Which clauses in the "object clause" of the company's Memorandum of Associates need to checked by lenders?
I. The nature of business the company can engage
II. The directors will be form a Board of Directors
III. The shareholders liability is limited to the extend of the company's issued share capital
IV. To see if there is any mention of specific restrictions against borrowing or charging of company assetÂ
V. Collateral
A company shows the following
Which statements are correct?
I. Profitability improved
II. Liquidity weakened
III. Company has strong cash flow
IV. Supplier dependency increased
A borrower reports strong profits but repeatedly delays loan repayments. What is the most likely explanation?
A bank grants financing secured by:
- Fixed depositÂ
- Debenture over company assets
- Personal guarantee by director
Which statements are true?
I. Debenture is corporate security
II. Personal guarantee is a secondary security
III. Fixed charge provides security over specific assets
IV. Guarantees eliminate repayment risk entirely
Which of the fundamental credit risk management principles concerns with proper structuring of the facilities to ensure loans are used for intended purposes?
Which of the following are not categorised as a form of security?
I. Lien
II. Power of attorney
III. Assignment
IV. Loan agreement
Section 93, restricts creation of a change over shares of licensed institution without BNM approval because
Annual Report is comprehensive compilation of accounting and legal information regarding the company's business results for the year just ended. Those information are:
I. Director's Information
II. Auditor's Information
III. Financial Information
IV. Non-Financial Information
What does "Resident" means?
Which are considered early warning signs of the credit deterioration?
I. Frequent excesses beyond limit
II. Retuned cheques
III. Delayed financial statements submission
IV. Stable profitable growth
Which of the following is not true about Qualified Title?
Section 133 imposes a duty of a secrecy on licensed persons. Which statement is TRUE?
Which of the followings are considered as Blacklists System?
I. Dishonoured Cheques Information System (DCHEQS)
II. Official Assignee's List of Bankrupts
III. CCRIS
IV. RAM Credit information
What is the current bankruptcy threshold under the Insolvency Act 2017 (as amended)?
The 5C's of credit will take the following sequence if ranked according to importance
I. Character
II. Capital
III. Capacity
IV. Conditions
V. Collateral
Which of the following is not a management style?
A customer applies for farm financing to purchase machinery expansion.
The banker observes:
- The company has profitable operations
- Existing borrowings are already highly leveraged
- Directors provide additional collateral
- Expansion purpose is clearly identified
Which CAMPARI elements are MOST positively demonstrated?
I. Purpose
II. Ability
III. Margin
IV. Insurance/Security
What is the purpose of adjudication of the memorandum of transfer?
Company uses cash to pay Long Term Bond. The effect on current ratio and assets turnover ratio are
Which of the following is Integrated Analysis?
Which of the following is the responsibility of the Board under Fit and Proper Guidelines?
Under what circumstances lenders might consider taking an equitable charge?
I. As additional comfort
II. Additional borrowing extended to chargee
III. Only for short-term exposure
IV. Cash deposit as collateral
Which is not part of the usual documentation process for Charge?
Bank Negara Malaysia issues prudential standard under Sections 47-48 primary to:
The first commercial bank established in Malaysia was __________
XYZ Manufacturing Sdn Bhd applies for RM5 million working capital financing.
The credit officer notes the following:
- Sales increased by 20% annually for 3 years
- Trade receivables collection period increased from 45 days to 95 days
- Inventory turnover slowed significantlyÂ
- Current ratio declined from 1.8x to 0.9x
- Directors are experienced in the industry
Which TWO factors are most significant credit concerns?
I. Increasing sales trend
II. Weak liquidity position
III. Experienced management
IV. Deteriorating working capital cycle
A low debt-to-equity ratio usually reflects
Statement of Cash Flow indirect format start with
A sudden increase in trade receivables may indicate
Which of the following is a requirement under AMLA?
A court order obtained by a judgement creditor to attach funds owned by third party to judgment debtor is known as
Understanding the Capital Investment Cycle of borrower's business is equivalent to understanding
I. Estimated costs of the machines
II. estimated economic life spam of the fixed assets
III. Specific assets needed by the borrower
IV. Working Capital Requirements of the business
Accumulated profits generated by the company over the years and not distributed to shareholders as dividend or bonus share is called
One of the following instruments is not a type of property dealings
Purchase of machinery is shown in the Statement of Cash Flow as
An increase in inventory without corresponding sales growth may be a red flag because
Who is the owner of the Limited Liability Companies?
The credit process is generally divided into following sequence.
