Bank Branch Credit-Risk Lending Committee — Skill Reference
API Usage Workflow
- GET /api/manifest — discover available endpoints, benchmark versions, and record counts.
- GET /api/branches/{branch_id} — branch metadata: lending capacity, policy limits, sector ceilings, state, institution type.
- GET /api/branches/{branch_id}/metrics — quarterly metrics: total loans outstanding, nonperforming loans, delinquency pct, deposits, ALLL, net charge-offs. Use the most recent quarter (typically 2025Q1) unless the task specifies otherwise.
- GET /api/branches/{branch_id}/loans — full loan portfolio with ratings, DSCR, LTV, payment status, CDFI factors, exposure, sector, borrower details.
- GET /api/branches/{branch_id}/sector-exposures — per-sector current exposure, limit_pct, and grandfathered flag.
- GET /api/branches/{branch_id}/applications — pending applications with credit metrics, sector, and requested amounts.
- GET /api/policies — risk-rating thresholds, CDFI factor scores, CRE weighted-score weights, DSCR stress formulas, concentration rules, action enums.
- GET /api/benchmarks/fdic/q4-2024 — FDIC benchmark ratios (total_loans_noncurrent_pct, total_real_estate_noncurrent_pct, total_real_estate_30_89_pct, construction_development_noncurrent_pct).
- GET /api/benchmarks/ncua/q1-2025 — state-level NCUA metrics: delinquency_bps, loan_to_share_pct, roaa_bps, positive_net_income_pct.
- GET /api/credit-union-segments/{segment_id} — segment details: capacity, peer states, minimum checklist, risk tolerance, internal context.
Always use the base URL from environment_access.md; never localhost.
Risk Rating Re-derivation (Dominant Factor Rule)
Final re-derived rating = maximum (worst numeric value) from available DSCR, LTV, and delinquency factors. If no factors are available, the loan retains its current rating.
DSCR → Rating
| DSCR |
Rating |
| ≥ 1.50 |
3 |
| ≥ 1.25 |
4 |
| ≥ 1.05 |
5 |
| ≥ 1.00 |
6 |
| < 1.00 |
7 |
LTV → Rating
| LTV |
Rating |
| ≤ 0.65 |
3 |
| ≤ 0.75 |
4 |
| ≤ 0.85 |
5 |
| ≤ 1.00 |
6 |
| > 1.00 |
7 |
Delinquency Minimums
| Payment Status |
Min Rating |
| Current |
none |
| 30 Days Past Due |
4 |
| 60 Days Past Due |
5 |
| 90+ Days Past Due |
7 |
| Nonaccrual |
8 |
Material Downgrade
A downgrade of ≥ 2 notches (final_rating − current_rating ≥ 2) is material.
CDFI Factor Scoring
Sum available factor scores; skip factors where the value is null. Lower total is better.
| Factor |
< 0.40 |
0.40–0.60 |
0.60–0.80 |
> 0.80 |
| debt_to_asset |
0 |
2 |
4 |
6 |
| ltv |
0 |
2 |
4 |
6 |
| Factor |
> 12 |
6–12 |
3–6 |
< 3 |
| liquidity_months |
0 |
1 |
3 |
5 |
| Factor |
> 720 |
680–720 |
580–679 |
< 580 |
| fico |
0 |
1 |
3 |
5 |
Risk Classes
| Class |
Score Range |
| Prime |
0–5 |
| Desirable |
6–9 |
| Satisfactory |
10–13 |
| Watch |
14–18 |
| Doubtful |
≥ 19 |
| Projected Loss |
≥ 19 and ltv > 1.0 |
Watch-List Action Mapping
Map final rating or CDFI risk class to a recommended action from this enum:
monitor · watchlist · special_assets · workout · partial_chargeoff_review · legal_referral
Typical mapping: lower ratings (3–4) → monitor/watchlist; mid ratings (5–6) → special_assets/workout; high ratings (7) → workout/partial_chargeoff_review; rating 8 → legal_referral. Adjust based on payment status — a delinquent borrower with a moderate risk class may warrant a stronger action than a current borrower with the same class. Projected Loss → partial_chargeoff_review or legal_referral.
DSCR Stress Tests
Watch-List (+200bp Parallel Shock)
stressed_dscr = dscr / 1.18
CRE Dual Stress
stressed_dscr = dscr × 0.85 / 1.18
Breach threshold for both: 1.00 (stressed_dscr < 1.00 → breaches).
Only include loans/applications where DSCR is available. Sort stress results ascending by loan_id or application_id.
