Principal lending managers have an affirmative duty to:

• A. Supervise all ALMs and BLMs
• B. Approve all Loans
• C. Audit Financial Statements
• D. Manage Marketing

Answer: (A)

The key idea is supervisory responsibility over the lending team. A principal lending manager is tasked with directing and overseeing the people who actually handle lending activities—asset-liability managers and the managers of each lending area. This duty ensures lending stays aligned with policy, risk controls, and overall governance, which helps maintain portfolio quality and consistency across the organization.

Approving every loan isn’t practical or appropriate because loan approvals are delegated to appropriate levels within policy limits. Auditing financial statements is typically the role of internal or external auditors, not the lending manager. Marketing is a separate function focused on business development rather than overseeing lending operations. So, the affirmative duty is to supervise all ALMs and BLMs.