Portfolio & Risk Management
The first step to prepare for increasing regulatory and competitive
pressure is to ensure that loan monitoring, portfolio management
and operational processes are closely aligned with the banks
strategic requirements and goals.
Best Practices the Covarity Enables:
Commercial Loan Monitoring
Tracking - For all documents and frequencies, Covarity enables customizable document tracking on per borrower basis, and allows for receipt of paper or electronic uploading of financial statements from most leading accounting software and file formats. Document receipt is automatically tracked, and email reminders and late notices provide significant process efficiencies. Covarity provides a portfolio wide summary of reporting as well as the ability to drill down to risk and account manager details.
Financial Analysis - Covarity delivers statement spreading capability that allows for customization of templates and ratio definitions, at both the bank-wide and individual borrower levels. Covarity provides automatic and consistent calculations for financial analysis, which reduces manual input and ensures accuracy.
Credit Analysis - Covarity allows for extensive flexibility in the rules that can be applied to credit analysis as well as the ability to easily and quickly review, adjust and finalize information. Similar to other functions within Covarity, reporting can be done on a top-level summary or detailed basis.
Covenant Monitoring - Covarity enables banks to focus on closely monitoring the covenants that really matter to the portfolio. This is achieved with customizable covenants, borrower-specific flags for defaults and trending information that really matter to their portfolios.
Portfolio Management
Risk and account managers need to quickly see whats happening in
the portfolio. They also need to link to details, analyze and determine
why things are happening and what to do. The Covarity solution
delivers these capabilities and enhances a commercial lenders ability
to manage the overall portfolio. This leads to improved compliance
and the ability to meet ongoing and future needs such as regulatory
demands, loan reviews and predictive analytics.
Operational & Cost Efficiencies
Covaritys hosted,web-based software integrates easily and costeffectively
into a banks existing lending practices and broader credit
risk management systems,while meeting stringent security demands.
A phased approach to implementation of Covarity delivers the core
tracking, analysis, covenant monitoring, and reporting functionality
quickly and easily,with minimal capital outlay.Then the entire process
can be automated with electronic uploads, delivering significant
productivity savings while enhancing data quality.The Covarity
platform is designed to enable further developments such as straight
through processing (STP) integration, stress testing, predictive
analytics and other long term portfolio management enhancements.
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