>> Financial Management
Provide an example of a loan approved in a community bank and how/why it conformed to the bank’s lending policies. Describe the type of loan, the characteristics of the borrower, the financial analysis performed by the loan officer in analyzing the loan request, the fundamental strengths of the credit request, how the loan was priced, any covenants in the loan agreement, collateral required, etc. What concerns are there about this loan---what could go wrong? Was the borrower asked to provide any additional information before the loan request was approved?