CRE Weighted Score
Five components weighted: capacity (0.45), collateral_exposure (0.36), conditions (0.11), character (0.05), capital (0.03). Score each component 1–5 (1 = best) using objective factors:
- capacity: DSCR risk-rating tier mapped to 1–5 scale.
- collateral_exposure: LTV risk-rating tier mapped to 1–5 scale.
- capital: debt/assets ratio (lower is better; debt/assets > 1.0 → 5).
- character: guarantor strength (strong → 1, none → 4–5), years in business, prior delinquencies, relationship length.
- conditions: sector stability and loan purpose risk.
Weighted score = sum(component × weight), rounded to 1 decimal.
| Class |
Range |
| approve_quality |
≤ 2.0 |
| conditional |
≤ 3.0 |
| weak |
> 3.0 |
Concentration and Sector Limits
Branch-Level
- lending_capacity_q1: total dollar capacity available for new originations in Q1.
- sector_ceiling_pct: default per-sector exposure / total_loans limit (unless overridden).
- cre_policy_limit_pct: separate limit for total CRE exposure / total_loans.
Sector Exposure
current_exposure / total_loans_outstanding = current concentration ratio.- Post-approval concentration =
(current_exposure + approved_amount) / total_loans_outstanding.
- Grandfathered sectors (
grandfathered: 1) allow existing over-ceiling exposure but new approvals may not worsen the breach without mitigation (participation_required, board_exception).
Concentration Handling
- If post-approval pct > limit_pct: flag = true, handling =
participation_required or decline.
- Concentration ratios stored as decimals with 4 decimal precision.
FDIC Benchmark Comparisons
FDIC Q4 2024 benchmark metrics (choose based on task context):
| Metric |
Value |
| total_loans_noncurrent_pct |
0.0098 |
| total_real_estate_noncurrent_pct |
0.0121 |
| total_real_estate_30_89_pct |
0.0051 |
| construction_development_noncurrent_pct |
0.0076 |
branch_npa_ratio = branch NPA exposure / total loans (4 decimal precision).variance_ratio = branch_ratio − fdic_benchmark_ratio (4 decimal precision).variance_bps = variance_ratio × 10000 (2 decimal precision).
NCUA Benchmark Comparisons
NCUA Q1 2025 provides per-state: delinquency_bps, loan_to_share_pct, roaa_bps, positive_net_income_pct.
Peer comparison: compute median of listed peer states for each metric, then compare NC to both US national row and peer median. Direction keywords: higher, lower, equal. Note that higher delinquency and higher loan-to-share are worse; higher ROAA and higher positive-net-income are better.
Output Field Conventions
Sorting
- loan_ids arrays: ascending (string sort).
- final_rating_exposure_totals: ascending by
final_rating.
- migration lists: ascending by
final_rating.
- decisions: ascending by
application_id.
- concentration_flags: sort by
sector then application_id.
- post_approval_concentrations: ascending by
sector.
- severe_bucket_counts: ascending by
current_rating, then payment_status.
- workout_queue: descending
exposure, then ascending loan_id.
- decline reason_codes: ascending alphabetically.
- escalation_triggers: ascending by
trigger_id.
- conditions list: ascending alphabetically.
Rounding
| Type |
Precision |
| Currency (USD) |
2 decimals |
| Ratios / percentages |
4 decimals |
| Variance bps |
2 decimals |
| Weighted CDFI score |
1 decimal |
| CDFI factor_score |
integer |
| Counts |
integer |
Enum Discipline
Use template-provided enum values exactly as spelled. Never invent new values. Common enums:
- Decision:
approve, conditional_approve, decline, defer, participation_required
- Condition:
none, participation_required, reduced_amount, board_exception, sba_guaranty_required, startup_monitoring
- Payment status:
Current, 30 Days Past Due, 60 Days Past Due, 90+ Days Past Due, Nonaccrual
- Action:
monitor, watchlist, special_assets, workout, partial_chargeoff_review, legal_referral
- Posture:
continue_approving, continue_with_tighter_conditions, temporarily_pause
- Risk tolerance:
restrained, moderate, expansive
- Capacity status:
capacity_available, capacity_constrained, no_capacity
- External risk:
stronger_than_national_and_peers, mixed_vs_national_and_peers, weaker_than_national_and_peers
Common Pitfalls
Target population boundaries: "Rating X or worse" means current_rating ≥ X (higher = worse). Double-check which ratings the task includes.
Missing factors: Loans with null DSCR, null LTV, and Current payment have no re-derivable factors — they keep their current rating but may need special handling in count/exposure totals.
