FIN367 Ch1 - Foundations of Bank Lending PART 1

Front

Anika is considering enrolling in a course that focuses on various aspects of finance. What is the primary focus of the course outlined in Chapter 1?

Back

Bank Lending Business

Front

Which of the following is NOT a part of the Credit Process Cycle: Approval, Origination, Settlement?

Back

Investment

Front

What does the Basel Framework pertain to?

Back

Banking Regulations

Front

Which act should Charlotte refer to for guidance on bank credit regulations in Malaysia for her new business venture?

Back

Banking Act 1987

Front

What is the purpose of loan monitoring for Mason, who recently took out a personal loan?

Back

To ensure compliance and repayment

Front

After receiving a loan to start his bakery, Noah began taking excessive risks with his business decisions. What does this behavior illustrate in banking?

Back

Increased risk-taking after loan approval

Front

Nora is applying for a loan to start her own business. Which of the following is a component of the 5Cs of Credit Analysis that the bank will consider? Character, Cost, Capitalization, Collateralization

Back

Character

Front

What is 'adverse selection' in lending practices?

Back

Lenders selecting high-risk borrowers.

Front

In a bank, what is the role of the Credit Risk Committee when evaluating loan applications from customers like Evelyn and Michael?

Back

To review and make final decisions on credit proposals

Front

Scarlett is researching different lending approaches to understand what lenders might use to evaluate her application. Which of the following is NOT a lending approach mentioned? Risk Assessment, Financial Rating, Credit Judgement, Credit Scoring

Back

Risk Assessment