Question 1

(a) Describe the structure of the financial system in Malaysia. (10 marks)

(b) You are the manager of Kenanga Investment Bank Bhd. Explain any FIVE (5) services offered by your organisation. (10 marks)

Question 2

(a) Encik Jeffri has applied for a loan from Maybank Bhd to build a new factory. Discuss any FIVE (5) credit lending process criteria which will be adopted by Maybank Bhd for its evaluation of Encik Jeffris loan application. (15 marks)

(b) As the Head of Loans Department of Maybank Bhd, elaborate FIVE (5) financial aspects of Encik Jeffris company which could be judged by your bank from the financial ratio analysis of the companys financial statements. (15 marks)

(c) Maybank Bhds problem loans have been on the rise. Highlight any FIVE (5) causes of the problem loans in order to mitigate the increase in problem loans. (10 marks)

Question 3

Treasury Management Department is one of the key departments in a commercial bank. Describe any FIVE (5) functions of a banks treasury management department. (10 marks)

Question 4

Baru Manufacturing Sdn Bhd (BMSB) has a new buyer for its products from Australia. As the banker for BMSM, advice BMSB the FIVE (5) payment term methods in international trade finance from the least secured to the most secured form in the position of an exporter point of view. (10 marks)

Question 5

(a) Inco Berhad is your corporate customer and has business with many foreign clients. Explain any FIVE (5) benefits of maintaining an offshore banking account in an offshore banking jurisdiction to Inco Berhad. (10 marks)

(b) Inco Berhad has imported raw materials from Indonesia and payment is by a letter of credit issued by your bank. The vessel transporting the goods has arrived at Penang Port but the bill of lading has yet to be received by your bank. Inco Berhad has approached your bank to assist it to take delivery of the goods pending receipt of the bill of lading. Describe the document which your bank could issue to the shipping company to allow Inco Berhad to pick up the goods. (4 marks)

(c) Illustrate the following international banking organisations:- (i) Correspondent Banking (3 marks) (ii) Representative Office (3 marks