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
- Analyze loan data and financial statements of individuals or companies, to determine their risk level, which is related to credit extension or money lending.
- Make financial comparisons using computer programs, to evaluate the financial situation of clients.
- Consult with clients to provide solutions to their complaints, and check their financial and credit transactions.
- Prepare a report whose contents include the level of risk associated with extending credit or borrowing money.
- 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
- Credit security (safety), which must be absolutely believed that the credit can be repaid.
- 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.
- 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
- As a basis for banks in determining the interest rates for loans and guarantees required to be fulfilled by customers,
- Means for controlling risks that will be faced by banks,
- Credit terms and facilities for structure, credit amount, credit term, credit fees, credit objectives, etc.
- As a material consideration for bank leaders / directors in the decision making process,
- As an information tool needed for credit evaluation.