What is loan documentation exceptions monitoring and covenant monitoring in banks Loan documentation exceptions monitoring is the process of identifying and resolving discrepancies or missing information in loan documentation, to ensure that the bank's loan portfolio is in compliance with regulatory requirements and the bank's own policies and procedures. Covenant tracking or monitoring is the process of ensuring that borrowers comply with the terms and conditions of the loan agreements, such as financial covenants (e.g. debt-to-income ratios, liquidity ratios) and other restrictive covenants (e.g. limitations on additional borrowing, limitations on disposing assets). Covenant tracking ensures the bank’s loan portfolio is...