Credit Analyst Job Description Overview
Below is a typical example of a credit analyst job description based on real postings from lenders such as HSBC, JPMorgan Chase, and Wells Fargo. To prepare yourself for the credit analyst job, launch CFI’s Credit Analyst Courses online!
Credit Analyst Job Description – Key Responsibilities
- Conduct thorough analysis of financial statements and assessment of credit requests, including new requests, changed requests, refinancing and annual due diligence
- Provide recommendations tied to analysis and assessment of credit risk
- Present analysis, findings, and recommendations to managers, especially findings that involve a borrower’s ability to repay
- Keep up to date with the company’s lending protocols
- Reconcile credit files and identify discrepancies and variances
- Develop and prepare spreadsheets and models to support analysis of new and existing credit applications
Credit Analyst Job Description – Relevant Skills, Knowledge, and Experience
- Bachelor’s degree in finance, accounting, or other business-related fields
- Two to five years of strong quantitative experience
- Strong proficiency in MS Office and general computer use
- Ability to effectively manage competing deadlines for projects in a high-pressure work environment, with varying degrees of supervision
- Strong attention to detail and ability to notice discrepancies in data
- Impeccable understanding of financial statements, ratios, and concepts
To prepare yourself for a job in credit analysis, launch CFI’s Credit Analyst Courses!
What is Credit Analysis?
Credit analysis is a very particular area revolving around a firm’s financial risk analysis. The procedure involves evaluating the risks that businesses involved in loan financing are likely to experience by initiating background research on the retail or commercial customer. In other words, a financier must perform due diligence on rating the credit of the borrower.
A credit analyst is responsible for several tasks, which include providing guidance on credit risks related to lending programs that involve massive amounts of money. A bank, for example, will hire a credit analyst to help assess the different firms and individuals it can offer loans to and, thus, generate a return on their cash assets.
Information Used by a Credit Analyst
The following are just a few types of documents that credit analysts take information from:
- Annual reports
- Financial statements
- Profit and loss statements
- Management accounts
- Additional market data reports
Additional Components of Credit Analysis
Other critical components in credit analysis, aside from the direct analysis of company performance, are:
- Developing models, both mathematical and statistical ones that directly relate to the risk being measured
- Recording anticipated economic environment changes
- Analyzing periodic market patterns
- Tracking legislation and government policies
Credit Analyst Job Description – Typical Credentials of a Credit Analyst
A credit analyst usually has at least a bachelor’s degree, with a background in finance, accounting or other related fields. A solid financial background is important for acquainting credit analysts with ratio analysis, financial statement analysis, risk assessment, and economics. Naturally, a working knowledge of accounting principles and financial techniques also comes in handy.
Unlike accounting and finance, where there are specific certifications – such as CPA – for the field, there is no specific charter for a credit analyst. However, some banks or institutions may prefer applicants with a Master of Business Administration (MBA) degree or practical designations such as the Commercial Banking & Credit Analyst (CBCA)™ program, which covers topics that are relevant to credit analysis such as the interest coverage ratio and the creation and analysis of a debt schedule.
This credit analyst job description is taken from responsibilities outlined by companies such as HSBC, JPMorgan Chase, and Wells Fargo.
To prepare yourself for this job, launch our credit analysis courses online!
CFI is the official provider of the Commercial Banking & Credit Analyst (CBCA)™ program, designed to transform anyone into a world-class financial analyst.
To continue advancing your career, explore these additional resources: