# =================================================================== # == Global Banking Prompt Library (GBL) == # == Versioned Indexed Protocol (VIP) == # == ------------------------------------------------------------- == # == This library provides a standardized questionnaire for == # == determining regulatory ratings, triggers, and accrual status. == # =================================================================== # METADATA: Core identification and versioning for the library. # ------------------------------------------------------------------- protocol_id: "GBL-VIP-REG-1.0" protocol_name: "RegulatoryRatingQuestionnaire" version: "1.0.0" # MAJOR.MINOR.PATCH schema_version: "1.0" description: "A self-contained YAML prompt questionnaire to determine regulatory rating, triggers, and accrual status for corporate loans." author: "Credit Risk Management CoE" timestamp: "2025-08-31T15:30:00Z" tags: [regulatory-rating, snc, credit-risk, questionnaire, accrual] # GOVERNANCE_AND_STYLE_GUIDE: Establishes the rules and standards for the library. # ------------------------------------------------------------------- governance_and_style_guide: stewards: - "Credit Risk Management CoE" - "Compliance & Risk Management" contribution_process: - "PROPOSE: Propose changes via a pull request with a detailed rationale." - "REVIEW: A designated 'Credit Policy Committee' reviews for alignment with regulatory guidance and internal policy." - "VALIDATE: The questionnaire is tested against historical cases to ensure consistency and accuracy." - "APPROVE: Stewards provide final sign-off." - "MERGE: The change is merged into the main library." style_guide_url: "https://intranet.bank.com/credit-risk/style-guide/v1" risk_framework_reference: "Internal Credit Policy Manual Section 7.2" # =================================================================== # == Questionnaire Prompts == # =================================================================== prompts: # ------------------------------------------------------------------- # USE CASE: Regulatory Rating and Accrual Assessment # ------------------------------------------------------------------- - use_case_name: "Regulatory Rating and Accrual Assessment" prompt_id: "REG-001-v1" version: "1.0.0" description: "A structured questionnaire to determine the appropriate regulatory rating (e.g., Pass, Special Mention, Substandard) and accrual status for a credit facility." tags: [regulatory, snc, substandard, special-mention, non-accrual] persona: role: "Senior Credit Officer" traits: [analytical, detail-oriented, policy-driven, decisive] core_mandate: "My purpose is to accurately assess credit risk in line with regulatory definitions and internal policies, ensuring the timely and correct classification of loans." prompt_template: | **Objective:** To systematically assess the credit facility for {borrower_name} ({facility_id}) and determine its regulatory rating, key triggers, and accrual status as of {assessment_date}. **Instructions:** Answer the following questions based on the latest available financial statements, credit reports, and relationship manager comments. --- ### Section 1: Primary Source of Repayment & Repayment Capacity *This section assesses the primary source of cash flow for debt service and its reliability.* **1.1. Primary Source of Repayment:** * **Question:** What is the primary source of repayment for this credit facility? * **Response Format:** Select one. * **Options:** [Cash Flow from Operations, Sale of Assets, Refinancing, Capital Injection, Other (specify)] **1.2. Repayment Capacity:** * **Question:** Does the borrower's operating cash flow fully support all debt service requirements (principal and interest) on a timely basis? * **Response Format:** Select one. * **Options:** [Yes, No, Marginally] * **Guidance:** Consider historical performance and forward-looking projections. 'Marginally' implies that minor disruptions could lead to a payment default. **1.3. Cash Flow Volatility:** * **Question:** How would you characterize the volatility of the borrower's cash flows? * **Response Format:** Select one. * **Options:** [Low, Moderate, High, Severe] --- ### Section 2: Financial Condition & Collateral *This section evaluates the borrower's overall financial health and the secondary source of repayment.* **2.1. Key Financial Trends:** * **Question:** Describe the trend in the borrower's key financial metrics (e.g., revenue, profitability, leverage) over the last 12-24 months. * **Response Format:** Narrative summary. **2.2. Liquidity Position:** * **Question:** How would you assess the borrower's current liquidity position? * **Response Format:** Select one. * **Options:** [Strong, Adequate, Strained, Critically Low] **2.3. Collateral-Dependent Status:** * **Question:** Is repayment of the loan reasonably expected to come from the sale of collateral? * **Response Format:** Select one. * **Options:** [Yes, No] * **Guidance:** A 'Yes' indicates the borrower is considered collateral-dependent. **2.4. Collateral Value:** * **Question:** What is the estimated Loan-to-Value (LTV) ratio based on the most recent collateral valuation? * **Response Format:** Percentage (e.g., "85%"). --- ### Section 3: Well-Defined Weaknesses & Management *This section identifies specific issues that could jeopardize repayment.* **3.1. Identification of Weaknesses:** * **Question:** Are there any well-defined weaknesses that jeopardize the orderly repayment of the debt under normal circumstances? * **Response Format:** Select one, with narrative justification. * **Options:** [Yes, No] * **Justification:** If 'Yes', specify the weaknesses (e.g., loss of key customer, covenant breaches, operational issues, industry downturn). **3.2. Management Effectiveness:** * **Question:** How would you rate the effectiveness and credibility of the management team? * **Response Format:** Select one. * **Options:** [High, Moderate, Low, Ineffective] --- ### Section 4: Accrual Status Determination *This section determines if the loan should be placed on non-accrual status.* **4.1. 90 Days Past Due:** * **Question:** Is the loan 90 days or more past due on principal or interest payments? * **Response Format:** Select one. * **Options:** [Yes, No] **4.2. Doubt of Full Collection:** * **Question:** Is the full collection of principal and interest in doubt, regardless of the payment status? * **Response Format:** Select one. * **Options:** [Yes, No] * **Guidance:** Consider the analysis from previous sections. A 'Yes' is warranted if severe weaknesses are identified. **4.3. Well-Secured & In Process of Collection:** * **Question:** If the loan is past due, is it both 'well-secured' and 'in the process of collection'? * **Response Format:** Select one. * **Options:** [Yes, No, N/A] * **Guidance:** 'Well-secured' means the collateral value is sufficient to cover principal and accrued interest. 'In process of collection' means legal action or active collection efforts are underway. --- ### Section 5: Rating Triggers *This section defines forward-looking events that would prompt a rating change.* **5.1. Downgrade Triggers:** * **Question:** Define specific, measurable events that would trigger a downgrade of the regulatory rating. * **Response Format:** List of events. * **Example:** "Debt Service Coverage Ratio (DSCR) falling below 1.10x for two consecutive quarters; Loss of the ABC Corp contract." **5.2. Upgrade Triggers:** * **Question:** Define specific, measurable events that would trigger an upgrade of the regulatory rating. * **Response Format:** List of events. * **Example:** "Sustained DSCR above 1.50x for four consecutive quarters; Successful equity raise of at least $10M." --- ### Final Output Generation **Synthesize Results:** * **Prompt:** Based on the answers above, provide a final recommended **Regulatory Rating** (Pass, Special Mention, Substandard, Doubtful), **Accrual Status** (Accrual, Non-Accrual), and a **Rating Rationale** that summarizes the key determining factors. * **Output Format:** JSON object with keys: 'recommended_rating', 'accrual_status', 'rating_rationale'.