Cpg New Flashcards
(344 cards)
1
Q
Where a temporary overdraft accommodation remains outstanding for longer than 30 days it shall be classified as a past due loan.
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2
Q
According to the CPG, for obligor to whom we have extension of credit, there will be several approvals across the bank towards problem recognition, the classification of problem exposure and remedial action
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3
Q
Credit portfolio risk limits may be proposed by credit Management and approved by Management credit committee
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4
Q
In order to ensure transparency of risks taken, it is the responsibility of Relationship Management to accurately, completely and in a timely fashion, report the comprehensive set of credit risk data into the independent risk reporting system
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5
Q
Settlement risk occurs when there is a simultaneous exchange of value with a counter party for the same value date and verification that payment is received is not made until after the bank has paid / delivered on the obligation
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6
Q
While considering settlement risk, there is also a risk that the counter party does not deliver at all and as such resulting in exposure of the bank to direct lending risk
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7
Q
Clearing risk is the risk that the bank may be reimbursed on another value date for payments made on behalf of customers
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8
Q
Documentation risk is the risk that documentary evidence on which the bank depends to enforce rights under contracts or transactions will not be complete, covered and enforceable
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9
Q
Legal and regulatory risks may occur when the Bank, a related corporate entity, a transaction or a customer is subject to a change in exposure resulting from legal or criminal sanctions or litigations
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10
Q
Liquidity risk is the risk that the bank will be able to meet all of its financial commitments to
customers and markets when due
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11
Q
Under the CPG, it is the responsibility of Management and Board of Directors to ensure the
integrity of the credit process and proper documentation of credit decision
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12
Q
The level of authority required to approve credit will decrease as amounts and transaction
risks decreases and as risk ratings improves
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13
Q
The CPG proposes a system of multiple standards for the measurement of credit risk in order
to ensure consistency across business, stability in methodologies and transparency of risk
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14
Q
Contingent lending risks may occur in products ranging from letters of credit to guarantees to
unusual commitments
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15
Q
Direct lending risk exists for the entire life a transaction
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16
Q
Contingent lending risk exists for the entire life of the transaction
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17
Q
Country risk events may include political events
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18
Q
Tentative action shall be taken on a reactive basis to minimize the bank`s loss on a non-performing asset
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19
Q
Under the CPG, approval credit product programs shall demonstrate that the behavior of the
portfolio will not be predictable
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20
Q
Individual credits are applicable in respect of facility request and credit approvals for
customers who do not fit into credit product programmes and product offerings
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21
Q
Individuals / business credits are suitable for which, if any, of the under listed
A
Any of above
22
Q
Is it right to state that some credit activities in the Retail Banking business unit may be
categorized as individual /business credits
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23
Q
The board credit committee is the highest credit approval body in the bank and is responsible
for approval of credit beyond the authorized approval limit
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24
Q
The criticized assets committee is headed by GDMD and is convened once every month to
review all qualifying assets and take decision on remedial action and / or provisionary
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25
The Board credit committee is headed by the GMD and by the GDMD in his absence
26
Loans that show little or no movement during their tenor or which fail to be liquidated on due
date are to be regarded as delinquent
27
The decision to transfer non-performing facility to the remedial assets Management unit is
normally taken at Management credit committee meetings
28
In some instances where it is determined that the probability of turnaround of a facility
performance is remote, such facility may be immediately classified as lost
29
Under which of the under listed instances will a facility be classified lost
death/disappearance of obligor
30
Generally, recovery action may be instigated at any point in time in the life of a credit exposure
31
In the event of recovery, the bank`s entitlement shall be limited to the full amount of principal and interest unpaid to date of recovery
32
Where sale proceeds from realizing a collateral security falls short of the bank`s entitlement, the difference may be forgiven the customer
33
The relationship Manager is responsible for bringing in industry, prudent and other specialists (e.g., Legal, Tax) when required
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34
Risk Management policies are approved by the Board Credit committee to enable informed decision making and approval, and establish / maintain an appropriate environment for risk
Management
35
Compliance with the CPG shall be monitored on an ongoing basis by Credit Risk Management and reported on a quarterly basis to the MCC
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36
Regardless of Risk Rating Limits, Legal Lending Limits will always prevail
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37
Exposure against Risk Rating Limits may be measured as the outstanding and unusual
commitments (OSUC) to a relationship
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38
OSUC to a given relationship does not include settlement and clearing exposure, or the underwritten position of a credit under listing transaction unless the position becomes aged beyond the extension period
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39
What level of approval is required for Cash Exception
Line ED/Head CRM
40
What level of approval is required for Immaterial Exceptions
Line ED/Head CRM
41
What level of approval is required for Passive Exception
Line ED/Head CRM
42
What level of approval is required for Long-term conditioning
MCC
43
An approved Risk Rating Limit exception does not need to be re-approved during the annual review process
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Risk management policies shall be approved by the Board of Directors to enable informed decision making and approval, and establish/maintain an appropriate environment for risk management in the bank
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The Management Credit Committee (MCC) shall consider facility proposals in excess of the highest individual credit authority limit. Facility proposals that exceed the approval authority of the MCC shall be approved by The Board Credit Committee on behalf
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46
All appointments and designations for credit risk approval, as well as corresponding credit limits, must be reviewed and re-approved by the Head of Credit Risk Management at least twice a year.
