I have an interview for an entry level credit analyst position at a smallish bank ($2b assets). I’m curious as to what would good questions to ask during the interview besides the standard fare. What would be good questions to ask about credit analysis process? The banks operations? Etc.
duration, current rates, what moves rates/why, valuation and rates, convexity,
This isn’t my expertise, but for a bank so small then it’s surely concentrated just to the local area. I would imagine that there are credit issues related to the lack of geographical diversity. They may also be highly concentrated in lending primarily just to the strong local industries.
Obviously start with the wikipedia entry on credit analysis.
Are you interviewing for an analyst position on the lending side or the investment side? If its the lending side you’ll want to ask about the type of lending (ie construction, real estate, commerical & industrial Bankers acceptances, auto etc.) they typicaly focus on. What is the chain of command? Speaking from experience early in my career, you will want to be involved in more complex credits as soon as possible to raise your profile so the less management levels the better.
It’s the lending side. What do you mean by complex credits?
^syndicated loans maybe?
Pull the Call Report and see what type of loans/yields they have. Complex credits on the Call Report would mostly fall under Commercial and Industrial, but not always. Complex credits have unique loan structures and/or repayment sources. They require expertise in the various areas. It could be vessel lending, tax credit lending, oil/gas, etc
^exactly. Complex meaning a need for in depth knowledge of industry, regulation and or pro-forma modeling. Basically the creidts beyond loan-to-value, debt-to-equity and cash flow ratios