Worksheet examples for loan reviewers
A common question when creating loan review worksheets is: Should I build one comprehensive worksheet or several smaller ones?
Experience has shown that a series of smaller worksheets (no more than 10–15 questions each) works best.
- Some worksheets should be mandatory (e.g., credit analysis).
- Others can be optional depending on the nature of the review (e.g., collateral evaluation).
Here are two simple examples — not best practices, but illustrations:
Example: Credit analysis worksheet (250 words or less per response)
- Briefly describe the background of the borrower(s).
- Do you arrive at the same conclusion as the original approval? (Yes / Yes with qualifications / No—explain.)
- Quality of primary repayment analysis: (Conservative / Reasonable / Liberal—explain.)
- Quality of secondary repayment analysis: (Conservative / Reasonable / Liberal—explain.)
- Quality of projections: (Acceptable / Unacceptable / N/A—explain.)
- Quality of sensitivity analysis: (Acceptable / Unacceptable / N/A—explain.)
- Are the guarantors a source of strength? (Yes/No—explain; if Yes, assess global cash flow.)
- Do you agree with the assigned risk rating? (Explain.)
- Credit strengths: (Explain.)
- Credit weaknesses: (Explain. Were they identified by the line? Were mitigations put in place?)
- Financial trend of the borrower: (Improving / Stable / Erratic / Declining — explain.)
- Any follow-up questions for the Relationship Manager?
Example: Controls worksheet (250 words or less per response)
- What exceptions were cited by the bank? (Choose from list.)
- What exceptions were missed? (Choose from same list.)
- Do mitigating factors justify exceptions? (Yes/No—explain.)
- How do you rate ongoing borrower monitoring controls? (Adequate/Inadequate—explain.)
- Are covenants effectively monitored? (Yes / No / Missing—explain.)
- If substandard, should customer be moved to non-accrual/charged off? (Select option and explain.)
Each worksheet mixes quantitative (trackable/scorable) and qualitative (explanatory) responses.
By keeping each worksheet focused, analysts zero in on risks that matter — and avoid wasting time on superfluous activities. Worksheets bring structure, consistency, and objectivity to loan review. They help the reviewer in charge bridge different analytical styles and generate forward-looking, actionable insights that truly add value.
If you’re not using worksheets yet and want to start, reach out to [email protected] to set up a time to discuss how worksheets can add structure, insight, and real value to your loan review program.