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Each customer facing business unit need not maintain up to date records of credit approval authority delegated to approving officers
48
Credit programs shall be primarily defined to accommodate credit offerings where there is business opportunities that such will address for groups or groups of customers with homogenous business fundamentals and/or profiles such that their financial needs are better met through a common approach
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49
Approvals under credit programs need not be within approved global exposure and maximum individual exposure limits and shall be exercised within the market facing business units, subject to approval limits as may be set by the bank for each product program
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To provide flexibility in managing valued customer relationships, especially for specific Institutional banking customers that satisfy at the minimum, the criteria for the best risk rating, the bank shall approve `guidance limits`. These shall be pre-approved exposure limits which shall immediately upon approval be advised to the customer but available to allow for
quick response to temporary emergency needs for accommodation / enhancement of facilities.
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51
Unusual risk policies approved by MCC is limited to, the following: Exposure to director
related accounts; Exposure to politicaly exposed entities and Exposure to gambling entities
52
All unusual/special risks shall require approval at Management Credit Committee / Board
Credit Committee or Board of Directors subject to applicable limits
53
Any increases to Total Facilities, whether caused by new facilities or increases to existing
facilities, must be approved, based on the new Total Facilities amount, as per the Credit
Facility Approval Grid
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54
Availments under approved credit facilities shall be through drawdown memorandum
approved by an officer in Credit Risk Management only
55
Availments under approved credit facilities shall be through drawdown memorandum
approved by an officer in Credit Risk Management and an officer in Legal Department, who
will verify that all conditions precedent to drawdown have been met.
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56
Drawdown on facilities classified `substandard` shall be through drawdown memorandum
approved by an officer in Credit Risk Management and an officer in Legal Department, who
will verify that all conditions precedent to drawdown have been met
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57
Drawdown of facilities classified `doubtful` and worse need not be approved by the Head of
Credit Risk Management at a minimum
58
When an established credit facility undergoes a material change in terms, tenor or conditions
(with materiality determined by the Head of Credit Risk Management), Total Facilities must
be re-approved, in accordance with the Credit Facility Approval Authority
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59
When the amount of a credit facility is reduced or cancelled, or the tenor is shortened, the
Relationship Manager / Originating Officer must promptly advise the applicable credit
administration area, in writing, that the credit systems be updated to reflect the changes
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60
Four officers from the business unit may approve any reallocation or sub allocation from an
approved facility, where the obligor, Exposure Type (Direct, Contingent) and tenor are pre-established, in order to establish or increase another facility under the following conditions
61
If a reallocation or sub-allocation is for a related obligor of equivalent or better risk rating
within the same client relationship, and the last three conditions are met, then two business
credit officers may approve reallocations sub-allocations, one of whom must be the
responsible business Group Head
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62
Upon confirmation of full repayment of the credit facility and liquidation of the bank`s
exposure, all collateral, guarantee or support for any type of credit transaction shall be
released to the customer in accordance with agreed terms and conditions
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63
The release of collateral, guarantees or support for any type of credit transaction requires the
following approvals: · Before the corresponding commitment is cancelled or repaid, the
Managing director must determine if the release of the collateral, guarantee or support
constitutes a material change in the risk of the transaction. if so, then the transaction must be
re-approved, based on the credit facility approval grid
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Requests to waive or amend the provisions contained in existing credit agreements must be
considered carefully, as they may be a critical component of problem identification and
remedial management activities. Such requests must be approved by the responsible business
Ed and in accordance with the Credit Approval Grid, but not to exceed the Group MD/CEO
limit for credits. Any waiver or ammendments for facilities above that must be approved by
GDMD/GMD
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Amendments to credit agreements, such as the lengthening of tenor, increasing facility
amount, or material relaxation of collateral structure, do not require full credit approval of
Total Facilities, in accordance with the Credit Approval Grid
66
Under no circumstance can the periodic review be temporarily extended
67
All credit facilities must be reviewed once every 12Months
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68
All credit facilities must be reviewed once every 12 Months. However the periodic review
may be temporarily extended for up to 60 days with approval of the Business ED and the
Head of Credit Risk Management. Extensions beyond 60 days, up to 90 days, must be
approved by the GMD/CEO (or designee)
69
In cases where there has been a review extension the annual review date may then be reset, as
one year from the approved extension date
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70
Under no circumstance are unaudited financial statements acceptable in the annual review
process
71
When Access Bank underwrites and distributes any loans or debt instrument The Hold
Position is the amount that Access Bank intends to retain
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72
When Access Bank underwrites and distributes any loans or debt instrument The
Underwritten Position is the amount Access Bank commits to purchase and distribute to
investors
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73
When Access Bank underwrites and distributes any loans or debt instrument The Total
Position is the sum of Access Bank`s Hold and Underwritten Positions
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74
When Access Bank underwrites and distributes any loans or debt instrument The Total
Position is the amount that Access Bank intends to retain
75
When Access Bank underwrites and distributes any loans or debt instrument The Hold
Position is the amount Access Bank commits to purchase and distribute to investors
76
When Access Bank underwrites and distributes any loans or debt instrument The
Underwritten Position is the sum of Access Bank`s Hold and Underwritten Positions
