Covenant Validation & Monitoring Solutions

Build a comprehensive monitoring and control framework to strengthen the risk governance function

CONNECT WITH AN EXPERT
Regulations in credit risk management are on the rise, and with the changing economic environment, banks are strengthening their portfolio monitoring system. There is an increased focus on streamlining the covenant compliance and monitoring function, supported by risk-based credit analysis. Acuity Knowledge Partners partners with corporate and commercial banks to deliver a strong and comprehensive covenant monitoring solution to facilitate early identification of any deterioration in covenant performance. Let Acuity Knowledge Partners expertise assist you in building a robust covenant monitoring process.

BENEFITS AND IMPACT

Early Warning Signals

Timely Monitoring

Dynamic Dashboards

Standardized Output

Front Office Effectiveness

ACUITY KNOWLEDGE PARTNERS COVENANT MONITORING SOLUTIONS SUITE

Covenant Set-up

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Covenant Set-up

  • Analyze credit documents in detail to comprehend applicable loan covenants

  • Create covenant-testing templates for the entire portfolio

  • Augment the database with subsequent credit terms amendments

  • Design standard compliance/other regulatory certificates for the bank

Monitoring

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Monitoring

  • Monitor and record document submission requirement and report past dues

  • Provide Early Warning Signals and Trend Analysis

  • Offer headroom analysis for new lending opportunities or heightened credit concerns

  • Report covenant breach/significant variation real time

Validation

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Validation

  • Authenticate borrower-reported covenants for accuracy and compliance

  • Independently calculate financial covenants

  • Identify any deviation and provide reasoning for discrepancies

Reporting Dashboards

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Reporting Dashboards

  • Covenant compliance status and trend analysis by sector/region/front office

  • Upcoming reporting covenants

  • Best and worst performing borrowers based on key ratio/s

  • Out-of-compliance borrowers categorized by risk in terms of sectors/regions/front office

  • Borrower-specific covenant tear sheet with headroom and deviation analysis

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