This post provides detailed information on the senior credit analyst job description, including the duties, tasks, and responsibilities they perform.
It also highlights the major requirements you may be expected to meet to be hired for the senior credit analyst role.
What Does a Senior Credit Analyst Do?
Senior credit analysts are professionals responsible for assessing credit requests and producing a recommendation after undertaking a thorough analysis of a variety of factors and careful analysis of a client’s financial information, including income statements, cash flow history, current debt, and tax forms.
Their job description entails providing assessment of the probability of default by a client and determining the risk of a loan to the lender using information from financial statements, along with the proposed loan amount and terms, and best practices and methods.
It also involves giving recommendation as to the viability of a loan transaction after conducting assessment on the client.
Senior credit analysts work in a variety of settings, including credit unions, financial institutions, investment companies, international banks, insurance companies, and asset management companies with their primary focus on lending or trading, depending on the nature of business of the organization they work for.
Their role requires them to conduct an in-depth financial analysis of public and private financial data, market trends, and microeconomic conditions to provide management with highest quality risk assessments, credit research, and comprehensive analyses that guarantees risk adequate pricing at all times.
They are responsible for evaluating the credit worthiness of potential borrowers via the underwriting of borrower financial statements, collateral coverage, and guarantor support.
Loans to be underwritten include new, renewal, and loans for extension.
Senior credit analysts work closely with loan officers (the primary contact point to the client) to communicate a loan policy and the results of the risk assessment to them.
They may also work directly with clients as well to verify information provided and perform additional research on their financial history and future.
They may also be responsible for working with clients after a loan has been approved to evaluate past due accounts and manage collections.
The senior credit analyst work description also entails providing an independent and comprehensive opinion on the proposed risks, covering areas such as financial and structural risks, as well as reputation risk, the risk related to the operations, counterparty risk, price risk, country risk, and political risk.
It also includes providing concrete propositions to improve the structure and risks.
Senior credit analysts may be required to function as alternate for (Deputy) Head of Credit in credit committees and related meetings; function as an alternate decision maker, and coach less experienced team members on transactions and files.
To become or work as a senior credit analyst requires a minimum of a Bachelor’s degree in Finance, Accounting, Business, or in a related field, and several years of experience working with credit or loan evaluation.
To perform successfully on the job, credit analysts must possess some skills, including ability to work independently and with a team, strong analytical and statistical skills, and strong computer skills; detail orientation, interpersonal and negotiation skills, and excellent communication and customer relations abilities.
Senior Credit Analyst Job Description Example/Sample/Template
The senior credit analyst performs various functions which are primarily concerned with analyzing the credit worthiness of customers or prospects by conducting in-depth financial analysis to determine the risk involved in granting a loan request.
The major tasks, duties, and responsibilities that make up the senior credit analyst job description are shown below:
- Provide analysis of customer financial statements and ensure that all data entry is accurate and complete
- Responsible for the underwriting of loan requests and annual reviews
- Evaluate and authorize credit limits as well as monitor credit risk
- Interact with current loan/credit customers, prospects, and bank lending officers
- Serve as consultant in the local Credit Committees and related meetings and projects
- Discuss the decision process for credit lines exceeding the local competencies with Headquarters, if applicable
- Responsible for reviewing legal documentation and ensure proper administrative follow up of credit decisions
- Analyze loan data, including data provided by customers, credit bureaus, and bank records on new, renewal, and existing loans to ensure loan worthiness
- Prepare spreadsheets, summaries, reports, and opinions for loan officers and loan committees to aid sound credit decisions on new, renewal, and existing loans
- Discuss lending parameters such as loan structure, cash flow, collateral, character, and other relevant lending issues with Commercial Lending team
- Grade the risk associated with proposed loans during underwriting process
- Utilize sound credit analysis techniques to ensure a profitable business portfolio
- Obtain critical information for the monitoring of the buyer portfolio through conducting buyer visits or telephone interviews
- Responsible for monitoring high risk buyers and soliciting proprietary information by establishing a rapport and maintaining contact with Finance Directors and Treasurers through visits and telephone and written correspondence
- Utilize all available information to arrive at consistent grading of buyers within his/her authority or make detailed recommendations to the Supervisor and/or superior when outside authority
- Determine the appropriate credit rating of a company or client being analyzed by performing financial and credit analysis
- Communicate with Sales Agents and Commercial Underwriters as to underwriting requirements regarding industry outlooks and target markets
- Utilize public and proprietary information to determine underlying market trends
- Responsible for conducting company and industry research as needed
- Undertake online research of public records, including, but not limited to county register’s databases, Secretary of State Database, and assessors database, for corporate filings and Uniform Commercial Code (UCC) filings
- Ensure that all necessary information relevant for decision-making is included in the write up for Credit Lines, and review the presentation of credit lines
- Give a second opinion to the Relationship Managers’ preliminary analysis
- Ensure that clients’ financial statements are in line with company’s policies, and express an opinion on the financial situation of the customer
- Verify the existence and conformity of source documents as well as the coherence of the presentation with the operations.
Senior Credit Analyst Requirements – Skills, Knowledge and Abilities for Career Success
If you are looking to work as a senior credit analyst, it is important to know that employers or recruiters will expect you to meet certain requirements, including skills, knowledge, abilities, and experience.
The ability to meet the requirements will confirm to employers that you will be effective in carrying out the objectives, obligations, and purpose of the senior credit analyst position.
Here are major requirements commonly set for the position:
- Education/experience: They require a minimum of Bachelor’s degree in Business Administration, Accounting or Finance, and MBA is a plus; and 2-7 years experience as credit analyst, experience in financial management; experience in credit insurance environment or banking, credit insurance brokerage
- Knowledge: The senior credit analyst may be required to possess Credit knowledge and experience with high volume risk analysis and underwriting
- They must also possess Market knowledge of local economic environment and sound knowledge of Finance and Credit Management
- They may be required to possess expertise and experience in buyers’ assessment, depending on the needs of the recruiting organization
- They must possess exceptional financial analysis skills and knowledge of advanced accounting concepts
- Computer skills: Credit analysts require advance computer skills and must be proficient with Excel, Word, and financial analysis software and other spreadsheet packages. Also, possessing experience with ASA/SQL or Python is a plus
- Communication skills: They require strong written communication abilities, including technical writing skills as well as excellent verbal communication skills and telephone skills to relate with multiple stakeholders
- Interpersonal and negotiation skills: They require this skill to establish, nurture, and build relationship with others, and also canvass or influence their decisions towards achieving a defined goal
- Ability to work under pressure: They must be able to make calculated and rational decisions even under high pressure situations
- Strong analytical and statistical skills: Credit analysts require the ability to perform simple/complex mathematical calculations and statistical analysis, including time series analysis, clustering, segmentation, and scorecard analysis. They must be able to decipher Cause and Effect relationships and have strong understanding of all the instrument on the fixed income market
- Organizational skills: They must possess the ability to effectively prioritize and manage multiple assignments.
This post will be useful to you if you are a recruiter or employer needing to hire for the senior credit analyst role in your organization.
The sample job description provided in this article will help you to easily and quickly make the perfect description for the senior credit analyst position in your organization.
This post is also helpful to you if you are looking to start a career in the credit analytic field; you will be able to learn about the duties and responsibilities of the senior credit analyst job, and so be able to effectively prepare for it.
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