A credit approval matrix is the table a bank or other lender uses to show who has authority to approve a loan or credit limit. The board delegates lending authority downwards, and the matrix records the result: for each combination of exposure size, borrower risk grade, product type and security, it names the lowest level allowed to approve, from an individual officer through senior credit officers to a credit committee and, for the largest cases, the board itself. Riskier or unsecured exposures need a higher level than safe ones of the same size.
The matrix is a core control over credit risk. Authority is normally measured against the borrower group's total exposure, not the single request, and decisions follow a four-eyes principle that reflects segregation of duties between sales staff and risk staff. It governs approvals in credit underwriting, changes under credit limit management and exceptions to policy, and it is reviewed by the board risk committee.