What is Bank Credit Analysis Training?
The bank credit analysis training equips students with the necessary skills to perform quantitative analysis of financial data to determine the creditworthiness of a borrower.
The role of a bank credit analyst is crucial to the success of financial institutions. They help banks minimize debt risk by determining the level of default risk that borrowers present to the bank. They are tasked with assessing the creditworthiness of potential borrowers to determine if they generate enough cash flows to meet their financial obligations, i.e., principal and interest payments. It means that they must possess the requisite qualifications in order to perform their functions efficiently.
Most recruiters looking to hire a bank credit analyst prefer candidates with a bachelor’s degree, although they can also consider candidates with an associate degree combined with some related work experience. Majors in accounting, finance, economics, business, or statistics can prepare students for a career as a credit analyst.
A master’s degree in any of the abovementioned fields can also make a candidate stand out from the competition during job interviews. Candidates who hold a relevant industry certification, such as the Credit Risk Certified (CRC), are preferred by employers who are looking for specific skills and relevant industry knowledge.
- The bank credit analysis training equips students with the necessary skills to perform quantitative analysis of financial data to determine the creditworthiness of a borrower.
- Students who complete the bank credit analysis training can find job opportunities in commercial banks, investment banks, and credit rating agencies.
- Students can obtain a credit analysis certification to improve their employability and obtain requisite skills and industry knowledge.
Bank Credit Analysis Online Training Course
Students seeking formal bank credit analysis training can choose to take an online course or attend traditional institutions. Online training is structured in the same way as the credit analysis training offered in traditional institutions. Also, it provides students with the convenience of studying at their own time and at a fraction of the cost of enrolling in traditional schools.
A credit analysis online course equips students with knowledge and skills on various topics such as risk assessment, financial ratios, asset investments, forecasting, capital structure, funding instruments, and debt financing. Students are provided with learning materials, video tutorials, downloadable resources, assessments, and a final exam. At the end of the bank credit analysis training, students are given a certificate of completion that they can use to boost their resume.
Bank Credit Analysis Certifications
Obtaining an industry certification in the credit sector can help improve job prospects for candidates, in addition to making them stand out from the competition. Credit analysis certification also provides an extra level of expertise to credit analysts, helping boost the level of investor trust in such professionals.
The following are the most popular certifications available to credit analysts:
1. Credit Risk Certification (CRC)
The Credit Risk Certification (CRC) designation is offered by the Risk Management Association (RMA), a non-profit professional association. The CRC certification is offered to professionals with at least five years of experience in commercial credit and lending. Applicants must complete 40 to 80 hours of study, and pass the 5-hour, 126 multiple-choice question certification exam.
The course materials and exams cover seven areas of credit risk assessment, including assessing the financial condition of a business, the strength of its cash flows, value and adequacy of collateral, and source of debt service.
Professionals seeking to take the CRC exam must possess a strong understanding of financial accounting, financial statements, commercial credit, and tax return analysis. Professionals who complete the course also become members of the RMA professional body. In order to retain the CRC designation, RMA members must complete 45 hours of additional courses every three years.
The testing fee for CRC exams is $695 for non-RMA members and $495 for RMA members. Practice exams during the course of study are charged $40 and $25 for non-members and members, respectively. The RMA membership costs $250 per year for professional members, and the recertification that happens every three years is charged $100.
2. Professional Certificate in Credit
This Professional Certificate in Credit training is offered by the New York Institute of Finance, a Pearson-owned financial training company based in New York. Students seeking to get the certification can choose to attend day classes or evening classes or take an online course. They are required to take four core courses from a pool of 12, and an additional two elective courses from a pool of seven courses.
The courses cover a variety of finance topics such as financial statement analysis, credit risk analysis, cash flows, and credit derivatives. The certification requires 80% attendance to pass, and students must complete the entire course within three years.
3. Credit Business Associate (CBA) Certification
The Credit Business Associate (CBA) certification is provided to professionals working or seeking a career in the credit management sector, and it is offered by the National Association of Credit Management. The CBA certification does not require prior working experience in the credit sector; it is ideal for professionals who are starting a career in the field or prospecting for job opportunities. However, the course requires an educational background equivalent to college coursework.
The CBA training course covers key topics such as financial accounting, credit principals, and financial statement analysis. To obtain the CBA certification, professionals must take a three-hour exam that comprises 125 to 150 multiple choice questions, and they must achieve a score of 70% or higher to pass.
Professionals must also submit a CBA membership application and pay a fee of $325 and $225 for non-members and members, respectively. NACM provides additional certifications, i.e., the Credit Business Fellow and the Certified Credit Executive, to candidates who already completed the CBA course and wish to pursue further training.
CFI offers the Commercial Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following resources will be helpful: