For banks and financial supervisors, identifying corporate distress early is not simply a question of monitoring loans that are already past due. A borrower may continue to meet scheduled payments while relying on refinancing, maturity extensions, covenant waivers or collateral values that no longer reflect its underlying ability to service debt.

In our latest paper, Accuria explores how agentic borrower-viability surveillance can help financial institutions and supervisors move from periodic, sample-based credit reviews towards continuous monitoring of borrower financial health.

Agentic pipelines can automatically extract and reconcile information from financial statements, loan agreements, covenant certificates, collateral valuations and business plans. This information can then feed deterministic analytical engines that calculate financial ratios, covenant compliance, sustainable debt capacity, liquidity, stress scenarios and going-concern versus liquidation valuations.

The objective is not to replace expert judgement. Instead, the technology can provide an independent challenger capable of identifying economically significant exceptions and highlighting situations where reported classifications may no longer reflect the borrower’s underlying financial position.

The paper also examines how this approach can support IFRS 9 monitoring, early identification of financial distress and the distinction between viable businesses with unsustainable capital structures and genuinely non-viable borrowers.

For viable but overleveraged companies, the same infrastructure can extend from early-warning surveillance into restructuring analysis and post-restructuring monitoring—helping institutions assess sustainable debt capacity, compare restructuring alternatives and track the operational assumptions on which rehabilitation depends.

Read the full article here: Agentic borrower-viability surveillance for financial institutions and their supervisors