Certificate in Credit T13 (Trail Exam) – 5R Strategic Consultancy Sdn Bhd

Name

Which of the following are explicit reasons for the need of Legislative and Regulation Control over the banking system to safeguard the public interest?

I. Faciliting the process of financial intermediation
II. Ensuring the banking system players perform their fiduciary duty
III. Maintaining publics trust within the banking sector
IV. Protecting the banking system from malicious or accidental human intervention

I and II

II and III

I, II and III

All the above

Verification of company ownership is done via:

MyKad

BNM website

Form 24, 49, Constitution

Income tax return

Prior to 1986. housing loans were not extended for more than 10 years. Currently tenors can be extended to 25 years. This is possible due to the ________

Establishment of Cagamas Berhad

Competitive pressure in the banking industry

Bank excess liquidity

Steady growth in housing industry

With reference to Diagram 1, which category of borrower can be recommended for approval?

Diagram 1

PAYMENT HABITS	Good habit	A	B
	Bad habit	D	C
		Poor Ability	Good Ability
		CAPACITY TO REPAY

Category C

Category D

Category A

Category B

Which CAMPARI element reviews the borrower's justification for the financing?

Amount

Ability

Margin

Purpose

In CAMPARI, the ‘C’ stands for:

Character

Conditions

Capacity

Collateral

What is typically included in a CCRIS report?

Legal cases

Insurance claims

Employment history

Outstanding credit facilities and payment behaviour

Which of the following may rais a red flag during credit verification in Consumer Lending?

Undisclosed creditors and liabilities in loan applicant form

Qualified Audit Report

Heavy use of open-ended account

Positive Nettworth

Except for legal firm and professional practices, the numbers of partners in Partnership is

2 and more

2 to 20

Bad and incomplete information used by the credit officer to make loan recommendation will lead to the following risk

Default Risk

Credit Risk

Fraud Risk

Information Risk

The parent company of a corporate structure own all or more than 50% of issued shares of mother company is called

Associates Company

Related Company

Subsidiary Company

Holding Company

Foreign Exchange Administration (FEA) Rules are administered by

Companies Commission of Malaysia

Security Commission

Bank Negara Malaysia

Labuan Financial Services Authority

Which of the following best defines conflict of interest?

When an employee accepts tasks from multiple departments

When two employees compete for promotion

When a manager disagrees with a subordinate

When personal interests interfere with professional duties

A winding-up order is most relevant to:

Partnerships

Natural persons

Sole proprietors

Companies

Credit process involves risk taking. What is the most necessary step for risk management?

Control risk

Mitigate risk

Identify risk

Eliminate risk

Under Malaysian Law, which of the following Types of Borrowers has unlimited liability?

Private Limited Company (Sdn Bhd)

Sole Proprietorship

Co-operation Society

Public Limited Company (Bhd)

The purpose of Section 50 (Single Counterparty Exposure Limit) under FSA 2013 is to:

Ensure banks lend more to SMEs

Encourage mergers among financial institutions

Limit excessive credit exposure to a single borrower or group

Promote financial inclusion

The Power of Attorney must be attested by a commissioner of oaths or a lawyer and registered at

Land Office

Magistrate Court

Registry Office

High Court

Under Sec. 143 of FSA 2013, a licensed person may disclosed information without customer consent in all the following EXCEPT

When requested by another bank for marketing purpose

When required by Bank Negara Malaysia

When required by a court order

When necessary for due diligence in a merger

Regulation of credit token companies will come under the purview of the following:

DFIA 2002

Payment System Act 2003

BAFIA 1989

Company Act 1965

Which of the following is the first commercial bank in Malaysia?

Chartered Mercantile Bank of India, London and China in Penang

Oversea- Chinese Banking Corporation in Melaka

First Oversea Bank Ltd

Standard Chartered Bank of India, London and China in Penang

Which of the following is NOT under the six institution prescribe under DFIA

Export - Import Bank of Malaysia Berhad

Bank Simpanan Nasional

Malaysia Industrial Development Finance Berhad

Bank Kerjasama Rakyat Malaysia Berhad

Which is the feature of Maturity Phase in the Industry Life Cycle?