77
All Credit Programs for Credit Underwriting must be approved in line with the Credit
Approval Authority grid
78
Credit underwriting and distribution requires the approval of individuals with highly
specialized market skills and specific product expertise
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79
The level of approval in credit underwriting does not depend upon the amount and facility
risk rating
80
One off transactions (i.e., those done outside a Credit Program) also require approval in line
with the Credit Approval Authority grid
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81
The Hold Position is subject to credit approval in accordance with the Credit Facility
Approval Authority Grid. This Hold Position amount must be aggregated with other credit
exposures for the relationship, and need not be included in Total Facilities
82
Each Credit Program must have an approval process for the Underwritten Position that
specifies approval levels as a function of the size of the underwriting. But the Underwritten
Position, during its defined distribution period, need not be captured by the market risk /
issuer risk reporting and limit framework
83
Each Credit Program must have an approval process for the Total Position that specifies
approval levels as a function of the size of the Total Position
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84
In Best Efforts Undertakings, Access Bank agrees to use its best efforts to place loans or
securities with investors
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85
Although distribution efforts are similar to an underwriting, a Best Efforts undertaking also
entails a legal commitment to fund any distribution shortfall. However, there is risk here in
the franchise damage associated with a failed undertaking
86
Best Efforts Undertakings should either have a specific approval process, documented as part
of a Credit Program, or the total amount of the undertaking must be approved pursuant to
credit underwriting requirements
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87
In Assignments and Participations the distribution of Underwritten Position is normally
accomplished by assignments, in which an investor assumes his pro rata share of a transaction
on a full risk basis, with no recourse or future funding risk to the underwriter
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88
Unfunded participations entail counterparty funding risk, in that, should the participant fail to
fund, Access Bank is not obligated. Therefore, any unfunded portion of a transaction sold by
participation does not require credit approval as an increase to the issuer hold position
89
With regards to Documentation Requirements Underwriting commitment need not follow
Commitment Letter standards
90
Each underwriting and distribution must have a Defined Distribution Period that cannot
exceed 180 days, unless otherwise specified in advance as part of the original transaction
approval
91
Distribution period begin For loans - when the issuer accepts Access Bank`s commitment,
either verbally or in writing. And For securities - on the date the price is set
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92
The distribution is completed when another party contractually assumes Access Bank`s
commitment or purchases the asset
93
Even though another party contractually assumes Access Bank`s commitment or purchases
the asset the distribution is in complete
94
If an Underwritten Position is not completely sold within the Defined Distribution Period
(usually 90 days), the amount remaining is considered Aged Inventory and must be marked to
market
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95
All Access Bank employees involved in the creation and management of risk exposures shall
comply at all times with the risk management policies, and procedures as approved
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96
Compliance shall be monitored on an ongoing basis by the bank`s Internal Audit Unit and reported on a quarterly basis to the Board of Directors
97
The risk management unit shall have specific and overall responsibility for ensuring
compliance with the Risk management Policies and procedures
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98
The Legal Unit shall have specific and overall responsibility for ensuring compliance with the
Risk Management Policies
99
The following constitute the pillars of Access Bank`s credit policies and procedures: (Select
the inappropriate item)
Credit Official Policy
100
Risk Rating Limits Policy - Every extension of credit must be approved in line with the approval requirements stated in this policy. Credit Risk Management must sign off on all extension of credits for the credit approval to be valid
101
Credit Approval Policy - Access Bank shall utilize Risk Rating Limits to maintain a diversified portfolio of risk asset
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102
Specific Risk Policy - Certain extensions of credit have incremental or unique approval and risk management requirements or may be prohibited altogether
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103
Credit Program Policy - Credit programs will be used to document business specific credit approval or risk management requirements, and are approved identically to extensions of credit
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104
Annual Review Policy - There will be consistent credit analysis standards across Access Bank, for the approval of credit facilities
105
Credit Analysis Policy - All credit files must be maintained and reviewed at least once every 12 months
106
The following are the rules governing the extension of credit, one of the items does not belong
Official Credit Policy
107
Risk Rating Limits, shall always prevail over Legal Lending Limits set by the Regulators
108
Section 20 (1a) of the Bank and Other Financial Institutions Act (BOFIA) 1991 as amended states that a Bank shall not grant more than 50% of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associates
109
What concept describes the BOFIA requirement that a Bank shall not grant more than 20% of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associate
One Obligor Limit
110
At Access Bank, the concept of one obligor is extended to include any company belonging to a group whose management are strongly linked by virtue of their related ownership structure and in particular, where the business fortune of one entity affects the other. Thus credits extended to any member of the group shall be aggregated to determine total facilities to the group, as well as the appropriate level of approval of such facilities
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111
With regards to the one obligor limit It shall be the responsibility of the Board of Directors to determine whether related company obligations shall be aggregated, and the basis for their decision shall be documented
112
Listed is the guide, to determining the `One Obligor` Is there any item listed that is
inappropriate and should be excluded
All sub at least 80%
113
For the purposes of applying Risk Rating Limits, the obligor risk rating that is used must be
All of the above
114
At Access bank, Exposure against Risk Rating Limits is measured as the Outstandings and Unused Commitments (`OSUC`) to a given relationship
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115
