Scaling project finance credit monitoring enhances portfolio growth by >45%

A US-based midsize regional bank engaged our team to enhance coverage and monitoring standards across its project finance portfolio amid rising deal volumes and increasing risk and compliance requirements.

• Administrative constraints across a portfolio of over 125 complex transactions, each with sector- and transaction-specific monitoring requirements for compliance and risk reporting
• Inconsistent review standards and reporting gaps contributed to risk-rating overrides across ~20% of the portfolio, making credit assessments less consistent
• Compliance delays resulting from manual data collection and tracking affected 25% of the portfolio, with 5% of the portfolio classified as serious breaches of internal risk policies
• Reduced stakeholder confidence led to more frequent internal audits and a significant increase in workflows dedicated to addressing audit concerns

• Standardized the annual review framework around key credit parameters, including deal structure, sponsor background, counterparty risk, and construction and operational progress metrics, while addressing major sector- and transaction-level complexities and nuances
• Established a scalable delivery model by transitioning 65% of business-as-usual annual review workstreams within five months, enabling the client team to focus on risk policy remediation, compliance reporting and new deal underwriting
• Strengthened data discipline by replacing reactive data collection during reviews with a proactive data management process based on clearly defined, framework-based information requirements. This included establishing a two-member insurance tracking team and obtaining annual insurance renewals for all deals two weeks before policy expiration
• Bolstered governance and auditability by establishing standard operating procedures for tracking deal performance, managing data and escalating issues
• Enhanced continuous portfolio monitoring by expanding the framework beyond annual reviews to include quarterly financial updates and portfolio reviews, enabling more frequent assessments of project performance