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loan committee

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Bank management committee that evaluates and decides some loan applications. Comprised of senior managers and experienced loan officers, it normally considers only those loans that exceed the lending authority of the forwarding loan officer, or loans that require special attention due to the applicant's credit history or other factors. The committee looks at the applicant's financial statements and credit information to ensure compliance with the bank's lending policy and statutory obligations. Its decisions are strongly influenced by the current economic trends, and often by the prevalent image of the applicant firm's industry.