Outstandings and Unused Commitments OSUC are the sum of all Outstandings (including Direct and Contingent Exposure) against Total Facilities, as well as the unused portion of any Committed Facility included in Total Facilities
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116
Which of the under-listed statements is correct
Outstandings and Unused Commitments OSUC do not include settlement and clearing exposure or the Underwritten Position of a credit underwriting transaction
117
Which of the under-listed statements is incorrect
Risk Rating Limit Exceptions are encouraged but must be approved in advance at the appropriate level
118
Approval for a Risk Rating Limit Exceptions is determined by the RRLE type
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119
Types of Risk Rating Limit Exceptions include the following except
Long Term & Continuing
120
Limit exceptions, defined as overages up to 10% of Risk Rating Limit. Is a material exception
121
Passive exceptions may be caused by
A valuation change on an existing transaction
122
Passive exceptions need not be pre-approved, instead, they are flagged as part of the regular reporting process, and must be reviewed and their associated action plan must be approved as soon as possible after they occur, (but no later than the next quarterly review of Risk Rating Exceptions)
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123
Passive exceptions must be pre-approved, and need not be flagged as part of the regular reporting process, nor reviewed. Whilst their associated action plan also need not be approved as soon as possible (Can be later than the next quarterly review of Risk Exceptions)
124
Cash, Immaterial and Passive Risk Rating Limit Exceptions (RRLEs) require approval from Line ED and Head of Credit Risk Management (or their designees)
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125
All Risk Rating Limit Exceptions apart from Cash, Immaterial and Passive exceptions require approval by MCC
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126
Cash, Immaterial and Passive Risk Rating Limit Exceptions RRLEs require approval by MCC
127
All other RRLEs apart from Cash, Immaterial and Passive exceptions require approval from Line ED and Head of Credit Risk Management (or their designees)
128
During the annual review all Risk Rating Limit Exceptions must be noted on the Facility Approval Memo
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129
Under-listed are the steps in the credit approval process select the inappropriate item in the group
Step 1: Visit Customers Site
130
A proposal or marketing letter requires credit approval even though it expressly disclaims any commitment or any undertaking to provide a commitment or other services, and does not obligate Access Bank in any way
131
Marketing letters will be jointly approved by the business head or ED and the Head of Credit Risk Management)
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132
Marketing letters must be jointly approved by the MCC and the managing Director
133
When establishing Total Facilities for a relationship, Total Facilities must include the under listed select the inappropriate item:
The borrowers business description
134
The level of authority required for approval is a function of the Total Facilities amount
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135
The level of authority required for approval can be found on the Credit Facility Approval Grid
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136
All extensions of credit in the bank need not be approved in compliance with the Credit Risk Management Policy Guide
137
Extensions of credit facilities in the regions need not have the concurrence of the Head of Credit Risk in the Regional Office but requires the approval of an officer of the bank with a covering credit approval limit
138
Which of the under-listed statements is correct
No credit exposure shall be created on the judgment or at the discretion of a single bank officer acting independently. All extensions of credit or In
139
Approval Authority shall be in line with delegated credit approval authority limits at the Board Credit Committee, Management Credit Committee (MCC) or designated bank officers.
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140
An obligor shall represent all related parties that are associated/belong to the same group of companies whose management are strongly linked or share the same ownership. Exposures to any such obligor shall be aggregated to determine the level of Access
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141
Which of the under-listed statements is correct
By definition and for the purpose of credit creation at Access Bank, a group of companies shall exist where one or more of the shareholders of the company
142
The following have individual levels for credit approval within the bank except
RM
143
Credit approval authority shall be approved by the Group Managing Director/CEO based on delegation by the Board of Directors, on the recommendation of Business EDs and Head of Credit Risk Management
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144
Risk management is the responsibility of
All of the above
145
_____ attention shall be paid to quantifiable and non-quantifiable risks
Particular
146
Before granting credit to an individual or sole proprietor you must do all the following except
Having a personal relationship with the client
147
Individuals or business credit must be secured by all the following except
Relevant past history with the Bank
148
Unsecured loans to individuals or organisation, other than to members of staff of the Bank, shall require
GMD/GDMD’s approval irrespective of the amount involve (in addition to other approvals that may be required)
149
Which of the following is not a type of Credit Exposures
Legal Commitments
150
A credit extension made known to the borrower and to which the Bank is committed (As long as the borrower fulfils prior conditions) is
An advised facility
151
Acceptance of an advised credit by a corporate client must be supported by a ________, among other requirements of the facility terms
Board Resolution
152
The tenor of revolving credits must not exceed
3 years
153
To manage the Bank`s exposure effectively, an Account Officer may choose not to advise the full amount of the facility available for a client. This may be done for one of the following reasons
As a marketing tool
154
An Overdraft (OD) is a line of credit that allows a customer write cheques for _______ the actual balance on the account with a finance charge on the excess
more than
155
Ideally, the use of an OD should be restricted to
Working capital requirements
156
Before granting an OD, It is imperative for an account officer to study the client`s business and satisfy himself as to which of the following:
All of the above
157
For customers wishing to draw against confirmed drafts (`DAUD or DAUE`), the facility shall be approved for
The tenor the draft is in clearing
158
The tenor of the Revolving Credit must not exceed
Three years
159
The bank will only go into warehouse financing where:
All of the above
160
Where a warehouse financing facility is granted which of the following is necessary to be done:
All of the above
161
What is the maximum tenure of a time loan
one year or less
162
What is the maximum tenor of a term loan
7 years
163
Where a financing request or risk is too large for one Bank, two or more Banks may jointly provide financing. The Bank shall be willing to participate in Syndications led by other Banks subject to:
