SEVEN HABITS OF AN EFFECTIVE LOAN COMMITTEE

Bank directors’ and executive management’s responsibilities include: setting the course for the bank; selecting competent management; measuring progress and maintaining asset quality.

The focus of this session will be on maintaining asset quality or the “A” in the CAMELS rating system. The Loan Committee is the body of individuals within the Bank charged with choosing the proper type of risk to bring into the loan portfolio while yielding maximum returns for the bank. The importance of this committee is paramount to a bank’s success and the Board should have input in its development and functions.

What are the Seven Effective Habits of an Effective Loan Committee? High performing banks with an outstanding credit culture all have certain characteristics in common in their credit approval process. These characteristics form the basis of the Seven Effective Habits which include:

  1. Knowing the Role and Purpose of the Loan Committee
  2. Knowing Loan Committee Rules and Sticking to Them
  3. Respecting and Utilizing the Multiple Personalities on the Committee such as:
    • The Supporter
    • The Pragmatist
    • The Clock Watcher
    • The Rule Stickler
  4. Obtaining the Right Information and Knowing How to Analyzing It
  5. Communicating Effectively With Other Committee Members and Loan Officers
  6. Taking Minutes That Matter
  7. Asking the Right Questions and Demanding Proper Loan Structuring.

Testimonials

"Jeffery did a fantastic job all week keeping us engaged in the material and involved. He was a fantastic coordinator & lead professor"

Cliff Knowlton, Prime South


"WONDERFUL!! Great Instructor, great information. Will definitely attend more of Jeffery's classes".

Ansley Oliver, Georgia Commerce Bank

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