Making loans is the principal economic function of banks to fund consumption and investment activities by businesses, individuals, and units of government. How well a bank performs its lending function has a great deal to do with the economic health of its region, because bank loans support the growth of new businesses and jobs within the banks trade territory and promote economic vitality. Moreover, risk in banking tends to be concentrated in the loan portfolio. When a bank gets into serious financial trouble, its problems usually spring from loans that have become uncollectible due to mismanagement, illegal manipulation of loans, misguided lending policies, or an unexpected economic downturn. With the objectives to overcome and mitigate such issues, point out the essential steps and criteria to be followed by banks in lending considerations. Also, give your opinion how to identify and deal with problem loans when they appear in a banks portfolio. Note : Please provide long asap