Are Spreads a requirement in all covenant compliance checks?

In the context of covenant compliance checks within nCino, spreads are not universally required; their necessity varies based on system settings. This means that the configuration of the specific lending platform can determine whether a spread needs to be included in the calculation for compliance checks.

By relying on these configurations, institutions can tailor the use of spreads to match their unique lending policies or the specific terms of individual loans. Therefore, some organizations may choose to implement spreads in their compliance checks, while others may not, depending on how the system is set up to align with their operational requirements. This flexibility allows for customized approaches to risk management and compliance monitoring, accommodating different loan strategies and regulatory requirements.