Covenant discipline for the corporate bank

What we know about covenant management

Most banks treat covenants as paperwork — captured in free-text contract, monitored in RM Excel. Breach detection delayed by months. Regulator audit fails, restructuring opportunities missed.

Our expertise:

Structured covenant capture in loan origination. Each covenant — typed object with threshold, owner, severity, remedy.

Continuous monitoring. Financial covenants checked against data feeds. Operational via document expiry tracking. Informational via event detection.

Alert framework. Approaching threshold (early warning), actual breach (escalation), waiver workflow.

RM operating routine. Weekly portfolio review with covenant lens.

Credit committee integration. Breaches — formal agenda item.

Regulator reporting. Standardised covenant compliance reports.

Restructuring linkage. Covenant breaches feed restructuring decisions, not just blocking.

Where we help

Covenant Diagnostic — 4-6 weeks. Inventory of current portfolio, gap analysis.

Covenant Platform Implementation — 9-12 months. Capture migration, monitoring engine, alerts, audit trail.

Operating Routine — embed into weekly RM review, monthly committee.

What we bring

Real banking experience — covenant work at Agrobank, etc.

Integration with loan origination and ABS.

Regulator dialogue — cbu.uz expectations.

Related

• /en/solutions/banking-covenant-management-platform/ — covenant solution
• /en/cases/banking-covenant-rollout/ — covenant case
• /en/architecture/banking-loan-origination-architecture/ — origination
• /en/insights/banking-credit-risk-management/ — credit risk