Suggestion- Lending Operations Risk Management

Sl. No. Questions Appeared Year

1 What is meant by single borrower exposure of a bank? Jul-19
Does it create any hurdle for bank delivery for bank having edequate liquidity?
2 Do you think that ceiling fixed by Bangladesh Bank in this regard is comfortable? Elaborate your Jul-19
answer.
3 Discuss the factors those to be essentially considered before opening a rural branch of a bank? Jul-19

4 What do you mean by surveying a branch area? May-16

Why it is so important in preparing a business plan of a branch? Please discuss.
5 How business plan to be prepared for proposed branch? Jul-19
Mention about the qualities and efficiency that a selected opening branch manager should
posses for the branch success.
6 What is mean by branch management? Jun-13
A branch (bank) is treated as focal point of banking business. Highlight the role and
responsibilities of a branch manager as a branch areas are surveyor and planner for his branch.
Please prepare a typical survey schedule for your branch with a view to prepare business plan
for your branch for the year 2014.

7 Define credit planning. Dec-18, Jun-15, Jun-14,

Highlight the importance of credit planning in the lending operation of a bank and a financial Dec-13
institution.
Prepare/ Give a brief of your institution credit plan as adopted for the year 2018-2019.
8 What is credit planning Jun-17, Jun-15, Jun-14,
Discuss the factors to be considered by a Banker for preparation of credit plan. Dec-12, Nov-11

