What is the purpose of credit risk assessment?
A customer refuses to provide identification documents. The bank should:
Early warning signs include:
I. Delayed instalments
II. Returned cheques
III. Declining sales
IV. Stable profitability
A borrower delays submission of audited accounts for two years. The banker should view this as:
Bankruptcy may affect a borrower’s:
Operational controls in credit operations include:
I. Segregation of duties
II. Proper authorization
III. Documentation checks
IV. Internal audit reviews
Which market facilitates long-term fund raising?
Which principle requires matching loan tenure with asset life?
Credit monitoring includes:
I. Monitoring repayment conduct
II. Reviewing financial performance
III. Monitoring covenant compliance
IV. Monitoring industry conditions
Which institution operates payment systems in Malaysia?
Under CAMPARI, “P” refers to:
Under CAMPARI, assessment includes:
I. Amount requested
II. Repayment source
III. Insurance/security
IV. Character reference only
Financial institutions must retain records for:
A debenture is commonly used for:
Credit monitoring is conducted to:
Which of the following is NOT part of the 5Cs?
Functions of Bank Negara Malaysia include:
I. Issuing currency
II. Supervising banks
III. Maintaining monetary stability
IV. Approving all personal loans
A floating charge commonly covers:
“Character” in the 5Cs refers to:
Which document creates legal rights over land security?
Legal remedies available to banks may include:
I. Foreclosure
II. Legal action
III. Appointment of receiver
IV. Restructuring facility
Inventory turnover ratio measures:
Which document is important during annual review?
The primary objective of prudent lending is to:
Common securities include:
I. Landed property
II. Fixed deposits
III. Shares
IV. Guarantees
Profitability ratios include:
I. Gross profit margin
II. Net profit margin
III. Return on equity
IV. Current ratio
A fixed charge usually applies to:
Components of Malaysian financial system include:
I. Financial Institution
II. Financial Market
III. Capital market and participants
IV. Payment System
Which indicates deteriorating credit quality?
Examples of suspicious activities include:
I. Structuring transactions
II. Sudden unusual transfers
III. Transactions inconsistent with profile
IV. Regular salary crediting
Which is an early warning signal?
Financial statements include:
I. Balance Sheet
II. Income Statement
III. Cash Flow Statement
IV. Loan Agreement
Which 5C component evaluates owner’s financial commitment?
A borrower has strong collateral but unstable cash flow. The banker should:
Monetary policy tools may include:
Bank Negara Malaysia is responsible for:
The Malaysian financial system consists mainly of:
Which is MOST important in credit operations?
A company’s current ratio declined from 2.0 to 0.7. This indicates:
Which institution regulates banks in Malaysia?
The purpose of collateral is to:
The purpose of legal documentation is to:
Objectives of FSA 2013 include:
I. Financial stability
II. Consumer protection
III. Regulatory oversight
IV. Elimination of all banking risks
Which of the following BEST reflects prudent lending?
Gross profit margin indicates:
Islamic banks operate based on:
A company requests a 10-year loan to finance working capital requirements. The banker should:
Which ratio measures leverage?
A borrower’s account frequently exceeds approved limits. This may indicate:
Commercial banks mainly provide:
A guarantor signs documents without understanding obligations. The bank officer should:
During economic recession, banks should generally:
Which document outlines financing terms and conditions?
The primary source of repayment for business financing should be:
Which transaction may be considered suspicious?
The Financial Services Act 2013 regulates:
Account conduct deterioration may include:
I. Returned cheques
II. Excess drawings
III. Delayed instalments
IV. Improved cash balances
Primary considerations before granting credit include:
I. Repayment capacity
II. Purpose of financing
III. Borrower integrity
IV. Political influence
A borrower defaults on instalments for six months. The bank should FIRST:
Which action is MOST appropriate upon detecting early warning signs?
Characteristics of good security include:
I. Marketability
II. Stable value
III. Easy enforceability
IV. Emotional value
Under AMLA, reporting institutions must:
I. Conduct CDD
II. Maintain records
III. Report suspicious transactions
IV. Guarantee customer investments
Sources of credit risk include:
I. Business risk
II. Financial risk
III. Industry risk
IV. Documentation risk
Customer Due Diligence (CDD) requires:
Which is an example of industry risk?
A bank should review customer facilities:
Which is an example of banking environment risk?
The 5Cs consist of:
I. Character
II. Capacity
III. Capital
IV. Collateral
Functions of financial system include:
I. Mobilisation of savings
II. Allocation of funds
III. Facilitation of payments
IV. Risk management
A valid contract requires:
A disruption in payment systems may affect:
The current ratio measures:
Which is considered secondary repayment source?
Which CAMPARI component evaluates financing purpose?
Good lending principles include:
I. Safety
II. Liquidity
III. Profitability
IV. Speculation
Which factor may increase lending risk?
June 17, 2026