I. Credit risk analysis and structuringÂ
II. Loan and security documentationÂ
III. Defining a written reportÂ
IV. Loan monitoring and control
What is the main objective of the Credit Guarantee Corporation Malaysia Berhad?
For the purpose of credit assessment, the first step to reviewed by credit officer is
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
Which of the following is not the principle of credit risk management?
Which parties generally have legal capacity to borrow?
I. Sole proprietorshipÂ
II. Minor below 18 years old
III. Registered company
IV. Partnership firm
As credit officer, which concept is important to understand whilst through ECM?
Which of the following are recognised as keepers liquidity?
Which of the statements are true with regard to partnership?
I. Is not legally separate entity and has no continuity of existence
II. Personal guarantee of partners is redundant
III. An incoming partner will only be liable for debts created after his/her admission as a partner
IV. The outgoing partner is liable for new debt incurred after his/her resignation
Creative accounting is probably the most common business fraud which include
I. Cover up losses
II. Diversion of funds
III. High dividend decreation
IV. Capitalisation of uncoverable expenses
The following are considerations governing selection and application of accounting policies in a firm
I. Prudence (Discretion)
II. Objectively
III. Substance over form
IV. Materiality
Identify the statements which are true
I. Deposit of title with a lending bank creates security interest
II. The advantage of the lien-holder caveat is no stamp duty payable
III. Both private and lien-holder caveat require judgement prior to foreclosure
IV. A charge over a sole proprietor for a loan to the business is considered third party charge
Which of the following statements is FALSE about preference shares
Which of the following is true with regard to a private exempt company?
I. A company does not have corporate shareholders
II. Total number of shareholders is not more than 20
III. Enjoy tax exemption for a period of 5 years
IV. Owns less than 20% of issued shares of another company
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
Which ratio best assesses a company to pay interest from operating profit?
Which of the following is true about "Collateral"?
I. The least important factor among 5 Cs
II. To compensate for any weakness of other Cs
III. Is intended to provide lenders with more comfort
IV. Is a (second) way out, not the first way out
Which of the followings are mandatory report required by the Company Act?
I. Chairman's Report
II. Director's Report
III. Activities Report
IV. Auditor's Report
A relationship manager recommends approval of financing for a company owned by his brother without disclosure. Which statement are CORRECT?
I. Conflict of interest exists
II. The officer breached ethical standards
III. Approval may still proceed with proper disclosure
IV. Family relationships are relevant in banking decisions
Which of the following is the function commercial banks?
Under BNM's "Classification and Impairment Guideline", a loan is considered impaired when
Which of the following is not accounting doctrines?
Which of the following is resident?
The prime objective of development finance institution is to provide _________
One key principle of BNM's Credit Risk Management Guidelines is that
Under Doctrine of Conservatism, which statement is correct?
Rescheduling involves one of the following actions
Which document is used in progressive financing for handling under the HDA?
The same securities can be taken in different firms, For examples, shares can be taken as a security by way of
I. Assignment
II. Pledge
III. Charge
IV. Hypothecation
Combining the Operating and Capital Investment Cycles will enable the credit officers to derive a
Who is the owner of the company?
Which of the following are part of the objectives of credit verification?
I. Ensuring compliance with regulations and bank's lending policies
II. Ascertaining the genuineness of the information provided by the borrower
III. Obtaining additional information to create cross-selling opportunity
IV. Conducting the process in an efficient and cost-effective manner
A borrower requests overdraft facilities. The following is observed:
- Frequent cheque returns
- Existing loans classified under Special Mention Account
- Declining industry outlook
- Customer has strong collateral coverageÂ
Which factor should concern the banker most?
All the following are considered as landed property except
Terms that require the borrower and to cause certain actions or events to happen are known as
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
Which of the following approach in valuation is considered most reliable when used on newer structure, but tends to become less reliable for older properties?
What are the main areas of materiality that the accounting doctrine of materiality is concerned with
I. Materiality of information's
II. Materiality of time
III. Materiality of amount
IV. Materiality of importance
Which of the followings provide lead information for credit analysis?
I. CCRIS
II. CCM
III. CTOS
IV. BMC
The key areas of Statement of Financial Positions analysis are
I. Assets Consistency
II. Short-Term Solvency
III. Long-Term Financial Stability
IV. Level of Gearing
A company's debt-to-equity ratio increased from 1.2x to 3.8x. Which statements are most appropriate?
I. Financial leverage increased
II. Financial risk increased
III. Liquidity automatically improved
IV. Company depends more on borrowings
Under Section 50, the purpose of limiting exposure to a single counterparty is to
Which of the following best describes a related party transaction under Section 47(2)(e)?
June 17, 2026
