Credit Operations and Risk Management

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?

What is the purpose of Credit Risk Grading (CRG)?

What is the role of CAD in the credit operations process?

What happens to substandard (SS) or worse accounts?

What is the purpose of the Early Alert Process?

What is the primary goal of analyzing the aggregate demand of a proposed product or service?

What is the purpose of analyzing the company's external or macro-environment?

What is the primary objective of industry analysis?

What is the key analytical tool used in industry analysis?

What is one of the factors considered in analyzing the market?

What is one of the components of the company's internal or micro-environment?

What is the purpose of estimating the project's market share?

What is one of the aspects of marketing analysis?

What was introduced in 2011 to minimize environmental risk?

What is the purpose of the environmental due diligence checklist?

What should banks do with high rated projects according to the ERM guideline?

Why do banks need to establish a database of NPLs due to environmental reasons?

What is the frequency of reporting required by the ERM guideline?

What aspect of a project is very important for assessing its feasibility?

What is the purpose of evaluating technical feasibility of a project?

Why is socio-economic aspect considered while assessing the viability of a project?

What is the primary output of the project?

What is the main competitive strength of Bangladesh in producing solar power?

What is one of the government policies supporting the project?

What is the project pioneering in?

What is one of the opportunities for the project?

What is one of the benefits of the project?

What is essential for the project's success?

What type of project is M/s.Beneco Solar Energy Ltd.?

What is the total cost of goods manufactured in 2019?

What is the closing stock of finished goods in 2018?

What is the raw materials used in 2017?

What is the cost of goods sold in 2017?

What is the opening stock of work-in-process in 2018?

What is the manufacturing cost in 2019?

What is the cost of goods available for sales in 2018?

What is the closing stock of raw materials in 2019?

What percentage of the total assets of all commercial banks of Bangladesh is comprised of loans and advances?

What is the significant revenue generating source of banks?

What is the primary objective of managing credit portfolio?

What is the primary goal of disbursing quality credit to all types of business and segments of the population?

What is the single most potentially devastating risk that arises from the loan portfolio of banks?

What is essential for maintaining a good credit portfolio?

Why is it important for banks to have a well-defined credit policy?

What is the primary objective of banks in their lending activities?

What is the total demand for oil consumption in the country?

What is the production capacity of M/s. Emerald Oil Industries Ltd.?

What are the advantages of rice bran oil over its substitute products?

Who are the target customers for the project?

What is the brand name under which the project's products are manufactured and supplied?

What is the purpose of Cash Flow from Operations?

What is the project's plan for its products in the near future?

What is an example of Cash Inflows in Cash Flow from Operations?

What is the current use of rice bran?

What does the project help the nation achieve?

What is Cash Flow from Investing?

What is an example of Cash Outflows in Cash Flow from Investing?

What is the purpose of Cash Flow from Financing?

What are the three main categories of cash flows?

What is an example of Cash Outflows in Cash Flow from Operations?

What is the purpose of analyzing Cash Flow statements?

What does a higher value of Days Inventory Outstanding (DIO) indicate?

What does a lower Sales to Total Assets ratio indicate?

What is the Rule of Thumb for the Current Ratio?

What does a Quick Ratio of 1:1 indicate?

What is the purpose of the Current Ratio?

What does a higher value of Inventory in Days indicate?

What is the purpose of the Quick Ratio?

What does a higher value of Sales to Total Assets indicate?

What is the total cost of goods available for sales in 2019?

What is the closing stock of finished goods in 2019?

What is the raw materials used in 2019?

What is the cost of production/ manufacturing cost in 2018?

What is the opening stock of raw materials in 2019?

What is the cost of goods sold in 2019?

What is the closing stock of work-in-process in 2019?

What is the manufacturing cost in 2017?

What is a major challenge for a bank in disbursing quality loans?

What has changed the banking business environment significantly?

Why is it important for banks to have a strong credit culture?

What is a key aspect of managing a quality loan portfolio?

What is a recent trend in the banking industry?

What is a major factor contributing to the increasing competition in the banking industry?

What is a key objective of banks in managing their credit portfolio?

What is a result of the expansion of financial services in recent times?

What dimension of financial health is primarily important to a short-term creditor, such as a bank?

What do financial statements provide information about?

What is the purpose of financial statement analysis?

What is the primary concern of a long-term creditor, such as a bondholder?

What is the primary interest of stockholders when assessing a company's financial health?

