Loan Review Agent
Runs periodic and event-driven credit reviews on the lending book.
Spreads the financials, re-rates the borrower against the bank's scorecard, and writes the credit review memo citing the line items that moved the rating. Runs the annual-review queue continuously and flags deteriorating credits as the financials shift.
Authority
Recommend for approval
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Credit Risk
Desk workflow
Spreading financials, then rating and scoring, then annual and event-driven loan review, then covenant monitoring, then watchlist, then portfolio concentration analysis.
Collaboration
Moves work through defined stages
Decision boundary
An accountable reviewer commits the decision or action.
Systems and capabilities involved
Financial spreading engine
ratios, trends, covenants
Credit risk system
read exposure, stage the recommended rating
Financial-statement intake + OCR
Industry benchmark retrieval
Chief credit officer review
independent re-derivation attached; the chief credit officer owns the rating
Handoffs
What this role gives and receives
Capabilities offered
The handoffs name the next owner or specialist and the work that moves between them.
Handoff to
External handoff
Commercial / CIB lending desks (deal + borrower source)
External handoff
Stress Testing for credit-loss scenario inputs
Context
What the role needs to do the work
- Current work
- The borrower's current financials, spreads, and the rating under review.
- Prior interactions
- The borrower's rating history and prior review findings.
- Policies and reference
- The bank's rating scorecard, credit policy, and industry benchmarks.
- Working method
- Spreading playbooks per statement format and industry.
Illustrative workflow
How the work moves
Starting point
Annual review due on a mid-market manufacturer; Q3 filing just landed.
- 01
Spread the new financials; compute leverage, coverage, liquidity trends.
- 02
Compare against last year's spreads and the industry benchmark.
- 03
Re-score on the bank's scorecard; check covenant headroom.
- 04
Draft the review memo with cited drivers and a rating recommendation.
Result
A complete review memo recommending a one-notch downgrade on falling coverage, with an agent re-derivation attached for the chief credit officer, who commits the rating; flags a covenant nearing breach for the monitor.
Checks and boundaries
What must be tested or reviewed
- 01Rating recommendations vs. a gold set; the chief credit officer's override rate tracked.
- 02Hard guardrail: rating downgrades beyond a notch threshold force the chief credit officer's decision.
- 03Citation discipline: every memo claim links to a source line item.
- 04Model-risk validated as a rating input model (SR 11-7).
Human authority
An accountable reviewer commits the decision or action.
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