AI agent for credit analysts
Borrower Covenant Monitoring Agent
Every borrower's reporting received and covenants tested on time
What it does
Late borrower reports and missed covenant tests let problems grow before the bank acts. This agent tracks each borrower's reporting and covenant requirements. It reads the loan agreement terms, sets a calendar for each reporting item, and checks daily what is due or late. For missing items it drafts a reminder to the relationship manager and escalates after 15 days. When financials arrive, it calculates each covenant using the agreement definitions and compares it to limits. Breaches or headroom under 10% go to a watch list with a short note. It rechecks after waivers or corrected statements. The analyst decides on risk rating changes and any action. Edge case: the agreement tests on a trailing twelve-month basis, so the agent builds the rolling figure.
How it works
Follow the arrows from top to bottom. The orange dashed arrow is the loop: when a check fails, the agent goes back and tries again.
Read the steps as a list
- Daily covenant calendar check
- Check which reports are due or late
- Draft reminders for missing items
- Calculate covenants from new reports
- Is each covenant met with headroom?If not: add to watch list and recheck after corrected data or waiver. Back to step 4.
- Analyst decides rating changes and actionsThe agent waits here for your OK.
- Covenant log updated
How it decides
It uses each agreement's definitions and flags any covenant breached or with less than the set headroom.
- Report 15 days late: escalate
- Headroom under 10%: watch list
- Breach: draft memo for waiver or action
Make it yours
Every agent is a starting point. You choose these settings for your own situation.
- Headroom warning level
- Reminder timing
- Watch list rules
- Covenants tracked
What keeps you in control
It always asks you first
- Risk rating changes
- Contact with borrowers
Hard limits
- Never contacts the borrower directly
- Never grants waivers
It stops when
- Done: all covenants tested
- Stop: agreement definitions unclear
Set it up
We guide you through the set-up, step by step
Members get the full set-up guide for this agent. No technical skills needed: you copy, paste and upload.
- One set of instructions to paste into your AI, with the clicks for ChatGPT, Claude, Microsoft 365 Copilot, Gemini and Grok
- The agent then walks you through connecting your own data, one source at a time
- A downloadable copy with the flow chart, the rules and the full guide
