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

Name

In CAMPARI, the ‘C’ stands for:

Capacity

Collateral

Character

Conditions

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

Credit Risk

Fraud Risk

Default Risk

Information Risk

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

Encourage mergers among financial institutions

Promote financial inclusion

Ensure banks lend more to SMEs

Limit excessive credit exposure to a single borrower or group

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

Qualified Audit Report

Positive Nettworth

Heavy use of open-ended account

Undisclosed creditors and liabilities in loan applicant form

Which of the following best describes a Code of Ethics?

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

Set of checklist for compliance with rules and regulation

An example of a money market instrument is:

Treasury bills

Preference shares

Equity shares

Sukuk

Foreign Exchange Administration (FEA) Rules are administered by

Labuan Financial Services Authority

Companies Commission of Malaysia

Bank Negara Malaysia

Security Commission

Verification of credit information from internal bank records is considered:

External verification

Primary source

Non-reliable

Secondary source

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

I and II only

III and IV only

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

Proven and markets are established

More competitors overcrowd the industry and profit margin drops

Industry is clearly viable and making good progress with strong profit

Competitors leave the industry and force to close shop

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

II and III

I and II

All the above

I, II and III

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

All the above

I and II

I, II and III

II and III

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

When necessary for due diligence in a merger

When required by Bank Negara Malaysia

When required by a court order

When requested by another bank for marketing purpose

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

Sole Proprietorship

Public Limited Company (Bhd)

Co-operation Society

Private Limited Company (Sdn Bhd)

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

Enable government to invest in Islamic Banks

Allows Islamic bank to issue Islamic bonds

To enable Islamic Bank to comply with statutory reserve requirements

Empower government to issue government Investment Certificates on Islamic basis

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

Subsidiary Company

Associates Company

Holding Company

Related Company

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 ________

Steady growth in housing industry

Establishment of Cagamas Berhad

Bank excess liquidity

Competitive pressure in the banking industry

Verification of company ownership is done via:

BNM website

Income tax return

Form 24, 49, Constitution

MyKad

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

Reduce the Loan Amount

Lengthen the Loan Tenor

Applicant to provide additional security

Shorten the Loan Tenor

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

2 to 20

2 and more

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

Malaysia Industrial Development Finance Berhad

Bank Simpanan Nasional

Bank Kerjasama Rakyat Malaysia Berhad

Export - Import Bank of Malaysia Berhad

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, II and III

I and III

All the above

I, III and IV

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

Margin

Ability

Amount

Purpose

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

Bursa Malaysia

Bank Negara Malaysia

Credit Guarantee Corporation

Securities Commission Malaysia

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

Magistrate Court

High Court

Land Office

Registry Office

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

III and IV

I and II

I only

I and IV

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

Control risk

Eliminate risk

Identify risk

Mitigate risk

Which of the following best defines conflict of interest?

When an employee accepts tasks from multiple departments

When two employees compete for promotion

When personal interests interfere with professional duties

When a manager disagrees with a subordinate

What is typically included in a CCRIS report?

Outstanding credit facilities and payment behaviour

Employment history

Legal cases

Insurance claims

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

The borrower and its background

Commitment for present and future

Collateral and Security arrangement for protection

Financial feasibility and sources of future cashflow

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

Maximize executive compensation

Increase loan disbursement speed

Ensure accountability and protect stakeholder interests

Reduce the size of the Board of Directors

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

Owned by one individual

Unlimited liability

Easy to set up

Seperate legal entity

What is the primary role of the Capital Market System?

Complement banking system in mobilising funds in the economy

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

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

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 A

Category B

Category C

Category D

Which of the following has the characteristic of perpetual succession?

Partnership

Private limited company

Joint account holders

Sole proprietorship

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

Ill and IV only

I and III only

II and III only

I and II only

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

Chartered Mercantile Bank of India, London and China in Penang

First Oversea Bank Ltd

Standard Chartered Bank of India, London and China in Penang

Oversea- Chinese Banking Corporation in Melaka

A winding-up order is most relevant to:

Partnerships

Sole proprietors

Natural persons

Companies

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

Company Act 1965

Payment System Act 2003

DFIA 2002

BAFIA 1989

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	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

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

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

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