loss Reserve Book Entries section

The NBC ↔ Loss Reserve Book Entries section lists the most recent automated transfers between the NBC and loss reserve accounts. Each row shows the originating account, amount, recipient account, and the date the entry was created. Use this section to confirm that nightly reconciliation completed and to investigate any unexpected activity.

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Review all negative balances

The Negative Balances tab lists every account with a negative balance for the FBO. Unlike the Top Negative Balances summary on the Negative Balance Coverage tab, which shows only the five most severe accounts, this tab lists the full set of negative balance accounts and lets you filter the results by date.

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1. Open the Negative Balances tab

1. From the FBO detail screen, click the Negative Balances tab
2. The tab displays all accounts with a negative balance for the FBO

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2. Filter by date

1. Click the Any Date filter at the top of the list
2. Select a date or date range to narrow the results to negative balances observed during that window

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3. Open an account

1. Click any row in the list
2. The Console opens the account detail screen, where you can review transaction history, balances, and account status

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Troubleshooting

Common issues and solutions:

• Negative Balance Coverage tab not visible: NBC is enabled by Treasury Prime on a per-FBO basis. If the tab does not appear for an FBO, contact Treasury Prime support to confirm whether NBC is enabled for it.
• Coverage Ratio Used is approaching 100%: The program may need to add funds to the loss reserve account. Contact the program to request replenishment.
• Missing or unexpected book entries: Treasury Prime’s software runs the reconciliation each business night. If an expected entry is missing or an entry appears unexpected, contact Treasury Prime support.