The purpose of this blog is to provide guidance for the credit analyst as well as improve the concentration of knowledge directly related to the analyst's role. The author, a seasoned credit analyst and underwriter, recognizes the importance of sharing knowledge to overcome challenges faced in identifying risks associated with a credit decision. Your feedback is welcome and integral to building an invaluable resource of information for the community.
Getting Started

Loan Structure

Borrower need, bank policy, market conditions and regulatory environment shape the loan structure. Loan structure consists of the rate, fee, amortization period, and maturity of the loan in addition to covenant requirements at origination and during the life of the loan. The bank makes a loan to a borrower and creates an earning asset on...

Get to Know the Borrower’s Business

The credit analyst is charged with identifying risks and mitigants associated with the repayment sources on a loan. The credit analyst must understand the borrower’s business and borrowing need to start with the analysis. The best way to start the process is to have a conversation with the borrower. A general idea about the feasibility...
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