Foundations of Bank Lending Chapter 1 (Part B) Quiz

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16 Questions

What is the main focus of Chapter 1 (Part B) in Foundations of Bank Lending?

Rules and regulations governing bank credit in Malaysia

According to the learning objectives, what is one of the things students should be able to do upon completion of this chapter?

Understand major provisions of Financial Services Act 2013 and BNM guidelines affecting credit function

What does sub-topic 1.2 mainly cover?

Laws and regulations governing bank credit in Malaysia

In which module can one find the content related to ethics and corporate governance in bank credit?

Chapter's Outline

What is the primary focus of sub-topic 1.2.2?

Financial Services Act (FSA) 2013

What is the key aspect of the credit process cycle discussed in Chapter 1 (Part B)?

The ethical considerations in lending decisions

What is the primary responsibility of BNM according to FSA 2013?

Fostering the safety and soundness of financial institutions

Why does the banking industry need regulatory control?

To safeguard public interest and maintain public trust

What is the purpose of BNM specifying standards relating to Credit Transaction and Exposure with Connected Party?

To prevent misuse of power by connected parties

Why is it important for the banking industry to maintain a high level of public trust?

To prevent mass withdrawal of deposit funds

What is the role of banking regulations in protecting the banking system?

To prevent fraud and risks

What is the purpose of BNM enforcing banking secrecy through FSA 2013?

To protect customer interests in financial products

Why does BNM restrict the amount of exposure a licensed institution can have to a single counterparty and persons connected to the counterparty?

To ensure well-spread lending portfolio

What is the main purpose of BNM maintaining reliability and efficiency of the payment system?

To ensure smooth and efficient payment transactions

What can lead to the collapse of the entire banking system?

Mass withdrawal of deposit funds due to lack of trust

Why does BNM specify standards related to exposure to a particular financial instrument or market segment?

To ensure responsible and well-diversified lending activities

Test your knowledge on the fundamental principles of bank credit, the credit process cycle, and the lending decision framework in business banking in Chapter 1 of Foundations of Bank Lending. This quiz covers key concepts outlined in the module by Jasman Tuyon, PhD, Rapheedah Musneh, PhD, and Siti Julea Supar Nurziya Muzzawer from the Faculty of Business and Management at Universiti Teknologi MARA, Sabah Branch, Kota Kinabalu Campus.

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