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Questions and Answers
What percentage of capital should the CLR's for NPLs be approved by the MD/CEO?
What is the purpose of introducing an incentive program for RU?
What is the last resort to recover credit from a defaulted borrower?
What is the role of RM in the credit operations process?
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What is the purpose of Credit Risk Grading (CRG)?
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What is the role of CAD in the credit operations process?
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What happens to substandard (SS) or worse accounts?
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What is the purpose of the Early Alert Process?
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What is the primary goal of analyzing the aggregate demand of a proposed product or service?
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What is the purpose of analyzing the company's external or macro-environment?
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What is the primary objective of industry analysis?
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What is the key analytical tool used in industry analysis?
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What is one of the factors considered in analyzing the market?
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What is one of the components of the company's internal or micro-environment?
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What is the purpose of estimating the project's market share?
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What is one of the aspects of marketing analysis?
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What was introduced in 2011 to minimize environmental risk?
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What is the purpose of the environmental due diligence checklist?
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What should banks do with high rated projects according to the ERM guideline?
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Why do banks need to establish a database of NPLs due to environmental reasons?
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What is the frequency of reporting required by the ERM guideline?
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What aspect of a project is very important for assessing its feasibility?
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What is the purpose of evaluating technical feasibility of a project?
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Why is socio-economic aspect considered while assessing the viability of a project?
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What is the primary output of the project?
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What is the main competitive strength of Bangladesh in producing solar power?
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What is one of the government policies supporting the project?
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What is the project pioneering in?
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What is one of the opportunities for the project?
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What is one of the benefits of the project?
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What is essential for the project's success?
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What type of project is M/s.Beneco Solar Energy Ltd.?
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What is the total cost of goods manufactured in 2019?
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What is the closing stock of finished goods in 2018?
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What is the raw materials used in 2017?
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What is the cost of goods sold in 2017?
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What is the opening stock of work-in-process in 2018?
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What is the manufacturing cost in 2019?
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What is the cost of goods available for sales in 2018?
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What is the closing stock of raw materials in 2019?
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What percentage of the total assets of all commercial banks of Bangladesh is comprised of loans and advances?
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What is the significant revenue generating source of banks?
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What is the primary objective of managing credit portfolio?
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What is the primary goal of disbursing quality credit to all types of business and segments of the population?
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What is the single most potentially devastating risk that arises from the loan portfolio of banks?
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What is essential for maintaining a good credit portfolio?
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Why is it important for banks to have a well-defined credit policy?
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What is the primary objective of banks in their lending activities?
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What is the total demand for oil consumption in the country?
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What is the production capacity of M/s. Emerald Oil Industries Ltd.?
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What are the advantages of rice bran oil over its substitute products?
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Who are the target customers for the project?
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What is the brand name under which the project's products are manufactured and supplied?
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What is the purpose of Cash Flow from Operations?
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What is the project's plan for its products in the near future?
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What is an example of Cash Inflows in Cash Flow from Operations?
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What is the current use of rice bran?
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What does the project help the nation achieve?
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What is Cash Flow from Investing?
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What is an example of Cash Outflows in Cash Flow from Investing?
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What is the purpose of Cash Flow from Financing?
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What are the three main categories of cash flows?
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What is an example of Cash Outflows in Cash Flow from Operations?
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What is the purpose of analyzing Cash Flow statements?
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What does a higher value of Days Inventory Outstanding (DIO) indicate?
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What does a lower Sales to Total Assets ratio indicate?
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What is the Rule of Thumb for the Current Ratio?
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What does a Quick Ratio of 1:1 indicate?
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What is the purpose of the Current Ratio?
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What does a higher value of Inventory in Days indicate?
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What is the purpose of the Quick Ratio?
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What does a higher value of Sales to Total Assets indicate?
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What is the total cost of goods available for sales in 2019?
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What is the closing stock of finished goods in 2019?
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What is the raw materials used in 2019?
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What is the cost of production/ manufacturing cost in 2018?
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What is the opening stock of raw materials in 2019?
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What is the cost of goods sold in 2019?
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What is the closing stock of work-in-process in 2019?
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What is the manufacturing cost in 2017?
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What is a major challenge for a bank in disbursing quality loans?
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What has changed the banking business environment significantly?
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Why is it important for banks to have a strong credit culture?
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What is a key aspect of managing a quality loan portfolio?
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What is a recent trend in the banking industry?
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What is a major factor contributing to the increasing competition in the banking industry?
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What is a key objective of banks in managing their credit portfolio?
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What is a result of the expansion of financial services in recent times?
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What dimension of financial health is primarily important to a short-term creditor, such as a bank?
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What do financial statements provide information about?
