Interview questions by Bank

[Dasiy]

Dear All,

I applied for a credit analyst position, I was asked by the hiring manager these questions:

1) Discuss the procedures when you write a credit paper, i.e analyse financial statements, cash flow , company profile etc.

2) For the financial statement, is there any difference in financial ratios for a manufacturing firm and a service industry as well as a trading company? If yes, what are the ratios and what is the range for the ratios? For example, gearing ratio will be low for a service industry as compare to another industry and maybe gearing for service industry range from 1.5-2, while a construction industry gearing will be higher.

I totally have no cue for the answer. Anyone in this industry knows the answer?

do you have a business/acct background?

[Dasiy]

Originally Posted by Unregistered

do you have a business/acct background?

Yes, I have one year credit analyst experience in bank and have a degree in accounting from SMU.

Originally Posted by Dasiy

Yes, I have one year credit analyst experience in bank and have a degree in accounting from SMU.

I'm surprised you don't know the answers then. You should be able to smoke something out for Q2 at the very least. Off the top of my head, higher ROE on a service industry vs manufacturing and trading.

[Dasiy]

Originally Posted by Unregistered

I'm surprised you don't know the answers then. You should be able to smoke something out for Q2 at the very least. Off the top of my head, higher ROE on a service industry vs manufacturing and trading.

They need precise ratio, not higher or lower per se

Just curious. Is it a local or foreign bank
Why would they ask such detailed questions unless ur current job covers the same portfolio industry. Are you from commercial or corp banking?

Originally Posted by Unregistered

Why would they ask such detailed questions unless ur current job covers the same portfolio industry.

they can always ask questions outside of your job scope just to test how you respond to difficult/unfamiliar situations.

Originally Posted by Dasiy

They need precise ratio, not higher or lower per se

Yes, but I'm not the one applying for the job.

1) Yes.
2) No.

You're welcome.

Originally Posted by Dasiy

They need precise ratio, not higher or lower per se

seriously i feel like smacking your head when you say something like this.

This is YOUR interview question and you turn it towards someone else who's being helpful by demanding an EXACT answer?

if you need an exact answer go google, do your own bloody homework.

and yes, to those questions I have an idea of what the range of ratios would be. too bad it seems like SMU doesn't give their students enough financial statement analysis projects. if you don't even know what you are looking for how the hell are you going to do 'credit analysis'? and you've even worked for a year already. unbelievable.

I'm assuming your credit analyst role was in the consumer side. please don't bother with corporate roles until you actually go do your homework. Also, do knock off several notches of your arrogance