商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap016

Chapter 16

Lending Policies and Procedures: Managing Credit Risk

Fill in the Blank Questions

1. The______________ is a uniform rating system developed by regulators where banks are given a

rating from one to five in each of six categories and an overall rating from one to five.

Answer: CAMELS

2. One of the 6 C‟s of lending,______________ suggests that the lender must look at the position of

the business firm in the industry and the outlook of the industry to evaluate a loan.

Answer: condition

3. One of the 6 C‟s of lending,______________ suggests that the lender must look to see if the

borrower is legally entitled to sign a binding loan agreement. For an individual this entails making sure the borrower is of legal age to sign a contract.

Answer: capacity

4. When a bank purchases a whole loan or a piece of a loan from another bank they are purchasing

what is known as a____________________________.

Answer: participation

5. Loans that have minor weaknesses because the bank has not followed its written loan policy or

which have missing documentation are called______________ by regulators.

Answer: criticized

6. ____________________________ are loans extended to farmers and ranchers to assist in planting

crops, harvesting crops and to support the feeding and care of livestock.

Answer: Agriculture loans

7. ____________________________ devote the bulk of their credit portfolio to large-denomination

loans to corporations and other businesses and tend to be large banks.

Answer: Wholesale lenders

8. ____________________________ are loans which are secured by land buildings and other

structures. These loans can be short term construction loans or longer term loans to finance the

purchase of homes and apartments among others.

Answer: Real estate loans

9. A______________ is signed by the borrower and indicates the principal amount of the loan, the

interest rate on the loan and the terms under which repayment must take place.

Answer: Promissory note

10. ____________________________ are those things a borrower must do. They are actions the

borrower must take. Examples include filing periodic financial statements with the bank and

purchasing insurance on any collateral pledged.

Answer: Affirmative covenants

11. ___________________________ are when lenders extend credit to banks, insurance companies,

and finance companies among others.

Answer: Financial institution loans

12. ______________ are loans that carry a strong probability of loss to the bank.

Answer: Doubtful loans

13. A(n)______________ is the process of resolving a troubled loan so the bank can recover its funds.

Answer: loan workout

14. ______________ is one of the key features of any loan. This C of lending examines whether the

borrower will have enough sales or income to repay the loan.

Answer: cash

15. A bank‟s__________________________________________ gives loan officers specific

guidelines in making individual loan decisions and in shaping the overall loan portfolio.

Answer: written loan policy

16. An approach in which the lending officer focuses on changes in borrower cash flows over time is

known as the _____________ cash flow method.

Answer: direct

17. are loans granted to businesses to cover purchases of inventory,

paying taxes and meeting payrolls.

Answer: Commercial and industrial loans (C&I Loans)

18. include credit to finance the purchase of automobiles, mobile homes,

appliances and other retail goods and many other purchases by consumers.

Answer: Loans to individuals (consumer loans)

19. is where the lender buys equipment or vehicles and rents them to its

customers.

Answer: Lease financing receivables