9 Mention the minimum eligible criteria those are to be fulfilled by a prospective loan borrower of Jun-17, Dec-12, Nov-11
a bank
10 Discuss the factors those are to be considered by bank financial institution while making a credit Dec-18
plan.
11 What is credit worthiness? Jul-18, Jun-17, Nov-16,
Discuss the points those are essentially to be considered by a banker while assessing the May-16, Dec-14, Dec-13,
creditorthiness of a prospective borrower. May-11
12 State how will you deal with existing borrower needing enhancement of the creditability. Jul-18, Jun-17, May-16,
Dec-14
13 Define portfolio management. Jul-18, Dec-14, May-12,
Highlight the role and responsibility of branch manager in respect of borrower selecting and loan May-11
processing.
14 What will you do when a loan proposal does not fall within set criteria of approved credit policy Jul-18, Dec-14
but the applicant appears to be potential and helpful for the bank’s branch.
15 Define ALM & ALCO. Jul-18, Nov-17, May-16,
formation structure of ALCO Dec-15, Jun-14, Dec-12,
Discuss the role and responsibility of ALCO for profer leading of a bank. May-11
16 Do you think that the absence of ALM in bank may cause damage to its image and foundation. Jul-18, Nov-17, Dec-15,
Elaborate your answer. Jun-14, Dec-12, May-12,
May-11
17 What do you mean by prospective borrower. Nov-17, May-16, June-14
In selecting a borrower what points to be taken into consideration.
18 What qualities does a field officer (who appraises loan proposal) should posses. Please elaborate Nov-17, May-16
your answer.
Prepared by- Md. Ibrahim Hossen Arif
Bank Asia Ltd.
Islamic window, Uttara Branch. 1
 Suggestion- Lending Operations Risk Management
19 What do you know about checklist for a borrower? Nov-16, Dec-13
Does your bank has any approved checklist for prior awareness and compliance of the loan
applicant?
Mention some major points those are to be included in the checklist as basic requirement.
Definition of Entrepreneur.
20 Who is a prospective borrower? Dec-18
Mention the minimum eligibility criteria to be fulfilled by such war before formally submitting
loan proposal.
21 Why and how credit report is prepared on respective borrower? Explain. Dec-18
What does this report indicate? Elaborate your answer.
22 Mention the booster sector of SME credit as defined by Bangladesh Bank. Jul-19
23 Explain the role of SME credit in respect of entrepreneur development, Employment generation Jul-19, Jun-14, Dec-13,
and economic development of the country. Jun-13
24 Define SME credit in the light of Bangladesh Bank guideline and list down the booster sector. Nov-18, Jul-18, Jun-17,
Nov-16, Dec-15, Dec-14,
Jun-14, Dec-13, Jun-13,
May-11
25 Are you in agreement that SME is playing an important role in the economic development of the Nov-18, Jun-17
country. Elaborate your answer.
26 Bangladesh bank has of late made some changes as regards provisioning on SME loans, but some Jul-18, Nov-16, Dec-15,
banks are reported to have been measuring the rivised concept do and their convention of some Dec-14
other loans to SME loans. Give your opinion on the matter. How to relief to this unfair situation?
Please suggest.
27 Do you think that credit delivery under SME scheme is given due weightage by banks and May-11
financial institutions from the view point of national interest. Explain
28 Agricultural credit plays a very important role in economic development of the country with high Nov-17, Dec-15- Jun-14,
GDP growth. Explain this mentioning impact it keeps on the country's overall Gross GDP Jun-13
attainment.
29 After flood in 2017 to boost of Agricultural productivity, please prepare a literalized agricultural Nov-17
credit circular for post flood agricultural rehabilitation of the flood affected district of the
country.
30 What do you mean by payment of subsidy in agricultural sector? Jun-17
Please list down the heads of subsidies provided by the government in agricultural sector. The
government has allotted huge amount of subsidies in agricultural sector. Please explain how
different sectors like producers (farmers), agricultural productivity and agricultural sector as a
whole have been benefited due to payment of the subsidy.
31 It is a fact that, increase of Agricultural credit delivery, would ensure higher agricultural Dec-15Dec-14
productivity. Do you agree that wider participation of private commercial banks in credit delivery
to the Sector would have contributed higher growth? Give your views and suggestions of
improvement if any.
32 Distinguish between SME credit & Agricultural credit. Nov-11
33 Which of the two, according to your openion, effectively inflencing the economic development Nov-11
of the country including higher GDP growth?
34 Define green banking as per Bangladesh banks guideline. Jul-18, Jun-17, May-16,
Discuss the importance and need of green banking in the context of present and future global Jun-15, Dec-14
warming situation of the country.
35 Briefly, give a resume of green banking activity of your bank/institution. Jul-18, Jun-17, May-16,
Jun-15, Dec-14
36 Mention different types of credit facilities those a Banker extends to clients. Jun-17, Dec-15, Dec-14,
Prepared by- Md. Ibrahim Hossen Arif
Dec-13
Bank Asia Ltd.
Islamic window, Uttara Branch. 2
 Suggestion- Lending Operations Risk Management
37 Distinguish between short term credit and long term investment. Jun-17, Dec-15, Dec-14
Which one is preferred by bank and why?
38 What qualities does a field officer (who appraises loan proposal) should posses. Please elaborate May-16
your answer.
39 Distinguish between money market and capital market. Nov-17, Jun-15, Jun-14,
Do you think that increased call money ratecan influences the capital market? Elaborate with Jun-13, May-12
example.
40 Do you suggest any amount of investment in capital market by commercial bank? Justify your Nov-17
answer.
41 What do you mean by BSEC. Jun-15, Jun-13, May-12
Elaborate its function.
Do you think that BSEC is performing its role properly in monitoring and controlling capital
market especially stock market of our country? Please pass your comments.
42 What is fund flow? Jun-13, May-12
Discuss the importance of fund flow statement for a bank.
43 Distinguish between fund flow statement and cash flow statement. Jun-13, May-12
Please write up a sample of a cash flow statement of your bank.
44 Define a project. Jul-19, Jun-17, Nov-16,
Explain different aspects (technical, financial and commercial) of a project Appraisal to help the Dec-15
management to take proper decision.
45 What do you mean by a project and its appraisal? Jul-18, Dec-12, Nov-11
46 What do you mean by sensitivity analysis of a project? Jul-19, Jun-17, Dec-15,
Highlight the necessity of sensitivity analysis of sensitivity/feasibility studies of a project. Jun-15, Dec-14
47 State the necessity of sensitivity analysis of a project. Dec-18, May-16
48 Discuss different factors those are taken into consideration while appraising a investment Dec-18, Jul-18, May-16,
proposal. Jun-15, Dec-12, Nov-11
49 Explain different techniques of project appraisal and elaborate the points to be considered in Jun-13
technical report. Discuss why bank consider sensitivity analysis of project during appraising a
project proposal.
50 Explain the process usually required of project appraisal. Dec-14
51 A project loan is treated as term loan. Discuss why? Disduss the risk you anticipate in such Jun-13
financing.
52 Do you foresee any risk for the financer against disbursement of long term project loan? Please Nov-16
comment and explain.
53 Explain term loan. May-12
Why the private commercial bank discourage to consider long term loans? Explain.
54 Mr. Ahmed Ali and enterprise of your branch area has applied for a loan of Taka 20,00,000 to Jul-18, Dec-12, May-12
establish a nursery project (to ensure green banking) to your branch. Please write an appraisal
report of the banks loan proposal explaining the following points: 1. About the applicant 2.
About the enterprise (nursery) 3. About the security, calculating maximum credit limit (MCL) 4.
About the credit needs 5. About the income and expenses i.e profitability 6. About marketing 7.
Recommend loan amount considering the above analysis.

