Bank Credit Analyst Job Description, Key Duties and Responsibilities
What Does a Bank Credit Analyst Do?
Bank credit analysts work in financial institutions and are responsible for analyzing the credit worthiness of customers requesting for a loan or line of credit.
They play a key role in recommending new credit transactions and extension of credit following a thorough research and analysis of financial documents presented by clients or customers.
Their job description entails assessing and making decisions about customers’ credit applications using a range of criteria, including the purpose for the loan application and credit viability, customer payment history, and credit-worthiness.
It also involves preparing written credit analyses of new and existing loans for both C & I borrowers as well as Commercial Real Estate transactions.
Bank credit analysts are required to accurately evaluate the level of risk, tying in all possible repayment sources, including earnings, capital adequacy/asset quality, re-financing, collateral protection and guarantees.
They also integrate into the analysis of risk the impact of external factors, including management, market, strategy, industry, and economic climate.
Their duties also include providing in-depth reports and plans of action based on qualitative and quantitative research.
They are also responsible for completing a thorough, detailed, and accurate credit analysis before loan request can be granted; and consistently formulates action-oriented and constructive recommendations to improve the bank’s level of risk.
Credit analysts effectively communicate with lenders, customers, management, etc. to obtain additional information and/or relay information; as well as negotiate with lenders concerning underwriting and effectively arrive at a loan structure that is within the bank’s risk parameters.
They are responsible for monitoring and ensuring compliance with Federal and State laws and regulations with respect to credit transactions; including but not limited to the Bank Secrecy Act and Anti Money Laundering, in addition to the bank’s operation policies and procedures.
They also work to ensure the bank’s compliance by collecting, organizing, and analyzing its financials and update the bank’s systems accordingly.
They collaborate with other functional groups within the bank to execute treasury management products, foreign exchange instruments, derivatives, as well as legal documents.
The bank credit analyst work description also entails facilitating reports and requests on behalf of the bank with third parties, e.g. title companies, appraisers, etc.
It also involves reviewing clients’ financials and conducting sensitivity analysis to evaluate credit risk in connection with the bank’s structures.
Credit analysts at banks also work directly with clients to resolve compliance issues and operational inquiries.
To work as a bank credit analyst requires that you hold a Bachelor’s Degree in finance, accounting, business, or any other quantitative field.
It is also essential to possess work experience in the financial sector (to gain hands on experience of accounting, account receivable, and credit processing) prior to applying for a credit analyst job at a bank.
To perform the job successfully, bank credit analysts require strong mathematical, statistical, and analytical skills; proficiency in the use of Microsoft Office applications, research ability, sound decision making, and ability to maintain strict confidentiality.
Recruiters for this position also seek individuals with strong time management skills, interpersonal and negotiation skills, eye for details, and the ability to work effectively under pressure.
Bank Credit Analyst Job Description Example/Sample/Template
Bank credit analysts perform various functions, including analyzing credit data and financial information of persons or companies that are applying for credit or loans to ascertain the risks that the bank will not recoup funds loaned.
They prepare reports based upon their analysis and findings to help make decisions on lending and credit-worthiness and determine if a loan request will be granted, the terms of the loan, including interest rate.
A credit analyst’s job description can be a bit different more or less; it depends upon the particular employer.
However, the major tasks, duties, and responsibilities commonly performed by most bank credit analyst are listed in the job description example below:
- Enters, updates, and retrieves information for credit applications, and reviews credit applications when needed
- Analyzes financial data, statements, and trends, and sets new customer credit limits on the basis of findings
- Recommends credit limits following company credit policies
- Conducts credit reviews of existing customers
- Responsible for maintaining customer files with financial statements and bank reference information
- Actively monitors risk trends on behalf of management and sales personnel
- Responsible for drawing up loan packages for new and restructured loans
- Performs cash flow analysis of businesses to designate the degree of risk associated with extending credit for a customer
- Ensures that all approved loan applications are in conformity with the bank’s lending criteria
- Provides assistance with company and clients audit where applicable
- Responsible for reviewing deals and fields questions from junior credit analysts
- Utilizes data from analysis of client record to recommend payment plans
- Responsible for conferring with credit associations and references to exchange credit information on clients
- Applies financial ratios through computer programs to evaluate the client’s financial status
- Provides filled/completed loan applications, credit analysis, and loan request summaries to loan committees for their approval
- Provides support to sales and marketing as well as supply chain departments, in managing financial orders with the goal of controlling credit exposure, making timely payments, and reducing customer disputes
- Provides support in monitoring loan disbursements to ensure compliance with bank regulations
- They apply an understanding of all aspects of the bank’s Credit Policy guidelines and consistently list all exceptions.
Bank Credit Analyst Requirements – Skills, Knowledge, and Abilities for Career Success
If you are seeking the job of a bank credit analyst, most employers will want to be assured that you will be able to achieve the objectives, purpose, and obligations for the role by requiring you to meet certain qualities, abilities, qualifications, knowledge, and experience.
Shown below are major bank credit analyst requirements job seekers may be asked to fulfill to be considered for hiring by most recruiters:
- Education: Bank credit analysts are required to hold a Bachelor’s degree in finance, accounting, business administration, or economics
- Certification: They may be required to hold Credit Business Associate certification from the National Association of Credit Management (NACM). This depends on the recruiting organization
- Experience: The length of experience required is entirely a function of the recruiter. However, they may be required to have 0 – 3 years of related experience in commercial banking
- Knowledge: Thorough knowledge of credit administration, policy and procedures
- Thorough knowledge of economics, accounting, and finance and an In-depth knowledge of risk analysis may be required
- They must possess advanced credit analysis and analytical skills and familiarity with financial statements and ability to analyze business and financial data is required. They must also possess thorough knowledge of underwriting standards
- Communications skills: Bank credit analysts must possess excellent verbal and written communication abilities as well as excellent technical report writing skills
- Computer skills: They must be proficient in the use of personal computers and possess solid computer skills relevant to their job. They must be proficient in the use of Excel and financial analysis software
- Sound judgment: it is also vital that they possess good judgment to make sound credit decisions, and have the ability to handle confidential information
- Organizational and time management skills: They require the ability to manage multiple tasks, maintain timeliness and manage workload/job task within schedule
- Stress Management skills: Credit analysts require the ability to be calm, calculated, and make rational decisions even when under pressure
- Analytical skills: It is vital that they are highly numerate and possess the ability to perform both simple and complex mathematical manipulations and statistical analysis. They must be able to draw cause and effects relationships, and have strong understanding of all instruments on the fixed income market for the purpose of decision making.
If you are an employer needing to hire for a vacant bank credit analyst position in your company, the information about the duties and responsibilities of the role and sample job description provided in this post will help you to easily and quickly craft a great description for the position.
Employers or recruiters will be able to attract better candidates for the available bank credit analyst job by publishing a detailed description of the role to guide interested persons in their application.
This article is also beneficial to individuals interested in becoming a bank credit analyst, to increase their knowledge of the career, including the duties and responsibilities that they typically perform.
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