Main Duties Of Credit Analysis English Language Essay

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I worked in Credit Analysis Department, which is responsible for making credit analysis proposals. My department specifically make credit analysis proposals for the debtor was applying for loans above USD 25 billion. The credit proposals should be analyzed come from two main sources of business unit, from the Corporate Credit Division and the Commercial Credit Division. Credit application from Corporate Credit Division derived from large corporate debtors who generally operate in Jakarta and surrounding areas. While credit applications from Commercial Credit Division generally come from the branches from all over Indonesia, that was centered in this division. Credit submission from branch have to pass Commercial Credit Division for assistance because loan over IDR 25 billion generally have a more complex submission and complex condition proposed, and it is feared the branches cannot handle it alone.

The main duties of Credit Analyst Department are:

Ensure credit facilities provided to borrowers are in accordance with their needs through analysis and evaluation by means of increasing business volume considering the financial and non financial risk factor.

Ensure that credit proposal can be completed within service level agreement days (4 to 12 days depends on proposal type such as new or renewal debtor, or only change in term and condition applied).

Conduct weekly presentation to credit committee regarding credit pipeline provided by business unit.

Conduct site visit to major projects to obtain comprehensive picture of customer.

As a credit analyst, my previous experience working in the Commercial Credit Division for 4 years help me in negotiating with business units and understand what they need, but still give priority and consider to the risk profile faced by the bank. Previously I have followed the Officer Development Program for 1 year, which equips me about all aspects of banking business and prepared to become the successor leader.

Credit Analyst Division directly have responsible to the President Director. This division has 3 department heads, each of which led 3-5 persons of credit analyst officer (Exhibit1). The scope of work for each department was made based on the industry field, for example telecommunication, automotive and pharmaceutical industry is the responsibility of department head 1. While the trade, chemical, property and infrastructure industry is the responsibility of department head 2, and so on.

Exhibit1. Credit Analyst Organization Chart Hierarchy

Considering of my achievements and performance of my previous job, then after 2 years I worked at Credit Analyst Department as credit analyst officer, I gained the confidence of management and was appointed as one of the Credit Analyst Department Head in charge of several credit analyst officer. The position that I occupy was previously filled by other people who get promoted to another department.

In my first worked in the new position is not easy for me, because all my officers have an older age than me. The appointment of me as a department head is also makes envy of some people who feel has more experience in the banking industry and more worthy of occupying that position. Moreover, in the end these people became my subordinates.

Some people think that they had already plunged in the banking industry a lot longer before me. Some have worked in banking for more than ten years, some even more than 15 years. This condition in the first time is very bothers me because I find difficulties to organize the work that I give to them. But not all of my subordinates think like that, there is also a fair attitude and accept this condition because they think I deserve the job based on my accomplishments achieved before.

The biggest problem is my relationship with my subordinate's call him Mr. B. Mr. B felt more appropriate to fill my new position, because previously he was Regional Deputy Head, who led the analysis of credit in with loans under the IDR 25 billion for some of its regional branches in over 3 years. Mr. B drawn to the central office because of his achievements not good in its regional. Management considers that under his leadership, there is an increasing amount of nonperforming loans. Besides the problem of employment, Mr. B is also considered to have a poor personal attitude and relations with subordinates at the regional office.

In the beginning I occupy a new place; Mr. B shows the feelings of dislike. But such behavior is not indicated directly to me, but I can find out. I know about it from someone else who shared it with me. Feelings of dislike also indirectly indicated through various means. He is more often not in the office by reason of illness or family affairs. Job assigned to him also not completed on time in accordance with service level agreements that have been agreed.

By the time, the credit analyst officer should present the results of the analysis to Credit Committee Meeting, he also often does not do with a variety of reasons for avoiding, preventing the credit approval process. This condition also makes the performance of my department become distracted and I often get a complaint from the business units because of the credit proposal were not finished on time.

To overcome this problem, I have to switch the assignment or jobs that I gave earlier to him to another analyst officer, but still considering the work load. If not possible, I also had to step in to directly assist the process of analysis so that credit proposals are expected to be completed on time. However, this condition should not have happened, because it would interfere with the performance of the division, department and other credit analyst officer. If this condition left also can affect and transmitted to the other credit analyst officer.

To work as a credit analyst, Mr. B actually has sufficient capability. But he doesn't want to improve himself, he thought he was a senior and he feel uncomfortable if other people provide input for him. Because of that feeling, he seems less able to appreciate others and always feels right. He was also difficult to accept criticism, if he makes a mistake.