What do financial statements reveal about a company's past performance?

What is the primary objective of financial statement analysis?

What is the primary focus of financial statement analysis?

What is the purpose of credit planning at the regional or branch level?

What is divided into different sub-sectors in credit planning?

What is an example of a major sector in credit planning?

What is the purpose of determining the command area of a region or branch?

What is Table 2.1 in the study material?

What is the purpose of finding out the major sectors of the economy in credit planning?

What is an example of a sub-sector in credit planning?

What is the role of the regional/zonal office in credit planning?

What do growth ratios, such as sales growth and assets growth, measure?

What is the formula for calculating sales growth?

What does a higher value of net sales growth indicate?

What is the rule of thumb for total liabilities growth?

What does profitability ratio indicate?

What is compared in profitability ratio?

What is the purpose of growth ratios?

What does a higher value of net worth growth indicate?

What is the estimated total cost of the project according to the entrepreneur?

What is the annual production capacity of the company?

What is the price per ton of thread?

What is the annual operating cost excluding depreciation?

What is the interest paid on the previous loan taken from a local bank?

What will be the value of the equipment that can be sold at the termination of the project?

What is the recovery of working capital possible at the termination of the project?

What is the tax rate on the company's income?

What is the primary interest of a short-term creditor, such as a bank, when evaluating a borrower's financial health?

What do financial statements provide information about?

What is the purpose of financial statement analysis?

What do long-term creditors, such as bondholders, look at when evaluating a company's financial health?

What is the purpose of analyzing financial statements?

What is the primary purpose of financial ratios in financial analysis?

What do growth ratios, such as sales growth and assets growth, measure in financial analysis?

What is the benefit of using ratio analysis in financial analysis?

What is the relationship between two financial statement items expressed in a ratio?

Why is it important to evaluate a company's financial performance using ratio analysis?

What is the primary objective of a loan proposal?

What should a loan proposal effectively address?

What questions should one constantly ask himself while writing a loan proposal?

What is the purpose of a loan proposal?

What should a loan proposal contain?

What is a key benefit of QVC's 1st mover advantage in manufacturing the product?

What is a critical success factor for QVC in maintaining strong liaison with customers and suppliers?

What is the primary advantage of QVC's manufacturing process?

What is a major opportunity for QVC in the near future?

What is the current trend in the demand for QVC's products?

What is the main purpose of financial appraisal?

What does SWOT analysis represent?

What is the purpose of industry analysis?

What is the primary purpose of financial statement analysis?

What is the primary objective of managing credit portfolio?

What has led to increased competition in the banking industry?

What is a major challenge for a bank in disbursing quality loans?

What has changed the banking business environment and given it a new shape?

What is the primary goal of disbursing quality credit to all types of business and segments of the population?

What has expanded rapidly in recent times in the banking industry?

What is a key aspect of managing a quality loan portfolio?

What has remodeled the banking business operation, particularly credit operation?

What is the primary concern of banks when introducing new financial products?

What is the focus of banks in addition to financial inclusion?

What is a major sector in the banking industry that has seen significant changes?

What is considered by the bank before finalizing the loan structure?

What is determined after the bank considers the socio-economic aspect of the project?

At what point are the loan structure, price, tenure, and nature finalized?

What is analyzed based on historical and projected data?

What happens if the bank is satisfied with all aspects of the applicant?

What is the primary purpose of Internal Credit Risk Rating System (ICRRs)?

What is the primary focus of credit risk assessment and decision making in banks?

What is one of the core functions of Internal Credit Risk Rating System?

What is the role of RM in the credit operations process?

In case of loan syndication, what do participatory banks do besides the lead bank?

What should be used when the borrower is in multiple lines of business?

Who has the authority to sanction/approve loans?

What is the key reference for credit risk assessment and decision making in banks?

What happens if the right sector or industry is not selected in Internal Credit Risk Rating System?

What is the purpose of Internal Credit Risk Rating System?

What should the bank do as a last resort to recover the credit from a defaulted borrower?

What is the purpose of the Credit Risk Grading (CRG) in the credit appraisal process?

What should be done with substandard (SS) or worse accounts?

What is the purpose of the Early Alert Process in credit operations?

What should be done with the approved loan proposal?

What is the primary goal of a bank in the credit selection process?

What is the purpose of credit investigation in credit risk management?

What is the consequence of sanctioning a bad credit according to the text?

What is the relationship between preventive measures and curative measures in credit risk management?

