A Credit Committee is a small group of people who review the work of an underwriter to make a go/no-go decision about an investment.
In banks, private credit funds, and other lending organizations, underwriters analyze a prospective borrower, including its financial statements, cash flow, collateral, and management, and present a recommendation, often as a written credit memo. The committee tests that analysis, weighs the risk against the institution's lending criteria, and approves the deal, declines it, or approves it with conditions such as a smaller amount, additional collateral, or tighter covenants.
Separating the underwriter who builds the case from the committee that decides it places a check on individual judgment and keeps credit decisions consistent with the lender's policies. Members are typically senior credit officers and executives, and larger institutions often set approval thresholds so that bigger or riskier exposures require committee sign-off.