Lending Operation & Risk Management

1. Discuss different types of credit facilities that a commercial bank can offer to its clients.
2. What do you mean by credit planning? What factors are to be taken into consideration while
making a credit plan for a bank?
3. Discuss the important components those are to be taken in consideration in formulating the
lending operational policy of a bank.
4. Discuss the important points to be looked into while selecting a prospective good borrower.
5. In selecting a borrower, it is perfectly made, loan cannot be turned into bad Elaborate your
comments.
6. Explain why creditworthiness of an applicant is assessed and what aspects are to be taken into
consideration in assessing the creditworthiness?
7. Define SME credit with reference to BBs given definition. List out the booster sectors financed
under SME scheme.
8. Do you think that the credit delivery under SME scheme is given due weight-age by the bank
and financial institutions form the viewpoint of national interest? Explain.
9. Distinguish between SME & Agricultural credit.
10. List down the activities those are financed as included in the credit portfolio of your bank.
11. Define Portfolio Management. Highlight the role and responsibilities of a branch manager in
identifying a borrower, loan processing, and appraisal of the loan proposal. *
12. What do you mean by Asset Liability Management (ALM)? Absence of good ALM of a bank
may lead to different crisis to jeopardize the image and soundness of the bank explain.
13. Banks usually extend credit against securities. List down the different types of securities
against which banks sanction loan to its customers.
14. Distinguish between Pledge & Hypothecation. As a banker which one will you prefer? Justify
your answer.
15. What is loan pricing? Discuss the components those are required to be taken into account in
pricing of loan. In competitive market, Variable or fixed which pricing model as banker would
you advocate? Explain.
16. Proper pricing is most essential before launching a new loan product- explain.
17. Distinguish between term credit and short-term credit. Why do the private commercial banks
prefer short term lending? Explain. *
18. National economy will not flourish if all banks do not equally participate in financing the long
term investment projects Argue on behalf.
19. What do you mean by Working Capital Loan? Discuss the importance of working capital loan
for running an industrial project. Distinguish between WCL & CC.
20. How would you assess the working capital requirement of poultry industry? Prepare a case
study assuming 5000 birds in the poultry firm.
21. What do you mean by a project? List down the cost components of a Rice Mill Project.
22. What do you mean by project appraisal? During appraisal of a project loan proposal, what
factors does a banker take into consideration?
23. Mr. X, proprietor of an enterprise of your branch area applied for a loan for tk. 10 Lac to
establish a fishery project. Write an appraisal report explaining the following points:
Technical aspects
Financial aspects
Commercial aspects
Managerial aspects
Recommend the loan amount
24. What is fund flow? Discuss the importance of fund flow statement for a bank.
25. Discuss the differences between fund flow and cash flow statement. Write a sample of a cash
flow statement.
26. Explain why core risk management is getting so much highlighted for proper financing of a
bank.
27. Distinguish between Money Market & Capital Market. Can increased call money rate influence
the capital market? Elaborate with example.
28. What do you mean by SEC? Elaborate its functions. Do you think that SEC is performing its
role properly by monitoring and controlling capital market of our country?
29. What do you mean by CRG? What is its purpose? Explain different aspects of Credit Risk
Grading (CRG) with grading points. Write down the components of CRG.
30. What should be the expected minimum CRG requirements for extending credit? Explain with
example.
31. Distinguish between Lending Risk Analysis (LRA) & Risk Grading (CRG).

Kamal H. Shishir, FEO, HO, SME Division: 01611-427545

32. List down the risks factors those can make an industry sick. Explain how each factor
accelerates the sickness?
33. What is Provisioning? Discuss the basis of determining the status of classified loans and
advances.
34. It is due to the increase of classified loans of the bank that they now facing liquidity problems
and borrower inter bank call money at very high rate? Justify the viewpoint.
35. What is loan write-off? Before sending a loan write-off proposal to the Head Office, list down
the preconditions to be fulfilled for the borrower to be eligible to get the write-off facility.
36. Distinguish between interest remission and write-off. Among those, which one will you prefer?
Why?
37. Distinguish between loan write-off and loan re-scheduling/re-structuring.
38. Discuss loan-rescheduling rules set by Bangladesh Bank.
39. Discuss loan write-off rules set by Bangladesh Bank. Does it have any effect on banks balance
sheet? Explain.
40. Short Notes:
Debt-Equity Ratio
Debt Service Coverage Ratio
Non-performing Asset
Loan Pricing
Loan Portfolio
Corporate Banking
SME Financing
Asset Liability Management (ALM)
Break-even Point
Capital Market
Micro-credit
Packing Credit
Loan Documentation
Back-to-Back L/C
Discrepant L/C
Loan Syndication
Pari-passue Charge
Micro-credit Regulatory Authority (MRA)
Sensitivity Analysis
Bankers Book Evidence Act
Preference Share
Economic Rate of Return
Green Banking
Liquidity Management

Kamal H. Shishir, FEO, HO, SME Division: 01611-427545