T19 – 5R Strategic Consultancy Sdn Bhd

Certificate in Credit
Test 19

Name

The same securities can be taken in different forms. For examples, shares can be taken as a security by way of __________

I. Assignment
II. Pledge
III. Charge
IV. Hypothecation

I and II only

All of the above

I, II and III only

II, III and IV only

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

Bursa Malaysia

Credit Guarantee Corporation

Securities Commission Malaysia

Bank Negara Malaysia

The process of confirming the borrower's declared information is called

Scope of Credit Information

Credit Information

Credit Verification

Information Verification

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

When required by Bank Negara Malaysia

When necessary for due diligence in a merger

When requested by another bank for marketing purpose

When required by a court order

A winding-up order is most relevant to:

Natural persons

Sole proprietors

Partnerships

Companies

The Credit Facilities should be structured appropriately in order to meet the following except

To address the risks identified

The purposes as recommended by the Credit Officer

The purpose of the facilities

The requirements and repayment ability of the borrower

Which of the following best describes a Code of Ethics?

Set of checklist for compliance with rules and regulation

A legally binding set of rules that govern employee behavior

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

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

Which clauses in the 'object clause’ of the company's Memorandum of Association need to he checked by lenders?

I. The nature of businesses the company can engage in
II. The directors will form a Board of Directors
IIl. The shareholder's liability is limited tv the extent of the company's issued share capital
IV. To see if there is any mention of specific restrictions against borrowing or changing of company asset

I, III and IV only

II and IV only

II and III only

I and IV only

Covenant can be described and categorised as

I. Financial Covenants
II. Events of Default Covenants
III. Specific Covenants
IV. Non-Financial Covenants

I, III and IV

None of the above

I and IV

II and III

Charge is a form of security. A 'perfected charge' refers to:

Equitable charge

First charge

Fixed charge

Legal charge

CTOS derives its data from:

CCRIS

Public records and legal documents

Bank Negara Malaysia

Bursa Malaysia

Which of the following components of CAMPARI measure the financial commitment of the borrower?

Repayment

Character

Margin

Amount

Select the factor that may directly affect the net value of a client/borrower's tangible assets

debt service ratio

margin of financing

contingent liabilities

collateral encumbrance

Based on the following information, compute the net worth of the individual

House RM500,000
Home Loan RM300,000
Car RM100,000
Deposits RM10,000
Cash RM5,000
Car Loan RM80,000
Credit Card RM40,000

RM195,000

RM615,000

RM15,000

RM5,000

Which of the following are the duties of Marketing Officer?

I. Assesses and makes a decision on the loan application
II. Ensures that loan terms are made in accordance with the basic risk criteria
III. Make decision based on Principle of Lending after a through assessment of the borrower's credit risk
IV. Disburse loans in accordance with loan documentation and bank policy

I and II

III and IV

All the above

I and III

Under Section 47 of the FSA 2013, Bank Negara Malaysia may issue prudential standards to licensed persons on all the following matters except:

Corporate governance

Capital adequacy

Customer complaint handling

Credit risk management

A business name registered with SSM but not incorporated is most likely a:

LLP

Sole proprietorship

Statutory body

Public company

Which of the following are not categorised as a form of security?

I. Lien
II. Power of attorney
III. Assignment
IV. Loan agreement

I and II only

Ill and IV only

II and III only

II and IV only

Which of the following age group have the legal capacity to borrow?

21 - 55 years

21 years and above

18 - 55 years

18 years and above

Which of the following have no legal capacity to borrow?

