Head of Lending Credit Middle Office (“LCMO”)
Immediate Start - Full Time
Our client looks for those who challenge convention. What makes their people extraordinary is what makes our client Out of the Ordinary. Our client encourages a culture of respect and a working environment that nurtures extraordinary performance. They have retained E2W to find female candidates that shares passion, client focus and an entrepreneurial spirit for the role of Head of Lending Credit Middle Office.
Description of role and key responsibilities
Historically the lending desks have managed credit exposures on the desk. This was seen as part of the banker’s role – i.e. both originating the credit exposure and managing it through to repayment. This close alignment to the credit risk is seen as a key differentiator in our business and a mechanism for ensuring alignment of desk strategy with the credit risk we are taking. However as Corporate and Investment Bank (“CIB”)’s loan book has grown, this has morphed into a full time role within each lending desks (to varying degrees).
Whilst this model has its merits, these are outweighed by its limitations. Each desk operates a bespoke approach with different approaches and metrics for monitoring and managing credit exposures (some better than others), inconsistent approaches to work-out situations, which taken together makes it impossible to derive a clear view across the wider CIB portfolio without considerable manual effort. In addition, current PM activities consume front office resource which could be more effectively focussed on client relationship management and new business / deal origination; and produces numerous instances of duplication with other areas of the bank.
To address these and other related issues, Corporate and Investment Banking (CIB) has decided to create a single centre of excellence in the form of a Lending Credit Middle Office (“LCMO”). The LCMO will be responsible for actively managing the banks credit exposures across CIB. This will involve both hands-on involvement in activities like work outs, restructuring, and spotting opportunities, and also actively assisting the CIB lending and hedging desks, Global Lending Operations, CIB Management and IBP Risk in monitoring the entire CIB lending portfolio, identifying risk issues and sector concentrations, and improving internal data governance and overall operational efficiency. This will also include managing our relationship with Moody’s, who will provide certain portfolio management and data entry functions. The team will also take ownership for embedding all IFRS9/AIRB modelling, data and internal rating requirements into our credit applications and ongoing portfolio management responsibilities.
The Head of the LCMO is responsible for designing, building, and leading, the LCMO function.
In the first instance, they will work closely with all the relevant stakeholders within CIB (including the executive sponsors, business leaders and portfolio managers) to establish the LCMO, building on the work and analysis already done in this area.
- In so doing, they will address, and provide strong recommendations on, a number of critical questions, including:
- The structure of the LCMO – in particular, whether it should be a ‘virtual’ or ‘actual’ teaM
- The timelines, milestones and decision gates for its establishment
- The composition and mandate of the project team
Once the LCMO is up and running, the Head of LCMO will be responsible for:
- Active portfolio management, as described above.
- Portfolio analysis and reporting – establishing consistent and robust processes, including the provision of comprehensive, high quality and homogeneous portfolio management information, and the ongoing analysis and interpretation of this information. This will include engagement in key Bank credit processes, such as Corporate Watchlist / Impairments, and all CIB annual reviews
- Balance sheet management - where appropriate participating in Deal and Credit Forum processes, to provide insight into current portfolio exposures, sector concentrations and loan performance metrics and thereby assist in dynamic risk appetite and credit selection decisions.
- Analysing proposals in advance of the Forums and highlighting points for discussion based on existing balance sheet exposures
- Advising on asset disposal decisions from both a risk and capital management point of view
- Generally assisting with strategic analysis of the CIB balance sheet – e.g. helping with hedging, accounting, capital rules etc.
- Strategy - the Head of the LCMO will also be responsible for thinking strategically about the development of the function (e.g. further outsourcing opportunities or scope for greater co-ordination of central processes)
Core skills and knowledge:
- Fundamental Credit Analysis of companies and legal documentation.
- Knowledge of Capital and accounting rules.
- Excellent relationship management skills, you are able to build relationships both internally and externally.
- Strong communication skills – able to communicate the need for change and to report effectively to stakeholders.
- Proactive and willing to take the initiative.
- To act with integrity at all times and embrace the philosophy of treating our customers fairly (compulsory)
- Regulatory Knowledge as applicable to role (compulsory)
- Coaching & Assessment (compulsory for Managers and Supervisors)
Any other attributes that would be helpful, but not essential for the role:
- Legal structuring
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