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What is the purpose of financial statement analysis?
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What is the primary concern of a long-term creditor, such as a bondholder?
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What is the primary interest of stockholders when assessing a company's financial health?
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What do financial statements reveal about a company's past performance?
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What is the primary objective of financial statement analysis?
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What is the primary focus of financial statement analysis?
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What is the purpose of credit planning at the regional or branch level?
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What is divided into different sub-sectors in credit planning?
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What is an example of a major sector in credit planning?
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What is the purpose of determining the command area of a region or branch?
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What is Table 2.1 in the study material?
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What is the purpose of finding out the major sectors of the economy in credit planning?
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What is an example of a sub-sector in credit planning?
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What is the role of the regional/zonal office in credit planning?
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What do growth ratios, such as sales growth and assets growth, measure?
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What is the formula for calculating sales growth?
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What does a higher value of net sales growth indicate?
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What is the rule of thumb for total liabilities growth?
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What does profitability ratio indicate?
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What is compared in profitability ratio?
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What is the purpose of growth ratios?
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What does a higher value of net worth growth indicate?
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What is the estimated total cost of the project according to the entrepreneur?
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What is the annual production capacity of the company?
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What is the price per ton of thread?
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What is the annual operating cost excluding depreciation?
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What is the interest paid on the previous loan taken from a local bank?
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What will be the value of the equipment that can be sold at the termination of the project?
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What is the recovery of working capital possible at the termination of the project?
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What is the tax rate on the company's income?
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What is the primary interest of a short-term creditor, such as a bank, when evaluating a borrower's financial health?
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What do financial statements provide information about?
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What is the purpose of financial statement analysis?
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What do long-term creditors, such as bondholders, look at when evaluating a company's financial health?
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What is the purpose of analyzing financial statements?
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What is the primary purpose of financial ratios in financial analysis?
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What do growth ratios, such as sales growth and assets growth, measure in financial analysis?
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What is the benefit of using ratio analysis in financial analysis?
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What is the relationship between two financial statement items expressed in a ratio?
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Why is it important to evaluate a company's financial performance using ratio analysis?
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What is the primary objective of a loan proposal?
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What should a loan proposal effectively address?
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What questions should one constantly ask himself while writing a loan proposal?
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What is the purpose of a loan proposal?
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What should a loan proposal contain?
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What is a key benefit of QVC's 1st mover advantage in manufacturing the product?
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What is a critical success factor for QVC in maintaining strong liaison with customers and suppliers?
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What is the primary advantage of QVC's manufacturing process?
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What is a major opportunity for QVC in the near future?
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What is the current trend in the demand for QVC's products?
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What is the main purpose of financial appraisal?
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What does SWOT analysis represent?
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What is the purpose of industry analysis?
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What is the primary purpose of financial statement analysis?
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What is the primary objective of managing credit portfolio?
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What has led to increased competition in the banking industry?
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What is a major challenge for a bank in disbursing quality loans?
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What has changed the banking business environment and given it a new shape?
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What is the primary goal of disbursing quality credit to all types of business and segments of the population?
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What has expanded rapidly in recent times in the banking industry?
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What is a key aspect of managing a quality loan portfolio?
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What has remodeled the banking business operation, particularly credit operation?
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What is the primary concern of banks when introducing new financial products?
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What is the focus of banks in addition to financial inclusion?
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What is a major sector in the banking industry that has seen significant changes?
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What is considered by the bank before finalizing the loan structure?
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What is determined after the bank considers the socio-economic aspect of the project?
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At what point are the loan structure, price, tenure, and nature finalized?
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What is analyzed based on historical and projected data?
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What happens if the bank is satisfied with all aspects of the applicant?
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What is the primary purpose of Internal Credit Risk Rating System (ICRRs)?
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What is the primary focus of credit risk assessment and decision making in banks?
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What is one of the core functions of Internal Credit Risk Rating System?
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What is the role of RM in the credit operations process?
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In case of loan syndication, what do participatory banks do besides the lead bank?
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What should be used when the borrower is in multiple lines of business?
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Who has the authority to sanction/approve loans?
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What is the key reference for credit risk assessment and decision making in banks?
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What happens if the right sector or industry is not selected in Internal Credit Risk Rating System?
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What is the purpose of Internal Credit Risk Rating System?
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What should the bank do as a last resort to recover the credit from a defaulted borrower?
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What is the purpose of the Credit Risk Grading (CRG) in the credit appraisal process?
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What should be done with substandard (SS) or worse accounts?
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What is the purpose of the Early Alert Process in credit operations?
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What should be done with the approved loan proposal?
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What is the primary goal of a bank in the credit selection process?
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What is the purpose of credit investigation in credit risk management?