Syndicated facility being subject to the same high standards of credit analysis, documentation, etc
164
These are exceptional or unsecured credit extensions to certain companies and/or
individual having special relationships with the Bank, some of which are already subject to certain restrictions by law except:
Loans to staff of the bank
165
Agricultural loans are one of the most complex and high risk loans the Bank can grant. Appraisal of all Agricultural loans must take account of:
All of the above
166
The Bank may extend credit for specific agricultural ventures: provided that:
The bank receives acceptable guarantees from public or private sources external to the project
167
Advance Payment, Bid Bonds and Guarantees should contain all of the following elements except:
The Bank may not charge fee for its issuance
168
What is the maximum tenor for placements with approved banks
360 days
169
What is the nature of the limit that the CPG imposes on the bank concerning takings
from other bank
None
170
Access Bank policy will be not to finance Armament loans and Gambling loans in any form. What exceptions, if any, exist in the CPG
Board of Directors must approve
171
Section 20 (1a) of the Banks and Other Financial Institutions Decree (BOFID) 1991 states that a Bank shall not grant more than ______ of its shareholders` funds unimpaired by losses to a company, its subsidiaries and associates
0.2
172
The concept of one obligor is taken further to include any company belonging to a group whose management are linked by virtue of their related ownership structure and in particular, where the fortune of one entity can readily pass to the other
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173
As a guide, the term `One-obligor` to a borrower includes All subsidiaries owned at least 50%; such interest to be an aggregate of both direct and indirect shareholding
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174
As a guide, the term `One-obligor` to a borrower includes Any less than 50% owned affiliate where the borrower exercises management control. Also where, in the opinion of the lending officer, the commercial fortunes of the affiliate are strongly influenced by the borrower
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175
As a guide, the term `One-obligor` to a borrower includes Any obligor related to the borrower as a result of guarantees, endorsements, or other similar arrangements in favor of the Bank
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176
As a guide, the term `One-obligor` to a borrower includes All obligor under common ownership or control of a corporation or individual
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177
What is the current approval limits for Executive Directors
75 million
178
What is the current approval limits for Group Deputy Managing Director
150 million
179
What is the current approval limits for Group Managing Director
200 million
180
What is the current approval limits for Management credit committee
500 million
181
What is the current approval limits for Board credit Committee
6 billion
182
What is the current approval limits for Board of Directors
Above 6 billion
183
There is no limit to the amount of credit which may be approved by the Board of directors provided the credit conforms to the CPG and statutory lending limit
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184
The management Credit Committee is responsible for reviewing and approving all credits that are above the level of the managing Director i.e. the committee shall review and approved extensions of credit, including one-obligor commitments, that exceed N200 Million
185
The Management Credit Committee shall meet at least at once a month
186
For an MCC meeting, The Chairman or Vice Chairman, the Secretary and at least 2 other members shall form a quorum.
187
In the absence of the Group Managing Director, The GDMD automatically assumes the leading limit of the GMD
188
Recommendation and approval of facilities shall be by a minimum of ______Credit
Officers, at least one of which must have the authority to approve the recommended amount
3
189
The bank`s pricing strategy shall be based on the following except
Customers ability to pay
190
Which of the following is not a consideration in ascertaining the margins to be applied in estimating lending rate:
Size of the customer
191
What is the purpose of risk management policies
None
192
Risk management policies may play a role in ensuring optimal customer satisfaction
while maintaining a sound risk asset portfolio
t
193
Which one of the following does not form a critical part of the Bank`s risk management policy
None
194
Once an underwriting becomes Aged Inventory, a memorandum, specifying the Extension Period (usually an additional 90 days), and describing an action plan or alternate strategy and the Mark to market methodology, must be prepared by Investment Banking Division
t
195
The process to approve an Aged Inventory memorandum must be documented as part of the Credit Program. Required approvers must include a business ED and the Head of Credit Risk Management
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196
All Aged Inventory positions must be reported at least monthly to the GMD, GDMD and responsible business Executive Director. The process for reporting Aged Inventory must be included within the Credit Program
t
197
Access Bank is committed to conducting business in an environmentally and socially responsible manner, but need not take cognizance of the Equator Principles
198
All credit relationships are subject to reviews on at least an annual basis in the form of an `Abbreviated`, a `Nominal` or a `Full` Credit Review
199
# True or False
At any time a credit approval authority or the Head of Credit Risk Management may
determine that a more frequent review cycle is more appropriate for a particular relationship, geography, industry or business
t
200
An Abbreviated Annual Review is allowable each year for the following: Select the
inappropriate item
Any relationships with classified (substandard and worse) facilities or has been adversely noted at a CAC review in the review period
201
What is the segment market for Current Account Individual
Individual
202
What account type is Access Premier Account
Current
203
Does this account attract interest payment, and at what rate
Yes, the interest on the account is 1% per annum
204
What are the variants of MPower Biz accounts
MPower Biz Classic, MPower Biz Gold and MPower Biz Platinum
205
What is the minimum daily balance and maximum turnover on Mpower Biz Classic
20,000 and 10mm
206
A Contact Center imputer is the one who
Log cards requests
207
Verve Debit card is blocked on ______ application
None
208
Monthly maintenance fee is charged on which of the accounts below
None
209
The opening balance for early savers account is
5000
210
The age limit for Standard Savings account is
None
211
The maximum monthly turnover for Mpower Biz Classic account is
10 million
212
An unresolved customer`s request should be left on what status
In progress
213
Below are some of the details required in resolving a dispense error complaint except
None
214
What is the minimum daily balance for a Solo Account
500
215
What is the full meaning of EMP
Emerging Market Payments
216
What is the minimum daily balance for Investment Savings Account
None
217
When does a customer forfeit the interest accruable on Investment Savings Account
