Why should a loan agreement contain restrictive covenants?

Ismail, a credit officer with Bank Hexagon was asked by his client for some information relating to another client of the Bank operating in the same industry. Under the Professional Code of Conduct for Banking Executives, disclosure of such information by Ismail is tantamount to:

What are the five (5) elements a credit officer should consider when evaluating a loan application?

Which of the following activities requires a license under the pertinent financial services regulations?

Of the capital market instruments listed below, identify which does not come under the purview of the Securities Commission.

Which of the following is TRUE of revenue reserves?

Choose the statement which correctly matches the type of business entity with the governing legislation.

Which of the following documents is required to be registered in the High Court to ensure its validity?

In support of Loftus Sdn Bhd's (Loftus) loan application, the parent company has agreed to provide a charge over its factory land. Which component of the 5Cs framework is demonstrated by this action?

When analysing CHARACTER under the 5Cs framework, its attributes include:

In a sub-sale land transaction, 10% deposit has been paid by the purchaser. Which instrument will protect the purchaser’s interest and concurrently prevent the vendor from further dealings in the underlying asset?

Which of the following characteristics is true of conventional licensed insurers in Malaysia?

Which of the following is the least reliable source of information for credit risk assessment?

Which of the following is a component of cost of goods sold?

A society can be sued for recovery of debt in:

Which of the following is a reason for Legislative and Regulatory Controls of the banking industry in Malaysia?

A company preparing the business accounts and the form in which they are reported must adopt certain accepted rules known as:

Which form of title confers indefeasible ownership of the land to the person or entity?

Which of the following is a component of the CAMPARI model?

Which of the following processes will alleviate the land charge from being invalidated through forgery?

What is one attribute of good security?

Which of the following are some of the MOST commonly adopted accounting principles?

In analysing the cash flow statement, which of the following is the numerator when computing the debt service ratio?

Banks prefer shares of public listed companies as security because:

Which of the following statements relates to the alienation of land?

What do the two "A" represent in the CAMPARI acronym?

In loan origination, the credit officer commences with defining a written report by identifying the target market’s risk asset acceptance criteria (RAAC) based on the:

Why should the lender ensure that legal documentation is in proper order?

When a non-salaried individual borrower applies for a term loan, the credit officer should request the following financial information:

Which denominator is common to the computation of debt-asset and equity ratios?

The KEY factor to consider when evaluating the “Capacity” component of 5Cs framework at loan origination is:

Which of the following statements is TRUE in respect of the rights under a Power of Attorney granted to a bank?

The banking industry in Malaysia is regulated by: respect of the banking system?

Which of the following situations would render a guarantee superfluous?

A business customer has a share capital of RM1.0 million. It is 40%-owned by XYZ Berhad and eight other individuals, all of whom are not permitted to sell their shares to parties other than existing shareholders. Based on the above description, the customer is MOST likely a:

Definition of a single customer and the credit exposure to various customers groups is addressed by Bank Negara Malaysia's guidelines under:

Under the National Land Code 1965, the maximum tenor of lease granted by the state authority in Peninsular Malaysia is:

Mr. Remy submitted a loan application to Mega Bank to purchase a shophouse worth RM500,000. He enquired on the level of financing available. The credit officer indicated that banks seldom grant 100% financing. Ultimately the credit decision including the percentage of financing would depend on the assessment of Remy’s overall credit risk profile. Which component of the CAMPARI model does this scenario MOST appropriately relate to?

Which legal documents apply when securing properties where individual titles have not been issued?

Which of the following is correct in respect of a normal partnership?

Which of the following represents unproductive lending?

Which statement BEST illustrates the difference between the 5Cs Credit Risk Assessment Framework and the CAMPARI model?

Which of the following is the numerator in the computation of the dividend cover ratio?

Which statement on the Malaysian financial system is TRUE?

Which of the following correctly describes Bank Negara Malaysia’s key responsibilities?

Osman Sdn Bhd, an active trading company has been accumulating reserves derived from high profits since inception except for the last two years. What would be a MAIN risk concern to the lender?

Which of the following is a positive covenant?

Axim Bhd's earnings yield in 202X was 5.3%. If the market price was RM2.80 per share, which of the following statements is TRUE?

Company BBB Sdn Bhd (CBSB) is confident of returning to profitability with further productivity improvement and imposition of cost-cutting measures. In addition, CBSB has revalued upwards of two of its properties, located in the Klang Valley, Malaysia. CBSB has also provided guarantees for RM3million to support the borrowing of its subsidiary. Based on the above information, which of the following statements is CORRECT?

Axiom Bhd paid half-yearly dividend per share of 5 sen each time, to ordinary shareholders. As at 31 May 202X, the market price was RM3.85 per share. Calculate the annual dividend yield.

Which of the following describes the key features of an indemnity:

Which of the following demonstrates the shareholders' financial commitment to the lender?

Which of the following Acts was repealed with the introduction of FSA 2013?

In assessing the non-financial variables of a company, Character represents an important factor as it determines the:

Which of the following is an external auditor's qualified opinion?

Joint and several guarantee is BEST described as:

Under the pertinent financial services regulations, which of the following is normally under Bank Negara Malaysia's purview?

The formation of a management corporation with powers to collect financial contributions for the maintenance of common areas is part of the law on the issuance of:

Which of the following relates to the accounting equation principle?

Term life policy provides:

Why is it necessary for the credit officer to be familiar with the characteristics of different borrowing entities?

Corporate governance is not legally binding but is strongly encouraged to ensure the banks are

Manufacturing based on confirmed orders only is considered a prudent business practice in some industries. What risk is mitigated by this modus operandi?

Sinaran Sdn Bhd (SSB) located in Ipoh, Malaysia, is a resident company enjoying credit facilities with a local bank. It exports finished products to Europe denominated in USD and raw materials are sourced from Indonesia in USD as well. SSB plans to raise USD financing from a bank in Indonesia. Under the Foreign Exchange Administration (FEA) Rules, is this allowed?

The loan recovery process for a debt owed by a company that has ceased business includes:

What is the purpose of a loan agreement?

What are the leading indicators of economic recovery?

Which of the following is an explicit reason for imposing legislative and regulatory controls in respect of the banking system?

Which of the following quantitative information is essential to evaluate a business loan application?

A valuation method that applies the market-supported yields to projected future cashflow to arrive at a present value indication is referred to as the:

Which phase of the industry cycle is characterised by improving profits, low competition, and increasing demand?

In assessing the credit risk of an existing borrower, which of the following is an indication of a red flag?

Which quadrant in the diagram reflects the borrower's willingness to repay but not the means?

Which component of the cash flow statement examines the effects of the company's strategic decisions such as capital expenditure?

Unavailability of complete information when processing a loan application could result in:

Identify one core principle of the Professional Code of Conduct for Banking Executives?

One key change introduced by Bank Negara Malaysia's standards on Corporate Governance issued in August 2016 in respect of the banking industry covers:

Describe the 5 phases of credit risk process cycle in sequential order when assessing a loan request:

Which of the following is under the three broad categories of credit related provisions of Financial Service Act 2013?

Mosaic theory is related to which of the following financial analysis?