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What is the primary focus of CHAPTER 1 in the module FOUNDATIONS OF BANK LENDING?
What is the primary focus of CHAPTER 1 in the module FOUNDATIONS OF BANK LENDING?
- Ethics and Corporate Governance in Bank Credit
- Rules and Regulations governing bank credit
- Fundamental Principles of Bank Credit (correct)
- Introduction to Bank Credit
According to the learning objectives, what should students be able to do upon completion of this chapter?
According to the learning objectives, what should students be able to do upon completion of this chapter?
- Define bank credit and explain its importance (correct)
- Understand the major provisions of Financial Services Act 2013
- Operate a credit process cycle effectively
- Apply ethics and governance in financial institution
What is the topic of sub-topic 1.1.1.2 in the module FOUNDATIONS OF BANK LENDING?
What is the topic of sub-topic 1.1.1.2 in the module FOUNDATIONS OF BANK LENDING?
- Bank operation is highly regulated
- Introduction to Bank Credit
- Bank definition and scope of business
- Bank lending business (correct)
What does the module aim to help students understand?
What does the module aim to help students understand?
In which institution should students be able to apply ethics and governance, according to the learning objectives?
In which institution should students be able to apply ethics and governance, according to the learning objectives?
What does the Financial Services Act 2013 define as 'banking business'?
What does the Financial Services Act 2013 define as 'banking business'?
Which area of universal banking is responsible for managing the bank’s funding and liquidity needs?
Which area of universal banking is responsible for managing the bank’s funding and liquidity needs?
What type of business is included in the provision of finance according to the Financial Services Act 2013?
What type of business is included in the provision of finance according to the Financial Services Act 2013?
What contributes a large part to the bank credit portfolio according to the text?
What contributes a large part to the bank credit portfolio according to the text?
What is an important reason for properly undertaking SME credit analysis according to the text?
What is an important reason for properly undertaking SME credit analysis according to the text?
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Study Notes
CHAPTER 1 Focus
- Explores foundational concepts in bank lending, emphasizing the importance of understanding lending principles and practices.
- Highlights the role of banks in the financial system and their impact on the economy.
Learning Objectives
- Upon completion, students should be able to analyze lending risks and develop effective credit assessment techniques.
- Students are expected to evaluate ethical considerations in bank lending and governance practices.
Sub-topic 1.1.1.2
- Covers "Types of Loans and Credit Facilities," reviewing various lending products and their characteristics.
Module Aims
- Aims to provide a comprehensive understanding of bank lending frameworks, practices, and ethical responsibilities within the financial sector.
Ethics and Governance Application
- Students should be able to apply ethics and governance principles within banking institutions and financial services firms.
Definition of 'Banking Business'
- The Financial Services Act 2013 defines 'banking business' as the acceptance of deposits and the provision of financing services.
Universal Banking Funding Management
- The area responsible for managing a bank's funding and liquidity needs is known as Asset and Liability Management (ALM).
Provision of Finance
- The Financial Services Act 2013 includes the provision of consumer finance as part of the banking business.
Contribution to Bank Credit Portfolio
- Small and Medium Enterprises (SMEs) contribute significantly to a bank's credit portfolio, reflecting their importance in the economy.
Importance of SME Credit Analysis
- Properly undertaking SME credit analysis is crucial as it helps mitigate risk and enhances the decision-making process for loan approvals.
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