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What are the learning objectives of FIN367 Chapter 1?
What are the learning objectives of FIN367 Chapter 1?
- Define bank credit. 2. Clarify the important of bank credit to the bank business. 3. Understand the flow of credit process cycle. 4. Understand major provisions of Financial Services Act 2013 and BNM guidelines affecting credit function. 5. Explain ethics and governance in financial institution.
What are the three sub-topics under 1.1 Fundamental Principles of Bank Credit?
What are the three sub-topics under 1.1 Fundamental Principles of Bank Credit?
1.1.1 Introduction to Bank Credit, 1.1.2 The Credit Process Cycle, 1.1.3 Lending Decision Framework in Business Banking
What are the main provisions affecting credit function mentioned in the learning objectives?
What are the main provisions affecting credit function mentioned in the learning objectives?
Financial Services Act 2013 and BNM guidelines
What is the scope of business for banks according to sub-topic 1.1.1.1?
What is the scope of business for banks according to sub-topic 1.1.1.1?
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What is highly regulated according to sub-topic 1.1.1.3?
What is highly regulated according to sub-topic 1.1.1.3?
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What is the definition of 'banking business' as per the Financial Services Act 2013?
What is the definition of 'banking business' as per the Financial Services Act 2013?
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According to the Financial Services Act 2013, what does the term 'provision of finance' include?
According to the Financial Services Act 2013, what does the term 'provision of finance' include?
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Name the five areas into which a universal banking's operations are typically divided.
Name the five areas into which a universal banking's operations are typically divided.
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Why is credit analysis of SMEs important for banks?
Why is credit analysis of SMEs important for banks?
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List three items typically found on a bank's balance sheet.
List three items typically found on a bank's balance sheet.
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Study Notes
FIN367 Chapter 1 Learning Objectives
- Understand the fundamental principles of bank credit and its significance
- Identify the main provisions affecting credit function
- Appreciate the importance of credit analysis in banking operations
Fundamental Principles of Bank Credit
1.1.1 Scope of Banking Business
- Banks engage in a wide range of activities, including accepting deposits, granting loans, and providing other financial services
- The scope of business for banks includes accepting deposits, making loans, and providing other financial services
1.1.1.3 Banking Business Regulations
- Banking business is highly regulated due to its critical role in the economy and the potential risks associated with it
- The Financial Services Act 2013 regulates banking business in Malaysia
Definition of Banking Business
- According to the Financial Services Act 2013, banking business refers to the business of accepting, for the purpose of lending or investment, deposits of money from persons, and includes the provision of finance
- The term "provision of finance" includes the granting of loans, advances, and other forms of credit
Universal Banking Operations
- A universal banking's operations are typically divided into five areas:
- Corporate banking
- Retail banking
- Investment banking
- Treasury operations
- International banking
Credit Analysis and SMEs
- Credit analysis of SMEs (Small and Medium-sized Enterprises) is important for banks because SMEs are critical to the economy and banks need to manage their credit risk effectively
Bank's Balance Sheet
- A bank's balance sheet typically includes:
- Cash and cash equivalents
- Loans and advances
- Investments
- Deposits and other liabilities
- Shareholders' equity
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Description
Explore the fundamental principles of bank credit and the lending decision framework in business banking with this quiz. Learn about the introduction to bank credit, the credit process cycle, and the rules and regulations governing bank lending.
