Mock Test(Credit Risk Management)

Total points88/100
 

0 of 0 points
Name *
sudeep Baral

Email Address *
sudeep.baral@mbl.com.np

Mock Test(Credit Risk Management

88 of 100 points
 
1. How much amount shall a licensed bank lend to a single borrower or group of
interrelated borrowers? *
2/2
10% of Core Capital
15% of core capital
20% of core capital
25% of core capital
 
 
2. For what type of credit facilities shall the SOL restriction not be applicable? *
2/2
Credit extended against gold
Credit extended against unconditional guarantee issued by internationally rated banks
 
Loan provided to deprived sector
none of the above

 
3. What are the conditions which allow the inter-related borrowers to be considered
under same group? *
2/2
If credit is provided to more than one person against the same Collateral, all of such persons
If a personal guarantee has been given to each other, all of such persons giving or taking the
guarantee
Where a company holds 25% or more shares in another company, then both of such companies
all of above
 
 
4. What is LTV ratio for home loan under first home buyer? *
2/2
40% of FMV of R/E Security
50% of FMV of R/E Security
60% of FMV of R/E Security
70% of FMV of R/E Security
 
 
5. What is the maximum loan limit under residential home loan exceeding which the
home loan shall fall under real state loan? *
2/2
10 million
15 million
 
20 million
None of the above

 
6. How much financing shall an individual borrower be provided by a licenced Bank to
purchase a private car for personal purpose? *
2/2
50% of cost of vehicle
 
70% of cost of vehicle
75% of cost of vehicle
80% of cost of vehicle

 
7. What are the criteria for amicable loan settlement? *
2/2
The loan is classified as NPA.
The project has become non viable
Rescheduling / restructuring of loan is not feasible
All of the above
 
 
8. Loan recovery action shall be immediately initiated when the borrower delays the
payment of installment of loan. *
0/2
Yes
 
No

Correct answer
No

 
9. When shall R/E properties (L&B) shall be revalued? *
2/2
Every year
At least in 5 years
 
At least in 7 years
Shall not be revalued

 
10. What are the conditions required to accept the collateral (land / building) if the
trace map / blueprint doesn't show clear access to the collateral? *
2/2
Local body (Nagarpalika / VDC)must certify the existence of road access to the property via four
boundary certificate (char killa)
Thee access is verified and documented by at least two branch officials, one of which must be the
branch manager / branch incharge
There must be permanent structure (houses) in the periphery of the property being accepted to
ensure the permanent road access to the property
All of above
 
 
11. What is the cooling period required to be elapsed to accept the collateral in the
form of land and building acquired through rajinama? *
2/2
3 months from purchase date
12 months and 35 days from purchase date
 
2 years from purchase date
Cooling period is not applicable
 
12. Credit memo can be used I/O credit appraisal (CA) to obtain the approval for loan
settlement and collateral release. *
2/2
Yes
 
No

 
13. What is the minimum limit to execute pari-pasu agreement for financing working
capital loan to a borrower under multiple banking arrangements ? *
2/2
Up to NPR 10 million
10 million or more
 
More than 20 million
More than hundred million

 
14. What is the maximum tenure of term loan to business of borrowers except for
project financing as per our CPG? *
2/2
20 years
25 years
12 years
 
10 years

 
15. How much interest is charged for forced loan? *
2/2
Equal to base rate of Bank
Two times of base rate of Bank
Highest published rate of Bank
 
None of the above

 
16. What is the draw down limit for loan against public shares? *
2/2
65% of average price of last 180 days or prevailing market price whichever is lower
 
50% of average closing price of last 180 days
60% of average closing price of last 180 days or prevailing market price whichever is lower
60% of average closing price of last 180 days

 
17. What are the reports to be collected on quarterly basis from the borrower in case
of business loans? *
2/2
List of account receivables along with ageingg
Stock statement
Account payables
All of the above
 
 
18. Interest should also be charged along with fees and commission for non fund
based facilities. *
2/2
Yes
No
 
 
19. What is the tenure of Ad-Hoc credit facilities? *
2/2
Up to 3 months
Up to 6 months
 
Up to 1 year
More than one year

 
20. How much of CEO's limit can be further re-delegate? *
2/2
25%
50%
60%
75%
 
 
21. Who is responsible to manage NPA (Non Performing Assets)? *
2/2
Credit risk management department
Credit operation department
Special assets management department
 
Credit administration department

 
22. For what type of loan is E &S due diligence applicable as per ESRM policy? *
2/2
Small loan in critical sectors ( up to NPR 10 million)
Term finance (loan above NPR 10 million with tenure greater than 1 year)
Project finance
All of the above
 
 
23. What does IEE stand for? *
2/2
Initial Environmental Examination
 
International Examination of Environment
Initial Environmental Effects
None of the above

 
24. What are different due diligence applied under ESRM policy? *
2/2
Exclusion list
E&S due diligence
EIA review
All of the above
 
