These reviews should analyze a number of important aspects of selected credits, including:
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Credit quality
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Sufficiency of credit and collateral documentation
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Proper lien perfection
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Proper approvals
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Adherence to any credit agreement covenants
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Compliance with internal policies and procedures and laws and regulations
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Appropriateness of the classification assigned to the credits
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Adequacy of the provisions made against such credits
Furthermore, these reviews should consider the appropriateness and timeliness of the identification of problem credits by credit officers and the adequacy of the overall level of provisions for the whole credit portfolio and for the nonperforming credits.
