ALLAMA IQBAL OPEN UNIVERSITY Level: MS (Management Sciences) Semester: Spring 2015 Paper: Credit Management (8714) Maximum Marks: 100 Time Allowed: 03 Hours ass Marks: so Note: ATTEMPT FIVE QUESTIONS. ALL CARRY EQUAL MARKS. QNo. | Questions Marks | 1 ‘How can you evaluate performance of any bank in Pakistan? | 20 Discuss various techniques/methods used for measuring bank performancd in tis regard. | 2 ‘What is basic life banking? What pressure does it impose on the | 20 ‘manager of banks and other financial institutions? 3 What are the various types of loans made by banks? Discuss all | 20 these loans. 7 Define Cost Plus Pricing Method? Discuss the principal | 20 strengths and weaknesses ofthis method with examples. 3 Define the concept of real estate loan, Discuss the real estate | 20 Joan system in Pakistan 6 What is Tiability management? Critically discuss the Tabilty | 20 ‘management strategies used by financial institutions in Pakistan. 7 Discuss and evaluate duration gap management and its} 30 importance in detail 8 ‘What is small and median enterprise loan? Critically discuss the | 20 small and medium loan system.ALLAMA IQBAL OPEN UNIVERSITY Level MS (Management Sciences) Semester: ‘Autumn 2015 Paper: Credit Management (8712) Maximum Marks: 100 Time Allowed: 03 Hours, ass Marks: 50 Note: ATTEMPT FIVE QUESTIONS. ALL CARRY EQUAL MARKS. QE (a) Towhatsiferenthind of sks are banks subjected tay? (8) whatitems on a banks balance shet and income statement can be wied to measure sk? 2 (a) Wht are core deposits and why are they so important in banking? (0) Interms of deposts types whats the best mix of deposit for bane? 13. What three major questions or issues which a bank must consider while analyzing and evaluating nearly all loan requests, explain in setai? Q4: (a) Explain the objectives ofborrowers shancial statement analysis? What are the basc techniques of financial analysis? (b) What aspects ofa business firm's finacial statements do bank loan offcers and credit analysts examine careful, expan? Q5 (a) Explencifferent types ofconsumerlans offered by barks (6) __Whydo interest rates on consumer loan typically average higher than on most other kinds of bank ioans. 6: what ae the principal money market and captal market instruments avalableto banks for Investment today? 7: Whenis abank adequately aud? Describe the strategies developed by experienced lauidity ‘managers for dealing with bank lquiity problem, 8: Write short notes on any four of te followings Syndheated loans Credit Derivatives Money Market Prudential Regulations by 8° Developmental Role of SME'sALLAMA IQBAL OPEN UNIVERSITY Level: MS (Management Sciences) Semester: ‘Avtumn 20) Paper: Credit Management (8714) Maximum Marks: 100 Time Allov ed 03 Hours Pass Marks: 50 “ote: ATTEMPT FIVE QUESTIONS. ALL CARRY EQUAL MARKS, Q.No. | Questions: : Marks | T [How san you measure performance of bank? Discuss wih] 20 examples, [27] What ae the various altemative non-deposit sources of baak | 20 | | funds? Discuss with examples. 3 | Citi seus the various ato determining he grow and 20 ‘mix of bank loans with examples. | | [Wee various pes offong term ans oe by RanlsioY 20 | business firms? Disciss with examples. i 5 THow tanker evaluaes a consumer loan applicant while helshe | 30 | apply “or the loan? Discuss with xmples | 6 ‘What is investment maturity? Discuss the various inveiment | 30 | maturity stategies with examples. | [7 [What is aration” gap managerent? Critcaly discuss We | 20] limitations of duratien gap management with examples. Lo} o|8 Discuss the followings with examples: _. | a) Standby Credit Letters |) Home Morte Market | 6) Securitizing Bank Loans | 8) Credit RiskALLAMA IQBAL OPEN UNIVERSITY Level: MS (Management Sciences) Semester: Spring 2016 Paper: Credit Management (8714) Maximum Marks: 100 Time Allowed: 03 Hours ass Marks: 50 Noe: ATTEMPT FIVE QUESTIONS. ALL CARRY EQUAL MARKS. QA: (2) Whatisreturm on assets? What aspects of bank performance it mest important components reflect? (8) What are off lance sheet tems and why are they important to some banks? 22: (9) _Whatare diferent types of accounts which are mzntaned by commercial banks for securing deposits. () What are the aternativesnon- epost funds sources used by banks these days. 23: How sould a loan review be conducted? What ae some warning signs to bank management that aproblem loan may be developing? A: (2) Explain the objectives of financial statements ana, What does Sources and Uses of Funds Statement reflec? (6) How cana Sources and Usesof Funds Statement id bankin making the decision to rant or deny a business loan request? 5 (a) Explain the ciference between real estate loans and ther kinds of bank loans? (b) What factors should a banker consider in evaluating real estate loan application? Qe: wat are the principal actors affecting the banker's chole among investment secures? 17: * How can the discipline of marketplace (signal from the market place) be usd asa guide for bank inuiity managerrent decision? 18: Wate short notes on any fur ofthe following ‘The Concept of Factoring Standby Leter of credit Capital Market “Market Penetration Deposit Pricing Functions of SMEDA