Covenant Monitoring

Crisil Global Research and Risk Solutions help financial institutions stay ahead of potential weakening in the credit quality of their lending portfolios by monitoring the status of negative and affirmative covenants. We work to strengthen our clients’ covenant monitoring by standardizing processes, creating efficiencies and reducing data errors.

We partner with clients to develop an integrated, automation-led solution to maximize efficiency and improve their covenant monitoring practices. Our automated solutions encompass retrieval of covenant compliance certificates from deal sites/bank systems, extraction of covenant data from scanned compliance certificates/credit agreements, automated data entry into bank internal monitoring system using bots/RPA tools, and automated email alerts for flagging contraction of headroom or any overdue covenant attestation.

Crisil Global Research and Risk Solutions Covenant Monitoring delivers significant benefits:

• Provides timely alerts to credit officers for any signs of financial deterioration or any overdue covenant attestation;
• Validates reported financial covenant levels with audit trail for compliance & regulatory reviews;
• Ensures timely and accurate tracking of covenant compliance on bank’s internal systems;
• Unlocks bandwidth of credit officers through automation and comprehensive support in all operational and analytical activities.

Solution Components

• Covenant monitoring tailored to the client’s schedule
• Automated monitoring provides early warnings
• Dynamic visualization dashboards provide clear visibility and comprehensive view

Crisil EDGE

Case Studies

Questions

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