I would appreciate it if anyone would share the scope of their independent loan/credit review function of their bank. Outsourced or internal, either would be helpful. For example: Asset size $400M & OCC regulated bank - Annual reviews on all credit relationships > $500,000, along with sample reviews of smaller commercial credits, residential, consumer, and watch list loans.

Thanks in advance!

That is backwards from what we used to do. 100% of the watch list would be reviewed and other lending relationships would be sampled with heavier focus on the larger relationships.

Thank you for your input!

The CPA firm used to use dollar unit sampling.

Easiest way to explain get loans in a random order. Start adding up the balances. Example, using $2million - When adding up, whatever loan hits $2MM is selected randomly.an that csuses total to hit $4MM is selected, etc a nausium! Larger loans with higher potential loss would have a greater chance of being selected, but all loans could be selected.

Watch list items, selected for risk and reserves done separetly.

Thanks for your input!