What is a Bank Credit Analyst?
A bank credit analyst is a financial professional who specializes in evaluating the creditworthiness of individuals, companies, or securities. They review a borrower’s financial and credit record and assess if they can fulfill their financial obligations. They also look at the financial health of the borrower, as well as the economic conditions that can affect the borrower’s repayment capabilities.
Bank credit analysts play a significant role in the economy. They provide advice or recommendations to banks and insurers when it comes to providing lines of credit to those who apply for individual or business loans.
Individuals in bank credit analyst positions are proficient in MS Office, very knowledgeable about financial statements and concepts, can effectively work in a high-pressure environment, and possess strong attention to detail.
Job Responsibilities of a Bank Credit Analyst
The role of a bank credit analyst differs based on the employer but, in general, the job involves the following responsibilities:
- Assess credit history and financial statements of clients to identify credit risk
- Create credit risk reports
- Evaluate records of clients and provide recommendations for payment plans
- Produce financial ratios of clients to assess their financial status
- Consolidate credit files and identify variances and discrepancies
- Coordinate with clients to validate financial statements or transactions
- Stay updated with the latest lending protocols
If you want to work in the finance industry as a bank credit analyst, you need a bachelor’s degree in the field of finance, accounting, or business. You should be familiar with the related areas of study, such as ratio analysis, statistics, economics, risk assessment, calculus, and analysis of financial statements.
Once you’ve finished your bachelor’s degree, you may want to gain a few years of strong quantitative work experience related to accounting, accounts receivable, or credit application processing as preparation for a bank credit analyst position.
After working for some time in the industry, consider taking certification courses designed for bank credit analysts. It’s not a necessary step, though they will give you an advantage, as several employers prioritize those with certifications. Various educational institutes and organizations offer a wide selection of credit analyst certification courses, whether online or in a classroom setting.
Common Employers and Career Options
Bank credit analysts usually work in commercial and investment banks, institutions that issue credit cards, investment firms, and credit rating agencies. The various organizations include Wells Fargo & Co., Comerica Bank, Bank of America Corp., J.P. Morgan Chase & Co., and KeyBank. The analysts usually talk face-to-face with clients, while other analysts work online and conduct meetings with potential clients in a virtual environment.
The scope and nature of the educational background and experience enable bank credit analysts to take on different career paths in the finance industry. Some of these areas include commercial credit analysis, deposit and non-deposit credit intermediation, lessors of real estate, financial investment, securities, corporation credit departments, insurance-related activities, as well as credit and loan departments of various industries.
CFI is the official provider of the Certified Banking & Credit Analyst (CBCA)® certification program, designed to transform anyone into a world-class financial analyst.
To keep learning and developing your knowledge of financial analysis, we highly recommend the additional CFI resources below: