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What does a Chief Credit Officer do?

Nicole Madison
By
Updated: Mar 02, 2024

A chief credit officer is a person with a senior-management-level position within a bank or other type of financial institution. A person with this title creates policies for granting credit to the institution's customers. While some people may think of credit only along the lines of credit cards, that is not only kind that this person handles. He or she usually has the job of creating procedures and policies for granting credit not only via credit cards, but also through car loans, mortgages, and other types of loans.

An individual who works as a chief credit officer has the job of setting guidelines, developing policies, and creating procedures for extending credit to the financial institution's customers. An individual in this field may also develop strategies that are intended to keep the financial institution's lending portfolio within the realm of the institution's goals. He or she often works in conjunction with the financial institution's board of directors as well as with other senior bank employees to create and administer policies. While an individual who works in this field creates policies in accordance with the financial institution's goals, he must also adhere to laws in his jurisdiction.

In addition to developing and administering bank procedures and policies, a person with this title usually has the responsibility of deciding when to approve or deny credit. While there are others who play a role in the approval and denial of credit, the senior manager typically has the ultimate say so. He or she is usually responsible for approving and denying very complex loans as well. A person in this position may also be responsible for helping to recover the financial institution's assets.

A chief credit officer's job is often supervisory in nature. He or she typically manages staff members and works to ensure the staff's adherence to the established policies. Additionally, this person may help to put a positive face on his or her bank or financial institution by attending events and functions as a representative of the institution for which he or she works.

An individual who is interested in this position will usually need a four-year degree in a major such as business or finance. Someone with an accounting degree may pursue this career as well. In many cases, however, prospective employers expect those in this position to hold master's degrees and have several years of experience in a related position.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a Practical Adult Insights writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.
Discussion Comments
By indemnifyme — On Jun 29, 2011

@JaneAir - I deal with this kind of attitude a lot as I work in the insurance industry. The chief credit officer probably has certain rules to follow about who is eligible for a loan.

In insurance, and I'm sure in banking, there are certain rules about who is eligible and who isn't. Even if the chief credit officer met the people in question about their loan the answer would be the same.

Unfortunately people in most jobs just have to follow the rules! As much as we might like the grant that loan or line of insurance to someone, if they aren't eligible we just can't do it!

By starrynight — On Jun 26, 2011

@JaneAir - I'm sure being a chief credit officer isn't as easy and care free as you're making it sound! Usually people who are in management positions do deal with customers to a certain extent.

Even though the chief credit officer probably isn't the main point of contact for the customers I bet they do still deal with the customers a little. Also I think it would be difficult to manage a team of staff members and make all the decisions and calculations regarding who gets a loan.

By JaneAir — On Jun 25, 2011

This job sounds like it would be well suited to someone with a meticulous and detail oriented personality. And of course you would also need to be good at math!

I suppose it's also easier to be a chief credit officer because it sounds like dealing with customers isn't really part of the job. I think it's probably easier to be thorough and impartial about denying or approving credit when you haven't actually met the people who want the loan!

Nicole Madison
Nicole Madison
Nicole Madison's love for learning inspires her work as a Practical Adult Insights writer, where she focuses on topics...
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