 
25. What is the CAD delegated by the board of directors to CEO? *
2/2
100 million
150 million
200 million
250 million
 
 
26. What is CAD delegated by CEO to branch managers against 100% cash margin? *
2/2
2.5 million
 
2.0 million
3.0 million
3.5 million

 
27. What is the loan limit under business lending that falls under SME segment? *
0/2
Loan limit upto 5 million
 
Loan limit upto 10 million
Loan limit upto 50 million
None of the above

Correct answer
Loan limit upto 50 million

 
28. Who shall be the approving authority for ad hoc facilities up to 6 months for
existing regular and new accounts as per CAD? *
0/2
CEO
 
CAD holder
One step higher than CAD holder
DGM -Business

Correct answer
CAD holder

 
29. In what case ad hoc facility proposal is not required to be routed through risk
department? *
2/2
Ad hoc S/Demand loan not exceeding 10% of existing approval limit
For period not more than 120 days
R E security coverage up to 110 %
All of the above conditions must be fulfilled
 
 
30. What are the time limits of temporary extension of overdraft limit under CAD of
deputy/province managers? *
2/2
Up to 1 month
 
Up to 1 and half months
Up to two and half months
Not allowed

 
31. Memo for temporary extension are not required to be routed through risk. *
2/2
Yes
 
No

 
32. How much deviation / rebate at maximum shall be provided in processing and
reprocessing fee of credit facilities as per NRB directives? *
2/2
0.10% on card rate
0.15% on card rate
0.20% on card rate
0.25% on card rate
 
 
33. What is the threshold limit of term loan for which the prepayment charges shall not
be lieved for settlement as per NRB directives? *
2/2
Loan upto 1.0 million
Loan upto 2.0 million
Loan upto 4.0 million
Loan upto 5.0 million
 
 
34. Who shall have authority to approve waiver for revaluation of R / E collateral in
case 5 years has already been elapsed from last valuation date? *
2/2
CAD holder
CRO
DGM-Business
CEO
 
 
35. What insurance policy must be issued to obtain the insurance of stocks? *
2/2
Fire and earthquake policy
Property insurance policy
 
Third party insurance
None of the above

 
36. What type of loan is called performing loan? *
2/2
Loan with overdue upto 3 months
Loan with no overdue
Loan against gold and silver with adequate collateral up to NPR 1 million
All of the above
 
 
37. Lending made to the firm / company having net loss in last 2 years and / or firm /
company with negative net worth is categorised under........ category. *
2/2
Watch list
 
Substandard loan
Doubtful loan
Bad loan

 
38. How much provisioning must be maintained for loan to blacklisted borrower? *
0/2
5%
25%
 
50%
100%

Correct answer
100%

 
39. What does restructuring of credit facility mean as mentioned in directive 2? *
2/2
Change in the nature / conditions
Addition / reduction of restrictions
Change in time period of the facility
All of the above
 
 
40. Loan against shares shall neither be rescheduled not be restructured as for NRB
directives. *
2/2
Yes
 
No

 
41. Mortgage loan against R / E collateral shall be provided if the collateral owner
is .......... *
0/2
Borrower's spouse
Brother in law of borrower ( gender of borrower is male)
Partner of borrower in some partnership firm
All of the above
 
Correct answer
Borrower's spouse

 
42. How is the valuation of the non banking assets done by BFIs? *
2/2
Considering fair market value of the property
considering fair market value of the property or total amount to be recovered on previous day of
acquiring the assets by bank, whichever is lower
 
Considering the rajinama value
Considering market value

 
43. What is the limit of loan where the borrower must be mandatorily reported as
blacklisted at the same time of acquiring collateral as non banking assets? *
2/2
More than 2.5 million
 
More than 5.0 million
More than 7.5 million
More than 10 million

 
44. Can any BFIs please provide loan for accept deposit considering financial
guarantee issued by BFIs established and operated in own country? *
2/2
Yes
No
 
 
45. What is the maturity / repayment period for marginal lending? *
2/2
6 months
1 year
 
7 years
10 years

 
46. What is the condition that doesn't allow BFIs to provide loan against shares under
margin lending? *
2/2
BFIs that are declared as problematic institutions by NRB and / or having insufficient capital
adequacy ratio
Companies with negative net worth
Companies delisted from stock exchange market list
All of above
 
 
47. Import loan such as TR loan, bill discounting, etc. shall be provided for maximum
upto ........ days. *
2/2
60 days
90 days
120 days
 
180 days

 
48. When is it required to assess the credit rating of a borrower? *
0/2
For loan limit more than 250 million
For loan limit more than 500 million
Credit rating is not required
For limit more than 200 million
 
Correct answer
For loan limit more than 500 million

 
49. Subsidized loan has maximum repayment period of............ *
2/2
1 year
5 years
 
7 years
10 years

 
50. How much interest rate shall be charged for subsidized loan by licensed banks? *
2/2
Equal to base rate
With premium rate upto 1% on base rate
With premium rate upto 2% on base rate
 
With premium rate upto 3% on base rate
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