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What is the consequence of sanctioning a bad credit according to the text?
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What is the relationship between preventive measures and curative measures in credit risk management?
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What is the outcome of a successful discussion between the banker and the customer?
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Who is responsible for classifying accounts and maintaining required provisions according to the credit policy?
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What is the primary responsibility of the Recovery Unit (RU) in a bank?
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Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?
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What happens to substandard (SS) or worse accounts?
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What is the primary objective of the Recovery Unit (RU) in managing NPLs?
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What is the primary role of the Credit Committee/CRM in a bank?
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What is the purpose of the procedural guidelines in a bank's credit operations?
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Who acts as a primary bank contact with a borrower in a bank?
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What is the outcome of the credit operations in a bank?
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What is the basis of the procedural guidelines in a bank's credit operations?
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What is the primary purpose of the environmental due diligence checklist?
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What is the requirement of banks according to the ERM guideline?
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What is the role of the Board in the ERM guideline?
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What is the trend of rated projects over the years?
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Why is environmental risk rating important from a credit management point of view?
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What is the purpose of the Guideline for Environment Risk Management introduced in 2011?
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What is the frequency of reporting environmental risks according to the ERM guideline?
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What is the primary responsibility of banks in the ERM guideline?
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What is the requirement of banks regarding high rated projects according to the ERM guideline?
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What is the importance of environmental risk management in green banking policy?
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What is the primary reason behind the borrower's failure to repay the loan installments?
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What action has the Bangladesh Bank (BB) directed the bank to take against the officers involved in re-scheduling the loan?
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What is the current status of the sweater unit of the project?
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What amount of BMRE loan was disbursed on 09.02.2004 for proper balancing the project?
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What is the scheduled repayment period of the loan amount of Tk. 41.795 million?
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What is the primary purpose of credit investigation in the credit operations process?
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What is the consequence of sanctioning a bad credit according to the text?
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What is the primary focus of the relationship manager (RM) in the credit operations process?
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Why is credit investigation considered a preventive measure in the credit operations process?
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What is the primary objective of selecting good borrowers in the credit operations process?
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What is the term used to describe the borrower when assessing credit on a consolidated or group basis?
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Who is responsible for classifying the accounts and maintaining required provisions as per credit policy?
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What is the purpose of the Internal Credit Risk Rating System (ICRRs) in credit risk management?
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Who performs independent assessment, analysis, and review of terms of the syndicate loan in loan syndication?
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What is the primary responsibility of the Recovery Unit (RU)?
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What is the key reference for credit risk assessment and decision making in the Internal Credit Risk Rating System?
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Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?
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What is the dynamic process that the management of Non-Performing Loan (NPL) must be?
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What is the primary benefit of using the Internal Credit Risk Rating System in credit risk management?
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Who serves as the primary customer contact after the account is downgraded to substandard or worse?
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What is the primary purpose of Internal Credit Risk Rating System in banks?
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What is the authority to sanction/approve loans delegated to by the Managing Director (MD)/Chief Executive Officer (CEO) and Board of Directors (BOD)?
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What should be used in ICRRS if the borrower is in multiple lines of business and no particular line of business can be singled out?
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What is the primary responsibility of the Recovery Unit (RU) in a bank?
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What is the primary purpose of credit approval in banks?
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What is the last resort to recover credit from a defaulted borrower?
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What is the primary objective of credit recovery in banks?
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What happens to substandard (SS) or worse accounts?
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What is the purpose of introducing incentive programs in credit recovery?
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Who approves CLR’s for NPLs above 25% of capital?
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What was the primary reason for the bank's failure to recover the credit from Mr. Monir?
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What was the outcome of the bank's efforts to reach Rahela at her mobile number and resident address?
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What was the reason for Mr. Monir's inability to make payments towards the loan?
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What was the response of Rahela when the bank sent a legal notice to her permanent address?
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What was the mistake made by Mr. Monir during the loan application process?
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What was the outcome of the bank's investigation regarding Mr. Monir's identity?
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What was the reason for the bank's failure to recover the credit from Mr. Monir?
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What was the role of Rahela in the loan application process?
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What was the outcome of the bank's efforts to recover the credit from Mr. Monir?
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What was the significance of the voter ID card in the recovery process?
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What is the primary responsibility of the RM in credit monitoring?
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Who is responsible for approving the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?
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What is the primary focus of the Recovery Unit (RU) in managing NPLs?
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What is the primary responsibility of the account manager in the Recovery Unit (RU)?
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What is the primary goal of the Recovery Unit (RU) in managing NPLs?
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What is the purpose of transferring substandard (SS) or worse accounts from RM to RU?
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What is the primary objective of the incentive program that the bank may introduce for RUs?