What is the outcome of a successful discussion between the banker and the customer?

Who is responsible for classifying accounts and maintaining required provisions according to the credit policy?

What is the primary responsibility of the Recovery Unit (RU) in a bank?

Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?

What happens to substandard (SS) or worse accounts?

What is the primary objective of the Recovery Unit (RU) in managing NPLs?

What is the primary role of the Credit Committee/CRM in a bank?

What is the purpose of the procedural guidelines in a bank's credit operations?

Who acts as a primary bank contact with a borrower in a bank?

What is the outcome of the credit operations in a bank?

What is the basis of the procedural guidelines in a bank's credit operations?

What is the primary purpose of the environmental due diligence checklist?

What is the requirement of banks according to the ERM guideline?

What is the role of the Board in the ERM guideline?

What is the trend of rated projects over the years?

Why is environmental risk rating important from a credit management point of view?

What is the purpose of the Guideline for Environment Risk Management introduced in 2011?

What is the frequency of reporting environmental risks according to the ERM guideline?

What is the primary responsibility of banks in the ERM guideline?

What is the requirement of banks regarding high rated projects according to the ERM guideline?

What is the importance of environmental risk management in green banking policy?

What is the primary reason behind the borrower's failure to repay the loan installments?

What action has the Bangladesh Bank (BB) directed the bank to take against the officers involved in re-scheduling the loan?

What is the current status of the sweater unit of the project?

What amount of BMRE loan was disbursed on 09.02.2004 for proper balancing the project?

What is the scheduled repayment period of the loan amount of Tk. 41.795 million?

What is the primary purpose of credit investigation in the credit operations process?

What is the consequence of sanctioning a bad credit according to the text?

What is the primary focus of the relationship manager (RM) in the credit operations process?

Why is credit investigation considered a preventive measure in the credit operations process?

What is the primary objective of selecting good borrowers in the credit operations process?

What is the term used to describe the borrower when assessing credit on a consolidated or group basis?

Who is responsible for classifying the accounts and maintaining required provisions as per credit policy?

What is the purpose of the Internal Credit Risk Rating System (ICRRs) in credit risk management?

Who performs independent assessment, analysis, and review of terms of the syndicate loan in loan syndication?

What is the primary responsibility of the Recovery Unit (RU)?

What is the key reference for credit risk assessment and decision making in the Internal Credit Risk Rating System?

Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?

What is the dynamic process that the management of Non-Performing Loan (NPL) must be?

What is the primary benefit of using the Internal Credit Risk Rating System in credit risk management?

Who serves as the primary customer contact after the account is downgraded to substandard or worse?

What is the primary purpose of Internal Credit Risk Rating System in banks?

What is the authority to sanction/approve loans delegated to by the Managing Director (MD)/Chief Executive Officer (CEO) and Board of Directors (BOD)?

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?

What is the primary responsibility of the Recovery Unit (RU) in a bank?

What is the primary purpose of credit approval in banks?

What is the last resort to recover credit from a defaulted borrower?

What is the primary objective of credit recovery in banks?

What happens to substandard (SS) or worse accounts?

What is the purpose of introducing incentive programs in credit recovery?

Who approves CLR’s for NPLs above 25% of capital?

What was the primary reason for the bank's failure to recover the credit from Mr. Monir?

What was the outcome of the bank's efforts to reach Rahela at her mobile number and resident address?

What was the reason for Mr. Monir's inability to make payments towards the loan?

What was the response of Rahela when the bank sent a legal notice to her permanent address?

What was the mistake made by Mr. Monir during the loan application process?

What was the outcome of the bank's investigation regarding Mr. Monir's identity?

What was the reason for the bank's failure to recover the credit from Mr. Monir?

What was the role of Rahela in the loan application process?

What was the outcome of the bank's efforts to recover the credit from Mr. Monir?

What was the significance of the voter ID card in the recovery process?

What is the primary responsibility of the RM in credit monitoring?

Who is responsible for approving the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?

What is the primary focus of the Recovery Unit (RU) in managing NPLs?

What is the primary responsibility of the account manager in the Recovery Unit (RU)?

What is the primary goal of the Recovery Unit (RU) in managing NPLs?

What is the purpose of transferring substandard (SS) or worse accounts from RM to RU?

What is the primary objective of the incentive program that the bank may introduce for RUs?

What is the last step in the credit recovery process?

What is the primary goal of the bank's credit operations process?