When money is drawn at will
218
What is the Monthly Maintenance Charge for Investment Savings Account
None
219
What is the minimum opening balance for a Current Account
10000
220
What is the meaning of N3 per mile
3 on every 1000
221
These can be used as means of address verification except
Interntional Passport
222
What is the minimum daily balance on a Domiciliary Account
Zero
223
What is the maximum percentage of a customer’s salary who owns an Mpower Salary Account is offered as a Salary Advance
0.5
224
Which of these accounts has a Zero Monthly Maintenance
Domicillary
225
Financial Literacy Campaign is a benefit of which of the accounts below
Access Early Savers
226
Which of these account holders can access an overdraft from the Bank
Current
227
An Access customer who is transferring cash from Nigeria to Ghana uses which of these platforms
Access Direct
228
Cash withdrawals from a prepaid card is done via
ALL
229
What is the maximum daily load limit for a prepaid card
20k or USD equivalent
230
What is the validity period for a prepaid card
24 months
231
A lost prepaid card is re-issued by
Sending a mail to Card Services - Credit/Prepaid Card
232
What is the cost for using our ATM card on other bank’s ATM machines
Zero
233
What countries are covered under Access Direct for now
Nigeria & Ghana
234
What is the maximum amount one can send using Access Direct
10000
235
How many days does it take the beneficiary of Access Direct to get the transferred funds
Instantly
236
What is the applicable charge to an Access Direct beneficiary
No charge
237
What is the brand name for the Black card
The Access Black Card
238
Which of these is a Card not present Transaction
ALL
239
Which of these units deals on Interbank Foreign Exchange
Treasury
240
Which of these is an interest bearing investment with no specific maturity date
Call deposits
241
What is the full meaning of RTGS
Real Time Gross Settlement
242
What is the full meaning of PCIDSS
Payment Card Industry Data Security Standard
243
What is the maximum data retention period for Access Bank’s Information assets (digital and paper)
10 years
244
State 2 applications used for customers’ account balance enquiry
Infopool and Transaction History
245
What type of account allows equal monthly contribution in order to meet a target
Investment Savings
246
Which of the following applications is used to transfer funds offshore to beneficiaries wherever you are in the world without walking into any Access Bank branch
Access Trade
247
What is the full meaning of PAN
Primary Account Number
248
The contact Center has the right to adjust these limits on credit cards except
Global Limit
249
The Access Bank standard font type, size and colour for replying customer’s mails are
Arial, 12 and blue
250
eGain always gives _____ to all inbound mails received
Auto response
251
In the email handling flow chart, all requests escalated to other units/branches are closed on Siebel immediately
No
252
Customer’s account details can only be communicated to third party if and only if the customer can not be reached on phone
No
253
What is the full meaning of “CIU”
Customer Information Update
254
The maximum monthly turnover for Mpower Biz Classic account is
10 million
255
All of these cards are activated on the ATM except
Visa prepaid
256
What is the cartoon character attached to the Access Early Savers
Dora the Explorer
257
In Access FT, _________means that all charges – which include Access bank’s handling, telex and VAT charges + offshore charges are to be borne by the beneficiary. Therefore, the beneficiary will receive less than the amount transferred
BEN
258
In Access FT, _________means that offshore charges ONLY are borne by the beneficiary. The beneficiary will receive less than the amount transferred
SHA
259
In Access FT, _________means that offshore charges are borne by the remitter including the local charges so all the banks in the transfer chain are expected to pass their charges to Access bank so that the beneficiary gets the full amount transferred
OUR
260
What Mobile Network can Access Money be registered
Airtel
261
What is the maximum daily transaction limits on Access money
15000
262
Where can a customer load his wallet on Access money
Branch
263
________ is a service that enables card holders provide their Travel details to the Contact Center ahead of their slated departure
Travel Advisory Services
264
What is the validity period for an Emergency Card
30 days
265
For all Credit card types, what are the limits on Emergency Card and Emergency
Cash
$5k and 50
266
The Turn around time for an emergency card/cash request is
24 - 48 hours
267
Does Access Premier account attract interest payment, and at what rate
Yes, 0.1% per annum
268
Which of these products is not designed for individual
Mpower Biz Classic
269
What are the variants of MPower Biz accounts
Classic, Gold & Platinum
270
What is the minimum daily balance and maximum turnover on Mpower Biz Classic
20k and 1 million
271
What is the minimum daily balance and maximum turnover on Mpower Biz Gold
50k and 50 million
272
What is the minimum daily balance and maximum turnover on Mpower Biz Platinum
250k and 100 million
273
How will I know which variant of MPower Biz to open for the customer
Based on customers business turnover
274
What are benefits enjoyed by staff on the MPower Salary account
Salary Advance - up to 50% of net monthly salary and Personal Loan - up to 50% of the net annual salary
275
What is the required minimum opening balance for Investment Savings Account
There is no fixed opening balance, as the opening amount would depend on the targeted amount
276
What is the stipulated minimum tenor for Investment Savings Account
6 months
277
The following can be used for address verification except
International Passport
278
Which of this is not a document required to open Early Savers accounts
Gender of account holder
279
Can Early Savers account be opened by un-born
Yes
280
Can dividend warrants be deposited in Solo Account
No
281
Which is the charge for Reference Letter
5000
282
What is the charge for Counter Cheque charge
100
283
In Access Bank, accounts become dormant within what period
1 year
284
What is the minimum daily balance on Early Savers
1000
285
What is the monthly maintenance charge on Access Premier
500
286
What is the monthly maintenance charge on Mpower Biz Platinum
7500
287
What is the monthly maintenance charge on Mpower Biz Gold
5000
288
What is the monthly maintenance charge on Access IPSA
200
289
What is the interest rate on Standard Savings
0.0004
290
What type of account is Mpower Salary
Payroll Administration
291
Which of these products require only 1 reference
Access IPSA
292
What is the Monthly maintenance on Access Premier
500
293
What is the maximum monthly turnover on Mpower Biz Classic
10 million
294
What is the maximum monthly turnover on Mpower Biz Gold
50 million
295
What is the maximum monthly turnover on Mpower Biz Platinum
100 million
296
What is the new COT charge for Mpower Biz Gold that defaults
N3 per mile
297
What is the opening balance on Solo account
1000
298
Which of these is not a variant of Access Bank`s Visa Credit Cards
Visa credit card silver
299
What is the annual maintenance charge on Current Individual account
None
300
What is minimum number of cars accommodated in Vehicle Fleet Finance product
10
301
The CPG provides for the preparation of a report on deferrals by CAD. How
often must they do this?
