Roll No.__________________
26 August, 2015
Sarhad University, Peshawar
(Distance Education)
Paper
: Prudential Regulations for Banks - (A) FIN426
Examination: Final, Spring-2015
Total Marks: 70, Passing Marks (35)
Time Allowed : 3 hours
NOTE: Question No.1 is compulsory. Attempt any four questions from the remaining. All questions carry equal
marks. Phones and other Electronic Gadgets are not allowed.
Q1.
Choose the correct answer.
i.
According to regulation ____________ Specific Credit Policy Banks/DFIs shall prepare a
comprehensive SME Specific Credit Policy duly approved by their Board of Directors.
a. SME R-1
b. SME R-3
ii.
Which Regulation ________ of SME is Securities and Margin Requirements.
a. R-8
b. R-5
iii. According to __________ regulation the rescheduling/restructuring of non-performing loans shall
not change the status of classification of a loan/advance.
a. SE R-7
b. SE R-9
iv.
ML stands for_________________.
a. Money Laundering
b. Money lent
v.
______________ means the person to whom or for whose benefit the funds are sent or deposited in
bank.
a. Beneficiary
b. Banker
vi.
“FMU” means _______________established under the AML Act.
a. Financial Monitoring unit
b. Financial management unit
vii.
State Bank of Pakistan is a ______________ Bank.
a. Commercial
b. Central
Q2.
What documents are required for opening a Trust bank account??
Q3.
Explain the Responsibility of the Beneficiary Institutions under AML/CFT regulation?
Q4.
Explain the short term and long term credit instruments of a Bank??
Q5.
R-2 of prudential regulations for Corporate and Commercial defines limits in exposure against contingent
liabilities. What are the two main concepts for recognizing contingent liabilities which are discussed in
R-2?
Q6.
The customer has the right to terminate the relationship with a bank at any time and vice versa. State the
reasons based on which the bank can close the customer’s account.
Q7.
Write short notes on any two of the following
a. Small Enterprise
b. Contingent Liability
c. Underwriting Commitments
Prudential Regulations for Banks - (A) FIN426-Spring-2015
Page 1 of 1