What is a Credit Analyst?

Credit analyst is a person whose job is to analyze loan data and financial statements of individuals or companies, to determine their risk level , which is related to credit extension or money lending . A credit analyst also prepares a report with credit information for use in decision making.

Duties of a Credit Analyst

  1. Analyze loan data and financial statements of individuals or companies, to determine their risk level, which is related to credit extension or money lending.
  2. Make financial comparisons using computer programs, to evaluate the financial situation of clients.
  3. Consult with clients to provide solutions to their complaints, and check their financial and credit transactions.
  4. Prepare a report whose contents include the level of risk associated with extending credit or borrowing money.
  5. Compare the liquidity , profitability and credit records of an organization being evaluated, with similar organizations in the same industry and geographical location.

Considerations by a Credit Analysis

  1. Credit security (safety), which must be absolutely believed that the credit can be repaid.
  2. The purpose of the use of credit (suitability), is the credit will be used for purposes that walk with the interests of the community / at least not contrary to applicable regulations.
  3. Profitable (profitable), both for banks in the form of interest income and for customers, namely in the form of profits and growing business.

Credit Analysis Function

  1. As a basis for banks in determining the interest rates for loans and guarantees required to be fulfilled by customers,
  2. Means for controlling risks that will be faced by banks,
  3. Credit terms and facilities for structure, credit amount, credit term, credit fees, credit objectives, etc.
  4. As a material consideration for bank leaders / directors in the decision making process,
  5. As an information tool needed for credit evaluation.


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