Industry is clearly viable and making good progress with strong profit

Proven and markets are established

More competitors overcrowd the industry and profit margin drops

Competitors leave the industry and force to close shop

Initial Capital contribution in the business and collateral furnished as Loan Security is included in the following scope of the Credit Assessment

Collateral and Security arrangement for protection

The borrower and its background

Commitment for present and future

Financial feasibility and sources of future cashflow

The 'Principle of Proportionate Stake' implies that

I. Lenders must ensure that business owners must be sufficiently committed
II. The margin of financing will be less than 100%
III. Lender must ensure that its collateral arrangement position for the same borrower relative to other lenders is not worth off
IV. That credit must always be secured

I and II only

II and III only

I and III only

Ill and IV only

Key Responsible Persons refer to persons that are accountable or responsible for the management or oversight of the FI. This Comprise

I. Directors
II. Members of Shariah Committee
III. Chief Executive Officer
IV. Senior Officer

I, III and IV

I and III

All the above

I, II and III

Which of the followings are defined as "Resident" by Foreign Exchange Administration?

I. A citizen of Malaysia, excluding citizen who has obtained permanent resident status in a country outside Malaysia and residing outside Malaysia
II. A Body corporate incorporated or established or registered with or approved by authority in Malaysia
III. Embassies, Consulate, High Commission, Supranational or International Organisation
IV. An overseas branch, a subsidiary, regional office, sales office or representative office of a resident company

I and IV

III and IV

I only

I and II

Which of the following best describes a Code of Ethics?

Set of checklist for compliance with rules and regulation

Moral principles or values deem to be good for a group and generally accepted and practice voluntarily as a guide for good conduct

A legally binding set of rules that govern employee behavior

A technical manual that outline how to perform a task correctly and safely

Which of the following is the primary regulator of banking institutions in Malaysia?

Bank Negara Malaysia

Credit Guarantee Corporation

Bursa Malaysia

Securities Commission Malaysia

Which of the following are the key components of the credit culture strategy?

i. Promotion and adherence of the credit culture across the bank
ii. Adoption of "quality first" policy in all credit decisions with little or no exception
iii. Continuing training and reminder of credit ideals at all level of operations
iv. Recognition and rewards of best credit practices within the bank

I, II and III only

All of the above

III and IV only

I and II only

The main purpose of corporate governance in a financial institution is to:

Reduce the size of the Board of Directors

Maximize executive compensation

Ensure accountability and protect stakeholder interests

Increase loan disbursement speed

Which of the following is/are true about accessing “Character" for consumer lending?

I. Borrower's age
II. Marital status
III. Occupations
IV. Income pattern

I, II and III

I and II

All the above

II and III

Which of the following is NOT a characteristics of a sole proprietorship?

Seperate legal entity

Easy to set up

Owned by one individual

Unlimited liability

What is the primary role of the Capital Market System?

Facilitate the pooling of short-term funds and longer term financing needs

Complement banking system in mobilising funds in the economy

Facilitate the pooling of long-term funds and longer term financing needs

facilitate the pooling of both long and short-term funds for financing needs

Which of the following is the right sequence of Credit Process Cycle?

i	Origination
ii	Credit Administration and Monitoring
iii	Credit Recovery and
iv	Credit Control, Review and Analysis

i	Marketing
ii	Credit Evaluation and Structuring
iii	Credit Approval
iv	Documentation and Disbursement and
v	Monitoring, Control and Recovery

i	Origination
ii	Credit Administration
iii	Monitoring and Control and
iv	Recovery

i	Defining a Written Report
ii	Credit Risk Analysis and Structuring for Loan Approval
iii	Loan and Security documentation for the New Loan
iv	Loan Monitoring and Control and
v	Loan Settlement and Recovery

If you decide to recommend Category A for approval, which of the following strategy you may adopt?

Lengthen the Loan Tenor

Reduce the Loan Amount

Shorten the Loan Tenor

Applicant to provide additional security

What is the main objective of the Government Investment Act 1983?

Allows Islamic bank to issue Islamic bonds

Enable government to invest in Islamic Banks

To enable Islamic Bank to comply with statutory reserve requirements

Empower government to issue government Investment Certificates on Islamic basis

Which of the following has the characteristic of perpetual succession?

Private limited company

Partnership

Sole proprietorship

Joint account holders

An example of a money market instrument is:

Treasury bills

Equity shares

Preference shares

Sukuk

Verification of credit information from internal bank records is considered:

External verification

Non-reliable

Secondary source

Primary source

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