In a bank or other type of financial institution, a chief credit officer is a person in a senior management position. A person with this title develops credit policies for the institution’s customers. While some people associate credit with credit cards, that is not the only type of credit that this person deals with. He or she is usually in charge of developing policies and procedures for granting credit, including credit cards, car loans, mortgages, and other types of loans.
A chief credit officer’s job entails establishing guidelines, developing policies, and establishing procedures for extending credit to a financial institution’s customers. An expert in this field can also devise strategies to keep the lending portfolio of a financial institution within the confines of the institution’s objectives. To create and administer policies, he or she frequently collaborates with the board of directors of the financial institution as well as other senior bank employees. While a person working in this field creates policies to meet the goals of the financial institution, he must also follow the laws of his jurisdiction.
A person with this title is usually responsible for deciding when to approve or deny credit, in addition to developing and administering bank procedures and policies. While there are other people involved in credit approval and denial, the senior manager usually has the final say. He or she is usually in charge of approving and denying complicated loans. This person may also be in charge of assisting in the recovery of the financial institution’s assets.
The job of a chief credit officer is frequently supervisory in nature. He or she usually supervises employees and works to ensure that they follow the company’s policies. Additionally, by attending events and functions as a representative of the institution for which he or she works, this person can help to put a positive face on his or her bank or financial institution.
A four-year degree in a major such as business or finance is usually required for this position. This is a career that could be pursued by someone with an accounting degree. Prospective employers, on the other hand, frequently expect those in this position to have master’s degrees and several years of experience in a related field.