What Is a Loan Committee?

The loan committee is the institution responsible for making loan decisions within the bank. The commercial bank's loan policy clearly stipulates the organizational responsibilities and number of meetings of the loan committee. The structure of the bank loan committee is based on its relative laws, the division of labor and staff capacity in the loan processing process. For example, in small and medium-sized commercial banks, the loan committee usually consists of the chairman, senior loan officers, and some members selected from the board of directors. In large banks, the loan committees implement a hierarchy. The Loan Senate Committee is composed of senior loan managers who work closely with the Board. ^[1]