In one sentence
The body inside a lender that approves credits above a stated authority level, working from a credit memo prepared by the deal team.
The longer version
Committee approval is the formal moment a credit becomes a commitment, and its conditions become the conditions of the loan. Items the committee attaches, whether a reserve, a covenant, or a diligence requirement, flow straight onto the closing checklist.
The record matters as much as the decision. Examiners test whether approvals were within delegated authority, whether the conditions were satisfied before funding, and whether any later waiver was approved at the same level. A decision without a retrievable record is a finding.
Common questions
- What goes into a credit memo for committee?
- The sponsor and guarantor analysis, the property and market, the underwriting and sensitivities, the structure, the exceptions to policy, and a recommendation with conditions.
- What happens if a condition cannot be met before funding?
- It has to be waived or modified at the same authority level that imposed it, and that approval belongs in the file. Funding over an unsatisfied condition without a documented waiver is a control failure.
- Does the committee see the loan again after approval?
- Usually only for material changes, an extension, or a modification. Routine condition satisfaction is handled by the deal team against the approval.
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