Limits, Covenants, Transaction Control and Monitoring

Limits, Covenants, Transaction Control and Monitoring - Article

This article explains how banks control credit risk after sanction through limits, covenants, transaction controls and continuous monitoring. Using practical banking cases, it covers limit breaches, covenant violations, documentation and disbursement controls, end-use verification, collateral deterioration and early-warning signals. It helps CAIIB BFM learners identify weaknesses and choose appropriate corrective action before a credit exposure becomes a serious problem.