Loan review

Loan review is a process of periodic investigation of all outstanding loans on a bank’s books to make sure each
loan is paying out as planned, all necessary documentation is present, and the bank’s loan officers are following
the institution’s loan policy. A loan review provides an assessment of the overall quality of a loan portfolio

Specifically, a loan review:

 Assesses individual loans, including repayment risks.

 Determines compliance with lending procedures and policies.

 Identifies lapses in documentation.

 Provides credit risk management priority findings.

 Recommends practices and procedures to address findings.

 For FIs that risk-rate their loans, a loan review evaluates risk grades and their accuracy.

Loan workout
A series of steps taken by a lender with a borrower to resolve the problem of delinquent loan payments. Steps can
include rescheduling loan payments into lower installments over a longer period of time so that the entire
outstanding principal is eventually repaid.