Loan Officer's Legal Lending Limit

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Question:

What are the industry standards regarding each loan officer's lending limit? Are there any regulations regarding this topic? Our bank is trying to decide if we should increase each loan officer's lending limit.

Answer:

This is really up to the bank. There are no real industry standard as it will be based on the strength and skills of the individuals that you have working for you and the strength and sufficiency of other internal controls that you have in place.

First published on BankersOnline.com 7/17/06