BAS Presentations - March 2023

45 administration of the overall loan account, including establishment of sound lending and collection policies, are of vital importance. ” ‐ FDIC Risk Management Manual Evaluation of the loan portfolio involves much more than merely appraising individual loans. Prudent management and

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The Loan Policy Should Clearly Outline how Loans are to be Underwritten and Monitored

Lending authorities (officers/committees/ Board)

Acceptable terms (e.g., LTV and amortization limits)

Allowable loan types/desired mix

Underwriting documentation and maintenance of credit files

Internal credit grading/loan review system

Collection procedures

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