A. Weekly
B. Monthly
C. Quarterly
B. Monthly
302
What may trigger the need for an Exposure Quality Review?
A. A change in relationship Management
B. Identification of a decline in the quality of the facility
C. Significant change in the indemnity of the customer.
B. Identification of a decline in the quality of the facility
303
How often must the MCC Institute periodic reviews of exposure in the bank?
A. Weekly
B. Quarterly
C. Annually
B. Quarterly
304
The overall responsibility of sustaining the quality of individual risk exposure is primarily that of:
A. Head, Credit Risk Management
B. Group Head of Market facing biz unit
C. Relationship Manager
D. Executive Management
E. MCC
C. Relationship Manager
305
The CPG provides that the discovery of any declining risk exposure must be brought to the notice of the Chairman of Criticized Assets Committee within:
A. 24hrs of the discovery
B. 48hrs of the discovery
C. 72hrs
D. 7 days
D. 7 days
306
Whose responsibility will it be to make this report to the chairman of the
CAC?
A. Relationship management
B. Group Head of Business unit
C. ED of business unit
D. Head, Credit Risk Management
E. ED of business unit & Head, Credit Risk Management
E. ED of business unit & Head, Credit Risk Management
307
In the event that the collateral for a credit facility is a mortgage on landed property, which one of the following is a condition precedent to final approval of the credit request?
A. Governor’s consent
B. Registration at land registry/Corporate Affairs Commission
C. Receipt of certificate of good title from search
D. All of the above.
C. Receipt of certificate of good title from search
308
Whose responsibility is it under the CPG to develop and implement a bollateral management plan in respect of each facility?
A. Legal department.
B. Relationship Management
C. Credit Risk Management
C. Credit Risk Management
309
In the event of non-compliance with collateralization conditions, whose responsibility is it to report to the Chairman, CAC?
A. Legal department
B. Relationship Manager
C. Credit Risk Management
D. Customer
C. Credit Risk Management
310
What is the time frame within which the report will be made?
A. Within 24hrs
B. Within 48hrs
C. Within 72hrs
D. Within 7 days
D. Within 7 days
311
Fill the blank space with the appropriate option. In the event of delinquency, a formal notice shall be made to the customer within ------- working days of default. A second notice shall be made after ------- working days of the first
notice.
A. 7 days --------14 days
B. 14 days -------- 28 days
C. 10 days ----------- 20 days
C. 10 days ----------- 20 days
312
The CPG provides that a credit watch list of non-performing / delinquent credits shall be prepared for circulation. How regularly must this report be guaranteed?
A. Weekly
B. Monthly
C. Quarterly
D. Daily
B. Monthly
313
Under the CPG, the responsibility for delinquency Management shall be that of?
A. Legal department
B. Credit Risk Management
C. Relationship Management
D. Remedial Assets unit
D. Remedial Assets unit
314
Under the CPG, all non performing /delinquent credits shall be classified as remedial assets after…
A. 90 days
B. 180 days
C. 360 days
C. 360 days
315
Which one of the following is True? Credit facilities may be restructured:
A. At the request of the Obligor requiring a revision of the credit terms and condition
B. By the RM on identification of need to restructure based on performance of the facility C. Both A & B
C. Both A & B
316
How much loan loss provisioning must be made for outstanding credit facility not specifically provided for?
A. 5%
B. 2%
C. 1%
C. 1%
317
Where a non performing credit exposure has been classified as ‘doubtful’, how much loan loss provisioning must be made?
A. 10%
B. 20%
C. 50%
A. 10%
318
Where a credit exposure has been classified as ‘lost’, how much loan loss provision does the CPG stipulate?
A. 100%
B. 75%
C. 50%
A. 100%
319
Consideration of interest waivers and/ or credit charge shall be limited only to credit exposure classified as
A. “Gone”
B. “Doubtful”
C. “Lost”
C. “Lost”
320
Discussions and negotiation in respect of repayment / waiver is the responsibility of:
A. Relationship Manager
B. Credit risk Management
C. Remedial Asset Unit
D. Executive Management
C. Remedial Asset Unit
321
Under what circumstance may the bank consider granting a new facility to a borrower who had previously enjoyed a waiver?
A. If it is shown that customer has turned a new leaf
B. If customer brings biz to the bank
C. Where the customer has fully settled the previously granted waivers.
D. It depends on the circumstances
C. Where the customer has fully settled the previously granted waivers.
322
All waivers of interest and charges shall require the approval of...
A. The Board
B. MCC
C. GMD
D. CBN
C. GMD
323
Under what condition(s) will an exposure be recommended for write-off?
A. If continued contact with customer is impossible
B. If recovery cost is expected to be higher than the outstanding debt
C. If amount of realized from realization of credit collateral sanity leaves a balance of the debt
D. If it is reasonably determined that no further recovery on the facility is possible
E. Any of the above
E. Any of the above
324
Under the CPG all credit facility write offs require approval by..?
