The amount Barcroft owed Bridgecorp was originally around $78 million but grew to more than $100 million before the company collapsed, owing 14,500 investors $459 million.
In response to Dickey's questions, Hawkes said the dealings with Barcroft were at odds with Bridgecorp's internal policies.
Information that would normally be required was not presented to company staff, he said.
This included budgets, quantity surveyor reports, copies of certificate of title and how the loan would be repaid, Hawkes said.
The former credit manager also said the transaction "hadn't been properly approved" and he felt "uncomfortable with the whole facility".
When applications came through to draw down more on the Barcroft account (increasing the amount owed to Bridgecorp) Hawkes refused to give them his recommendation, he said.
Barcroft is alleged to have had covert ties with Bridgecorp director Gary Urwin through trusts, and through parent company BHL, a company which Bridgecorp exercised considerable control over.
The Crown argues Bridgecorp used Barcroft as its "treasury or piggybank" and said the companies were closely linked.
Despite the alleged ties, Barcroft was not listed as a related company in the Bridgecorp prospectus distributed to investors after December 21, 2006.
Urwin originally pleaded not guilty and appeared in court with Petricevic, Roest and Steigrad.
But he changed his plea in November last year and is awaiting sentencing in April.
The charges carry a maximum penalty of five years in jail or a fine of up to $300,000.
Former Bridgecorp chairman Bruce Davidson was sentenced to nine months' home detention in October after he changed his plea to guilty.
He was also ordered to pay reparations of $500,000 and perform 200 hours' community work.
