=+E5-4 Internal controls for bank lending Objs 2, 3 First Capone Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $125,000) may be approved by an individual loan officer, while larger loans (greater than $125,000) must be approved by a board ofloan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. The president of First Capone Bank has instituted a policy whereby she has the individual authority to approve loans up to $4,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy.