Lending Operation and Risk Management All Question

Lending Operation and Risk Management All questions which are published in this website. If you feel your need you can search it.

1.   Define Term Loan 

2.   Why the private commercial banks discourage to consider long term loans 

3.   What is Working Capital Loan 

4.   Distinguish between working capital (W/C) and cash credit (CC) loan 

5.   Define Working Capital. 

6.   Discuss the Significance/Importance of working capital for a firm. 

7.   Importance of working capital loan for running an agro-industrial project 

    Or, Importance of working capital loan for running an industrial project 

    Or, Advantages of Working Capital Loan 

8.   How would you assess the working capital requirement of poultry industry? 

    Or, Assessments/ forecast of working capital requirements 

9.   Explain the factors affecting working capital requirement. [Need Details] 

Or, Explain the factors determining the need for working capital. 

Or, Describe in brief the various factors which are taken into account in determining the working capital needs of a firm. 

10. Explain different sources of financing working capital. 

11. Define permanent working capital and variable working capital. 

12. Explain the difference between variable working capital and permanent 

    working capital. 

13. What do you mean by mortgage, pledge & hypothecation? [Dec-2013] 

14. Distinguish between mortgage & pledge? 

15. As a banker between pledge & hypothecation, which one you will prefer? 

    Justify in favor of your argument. [Need to explain] [Dec-2013] 

16. Distinguish between mortgage, pledge & hypothecation 

17. Distinguish between term credit and short-term credit 

18. Why do the private commercial banks prefer short term lending 

    Or, Advantages of Short-Term Financing 

19. What is SME Finance & Agricultural Finance 

Or, Define SME Credit with reference to BB’s given Definition [Dec-2013] 

20. What is Credit Planning? [Dec-2013] 

21. What factors are to be taken into consideration by a bank while making a 

    credit planning? 

Or, Discuss the important components those are to be taken in consideration in formulating the lending operational policy of a bank. [Two Answer] 

22. List down the minimum eligibility criteria to be fulfilled by borrower to obtain 

    loan 

23. What is a Project? 

24. List down the cost components of a Rice Mill project (capital cost). 

25. What do you mean by a project & project appraisal? 

26. During appraisal of a project loan proposal what factors does a banker take 

    into consideration? [Two Answers] 

27. Mr. Abdul Ali, and enterprise of your branch area has applied for a loan of 

    Tk. 20.00 lac to establish a nursery project to your branch, Please write an 

appraisal report of the loan proposal explaining the following points:    1)

About  the  Applicant,    2)  About  the  enterprise,    3)  About  the  security

(calculating maximum credit limit), 4) About the credit needs, 5) About the

income and  expenses i.e. profitability,    6) About the marketing,  and    7)

Recommended loan amount.

28. Difference between Lending Risk Analysis (LRA) and Credit Risk Grading 

    (CRG) 

29. The  risks  factors  those  can  make  an  industry  sick.  How  each  factor 

    accelerates the sickness? 

Or, Factor behind/responsible industrial sickness [Two Answers] 

30. What do you mean by Asset-Liability Management (ALM)? 

31. Do you agree that the absence of good ALM of a bank may lead to different 

    crisis to jeopardize the image and soundness of the bank? 

32. Prepare a typical balance sheet for a bank. 

33. What do you know about ALCO? 

34. Do you think each commercial bank should form ALCO? 

35. Roles and responsibilities of Asset-Liability Management Committee (ALCO) 

    of a Bank 

36. Define Credit Risk Grading (CRG) [Dec-2013] 

37. Function of Credit Risk Grading 

38. What are the uses/ purposes/ importance of CRG? [Dec-2013] 

39. Write down the expected minimum CRG requirements for extending credit. 

    Explain with example. [Dec-2013] 

Or, Definition of Numbers of Credit Risk Grading 

40. Different aspects of Credit Risk Grading (CRG) with grading points 

    Or, Write down the components of CRG. [Dec-2013] 

Or, Number and Short Name of Grades Used In the CRG 

41. Why  core  risk  management  is  getting  so  much  highlighted  for  proper 

    financing of a bank 

42. What is provisioning? Discuss the basis of determining the status of classified 

    loans and advances. [Dec-2013] 

43. Basis  of  determining  the  status  of  classified  loans  and  advances.    [No

answer] [Dec-2013]

44. It is due to the increase of classified loans of the bank, that they are now 

    facing liquidity problems and the borrower inter-bank call money at very 

    high rate. Justify the viewpoint. [Dec-2013] 

45. Distinguish between loan interest remission and loan write off. Between 

    these two which one is beneficial for that Bank? Discuss. [Need modify] 

46. List down the preconditions those required to be fulfilled by a borrower for 

    availing write off consideration. [Need modify] 

47. Distinguish between Money Market & Capital Market 

48. Can increased call money rate influence the capital market? Elaborate with 

    example. 

49. What do you mean by SEC? 

50. Functions of SEC

51. Do you think that SEC is performing its role properly by monitoring and 

      controlling capital market of our country? Pass your comments.

52. What is Fund Flow

53. Importance/ Uses/ Purposes of Fund Flow Statement

54. Distinguish between Cash Flow and Fund Flow statement.

55. Write a sample of a cash flow statement of your bank

56. Write-Off and Re-scheduling [Need modify]

57. Purposes, cases, modes, and requirements of Rescheduling

58. What is loan pricing? [Dec-2013]

59. Discuss the components which are to be taken into account in pricing of loan 

      [Dec-2013]

Or, Components which are to be taken into account in pricing a loan program

Or, Factors affecting the Loan Pricing

60. “Proper Pricing is most essential before launching a new loan product”. 

      Discuss the statement with your view.

61. Factors affecting while assessing a loan proposal

62. In competitive market, which of the variable and fixed pricing as banker you would advocate? [Dec-2013]

63. Discuss different types of credit facilities that a commercial bank can provide 

      to its clients. [Dec-2013]

64. Why credit-worthiness of an applicant is assessed? [Dec-2013]

65. Credit Facilities Available in Banks [Dec-2013]

66. Agricultural credit plays a very important role in economic development of 

      the country with high GDP growth. Explain this mentioning the impact it 

      keeps on the country’s overall GDP attainment.

Or, Significance/ Impacts of Agricultural Credit in economic developments

67. Suppose against a loan proposal of your branch, the head office of the bank 

      has sanctioned  a loan of taka 1.00 (one) crore against  a  mixed  farm

(Agriculture, poultry, fishery and dairy farm). You were advised by head office to disburse the loan after due documentation. Please list down the names  of  the  documents  to  be  obtained  from  the  borrower  before disbursement of the loan.

68. A project loan is treated as a term loan. Discuss why. Discuss the risks you 

      anticipate in such financing.

69. Agricultural Finance: Definition, Nature and Scope