A. The MCC
B. The Board of Directors
C. The Central Bank
D. The E.F.C.C.
C. The Central Bank
325
In case of erroneous interest or charges debited to a customer’s account, reversal may be approved by...
A. Group Head Operations
B. ED Operations
C. Head Credit Risk Management
D. GMD
D. GMD
326
Under the CPG, what is the primary reference document for creating & managing credit exposure?
A. Market Risk Policy
B. Environmental & Social Risk Policy
C. Country Risk Management Policy
D. Enterprise Risk Management Framework
E. None of the above
E. None of the above
327
Under the CPG, which of the following statement is True?
A. The CPG is intended only for personnel involved in the creation & Management of credit exposure
B. All business units/ countries must fully comply with the provision of the CPG, whether or not their risks are specifically addressed by there policies.
C. All of the above
B. All business units/ countries must fully comply with the provision of the CPG, whether or not their risks are specifically addressed by there policies.
328
Under the CPG, the Africa regional office of the credit risk Group reports to...
A. The GMD
B. The GDMD
C. The ED for rest of Africa
D. Head, Credit Risk Management in Head Office
D. Head, Credit Risk Management in Head Office
329
129. Which one of the following is not a function of the MCC?
A. Approve Individual credit exposures line with its approval limits
B. Agree on portfolio plan / strategy for the bank
C. Approve lending decisions & limit setting
D. Review credit policy recommendation for Board approval
C. Approve lending decisions & limit setting
330
130. Whose responsibility is it to ensure the integrity of the credit process and proper documentation of the credit decision?
A. Credit Risk Management
B. Legal department
C. Relationship Management
D. Any of the above.
C. Relationship Management
331
The policy document sets out a framework for
A. The consistent management of Credit Risk
B. Identifying opportunities
C. Accessing Risks
D. Minimizing cost of credit
A. The consistent management of Credit Risk
332
The policy is derived from
A. Leading international banks
B. The Bank’s Enterprise Risk Management Frameworks
C. The Central Bank of Nigeria
D. The Nigerian Deposit Insurance Corporation
B. The Bank’s Enterprise Risk Management Frameworks
333
133. The Enterprise Risk Management Framework represent the following except
A. A structured approach to identifying opportunities
B. Assessing the risk inherent in these opportunities
C. Monitoring and reporting of demand deposits
D. Managing these risks proactively in a cost effective manner
C. Monitoring and reporting of demand deposits
334
134. The manual outlines the general policies and procedures’ framework for credit risk management in the bank and incorporates provisions for
A. Marketing and risk analysis
B. Approval and administration of risk exposure
C. Monitoring and reporting of risk exposure
D. All of the above.
D. All of the above.
335
135. The credit risk management policy manual is designed for the following except
A. Structuralize credit policies for the bank, giving clients clear and consistent direction for the creation of risk exposure across all asset creating business units.
B. Provide a comprehensive guide and framework in creating and managing risk assets.
C. Provide a framework for the on-going maintenance of the bank’s risk management policies and processes
D. Prudent management of decline in credit quality
A. Structuralize credit policies for the bank, giving clients clear and consistent direction for the creation of risk exposure across all asset creating business units.
336
136. To ensure that the overall approach to creating and managing risk assets remains relevant and responsive to environment changes, the risk management policies will
A. Be reviewed on an on-going basis
B. Be appraised every 5 years
C. Undergo assessment every quarter
D. Be evaluated every year
E. All of the above
A. Be reviewed on an on-going basis
337
137. The policy manual is intended for
A. Entry level personnel
B. Relationship Managers
C. All personnel involved in the creation and management of credit exposure
D. Management personnel involved in the creation and management of credit exposure
E. All of the above
E. All of the above
338
138. Access Bank’s risk management policies comprise the following except
A. Policies
B. Standards
C. Procedures
D. Structures
D. Structures
339
139. Proposals for addition to or modification of policy statements and procedures or any section of this manual will be presented to
A. Head, Human Capital
B. Management Credit Committee
C. Board of Directors
D. The Head, Credit Risk Management
D. The Head, Credit Risk Management
340
According to the Bank’s Risk Management Philosophy, the Bank “considers risk management philosophy and culture as the set of shared beliefs, values, attitudes and ______________ characterizing how the Bank considers risk in everything it does, from strategy development and implementation to its day-to-day activities”.
A. Culture
B. Psychology
C. Practices
D. Expectation
C. Practices
341
The Bank’s Risk Management philosophy is that ________________ and _________________ risk attitude will ensure sustainable growth in shareholder value and reputation.
A. Aggressive and prudential
B. Moderate and guarded
C. Restrained and reasonable
D. Extreme and temperate
B. Moderate and guarded
342
The following are all guiding principles for the Bank’s risk culture except: Management and staff shall:
A. Consider all forms of risk in decision-making
B. Create and evaluate business-unit and Bank-wide risk profile to consider what is best for their individual business units/departments regardless of what is best for the Bank as a whole
C. Adopt a portfolio view of risk in addition to understanding individual risk elements
D. Retain ownership and accountability for risk and risk management at the business unit or other point of influence level
B. Create and evaluate business-unit and Bank-wide risk profile to consider what is best for their individual business units/departments regardless of what is best for the Bank as a whole
343
The enterprise risk management is
A. Mandatory
B. Optional
C. Discretionary
D. Fixed
A. Mandatory
344
144. Risk management is the responsibility of
A. Management Credit Committee
B. Risk Officer’s
C. Relationship Manager’s
D. All of the above
D. All of the above