CRE vs sector exposure: Branch-level CRE concentration uses cre_policy_limit_pct and sums loans with CRE loan types. Sector-level concentration uses sector_ceiling_pct and the sector_exposures table.
Grandfathered sectors: A sector with grandfathered: 1 already exceeds its limit. New applications in that sector still require mitigation (participation or board exception) per the policy grandfathering note.
Benchmark metric selection: Match the FDIC metric to the loan type: total_loans_noncurrent_pct for overall NPA, total_real_estate_noncurrent_pct or total_real_estate_30_89_pct for real-estate-specific comparisons.
NCUA direction semantics: "Higher" for delinquency and loan-to-share means worse; "higher" for ROAA and positive-net-income means better. The direction values are simple greater-than/less-than comparisons — don't invert based on desirability.
DSCR stress: Only stress-test loans/applications where DSCR is available (not null). Sort results ascending by loan_id/application_id.
Projected Loss override: Even when the CDFI score is below 19 (e.g., 17), if the loan has ltv > 1.0 and is on nonaccrual status, the task may expect Projected Loss classification based on descriptive notes.
Capacity arithmetic: gross_approved_amount sums the face value of all approved (including conditional and participation). committed_capacity_amount reflects the bank's retained portion. remaining_capacity = lending_capacity_q1 − committed_capacity_amount.
Conditions for declined/deferred applications: Use an empty list [] or ["none"] as specified by the template — check the template's conditions_enum for the correct sentinel.
Priority ranking: Include only approve and conditional_approve decisions unless the template explicitly includes participation_required. Order highest credit quality first.
1---2name: reflect-3-attempt-03-513description: Bank Branch Credit-Risk Lending Committee — Skill Reference4---5# Bank Branch Credit-Risk Lending Committee — Skill Reference67## API Usage Workflow891. **GET /api/manifest** — discover available endpoints, benchmark versions, and record counts.102. **GET /api/branches/{branch_id}** — branch metadata: lending capacity, policy limits, sector ceilings, state, institution type.113. **GET /api/branches/{branch_id}/metrics** — quarterly metrics: total loans outstanding, nonperforming loans, delinquency pct, deposits, ALLL, net charge-offs. Use the most recent quarter (typically 2025Q1) unless the task specifies otherwise.124. **GET /api/branches/{branch_id}/loans** — full loan portfolio with ratings, DSCR, LTV, payment status, CDFI factors, exposure, sector, borrower details.135. **GET /api/branches/{branch_id}/sector-exposures** — per-sector current exposure, limit_pct, and grandfathered flag.146. **GET /api/branches/{branch_id}/applications** — pending applications with credit metrics, sector, and requested amounts.157. **GET /api/policies** — risk-rating thresholds, CDFI factor scores, CRE weighted-score weights, DSCR stress formulas, concentration rules, action enums.168. **GET /api/benchmarks/fdic/q4-2024** — FDIC benchmark ratios (total_loans_noncurrent_pct, total_real_estate_noncurrent_pct, total_real_estate_30_89_pct, construction_development_noncurrent_pct).179. **GET /api/benchmarks/ncua/q1-2025** — state-level NCUA metrics: delinquency_bps, loan_to_share_pct, roaa_bps, positive_net_income_pct.1810. **GET /api/credit-union-segments/{segment_id}** — segment details: capacity, peer states, minimum checklist, risk tolerance, internal context.1920Always use the base URL from `environment_access.md`; never localhost.2122---2324## Risk Rating Re-derivation (Dominant Factor Rule)2526Final re-derived rating = **maximum** (worst numeric value) from available DSCR, LTV, and delinquency factors. If no factors are available, the loan retains its current rating.2728### DSCR → Rating2930| DSCR | Rating |31|----------|--------|32| ≥ 1.50 | 3 |33| ≥ 1.25 | 4 |34| ≥ 1.05 | 5 |35| ≥ 1.00 | 6 |36| < 1.00 | 7 |3738### LTV → Rating3940| LTV | Rating |41|-----------|--------|42| ≤ 0.65 | 3 |43| ≤ 0.75 | 4 |44| ≤ 0.85 | 5 |45| ≤ 1.00 | 6 |46| > 1.00 | 7 |4748### Delinquency Minimums4950| Payment Status | Min Rating |51|---------------------|------------|52| Current | none |53| 30 Days Past Due | 4 |54| 60 Days Past Due | 5 |55| 90+ Days Past Due | 7 |56| Nonaccrual | 8 |5758### Material Downgrade5960A downgrade of **≥ 2 notches** (final_rating − current_rating ≥ 2) is material.6162---6364## CDFI Factor Scoring6566Sum