This condition would discourage him to cooperate with others. While others continue to add and improve their ability to perform credit analysis, he actually doesn't want to developed him self from time to time. Because of his age that quite old makes him indolent to learn new things. His poor behavior outside the workplace also considered by management to not put him back to strategic position.

Based on problem and situation that mentioned above, I expected and required to solve these problems and to provide a way out that give good impact for him and my department. This condition required in order to optimize the performance of departments and divisions. Credit Analyst Division is very important part of the bank because it has to support credit growth of the bank, and become guard to prevent good quality of credit asset of the bank. Credit with plafond more than IDR 25 billion reach more than 40% of the total credit portfolio, so if any obstacle in the credit analysis process can affect the overall bank performance. This considered that credit is a productive asset that will determine the level of interest income as main income for the bank.

Action & Reflection

Jobs assignment for credit analysis, actually already given based on the competences and experiences of each credit analyst officer in that field. It aims to maximize the credit analysis process, hence that each analyst officer can be more comprehensive to finish their job assignment and the process becomes faster.

Regarding to current situation stated above, I have to do action and reflection to solve the situation problem and issue.

Assessment of Need

I will start to discover what his and others subordinated needs. Based on the behavior are he pointed out, indicate that Mr. B tries to show dominance that previously he owned. He also did not want to lose autonomy that also previously owned. This also indicated that he has a character who does not want to be regulated. For this condition Mr. B requires affiliate with his team and foster a sense of responsibility, his failure is also a failure for his team (department).

He also felt that he doesn't need help from others that he consider younger and have less experience. As senior officer he expected to be role models; but as senior officer he never assist other team members that sometimes face problems. Indifference to the assignment that provided to him should be changed. He needs abasement to feel more responsible for the job given to him.

We have to grown his feeling that he was very appreciated by others and he is being important part of team member. This important because he need for aggression to show that he has power and can do anything that he want. He felt that he doesn't need other people beside him.

On the other hand we must create a desire to transform him to be better person. The increasing of work requirement drives us to always able to adjust our self to win the competition. Regarding to his experiences that he has, it could be an advantages for him. If the desire is deeply embedded in him, then it is not likely he'll get better position than today.

Clarifying Assumption

In my opinion, I have to clarify assumption for each credit analyst officer. They have different interest and capabilities. Some credit officer want to be told clearly and in specific detail exactly what to do and how to do it. While others officer are more capable to get outstanding performance than is realized or they have a chance to demonstrate. But for them that already has lot of experiences in their job will perform best when rewarded with recognition for their achievements, in addition to monetary or other rewards.

In Mr. B cases, I have assumption that he actually can perform better than his realized perform. He also need more rewarded for recognized his achievement. But this can only happen, when he first realized the responsibility of the job assignment given to him. But he cannot do his best jobs into productive activity by threats or force. If I push him to complete or finish the job assignment it would be not effective because he already feels that he have enough capabilities, even if compared with others. He feels that he doesn't need to prove that, because he feels that people already know about that.

Leadership Effectiveness

I have to realize that there is no style of leadership could appropriate for every occasion or situation and for every group member. I have to know where groups member are at, in terms of their interest, needs, ability, knowledge, capabilities, and desire. I have also considered to their maturity level to be an effective leader.

Regarding to the situation mentioned above, I thing every credit analyst officer have different maturity level. For Mr. B case, actually I assume that he already have high maturity level in his capabilities point of view. But sometimes he still need get high relation orientation to finish his jobs.

In my first jobs assignment to him, I expect that I only have to delegating that job, because in my point of view, actually he can do it easily based on his experiences and competencies. I think, it is impossible for me to have high task orientation such as give direction to him. Because if I do that he will not feel comfortable, or will feel abused.

In the different point of view he has low maturity level in his relationship with other and he also has low responsibility level for his job assignment. In this point, he still needs to be encouraged by his superior. He must realize that, failure to complete the tasks and responsibilities will bring bad effect for others, especially for the division as well as for banks in general.

But in general, the best way for lead Mr. B style is using participating/supportive leader style. In this situation, he is actually able but unwilling to do the job. Based on problem background, supportive style leadership knows the group member has the ability to do the job. However, the group member may be unwilling (bored, not challenging or feels unappreciated.) to start or complete the task. Therefore, the subordinate and leader participate in making decisions and carrying them out together. Here, the leader have to puts more emphasis on relationships and individuals feelings within the group. Finally members feel important when the leader provides moral support and encouragement. The leader is a resource person and helper in this role.

I also have to give an explanation to him, that career opportunities for higher positions is still wide open. Because of that he must show his best performance that supported with his previous experience. Moreover, the relationship with other group members must also be improved in order to support his performance. He has to prove that, especially in this organization his carrier will be determined by his performance appraisal.