Access Bank SBE Trainee Manual - Banking Regulations

<p>To take remedial measures to address identified issues in troubled banks. (D)</p> Signup and view all the answers

<p>They identify potential issues or risks within banks before they escalate. (C)</p> Signup and view all the answers

<p>100% (D)</p> Signup and view all the answers

<p>Facilities with weaknesses related to sub-standard credit facilities and uncertain repayment or insufficient collateral value. (E)</p> Signup and view all the answers

<p>To encourage banks to provide more credit enhancement and mitigation strategies. (B)</p> Signup and view all the answers

<p>Facilities on which unpaid principal and/or interest remain outstanding for 360 days or more, and are not secured by legal title to leased assets or perfected realizable collateral. (B)</p> Signup and view all the answers

<p>To oversee the issuance of legal tender currency and promote a healthy Nigerian financial system (D)</p> Signup and view all the answers

<p>Perfectly realizable collateral that is regularly valued with a transparent method of valuation. (A)</p> Signup and view all the answers

<p>Federal Reserve Bank of the United States (B)</p> Signup and view all the answers

<p>Financial instability and widespread losses for depositors (C)</p> Signup and view all the answers

<p>It presented the first comprehensive regulatory framework for the Nigerian banking system (C)</p> Signup and view all the answers

<p>To ensure financial stability and protect depositors (D)</p> Signup and view all the answers

<p>To pass laws and create a regulatory framework (B)</p> Signup and view all the answers

<p>To regulate the issuance of government securities (D)</p> Signup and view all the answers

<p>Regulations, guidelines, and directives issued by regulatory agencies (B)</p> Signup and view all the answers

<p>Directly overseeing the activities of individual businesses (C)</p> Signup and view all the answers

<p>To manage the country's financial system and ensure its stability (C)</p> Signup and view all the answers

<p>To ensure the Naira remains stable and maintains its purchasing power (A)</p> Signup and view all the answers

<p>The Nigerian Deposit Insurance Corporation (NDIC) (A)</p> Signup and view all the answers

<p>To directly control the prices of goods and services in the country (A)</p> Signup and view all the answers

<p>20% (C)</p> Signup and view all the answers

<p>Directly investing in specific companies to boost their growth (E)</p> Signup and view all the answers

<p>An amount prescribed by the Bank (A)</p> Signup and view all the answers

<p>To influence economic growth and development by directing credit to specific sectors (C)</p> Signup and view all the answers

<p>Fraud or dishonesty (A)</p> Signup and view all the answers

<p>Maintain stability in the foreign exchange market to support international trade (A)</p> Signup and view all the answers

<p>To cover potential losses and expenses (D)</p> Signup and view all the answers

<p>Mandating a specific interest rate for loans to small businesses (A)</p> Signup and view all the answers

<p>An amount specified by the Bank (C)</p> Signup and view all the answers

<p>A bank can have a director who is also a director of another bank, only with the approval of the CBN. (B)</p> Signup and view all the answers

<p>A percentage of their total deposits (A)</p> Signup and view all the answers

<p>To prohibit individuals with questionable integrity from participating in the banking sector. (A)</p> Signup and view all the answers

<p>Providing financial assistance to struggling banks. (C)</p> Signup and view all the answers

<p>To ensure that banks have sufficient funds to cover potential losses. (D)</p> Signup and view all the answers

<p>It helps to prevent bank runs by keeping depositors informed. (A)</p> Signup and view all the answers

<p>To deter future violations of regulatory guidelines. (B)</p> Signup and view all the answers

<p>The corrective actions taken to address existing problems in the banking system. (C)</p> Signup and view all the answers

<p>They represent the minimum standards for bank supervision. (C)</p> Signup and view all the answers

<p>Closure of bank branches. (A)</p> Signup and view all the answers

Laws made by Nigeria’s legislature and regulatory authorities to govern banks.

The National Assembly in Nigeria responsible for enacting banking laws.

The main regulatory authority for banking in Nigeria, established to promote financial stability.

The first substantial banking regulation enacted in Nigeria, introducing licensing for banks.

Period from 1894 to 1952 in Nigeria characterized by no banking regulations.

Legislation that granted the CBN authority to manage currency and ensure sound financial systems.

Regulations introduced in 1952 requiring banks to maintain a minimum financial base to operate.

Created to standardize regulations and institutionalize banking practices in Nigeria.

The process of disguising illegally obtained funds as legitimate.

Actions by a central bank to control money supply and interest rates.

The availability of cash or easily convertible assets in a bank.

International banking regulations focusing on risk management and capital adequacy.

Maintaining consistent currency values for international trade.

Measures to safeguard consumers from financial fraud and unfair practices.

Strategies to identify, assess, and mitigate financial risks.

Banks must maintain specified cash reserves with the CBN.

Banks can declare dividends only after providing for taxes and losses.

Bank officials must reveal personal financial interests in loans.

Banks cannot employ convicted individuals or have overlapping directors across banks.

Banks cannot lend more than specified percentages of their shareholders' funds to a single borrower.

Banks can't provide unsecured loans exceeding set limits to directors and employees.

Loans to staff can't surpass one year's salary or specific amounts set by the bank.

Banks cannot reduce debts owed by directors or significant shareholders without permission.

The process of assessing a bank's risk, management, and resources.

Monitoring banks to ensure safe operations and compliance with laws.

Indicators used to detect a bank's financial distress early.

Immediate measures taken to restore a troubled bank's health.

The role of supervision in ensuring financial stability and safety.

Conditions reflecting uncertainty in debt repayment and collateral values.

Loans unpaid for 360 days or more without secure collateral.

Measurable factors indicating non-payment on loans for an extended period.

Adjustments to loan provisions based on collateral quality and value.

Setting aside funds to cover expected losses on credit facilities.

Best standards for bank supervision worldwide.

Proactive measures to ensure integrity in banking management.

Assessment to exclude individuals with questionable integrity from banking.

Minimum capital requirement relative to a bank's risk-weighted assets.

Ongoing oversight through on-site and off-site evaluations.

Banks must disclose financial results to ensure transparency.

Regulatory penalties for non-compliance in banking.

Actions to correct and restore confidence in banks.