What is the responsibility of the RU in the credit operations process?

What is the primary objective of a bank in the lending process?

What is the primary benefit of credit investigation in the credit operations process?

What is the consequence of not selecting good borrowers in the credit operations process?

Why is it important for a bank to ensure that the credit is sanctioned to a good borrower?

What is the primary focus of a bank in the credit operations process?

What was the primary reason for the loan account being rescheduled around thirteen times starting from December, 2001?

What action did the BB direct the bank to take against the officers involved in rescheduling the loan?

What was the amount of the loan that was sanctioned in favor of Rahman Knitting and Yarn Processing Ltd. in 1992?

What was the purpose of the BMRE loan of Tk. 45.118 million disbursed on 09.02.2004?

What is the current status of the sweater unit of the project?

What is the primary purpose of Internal Credit Risk Rating System?

What should be selected if the borrower is in multiple lines of business and no particular line of business can be singled out?

Who has the authority to sanction/approve loans?

What is the purpose of Internal Credit Risk Rating System in credit risk management?

What is the core function of Internal Credit Risk Rating System?

What was the primary reason for the failure to recover the credit from Mr. Monir?

What was the outcome of the bank's investigation regarding Mr. Monir's identity?

What was the role of Rahela in the loan application process?

What was the reason for the bank's failure to reach Rahela?

What was the outcome of the legal notice sent to Rahela's permanent address?

What was the reason for the bank's inability to recover the credit from Mr. Monir?

What is the primary challenge faced by banks in recovering credits from fraudulent customers?

What is the key lesson learned from the case of Mr. Monir?

What is the consequence of a bank's failure to recover credits from customers?

What is the primary objective of a bank's credit recovery process?

What is the term used to describe the borrower when assessing credit on a consolidated or group basis?

What is the key reference for credit risk assessment and decision making in the Internal Credit Risk Rating System?

What is the primary purpose of the Internal Credit Risk Rating System?

Who performs independent assessment, analysis, and review of terms of the syndicate loan in loan syndication?

What is the purpose of the appraisal in credit operations?

What is the term used to describe the borrower when assessing credit on a consolidated or group basis?

What is the primary responsibility of the Recovery Unit (RU) in managing Non-Performing Loans (NPLs)?

Who performs independent assessment, analysis, and review of terms of the syndicate loan in loan syndication?

Who is responsible for coordinating and administering the action plan for NPLs?

What is the primary objective of managing credit portfolio?

What should be reviewed regularly in the management of Non-Performing Loans (NPLs)?

What is the primary focus of credit risk assessment and decision making in banks?

Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?

What is the purpose of Internal Credit Risk Rating System (ICRRs) in credit risk management?

What is the purpose of the Classified Loan Review Report (CLR)?

What is the primary goal of a bank's credit operations process?

Why is credit investigation as a preventive measure required in the credit operations process?

What is the consequence of not selecting good borrowers in the credit operations process?

Why is it important for a bank to ensure that the credit is sanctioned to a good borrower?

What is the primary benefit of credit investigation in the credit operations process?

What action did the BB direct the bank to take against the officers involved in rescheduling the loan?

What is the current status of the sweater unit of the project?

How many times was the loan account rescheduled starting from December, 2001?

Why is the borrower unable to repay the loan installment?

What was the total amount of loan sanctioned in favor of Rahman Knitting and Yarn Processing Ltd?

What is the last resort to recover credit from a defaulted borrower?

What happens to substandard (SS) or worse accounts?

What percentage of capital should CLR's for NPLs be approved by the MD/CEO?

What is the role of RU in credit operations?

What is the primary objective of the Internal Credit Risk Rating System in credit risk management?

Why may a bank introduce an incentive program?

What happens if the right sector or industry is not selected in the Internal Credit Risk Rating System?

Who has the authority to sanction/approve loans?

What should be done if a borrower is in multiple lines of business?

What is the primary responsibility of the senior credit executives?

What was the reason for stopping payment after Mr. Monir's death?

Why was Rahela's mobile number not reachable by the recovery team?

What was the outcome of the legal notice sent to Rahela's permanent address?

Why did Mr. Monir provide false information in the loan application?

What was the original name of Mr. Monir?

What was the main reason for the failure in recovery efforts?

What was Rahela's occupation?

Why did the bank send a legal notice to Rahela's permanent address?

What was the result of the investigation by the recovery team?

What was the reason for the failure in the credit recovery process?

