Lending Operations & Risk Management Questions, November, 2010

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Lending Operations & Risk Management Questions, November, 2010

Posted by Ripon Abu Hasnat on Tuesday, September 16, 2014 | 0 comments

THE INSTITUTE OF BANKERS, BANGLADESH
Banking Diploma Examination- November, 2010

LANDING OPERATION AND RISK MANAGEMENT
[N.B. All questions are of equal value. Answer any five questions.]

1. a) Discuss the important components those arc to be taken in the consideration in formulating the lending operational policy of a bank.

b) List down the activities those are financed as included in the credit port-folio of your bank.

2. a) Distinguish between term credit and short-term credit. Why do the private commercial banks prefer short term lending? Explain.

b) Do you think that National economy will not flourish if all banks do not equally participate in financing the long-term investment projects? Elaborate your answer.

3. a) Discuss the importance of working capital loan for running an industrial project.

b) How would you assess the working capital requirement of a poultry industry? Prepare a case study assuming 5000 (Five thousand) birds in the poultry firm.

4. a) What do you mean by credit planning? What factors are to be taken into consideration while making a credit plan for a bank?

b) Discuss the important points to be looked into while selecting a prospective good borrower.

5. a) What do you mean by project appraisal? During appraisal of a project loan proposal, what factors does a banker take into consideration? Please explain.

b) Mr. Ali an entrepreneur of your branch area applied for a loan of Tk. 5,00.000 (five lakh) to establish a SME business to your branch. Please write an appraisal report explaining the following points:-

a) About the entrepreneur; b) Enterprise; c) Security; d) Credit need; e) Marketing aspect; I) Managerial ability; g) Recommendation.

6. a) What is fund flow? Discuss the importance of fund flow statement for a bank.

b) Discuss the differences between fund flow and cash flow statement. Please write a sample of a cash flow statement.

7. a) Explain why core risk management is getting so much highlighted for proper financing of a bank.

b) Explain different aspects of credit risk grading (CRG) with grading points.

a) Distinguish between flan write-off and loan rescheduling.

b) Discuss loan re-scheduling rules set by Bangladesh Bank.

9. Write snort notes on any five:‑

a) Debt; equity Ratio;

b) Non-Performing Asset;

c) Loan pricing;

d) Break-even Point;