55 List down the cost component of a Rice Mill project (Capital Cost). May-12
56 Mr Abdullah an enterprise of your branch area apply for a loan of Tata 10 lakh to establish Nov-11
fishery project to your branch. Please write an appraisal report explaining the following points: 1.
Technical aspect 2. Financial aspect 3. Commercial aspect 4. Managerial aspect 5. Recommend
the loan amount.
57 Distinguish between trading loan and working capital loan. Nov-17
Discuss the importance of working capital loan to and Industrial enterprise.
Prepared by- Md. Ibrahim Hossen Arif
Bank Asia Ltd.
Islamic window, Uttara Branch. 3
 Suggestion- Lending Operations Risk Management
58 Discuss the importance of working capital for trading finance and industrial finance. Jun-17
59 Please furnish a sample of working capital assessment for a textile industry of 100 loams. Nov-17, May-16, Dec-14

60 What do you mean by hypothecation & pledge loan? Dec-13

61 Distinguish between pledge and hypothecation. Mention the other credit facilities that a bank Jun-17, Dec-15, Dec-13
can provide to its clients.
62 Distinguish between pledge and hypothecation. As a banker, which one you will prefer? Justify in Dec-12, Nov-11
favour of your arguments.
63 What is working capital? May-16, Dec-15, Dec-14
Do you think that for an industrial undertaking initial working capital should be sanctioned
beforehand for disbursement in time on completion and trial operation of the unit, so that no
delay occurs for commercial operation? Elaborate your answer.
64 What do you mean by working capital loan? Discuss the importance of working capital loan for Jun-14, Dec-12, Nov-11
running an agro-based industrial project (A poultry farm/ A feed mill industry/ A textile industry)

65 What is working capital? Distinguish between working capitl loan and cash credit. List down the May-12
items of cost to be taken into consideration in assessing the working capital need of a poultry
farm.
66 What is loan syndication? Jul-19, Nov-17, Dec-15
How does it work?
Explain its merits and demerits.
67 Suppose the government has decided to implement Dhaka Narayanganj metro rail through Jul-19, Nov-17, Dec-15
Syndicate financing. 10 banks agreed to finance the project through Syndicate financing. Please
prepare a Syndicate financing project proposal.
68 Do you think that the interest of the participating members of syndication suffers in any way on Dec-15
the point of recovery of loan investments on time? Explain.
69 What is is CRG? Dec-18, Dec-13, Dec-12,
State the purposes of applying CRG in credit disbursement as compared to LRA. May-11
70 Write down the components of CRG and what should be the minimum expected rating for credit Dec-18, Dec-13, Dec-12,
delivery. Explain in brief. May-11
71 What do you mean by CRG? Discuss the components of CRG those should be taken into Nov-16, Jun-15,Jun-14
consideration by bank during appraisal of a syndicate loan.
72 Distinguish between LRA and CRG. Jul-18, Jun-17, Dec-15,
Write down the expected credit risk grading requirement for extending credit. Dec-14, May-12, Nov-11

73 Explain the risk factors that make an industry sick. Jul-18, Jun-17, Dec-15,
How would you proceed to consider rehabilitation needed of a sick project? Dec-14, May-12, Nov-11

