Work Experience: Commercial banking

I recently started a job in commercial banking as a credit analyst, which involves analyzing the risk in lending to companies rather than investing in them. Does anyone know if this is deemed valid work experience to get the CFA charter?

I would say that it is because I taught a brief S&P or Moody’s sponsored course on financial statement analysis and it did get pretty heavy into ratio analysis for Comm. Bankers [I thought]. So if you’re more on the ANALYSIS side I would say yes but if you’re just a deal jockey I’d say no. Willy

I would say absolutely. A bank loan for all intents and purposes is the same as a bond investment. A loan is an investment of the Bank’s Capital; it is priced to yield an appropriate risk-adjusted return on the banks equity.

jimmylegs Wrote: ------------------------------------------------------- > I would say absolutely. A bank loan for all > intents and purposes is the same as a bond > investment. A loan is an investment of the Bank’s > Capital; it is priced to yield an appropriate > risk-adjusted return on the banks equity. jimmy , you offer hope, nice arguments!

i was a Credit Analyst at the Comm. Banking arm of a bank recently so this is reassuring to know. I hope the CFAI concurs.

I agree with jimmylegs. I can’t see why it wouldn’t be acceptable experience.

i would think it’s fine too.

bevrez1 Wrote: ------------------------------------------------------- > i was a Credit Analyst at the Comm. Banking arm of > a bank recently so this is reassuring to know. I > hope the CFAI concurs. good to know. But is there anyone you know (or on AF) whose such kind of experience got approved?

jimmylegs Wrote: ------------------------------------------------------- > I would say absolutely. A bank loan for all > intents and purposes is the same as a bond > investment. A loan is an investment of the Bank’s > Capital; it is priced to yield an appropriate > risk-adjusted return on the banks equity. Jimmy: your words are very sharp and I like your “tongue”:slight_smile: CFAI approved my working experience except one credit analyst role. I have sufficient exposure in portfolio management so it does not really matter to me whether one of my positions seemed not fit in CFAI perspectives. However, I would like to share with you, especially those who need to “earn” working time precisely. I did credit analysis in commercial banking and from my perspective it is a relevant working experience. But I was so confident and I have earned long record in banking/ finance that I did not put time to describe my credit analyst role in a relevant way (like what Jimmy said above). As a result, that role (credit analyst) is not qualified. The important point is you should look at your job from CFAI perspective and draw the connections between your duties and the CFA curriculum. There is nothing dishonesty here. Here is my “failed” working experience: 1. Performed projections and cost/benefit analysis, appraised project feasibility , proposed total loan packages and prices for profitability. 2. Followed up financed projects, managed loans, and stayed abreast of corporate clients’ financial conditions Hope it helps. Good luck with your application.

I just got word that my commercial credit analyst experience was not accepted. I am very disappointed.

It should be accepted, what did you write?

Mr.Good.Guy Wrote: ------------------------------------------------------- > It should be accepted, what did you write? - I was a commercial credit analyst. This involved reviewing and analyzing the financial condition of companies and guarantors wishing to take out commercial loans typically ranging from $1MM-$12MM. I spoke with borrowers and tax preparers in order to gain insight into the details of the financial statements, which I was then asked to share with the Senior Regional Lending Officers approving the loans. Perhaps I should e-mail them with a more detailed description including things such as cap rates, yield, risk and return, etc. *shakes head in disappointment*

More detail and focus on how what you did contributed to the investment decision. Are you underwriting the deals?

Mr.Good.Guy Wrote: ------------------------------------------------------- > More detail and focus on how what you did > contributed to the investment decision. Are you > underwriting the deals? I analyzed the risks of deals but I never had approval authority. I definitely need to spend this evening coming up with an eloquent job description that mentions all of the CFA taught concepts that I used in this position and emphasizes that I contributed to the investment decision by finding and pointing out the potential risks of the deals.

Should def. have something like “Based on my analysis made Recomendations on investment decisions to senior managment.”

Mr.Good.Guy Wrote: ------------------------------------------------------- > Should def. have something like “Based on my > analysis made Recomendations on investment > decisions to senior managment.” That’s accurate and it reads well, I’ll be sure to include that.

Credit analyst experience is definitely accceptable if you phrase it right. Do you think people who work at Moody’s or S&P or in corporate banking roles don’t get credit? - They do. Spend the time to write it up.

Update: My commercial credit analyst experience has been approved and once I give them $285 I’ll be an affiliate member.

Bankin’ Wrote: ------------------------------------------------------- > Update: My commercial credit analyst experience > has been approved and once I give them $285 I’ll > be an affiliate member. Congrats Can you share if it was an underwritign expereince (with or withotu approval authority)?

coolgoose Wrote: ------------------------------------------------------- > Bankin’ Wrote: > -------------------------------------------------- > ----- > > Update: My commercial credit analyst > experience > > has been approved and once I give them $285 > I’ll > > be an affiliate member. > > Congrats > Can you share if it was an underwritign expereince > (with or withotu approval authority)? Thanks! I analyzed company and personal financials, did pro forma cash flow projections with stress tests, spoke with borrowers (and their accountants/attorneys), and wrote up the strengths and weaknesses of the deals. I never had approval authority, but I was present when the Senior Regional Lending Officers reviewed my write up to answer any questions and address concerns they may have.