Profession credit analyst

Credit analysts investigate credit applications from customers and evaluate if the applications comply with regulations and guidelines of the financial loan-granting institution. On the basis of credit analyses they advise financial institutions whether customers are loan worthy. They perform tasks such as collecting data on the loan applicant, aquire additional information from other departments or institutions and indicating what sort of agreements the financial institution should reach with the credit applicant. Credit analysts also follow up on the development of the credit portfolio of clients.

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Personality Type

  • Enterprising / Social
  • Conventional / Enterprising

Knowledge

  • Debt classification

    The different classifications of debt such as public and publicly guaranteed debt, private non-guaranteed credits, central bank deposits, etc.

  • Insolvency law

    The legal rules regulating the incapacity to pay debts when they fall due.

  • Financial engineering

    The finance theory field that addresses the combination of applied mathematics, computer science, and financial theory aimed at calculating and forecasting different financial variables ranging from the creditworthiness of a debtor up to the performance of securities in the stock market.

  • Financial statements

    The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.

Skills

  • Obtain financial information

    Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.

  • Analyse loans

    Examine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bills.

  • Maintain credit history of clients

    Create and maintain the credit history of clients with relevant transactions, supporting documents, and details of their financial activities. Keep these documents updated in case of analysis and disclosure.

  • Synthesise financial information

    Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.

  • Analyse the credit history of potential customers

    Analyse the payment capacity and credit history of potential customers or business partners.

  • Analyse financial risk

    Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

  • Advise on risk management

    Provide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.

  • Maintain client debt records

    Preserve a list with the debt records of clients and update it regularly

  • Perform debt investigation

    Use research techniques and tracing strategies to identify overdue payment arrangements and address them

  • Apply credit risk policy

    Implement company policies and procedures in the credit risk management process. Permanently keep company's credit risk at a manageable level and take measures to avoid credit failure.

  • Advise on credit rating

    Share your expertise in the evaluation process which assesses the debtor's ability, be it a government institution or a business, to pay back its debt.

  • Interpret financial statements

    Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department's plans.

Optional knowledge and skills

analyse market financial trends interview bank loanees tax legislation budget for financial needs review investment portfolios manage securities investment analysis examine credit ratings public offering stock market banking activities interview techniques accounting develop investment portfolio financial forecasting