Credit Risk Insights – Q2 2024

• The recruitment market for credit risk managers has been subdued throughout H1 2024 and this was felt particularly sharply in Q2 2024.
• The general election is a contributing factor, however, a slowing global economy, high inflation and high interest rates have been more significant factors.
• More assertive regulation combined with ESG considerations and geopolitical instability have had a transformational effect on banking and capital markets, with resources diverted to meet regulatory expectations or provisioned against a higher risk of default in certain regions.
• Banks are well capitalised, but revenue growth is presenting a challenge meaning costs need to be managed. As such several banks have announced redundancies that will impact credit departments, with roles being both off-shored and near-shored to lower cost locations.
• Consolidation in the UK retail banking sector is also having an impact on hiring volumes, which could lead to redundancies and an increase in candidate supply in the future as companies are merged.
• The growth of private capital has created a more competitive environment, challenging the banking sector to offer greater value to their corporate customers, increasing pressure to manage costs.
• The outlook is more promising. Inflation is at the 2% target set by the Bank of England and the market widely expects the first of a series of rate cuts in July. This has already led to an uptick in deals across the city, boosting revenues. If sustained, this will filter through to demand for greater headcount.
• Certain sectors, such as commercial real estate, are under more pressure with large proportions of client portfolios in distress. Several banks have hired, or are in the process of hiring, credit risk managers with workout experience.

Anton Berou

Head of Risk
ab@barclaysimpson.com
020 7936 8907

Please reach out if you would like advice on hiring in the credit risk market.
Barclay Simpson has 20 years’ experience of hiring into this space and we can offer deep insight into how the market is changing and how to secure the best candidates.