VC-FT-EKRP311.

1-1-ENG
Requirements for this paper/Benodighede vir hierdie vraestel: Resources/Hulpmiddels:

Answer Scripts/ Multi-choice cards (A4)/

Antwoordskrifte: X Multikeusekaarte (A4)
Attendance Slips (Fill-in Paper)/ Graph Paper/
Presensiestrokies (Invulvraestel): GrafiekPapier
Scrap Paper/ Calculators/
Rofwerkpapier Sakrekenaars X
Multi-choice cards (A5)/ Laptop (Power not provided)/
Multikeusekaarte (A5) Skootrekenaar (Krag word nie voorsien nie)

Type of Assessment/ Duration/ 1 Hrs 30 Min

Tipe Assessering:
Exam Opportunity:1 Tydsduur:

Paper Number/ Maximum Marks/ 45

1
Vraestel Nommer: Maksimum Punte:

Module Code/ Module Description/

EKRP311 BANK RISK MANAGEMENT
Modulekode: Module Beskrywing:

Examiner(s)/ PMS van Heerden-PC;R Sgammini-VC; Date/

Eksaminator(e):
2022/06/15
Datum:

Time/
Tyd: 09:00
Internal/Interne
WH van Heerden-PC;
Moderator(s): Qualification/
Kwalifikasie: BCom; BSc
External Moderator(s)/
Eksterne Moderator(s):

Submission of answer scripts/Inhandiging van antwoordskrifte: ORDINARY

 INSTRUKSIES / INSTRUCTIONS

1. Beantwoord alle vrae. / Answer all questions.

AFDELING A / SECTION A [5]

1. Omskryf die volgende begrippe: / Describe the following concepts:
1.1 Bespreek self-likwideringsvoorraadlenings as een tipe korttermyn besigheidslening. /
Discuss self-liquidating inventory loans as one type of short-term business loan. (2)
1.2 Faktorering. / Factoring. (1)
2. Onderskei tussen die volgende: / Distinguish between the following:
2.1 Lastebestuur en gebalanseerde likiditeitsbestuur. / Liability management and balanced
liquidity management. (2)

AFDELING B / SECTION B [17]

1. Die hoof van die kredietdepartement vra u om die “add-on” en die “Rule of 78s”-metode as
twee nie-residensiële leningprysingsmetodes te vergelyk. Wat sal u antwoord wees?
Verduidelik volledig. / The head of the credit department asks you to compare the add-on and
the Rule of 78s method as two pricing methods for non-residential consumer loans. What will
your answer be? Fully explain. (4)
2. ʼn Nuwe kredietoffisier word aangestel by die bank en as die hoof van BoBo-Bank se
kredietafdeling is dit u verantwoordelikheid om toe te sien dat die nuwe werknemer seker is
oor hoe om ʼn besigheidslening en ʼn nie-residensiële lening te prys. Verskaf ʼn vergelyking
tussen die prysleierskapsmodel vir die prysing van ʼn besigheidslening en die
afslagkoersmetode as ʼn nie-residensiële leningprysingsmetode en wys uit wat elkeen
behels. / A new credit officer is appointed at the bank and as the head of BoBo-Bank’s credit
department, it is your responsibility to ensure that the new employee is confident about how
to price a business loan and a non-residential loan. Provide a comparison between the pricing
leadership model for pricing a business loan and the discount rate method as a non-
residential loan pricing method and point out what each entails. (4)
3. U is as ʼn konsultant aangestel om ʼn geskrewe leningsbeleid vir Moggo-Bank te ontwikkel.
Evalueer hul leningsbeleid deur slegs te verwys na die verskillende aspekte wat in so ʼn
geskrewe leningsbeleid opgeneem behoort te word. / You have been appointed as consultant
to Moggo-Bank to develop a written loan policy. Evaluate their loan policy by only referring to
the different aspects that should form part of such a written loan policy. (6)
4. Differensieer tussen enige drie K’s wat geëvalueer moet word om te bepaal of ʼn lener
kredietwaardig is. / Differentiate between any three Cs that should be used to assess the
creditworthiness of a borrower. (3)

AFDELING C / SECTION C [20]

