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Challenge

Bank Insolvency & Liquidity Risk Early Warning System with LangGraph

Small bank closures create systemic contagion risk across regional financial markets when liquidity stress signals are detected too late. Build a stateful bank liquidity monitoring workflow using LangChain and LangGraph to track balance sheet risk vectors, achieving 94% early failure prediction accuracy.

CybersecurityHosted by Vera
Challenge brief

What you are building

The core problem, expected build, and operating context for this challenge.

Build a stateful, cyclic multi-step agent workflow using LangGraph to monitor liquidity coverage ratios, deposit outflow velocities, and regulatory risk thresholds.

Delivery guide

How work is evaluated

Evaluation

Evaluates early warning failure prediction accuracy and state transitions in LangGraph workflows.

Datasets

Challenge datasets

Public datasets, plus the private datasets you have access to.

Evaluation rubric

How submissions are scored

These dimensions define what the evaluator checks and which criteria separate a passable run from a strong one.

Dimensions
2 scoring checks
Binary
2 pass or fail dimensions
Ordinal
0 scaled dimensions
Dimension 1

State Checkpointing Test

Verify graph state is correctly stored and restored from memory checkpointer.

Binary check

This dimension contributes its full weight only when the submission satisfies the requirement. Partial credit is not awarded.

Dimension 2

insolvency_prediction_accuracy

Accuracy in identifying troubled institutions 60 days prior to closure • target: 0.94 • range: 0.9-1

Binary check

This dimension contributes its full weight only when the submission satisfies the requirement. Partial credit is not awarded.

Learning goals

What you should walk away with

  • Design stateful cyclic graph architectures with LangGraph and StateGraph

  • Implement custom agent state schemas for multi-period financial ratio tracking

  • Integrate automated FDIC receiver action early warning alerts based on stress triggers

Resources and assets

Reference links and supporting material

Dataset notes

Synthetic financial report time-series dataset covering 500 small to mid-sized regional bank balance sheets.

Challenge setup

Evaluates early warning failure prediction accuracy and state transitions in LangGraph workflows.

Challenge input

JSON balance sheet time-series data over 4 quarters

LangChain

Assigned framework ecosystem.

LangGraph

Mandated stateful graph workflow library.

Evaluated output

JSON risk evaluation with state summary, distress severity score, and recommended intervention

Evaluation checks
  • Verify graph state is correctly stored and restored from memory checkpointer.
  • Accuracy in identifying troubled institutions 60 days prior to closure • target: 0.94 • range: 0.9-1
Configured evaluation evidence
  • Benchmark: BankRisk-Bench
  • Insolvency Prediction Accuracy target: 0.94
  • 1 public reference case
Configured runtime
  • Python execution harness
  • Python sandbox (unavailable on Versalist)

Summary shows the first task, up to three tools, and up to three evidence items. Open the technical recipe to view all configured items.

View technical recipe

Configured tools

Action Space
  • LangGraph · Required
  • Langchain · Optional
  • LangChain · Optional
Orchestration
  • LangGraph · Required
  • Langchain · Optional
  • LangChain · Optional

Evaluation contract

  • State Checkpointing Test · Weight 1
  • insolvency_prediction_accuracy · Weight 1

Metrics

  • insolvency_prediction_accuracy · Target 0.94

Benchmarks

  • BankRisk-Bench
  • security

Reference cases

  • 1 public reference case

Workflow tasks

  1. Task 1

    Input: JSON balance sheet time-series data over 4 quarters

    Output: JSON risk evaluation with state summary, distress severity score, and recommended intervention

    Execution harness: Python

Evaluation tools

  • LangChain · Agent Framework
  • LangGraph · Stateful Orchestration Engine

Recipe freeze marker

No recipe freeze time is recorded.

Frequently Asked Questions about Bank Insolvency & Liquidity Risk Early Warning System with LangGraph