Answer:
Far be it from us to determine what "makes sense" in someone else's business!
Approval of overdrafts is by definition extension of credit. But "credit authority" can be granted, with appropriate controls and training, to anyone capable of managing the task. There may be good reasons to unburden the lender, such as a need to spend more time making loans and less managing overdrafts.
Your Senior Management undoubtedly has confidence in the individual they've entrusted with overdraft decisions. If management is doing its job, it will review the performance of this new assignment and will yank on the reins if things get to be a problem.
First published on BankersOnline.com 12/6/04
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