1. Banklikiditeit is ʼn aanduiding van die tyd, koste en gemak vir ʼn bank om aan die
likiditeitsvereistes van sy laste, ekwiteit en “off-balance sheet”-klante te voldoen. Spesifiseer
wat die belangrikste uitdagings is wat banke in die gesig staar om die vereiste
kontantreserwe- en likiede batevereistes te handhaaf. Verwys ook na die toepaslike vorm en
spesifieke koerse wat van toepassing is by die berekening van hierdie onderskeie
vereistes. / Bank liquidity is an indicator of the time required, cost and ease for a bank to meet
demands for liquidity from its liability, equity and off-balance sheet customers. Specify what
the main challenges are that banks face in maintaining the required cash reserve- and liquid
asset requirements. Furthermore, refer to the relevant form and specific rates that are
applicable when calculating these respective requirements. (4)
2. As ‘Sin City’ Bank se likiditeitbestuurder is dit jou verantwoordelikheid om gereeld die bank se
huidige likiditeitsgaping te evalueer met behulp van die bronne en gebruike van fondse-
benadering. Beklemtoon die belangrikheid van likiditeit en die geloofwaardigheid van die
benadering deur die volgende vrae te beantwoord: / As the liquidity manager of Sin City Bank,
it is your responsibility to regularly evaluate the bank’s current liquidity gap using the sources
and uses of funds approach. Emphasise the importance of liquidity and the credibility of this
approach by answering the following questions:
2.1 Formuleer die stappe in die berekening van die likiditeitsgaping. / Formulate the steps
in calculating the liquidity gap. (1½)
EKRP 311 1/2
 2.2 Wat die likiditeitsgaping toon. / What the liquidity gap indicates. (1½)
2.3 As hoof van die likiditeitsdepartement word u gevra om enige vier faktore wat die keuse
van die tipes reserwes (bronne) sal beïnvloed, te identifiseer en elk te motiveer. / As the
head of the liquidity department, you are asked to identify any four factors that will
influence the choice of the different sources of reserves (sources) and to provide a
motivation for each. (6)
3. Met jare se ervaring het likiditeitsbestuurders verskeie strategieë ontwikkel om
likiditeitsprobleme op te los. John is die likiditeitbestuurder van ‘Cash-is-King’ Bank en besluit
om die bate-likiditeitsbestuur (bate-omskeppings)-strategie te implementeer, waar Simon die
likiditeitsbestuurder van ‘Happy-go-Lucky’ Bank is en besluit om die laste-likiditeitsbestuur
(geleende likiditeit)-strategie toe te pas. Verskaf ʼn volledige interpretasie van elk van die
strategieë en verklaar hoekom dit beter is om eerder ʼn gebalanseerde likiditeitsbestuurs-
benadering te gebruik, deur onder andere na die nadele van John en Simon se strategieë te
verwys. / With years of experience, liquidity managers have developed several strategies to
address liquidity problems. John is the liquidity manager at Cash-is-King Bank and decided to
implement the asset liquidity management (asset conversion) strategy. Simon is the liquidity
manager of Happy-go-Lucky Bank and decided to implement the liability liquidity (borrowed
liquidity) management strategy. Provide a complete interpretation of each strategy and explain
why it is better to use the balanced liquidity management strategy, by referring to the
disadvantages of John and Simon’s strategies. (7)

AFDELING D / SECTION D [3]

(Rond u antwoord af tot twee desimale syfers. Toon al u berekeninge. / Round your answer
to two decimal places. Show all your calculations.)
1. ‘Big Money’ Bank se huidige deposito’s en nie-deposito-verpligtinge kan soos volg uiteengesit
word:
• ‘Warm geld’ (hot money): R56 miljoen
• Kwesbare fondse (vulnerable funds): R30 miljoen
(grootste deposito- en nie-deposito-verpligtingrekeninge ingesluit)
• Stabiele (kern) fondse (stable funds): R80 miljoen
‘Big Money’ Bank se bestuur wil ʼn 93%-reserwe handhaaf op ‘warm geld’-deposito’s (minus
5% wetlike reserwevereiste op die deposito’s) en nie-depositoverpligtinge, ʼn 45%-
likiditeitsreserwe op kwesbare deposito’s en lenings (minus die 5% wetlike reserwe vereiste),
en ʼn 25%-likiditeitsreserwe op kerndeposito’s en nie-depositofondse (minus die 5% wetlike
reserwe vereiste).
‘Big Money’ Bank beskik oor ʼn totale leningsboek van R420 miljoen. Die leningsboek was
egter onlangs R510 miljoen met ʼn groeikoerstendens van ongeveer 7.50% per jaar. Die bank
wil altyd in ʼn posisie wees om klante se vraag na kwaliteit lenings te akkommodeer. Bereken
‘Big Money’ Bank se totale likiditeitsvereiste deur die voorgaande inligting te gebruik.
Big Money Bank finds that its current deposits and non-deposit liabilities break down as
follows:
• Hot money: R56 million
• Vulnerable funds: R30 million
(inclusive of largest deposit and non-deposit liability accounts)
• Stable (core) funds: R80 million
Big Money Bank’s management wants to keep a 93% reserve behind its hot money deposits
(less the 5% legal reserve requirement) and non-deposit liabilities, a 45% liquidity reserve of
its vulnerable deposits and borrowings (less the 5% legal reserve requirement), and a 25%
liquidity reserve of its core deposit and non-deposit funds (less the 5% legal reserve
requirement).
Big Money Bank’s loans total R420 million, but recently have been as high as R510 million,
with a trend growth rate of approximately 7.50% a year. The bank wishes to be ready at all
times to honour customer demands for all loans that meet its quality standards. Calculate Big
Money Bank’s total liquidity requirement using the aforementioned information. (3)

TOTAAL: / TOTAL: 45

EKRP 311 2/2