What is the primary responsibility of the Credit Administration Department (CAD)?

What is the next step after the customer agrees to the terms and conditions in the offer letter?

What does the Credit Administration Department (CAD) ensure before disbursing the loan amount?

What is the role of the Relation Manager (RM) in the loan process?

What does the Credit Administration Department (CAD) maintain control over?

What is the primary responsibility of the Credit Administration in the credit operations process?

What happens to substandard (SS) or worse accounts in the credit operations process?

What is the primary role of the Approval Authority in the credit operations process?

What is the purpose of sending a sanctioned advice/offer letter to the client in the credit operations process?

What is the recommended course of action for the Recovery Unit (RU) when dealing with defaulted borrowers?

What is the primary objective of a banker in credit administration?

What is the purpose of credit investigation in credit administration?

Why is it important to ensure that proposed credit is from an expected business segment or sector?

What is the consequence of sanctioning a bad credit?

What is the relationship between preventive and curative measures in credit administration?

Who is responsible for identifying early alert accounts and reporting them to CRM?

What is the primary focus of the Recovery Unit (RU) in managing NPLs?

Who approves the Classified Loan Review Report (CLR) for NPLs exceeding a certain percentage of the bank's capital?

What is the primary responsibility of the Account Manager in the Recovery Unit (RU)?

What is the purpose of the Classified Loan Review Report (CLR)?

What is the primary source of earning and cash flow of a bank?

What can be a consequence of credit failure in a bank?

How many chapters are there in the manual on Advance Level Credit for NCC Bank Limited?

What is the focus of Chapter 9 in the manual?

What is the primary concern of a bank in credit operations?

What is the main objective of credit planning in a bank?

What is the importance of credit administration in a bank?

What is the significance of credit risk rating in a bank?

What is the primary function of credit administration in a bank?

What is the purpose of credit recovery in a bank?

What is the primary purpose of the Internal Credit Risk Rating System?

What happens if the right sector or industry is not selected in the Internal Credit Risk Rating System?

Who has the authority to sanction/approve loans?

What should be used when assessing the line of business generating the highest portion of the revenue and/or profit?

What should be used if no particular line of business can be singled out?

What is the purpose of preparing a credit budget by the head office?

What is the role of the Credit Committee/CRM in the head office?

What is the primary role of Relationship Management (RM) in credit operations?

What is the typical organizational structure of credit operations in banks?

What is the purpose of procedural guidelines in credit operations?

What is the primary responsibility of the Credit Administration Department?

What happens after the customer agrees to the terms and conditions in the offer letter?

What is the main purpose of the Credit Administration Department's monitoring activities?

What is the role of the Relation Manager in the credit operations process?

What is the significance of the Loan Documentation Check List in the credit operations process?

What is the primary purpose of a banker's credit investigation?

What is the banker's main concern before sanctioning credit?

What is the significance of preventive measures in credit risk management?

What is the primary objective of a bank in the lending process?

What is the role of the Relationship Manager (RM) in the credit operations process?

Who is responsible for classifying accounts and maintaining required provisions according to the credit policy?

What is the primary responsibility of the Recovery Unit (RU) in managing Non-Performing Loans (NPLs)?

What happens to substandard (SS) or worse accounts in the credit operations process?

Who approves the Classified Loan Review Report (CLR) for NPLs up to a certain percentage of the bank's capital?

What is the primary responsibility of the Relation Manager (RM) in the early alert process?

What is the primary objective of the Approval function in the credit operations process?

What is the role of the Credit Administration Department (CAD) in the credit operations process?

What is the purpose of the Early Alert Process in the credit operations process?

What is the role of the Relationship Manager (RM) in the credit operations process?

What is the primary focus of the Recovery Unit (RU) in managing Non-Performing Loans (NPLs)?

What is the primary purpose of Internal Credit Risk Rating System in credit risk management?

What should be done if the borrower is in multiple lines of business and no particular line of business can be singled out?

Who has the authority to sanction/approve loans?

What is the primary objective of Internal Credit Risk Rating System in credit portfolio management?

What is the primary purpose of the Internal Credit Risk Rating System in credit selection?

What is the primary purpose of a bank's credit committee/CRM?

What is the relationship between a bank's credit policy and its credit operations?

What is the role of Relationship Management (RM) in credit operations?

What is the purpose of a bank's procedural guidelines in credit operations?

How are credit operations structured in a bank?