I. A minor
II. Individual below 21 year
III. Individual adjudicated bankrupt
IV. A discharge bankrupt

I, II and IV

I and III

II and IV

All the above

The credit related provisions of the FSA 2013 can be categorised into the following broad areas

I. Granting of Credit
II. Obligation of directors and officers of licensed business
III. Contravention and offences under the provisions of the Act.
IV. Prudential Standard

All the above

I, II and III

II, III and IV

I and III

A side from BNM, the banking system in Malaysia comprises the following

Commercial Banks, Islamic Banks, Offshore Bank and Prescribe DFIs

Financial Institutions, Islamic Banks and Development Financial Institutions

Commercial Banks, Islamic Bank, Discount Houses, Representative Officers of Foreign Banks and Offshore Bank

Commercial Banks, Islamic Bank, Offshore Bank, Discount House and Kuala Lumpur Inter-Bank Marketers of Foreign Banks and Offshore Bank

What is the main objective of the Credit Guarantee Corporation Malaysia Berhad?

To guarantee small scale enterprises to gain access to credit facilities from financial institutions

To assist small and medium scale enterprises to gain access to credit facilitation from financial institutions

To help Bumiputra gain access to credit facilities from financial institutions

To guarantee working capital loan extended by financial institution to small scale enterprises

Who is the owner of the Limited Liability Companies?

Ordinary Shareholders

Shareholders

Preference Shareholders

Main Shareholders

Loans rescheduled or restructured by Agensi Kaunseling dan Pengurusan Kredit (AKPK) may be immediately reclassified as non-impaired once:

The customer and banking institutions have agreed to the new terms and conditions

The total installments in arrears falls below three months

It has been continuously performing based on its restructure terms for the period set by the institution in its policy

The total installments in arreas fully paid

The stamp duty payable on principle documents is

Nominal

Variable rate

Ad-valorem

Progressive scale

Code of Conduct mainly focus on?

Professional standards

Overall supervision and contract

Moral and values

Behavior at work

Verification of company ownership is done via:

MyKad

Income tax return

BNM website

Form 24, 49, Constitution

Which of the following has the characteristic of perpetual succession?

Joint account holders

Partnership

Private limited company

Sole proprietorship

Compute the amount of stamp duty payable on transfer (Adjudication of the memorandum of transfer) of land title market value RM530,000.00

RM26,500

RM9,900

RM11,900

RM15,900

Which of the following are common management lifestyle?

I. Aggressive
II. Prudent
III. Thrifty
IV. Extravagant

I and II

I and IV

III and IV

II and III

When a borrower has multiple active loans in CCRIS, it may indicate:

No risk

Possible over-leveraging

Strong credit

Zero liability

Which statement about ethics and the law is TRUE?

Ethics and law are always the same

All ethical actions are always legal

Legal compliance guarantees ethical conduct

Ethical behavior may go beyond legal requirements

Sections 133 and 133A of the Companies Act 1965 are not applicable to

Non-public listed company

Public unlisted company

Exempt private company

Public listed company

Labuan Financial Services Authority (LFSA) regulates:

Islamic banking

Deposit insurance

Housing finance

Off-shore financial services

What is the primary role of the Banking System?

Provide a mechanism for individual and entities to save surplus funds for future events

Provide a mechanism for the effectiveness implementation of the monetary policy

Mobilise long-term and short-term fund in the economy

Gather deposits and disburse loans through products that meet specific depositor and borrower needs

Under NLC 1965, uniform system governing all dealings in land applicable only

in Peninsular Malaysia only

in Peninsular Malaysia, Sabah and Sarawak

to land for which documents of title has been issued

in respect of land without the issuance of documents of title

Which type of security need to be registered with Companies Commission of Malaysia

Quoted Shares

Corporate Fixed Deposit

Stock and Shares

Fixed Deposit in the name of directors

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

Eliminate risk

Control risk

Identify risk

Mitigate risk

Lenders need to assess the sufficiency of shareholders or owners’ financial commitment in their business. Financial commitment of the shareholder/owner is often measured by the following:

I. Shareholder’s funds in the business
II. Subordinated loans to the business
III. Third party collateral provided by the owner themselves
IV. Personal net worth of the shareholder

I, II. Ill and IV

I, Ill and IV

I, Il and III

II, Ill and IV

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Certificate in Credit
Test 19