available factor scores; skip factors where the value is null. Lower total is better.6768| Factor | < 0.40 | 0.40–0.60 | 0.60–0.80 | > 0.80 |69|------------------|--------|-----------|-----------|--------|70| debt_to_asset | 0 | 2 | 4 | 6 |71| ltv | 0 | 2 | 4 | 6 |7273| Factor | > 12 | 6–12 | 3–6 | < 3 |74|------------------|------|------|------|-----|75| liquidity_months | 0 | 1 | 3 | 5 |7677| Factor | > 720 | 680–720 | 580–679 | < 580 |78|--------|-------|---------|---------|-------|79| fico | 0 | 1 | 3 | 5 |8081### Risk Classes8283| Class | Score Range |84|-----------------|------------------|85| Prime | 0–5 |86| Desirable | 6–9 |87| Satisfactory | 10–13 |88| Watch | 14–18 |89| Doubtful | ≥ 19 |90| Projected Loss | ≥ 19 **and** ltv > 1.0 |9192---9394## Watch-List Action Mapping9596Map final rating or CDFI risk class to a recommended action from this enum:9798`monitor` · `watchlist` · `special_assets` · `workout` · `partial_chargeoff_review` · `legal_referral`99100Typical mapping: lower ratings (3–4) → `monitor`/`watchlist`; mid ratings (5–6) → `special_assets`/`workout`; high ratings (7) → `workout`/`partial_chargeoff_review`; rating 8 → `legal_referral`. Adjust based on payment status — a delinquent borrower with a moderate risk class may warrant a stronger action than a current borrower with the same class. Projected Loss → `partial_chargeoff_review` or `legal_referral`.101102---103104## DSCR Stress Tests105106### Watch-List (+200bp Parallel Shock)107108```109stressed_dscr = dscr / 1.18110```111112### CRE Dual Stress113114```115stressed_dscr = dscr × 0.85 / 1.18116```117118Breach threshold for both: **1.00** (stressed_dscr < 1.00 → breaches).119120Only include loans/applications where DSCR is available. Sort stress results ascending by loan_id or application_id.121122---123124## CRE Weighted Score125126Five components weighted: capacity (0.45), collateral_exposure (0.36), conditions (0.11), character (0.05), capital (0.03). Score each component 1–5 (1 = best) using objective factors:127128- **capacity**: DSCR risk-rating tier mapped to 1–5 scale.129- **collateral_exposure**: LTV risk-rating tier mapped to 1–5 scale.130- **capital**: debt/assets ratio (lower is better; debt/assets > 1.0 → 5).131- **character**: guarantor strength (strong → 1, none → 4–5), years in business, prior delinquencies, relationship length.132- **conditions**: sector stability and loan purpose risk.133134Weighted score = sum(component × weight), rounded to **1 decimal**.135136| Class | Range |137|------------------|-----------|138| approve_quality | ≤ 2.0 |139| conditional | ≤ 3.0 |140| weak | > 3.0 |141142---143144## Concentration and Sector Limits145146### Branch-Level147148- **lending_capacity_q1**: total dollar capacity available for new originations in Q1.149- **sector_ceiling_pct**: default per-sector exposure / total_loans limit (unless overridden).150- **cre_policy_limit_pct**: separate limit for total CRE exposure / total_loans.151152### Sector Exposure153154- `current_exposure` / `total_loans_outstanding` = current concentration ratio.155- Post-approval concentration = `(current_exposure + approved_amount) / total_loans_outstanding`.156- Grandfathered sectors (`grandfathered: 1`) allow existing over-ceiling exposure but new approvals may not worsen the breach without mitigation (participation_required, board_exception).157158### Concentration Handling159160- If post-approval pct > limit_pct: flag = true, handling = `participation_required` or `decline`.161- Concentration ratios stored as decimals with **4 decimal precision**.162163---164165## FDIC Benchmark Comparisons166167FDIC Q4 2024 benchmark metrics (choose based on task context):168169| Metric | Value |170|----------------------------------------|---------|171| total_loans_noncurrent_pct | 0.0098 |172| total_real_estate_noncurrent_pct | 0.0121 |173| total_real_estate_30_89_pct | 0.0051 |174| construction_development_noncurrent_pct| 0.0076 |175176- `branch_npa_ratio` = branch NPA exposure / total loans (4 decimal precision).177- `variance_ratio` = branch_ratio − fdic_benchmark_ratio (4 decimal precision).178- `variance_bps` = variance_ratio × 10000 (2 decimal precision).179180---181182## NCUA Benchmark Comparisons183184NCUA Q1 2025 provides per-state: `delinquency_bps`, `loan_to_share_pct`, `roaa_bps`, `positive_net_income_pct`.185186Peer comparison: compute **median** of listed peer states for each metric, then compare NC to both US national row and peer median. Direction keywords: `higher`, `lower`, `equal`. Note that higher delinquency and higher loan-to-share are **worse**; higher ROAA and higher positive-net-income are **better**.187188---189190## Output Field Conventions191192### Sorting193194- **loan_ids** arrays: ascending (string sort).195- **final_rating_exposure_totals**: ascending by `final_rating`.196- **migration lists**: ascending by `final_rating`.197- **decisions**: ascending by `application_id`.198- **concentration_flags**: sort by `sector` then `application_id`.199- **post_approval_concentrations**: ascending by `sector`.200- **severe_bucket_counts**: ascending by `current_rating`, then `payment_status`.201- **workout_queue**: descending `exposure`, then ascending `loan_id`.202- **decline reason_codes**: ascending alphabetically.203- **escalation_triggers**: ascending by `trigger_id`.204- **conditions list**: ascending alphabetically.205206### Rounding207208| Type | Precision |209|-----------------------|-----------|210| Currency (USD) | 2 decimals |211| Ratios / percentages | 4 decimals |212| Variance bps | 2 decimals |213| Weighted CDFI score | 1 decimal |214| CDFI factor_score | integer |215| Counts | integer |216217### Enum Discipline218219Use template-provided enum values exactly as spelled. Never invent new values. Common enums:220221- **Decision**: `approve`, `conditional_approve`, `decline`, `defer`, `participation_required`222- **Condition**: `none`, `participation_required`, `reduced_amount`, `board_exception`, `sba_guaranty_required`, `startup_monitoring`223- **Payment status**: `Current`, `30 Days Past Due`, `60 Days Past Due`, `90+ Days Past Due`, `Nonaccrual`224- **Action**: `monitor`, `watchlist`, `special_assets`, `workout`, `partial_chargeoff_review`, `legal_referral`225- **Posture**: `continue_approving`, `continue_with_tighter_conditions`, `temporarily_pause`226- **Risk tolerance**: `restrained`, `moderate`, `expansive`227- **Capacity status**: `capacity_available`, `capacity_constrained`, `no_capacity`228- **External risk**: `stronger_than_national_and_peers`, `mixed_vs_national_and_peers`, `weaker_than_national_and_peers`229230---231232## Common Pitfalls2332341. **Target population boundaries**: "Rating X or worse" means current_rating ≥ X (higher = worse). Double-check which ratings the task includes.2352362. **Missing factors**: Loans with null DSCR, null LTV, and Current payment have no re-derivable factors — they keep their current rating but may need special handling in count/exposure totals.2372383. **CRE vs sector exposure**: Branch-level CRE concentration uses `cre_policy_limit_pct` and sums loans with CRE loan types. Sector-level concentration uses `sector_ceiling_pct` and the sector_exposures table.2392404. **Grandfathered sectors**: A sector with `grandfathered: 1` already exceeds its limit. New applications in that sector still require mitigation (participation or board exception) per the policy grandfathering note.2412425. **Benchmark metric selection**: Match the FDIC metric to the loan type: `total_loans_noncurrent_pct` for overall NPA, `total_real_estate_noncurrent_pct` or `total_real_estate_30_89_pct` for real-estate-specific comparisons.2432446. **NCUA direction semantics**: "Higher" for delinquency and loan-to-share means worse; "higher" for ROAA and positive-net-income means better. The direction values are simple greater-than/less-than comparisons — don't invert based on desirability.2452467. **DSCR stress**: Only stress-test loans/applications where DSCR is available (not null). Sort results ascending by loan_id/application_id.2472488. **Projected Loss override**: Even when the CDFI score is below 19 (e.g., 17), if the loan has ltv > 1.0 and is on nonaccrual status, the task may expect `Projected Loss` classification based on descriptive notes.2492509. **Capacity arithmetic**: `gross_approved_amount` sums the face value of all approved (including conditional and participation). `committed_capacity_amount` reflects the bank's retained portion. `remaining_capacity = lending_capacity_q1 − committed_capacity_amount`.25125210. **Conditions for declined/deferred applications**: Use an empty list `[]` or `["none"]` as specified by the template — check the template's conditions_enum for the correct sentinel.25325411. **Priority ranking**: Include only `approve` and `conditional_approve` decisions unless the template explicitly includes `participation_required`. Order highest credit quality first.
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