Poll: Separating credit analysis and loan origination functions

When defining staff roles and responsibilities in relationship-based banking, one way to improve standardization and reduce risk is to separate the credit analysis and loan origination functions. Some financial institutions may have loan officers conduct their own credit analysis during the underwriting process. Not only can this create differences in how the analyses are conducted among loan officers, it can potentially reduce objectivity in the credit decisioning process.

During a recent webinar, Relationship-Based Banking: Balancing Relationships & Risk, over 50 bankers were asked if the loan officer and credit analyst functions were handled by the same person in their institution. Almost 70 percent of those responding noted that the functions are in fact separated in their institution.

For more information on defining staff roles and responsibilities in relationship-based banking, download the whitepaper, How to Balance Relationship-Based Lending & Risk Management.

A recording of the webinar, Relationship-Based Banking: Balancing Relationships & Risks, can be accessed here.