Loan Committee

A loan committee, also known as a credit committee, is the committee in a bank consisting of senior lending division executives and executives from risk and elsewhere that reviews loan applications presented by bankers in the lending team. The committee approves or rejects applications based on a series of internal criteria: size, pricing, degree of risk, alignment with risk and lending policies, relationship with the borrower, borrower’s financials, credit quality and credit history; sector and geographical concentration etc.