Corporate banking needs credit analysts

Low interest rates are good news for people with large debts. They are also good news for corporate bankers who can offer business clients cheaper loans and related products when interest rates fall.

This has helped sustain demand for corporate banking professionals. Recruiters report solid demand for relationship specialists and for credit analysts in particular.

Current vacancies advertised in the UK include: a senior credit manager to risk manage a European real estate portfolio; a senior relationship banker; and a credit officer. The latter was advertised by the recruitment firm Joslin Rowe for a salary of 60,000.

Richard Lyons, of the recruitment firm Carr Lyons, said: 'There is a slight up-tick in demand for relationship and marketing people, but the real growth is in credit analysis.'

It is not only low interest rates that are creating jobs. Lyons said existing bad debts and concerns about the creditworthiness of future clients are also stimulating demand for credit analysts.

Paul Hunt, of the recruitment firm Healy Hunt, said: 'When the economy is strong, credit professionals are needed to analyse a higher volume of loans. When the economy is weak, they are needed to scrutinise possible bad debts.'

Credit risk analysts assess the risk that a corporate client will default on a loan. Most job adverts specify a minimum of two years credit analysis experience for a junior position, and five or more years experience for senior analysis roles.

Michelle Bloomfield, head of financial services recruitment at Joslin Rowe, said many junior credit analysts come from graduate trainee schemes. 'Recruiters like graduates who are numerate and have come from a graduate trainees programme at a clearing bank, where they have learned credit analysis skills.

Conversely, relationship bankers, also known as client coverage specialists, usually have five years' of experience, at least. They often start out as credit analysts. 'Most client coverage specialists have a credit background', said Hunt.

Relationship bankers stay in close contact with clients, originate business, and call in product specialists according to clients' needs. As well as simple loan products, this includes everything from syndicated loan financing, in which large loan requests are divided between a number of lenders, to securitisation.

Most relationship bankers are sector specialists, with a focus on a particular industry, such as pharmaceuticals or telecoms, media and technology (TMT).

Andrew Valentine, a consultant at the recruitment firm TMP/Hudson Global Resources, said: 'They are the eyes and ears of the bank. Relationship managers deal with customers and identify the opportunities that exist.'

Basic pay is similar for credit analysis and relationship banking roles. Valentine said salaries in both areas range between 40,000 and 60,000 for mid- to high-ranking staff. Hunt said the most senior relationship bankers earn basic salaries up to 100,000.

However bonus potential is greater for relationship bankers, who earn a premium for winning new business. While bonuses for credit analysis are rarely higher than 20%-60% of salary, Hunt said relationship bankers can earn bonuses of 100% or more.

In much of Europe, demand for corporate bankers is less healthy. The large German market in particular is plagued by bad debts. Andreas Weig, of the search firm Korn/Ferry in Frankfurt, said German banks will not recruit until these have been tackled.

However, UK institutions, such as the Royal Bank of Scotland (RBS), have been recruiting on the continent. In June, for example, RBS hired Gianfanco Mattei from Banca IMI to run its corporate and financial markets business in Rome. Weig said RBS was recruiting in Germany too.