74 What is ICRRS? Purpose & Components of ICRRS. Minimum expected rating. CRG VS. ICRRS. New

75 What is provisioning? Jul-18, Dec-13, Dec-12,

Nov-11, May-11
76 Discuss the basis of determining the classification status of classified loans and advances and Jul-19, Dec-18, Jul-18,
provisioning rules given by Bangladesh Bank. Nov-16, Jun-15, Dec-13,
Jun-13, Dec-12, Nov-11,
May-11
77 Do you think present system should be changed? Do you have any suggestion of the present Jul-19, Dec-18, Nov-16,
system of provision in regular loans and advances? Explain with reason. Jun-15, Jun-13

Prepared by- Md. Ibrahim Hossen Arif

Bank Asia Ltd.
Islamic window, Uttara Branch. 4
 Suggestion- Lending Operations Risk Management
78 It is due to the increase of classified loans of the bank that they now facing liquidity problems Jul-18, Dec-13, Dec-12,
and borrow interbank call money at very high rate? Justify the view. If you are agree or not Nov-11, May-11
agreed- comment.
79 What is loan pricing? Dec-18, Nov-16, Jun-15,
Discuss the elements those are required to be taken into consideration in pricing loan? Jun-14, Dec-13, Dec-12,
Does your bank consider those while launching a new loan scheme? Nov-11
80 In competetive market which of the variable and fixed pricing as a banker you would advice. Dec-18, Dec-13
Please explain.
81 "Profer pricing is most essential before launching a new loan product"- Discuss the statement Dec-12, Nov-11,
with your views.
82 Distinguish between loan interest remission and loan write off. Jul-19, Jun-17, May-16,
Which one of the two you think beneficial for the bank? Dec-15, Jun-14, Dec-12,
Nov-11
83 What is loan write-off? Write down the pre-conditions to be fulfilled before a loan write off Jul-19, Jun-17, May-16,
action. Dec-15, Jun-14, Dec-12,
What will follow after the loan write off. Nov-11
84 Distinguish between loan write-off and loan re-structuring. May-12
85 Discuss loan write-off rules set by Bangladesh Bank. Does it has any effect on banks balance May-12
sheet? Explain.
86 Banks usually extend credit against securities. Please list down the different types of securities Jul-18, Jun-15, Jun-13,
against which banks sanction loans to its client. May-11
Discuss their advantages and disadvantages in brief.
87 Explain why commercial bank usually prefer to acceot land and building as collateral securities Nov-16
against loans. Mention the tangable benefits banks drive from it.
88 In selecting a borrower if it is perfectly made, “Loan cannot turn into bad” elaborate your Jul-18, Jun-13, May-11
comment on this statement.
89 Discuss the different types of security documents those a bank usually obtain at the time of Nov-17, Nov-16, May-16,
disbursement of credit from a borrower. Dec-14, Jun-13
90 Most of the banks accept land as collateral security against loans. List down the name of the Nov-17, Nov-16, May-16,
lands those cannot be accepted as security and why cannot be taken as security, discuss the Jun-15
causes.
91 State how the securities are maintained on record to protect interest of the financer. Nov-16, Dec-14
92 Discuss the negative impacts of non performing loans. Jul-19, Nov-16
93 Discuss the details of non performing loan recovery processes on both legal and non legal Jul-19, Nov-16
aspects.
94 What do you mean by problem loan? Discuss the indicators of problem loan. Dec-18
95 What are the causes of distressed loan? What are the considerable factors of loan review? Dec-18
Discuss the steps that are taken by banks about problem loans.
96 Please explain the terms Monitoring, follow up and supervision and explain what types of Jun-13
supervision will be needed for this project from the date of disbursement of cedit to recovery.

97 What do you mean by fraud and forgeries in banking business.

Explain different ways of occuring frauds and forgeries in banks now a days
98 Explain steps to be taken in protecting fraud and forgeries in banks.

