Certificate in Credit T7 - 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, II and III

II and III

I and II

All the above

FSA 2013 & IFSA 2013 were introduced to modenise and strength the regulatory framework for financial sector in Malaysia. Which among the following Acts were repealed by IFSA 2013?

I. BAFIA 1989
II. Islamic Banking Act 1983
III. Exchange Central Act 1953
IV. Takaful Act 1984

II, III and IV

I and II

II and IV

All the above

FSA 2013 and IFSA 2013 amalgamate several separate laws to govern the financial sector under single legislative framework for the conventional and Islamic financial sector respectively. Which among the following were repealed under Sec. 271 FSA 2013?

I. BAFIA 1989
II. Insurance Act 1996
III. Payment System Act 2003
IV. Exchange Central Act 1953

I, II and III

I and III

I and IV

All the above

Section 2, FSA 2013 define "Credit Facility" as:

I. Giving pre-approved loan which allows the borrower to borrow money on an ongoing basis over an extended period of time
II. Giving of any advance. Loan or other facility in whatever form or by whatever name called
III. Giving of a guarantee
IV. Any other dealing of transaction as prescribed under Sec. 4 FSA by BNM with the concurrence of the Finance Minister

I and II

All the above

I, II and III

II, III and IV

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

I, II and III

All the above

II, III and IV

I and III

Which of the provisions under FSA 2013 categorised as obligation of directors officers?

Sec. 50 Exposure to Single Counterparty

Sec. 133 Banking Secrecy

Sec. 248 Offences in relation to entries in Documents

Sec. 87 Taking Share of Licensed Person as security

The credit related provision of then FSA 2013 can be categorised into 3 areas namely:

Granting of Credit
Obligations of Directors and Officers
Contravention and Offence

Which of the following provisions are categorised under Granting of Credit?

Related Party transaction Sec. 47 (2)(e), Exception to Secrecy Requirement Sec. 143 and Liabilities of Officers Sec 241

Prudential Standard Sec. 47 and Exposure to a Single Counterparty Sec. 50

Offences in Relation to entries in Documents Sec. 248 and Liabilities of Officers Sec 241

Banking Secrecy Sec. 133 and Permitted Disclosure Sec. 134

Under Sec. 133 of FSA 2013, Secrecy and Restriction on Disclosure, which of the following is true regarding banking secrecy?

Customer information can be disclosed freely to other departments within the bank

Disclosure is allowed to anyone within the customer's verbal consent

Banking secredy only applies to licensed not insurers

Any person who has access to customer information must keep it confidential

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 required by a court order

When requested by another bank for marketing purpose

When necessary for due diligence in a merger

Sec. 87 of FSA 2013, apply to a person taking shares of a licensed person as security for a loan if:

The security is only for less than 5 years

The person become ad director of the

The security creates a beneficial interest exceeding 5%

The borrower is enable to repay the loan

Under BNM Guidelines related to Sec. 50 of FSA 2013, the Single Counterparty Exposure Limit (SCEL) is generally capped at

25% of total Capital

10% of total Capital

10% of loan Portfolio

5% of total Assets

Under Sec. 270 of FSA 2013, if a financial institution breaches a provision of the Act, what is the effect on contracts or agreements it has been entered into?

All contracts automatically become VOID

The customer may claim double payment

The breach does not effect the validity or enforceability of the contract

The contracts are unenforceable by customers

One of the 4 areas covered by BNM Guidelines on Best Practices for teh management of Credit Risks:

Classification and Impairment for Loan

Definition risk assets for determining Capital Adequacy and Liquidity Reserve

An integrated risk management process

Prudential Limits and Standard

Financial Institutions must classify a loan as impaired if:

When the principal or interest or both is past due for 3 months and above

When the loan is classified as non-performing loan

When the principal or interest or both is past due for 6 months and above

When the principal or interest is past due for 3 months and above

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

The total installments in arreas fully paid

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

The total installments in arreas falls below three months

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

Rescheduling / Restructuring of facilities is typically done when:

Customer requests a lower interest

Customer request additional fund to expend business

Loan has been classified as impaired

Borrower's financial condition has deteriorated

The Foreign Exchange Administration (FEA) Rules are important in lending to:

Foreign workers

Promote non-residents have access to financial resources in stable foreign exchange environment

Exporters and Importers dealing with cross border transactions

Prohibit non-residents from obtaining advances offered by Malaysian Financial Institutions

The Anti-Money laundering and Anti-Terrorism Financing Act requires financial institutions to:

Comply with requirements and obligation imposed by BNM

Provide training to bank employee in Risk Management

Report substantial deposits to BNM

Report suspicious transaction and Enhanced Customer Due Diligence

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 II

I and IV

I only

III and IV

Foreign Exchange Administration (FEA) Rules are administered by

Security Commission

Bank Negara Malaysia

Labuan Financial Services Authority

Companies Commission of Malaysia

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