Business Credit Analyst - A Crucial Business Analyst Job in a Banking Industry

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Banking industry plays a very important role in the economy. It helps propel the development program of the government or any business enterprise or company. The bank manager and his staff take charge of the critical business analyst jobs within the operation of the company in dealing with its financial transactions. One that plays so crucial in his assignment is the credit analyst. Credit analyst in banking analyzes financial information to determine the amount of risk involved in lending money to businesses or individuals. He contacts banks, credit associations, and others to obtain credit information and then prepare a written report of findings in which customer credit limits are suggested. Credit analyst may be referred on commercial and business fields from which he evaluates the risks in business loans or it's consumer analysts who evaluates its personal loan risks.

Credit analyst holds a very crucial business analyst job in the organization, especially in extending financial transaction to the clients. Note that extending financial credit to help someone along is an age old tradition, practiced by friends, and businesses to help people through hard times. As the use of credit cards and other forms of borrowing has skyrocketed in the last several years, however, lending money has become a large, sophisticated enterprise. As late as fifty to seventy-five years ago, lending money was largely based on a person's reputation. Money was lent after talking with a potential borrower's friends and business acquaintances. Now, of course, much more financial background information is demanded and only accepted forms of accounting are used to determine if a loan applicant is a good risk. As business expanded and more money is needed to keep the economic engines going, a need has been created for a group of professionals who are experts in the field of credit analysis.

Credit analysts is considered one of the most sensitive business analyst careers ever which deals on two spheres.  - commercial loans used  by businesses, and consumer loans used by individuals. In both cases an analyst studies financial documents, such a statement of assets and liabilities, submitted by the person or company seeking the loan and consults with banks and other financial institutions who have previously loaned money to the applicant. The scope of work used in a credit check depends in large  part on the size and type of loan being requested. Both financial statements and references will be checked by the credit analyst, but the larger loan will entail a much closer look at economic trends to determine if there is a market for the product being produced and the likelihood of the business failing. Because of these increased responsibilities, many credit analysts work solely with commercial loans.

Furthermore, dealing with the business analyst employment is part of the business analysis jobs which  has a big impact to the financial success of the organization. For instance,  in studying a commercial loan application, a credit analyst is interested in determining if the business or corporation is well managed and financially secure, and if the existing economic climate is favorable for the success of such an operation. To do this, a credit analyst examines balance sheets and operating statements to determine the assets and liabilities of a company, its net sales, and its profits or losses. An analyst must be familiar with accounting and bookkeeping methods to ensure that the applicant company is operating under accepted principles. A background check of the leading officials of the applicant company is also done to determine if they personally have any loans outstanding. An on-site visit to the company by the analyst may also be necessary to compare how its operations stack up against similar companies.

Analyzing economic trends to determine market conditions is another responsibility of the credit analyst covering his role on business systems analysts jobs. To do this, the analyst computes dozens of rations to show how successful the company is in relationship to other similar businesses. Profit-and-loss statements, collection procedures, and a host of other factors are all analyzed. This ratio analysis can also be used to measure how successful a particular industry is likely to be given existing market considerations. Economic indicators are collected and mathematical formulas are applied. As in many other professions, the use of computers is revolutionizing the collection and analysis of information. Now, many computer programs are available to highlight economic trends and interpret other important data. The credit analyst always provides a report on findings to bank executives. This report will include a complete financial history of the applicant, and usually conclude with a recommendation on the amount of loan, if any, that should be advanced. Bank executives use this report extensively in making final loan decisions.

As to his qualification in dealing with complicated business analysis jobs, credit analysts should have an aptitude for mathematics and be able to make sound decisions after analyzing detailed financial information. He should be able to work with both customers and coworkers and be able to communicate effectively, in written and verbal form. A high-school student should take courses in mathematics, accounting, and bookkeeping. An English course, especially one that stresses good writing skills, would also be beneficial. Most credit analyst have a bachelor's degree in accounting, finance, or business administration. Coursework should include business management, economics, statistics, and accounting. Furthermore, a number of credit analysts also go on to receive a master's of business administration (MBA) or a master's in some other related fields.
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