Short Notes

1 Agent Banking- July-19

2 Asset Liability Management (ALM)- Nov-16, Dec-14, Nov-11
Prepared by- Md. Ibrahim Hossen Arif
Bank Asia Ltd.
Islamic window, Uttara Branch. 5
 Suggestion- Lending Operations Risk Management
3 Back to Back LC- Nov-16, May-16, Jun-15, Jun-14
4 Balance of Payment- May-12
5 Bankers Book Evidence Act- July-18, May-11
6 Bill of Lading- July-18, Dec-15, Jun-14
7 BMRE Loan for an existing agro industry- Nov-17
8 Break Even Point- Jun-17, Nov-16, Dec-15, Nov-11
9 CAMELS Rating- July-19, July-18, Nov-17, May-16, Jun-15, Dec-13
10 Capital Budgeting- Jun-17
11 Capital Market- Nov-16
12 Control of fraud forgeries in banks- Nov-16, Jun-14, Dec-13
13 Corporate Banking- May-12, Nov-11
14 Corporate Social Responsibility- July-19, Nov-18, Nov-16, May-16, Jun-15, Dec-14, Dec-13, Dec-
12
15 Credit Planning- Dec-15, Dec-14
16 Credit Rating Agency- Jun-17
17 Credit Risk Grading (CRG)- Nov-17, Jun-13
18 Debt Equity Ratio- July-18, Dec-12, May-12, May-11
19 Debt Service Coverage Ratio- May-11
20 Development financial Institutions (DFIS)- Jun-15, Jun-13
21 Discrepant L/C- July-19, Nov-16, Dec-14, Dec-13, Nov-11
22 Economic Rate of Return- May-11
23 Equity Entrepreneurship Fund (EEF)- Nov-16
24 G.S.P- Jul-18
25 Green Banking/ Importance of Green Financing- Nov-18, Dec-12, Nov-11, May-11
26 Importance of agriculture sector financing for ensuring food security of the country- Dec-13,
May-12
27 Lending Risk Analysis (LRA) July-19, Nov-18, Nov-17
28 Liquidity Management- July-19, Nov-18, Jun-15, Jun-13, May-12
29 Loan Appraisal- July-19, Jun-13
30 Loan Documentation- Dec-15
31 Loan Portfolio- Dec-12, Nov-11
32 Loan Pricing- Jun-17, Jun-13
33 Loan Syndication/ Syndicate Loan- Nov-18, Jun-14, Dec-13, Dec-12, Nov-11, May-11
34 Loan Write off- Nov-18, Nov-17, Nov-16, Jun-15, Dec-14
35 Maximum Credit Limit- Jun-15, Jun-13
36 Merchant Banking- Dec-15, Dec-12
37 Micro Credit/ Micro Finance- July-19, Jun-13
38 Micro-Credit Regulatory Authority (MRA)- July-18, May-16, Jun-15, Dec-12, May-11
39 Need for subsidy in agricultural sector- Nov-17
40 Need for surveying Branch Area for business plan of a bank branch- Dec-15, Jun-14
41 Non-Performing Asset- Jun-17, May-16, Dec-15, Dec-14, May-12
42 Online Banking- Jun-17
43 Packing Credit- Dec-14, Dec-12
44 Pari Pasu Charge- July-19, Jun-17, Dec-13, May-12, May-11
45 Portfolio Management- Nov-18, Jun-14, Jun-13
46 Preference Share- May-12, May-11
47 Product Pricing- Dec-14
48 Provisioning- Nov-17, Jun-17, Dec-15, Dec-14Prepared by- Md. Ibrahim Hossen Arif
Bank Asia Ltd.
Islamic window, Uttara Branch. 6
 Suggestion- Lending Operations Risk Management
49 Risk in Lending Operation Business- May-16
50 Sensitivity Analysis for a project loan appraisal- July-18, Jun-14, Nov-11
51 Single Borrower Exposure- Nov-18, July-18, Nov-17, Jun-17, Dec-15, Jun-15, Jun-13
52 SME Financing- Nov-18, July-18, Nov-17, Jun-17, Dec-15, Jun-15, Jun-13
53 Valuation of Building as security- Nov-17, May-16, Dec-13
54 Women empowerment through Micro-Credit- Nov-18, Jun-14, Dec-13

Prepared by- Md. Ibrahim Hossen Arif

Bank Asia Ltd.
Islamic window, Uttara Branch. 7