Compliance Quiz 2022

Deposit Insurance Scheme has been introduced by the CBSL in order to provide protection to the depositors of banks/financial institutions. What is the maximum amount payable to a depositor under the Deposit Insurance and Liquidity Support Scheme in the event of a bank run?

• 600,000

• 750,000

• 1,100,000

• 1,250,000

In terms of Section 77 of the Banking Act No 30 of 1988, bankers are required to observe strict secrecy in respect of all customer affairs.  The section also provides for certain exceptions to this requirement. In which of the following instance a banker shall not reveal information pertaining to customers to a third party.

• When required to do so by a court of law

• When required to do so by a police order

• In order to comply with any written law

• When required to do so by the person to whom such matter relates

Department of Bank Supervision has issued a regulation stipulating the threshold age to consider a customer as a senior citizen for the purpose of uniformity in banking operations. What is that age?

• 55

• 58

• 60

• 62

As stipulated in the prevailing CBSL instructions on “Sub-categorization of Non Performing Credit Facilities”, any credit facility where contractual payment is past due or have remained in excess of the sanctioned limit for more than 270 days but less than or equal to 360 days, the facility will be categorized as;

• Special mention

• Substandard

• Doubtful

• Loss

01.   A customer has requested a credit facility to purchase a motor vehicle, which has been used in Sri Lanka for five years. The facility granted for this purpose should not exceed ……….. of the Market value of such vehicle.

• 50%

• 60%

• 90%

• 70%

Banks are expected to serve all customers equally and not to provide any preferential treatments to those who are related to the bank in various ways. Many regulations have been issued to ensure this aspect. Who is not considered as a Related Party of the bank under the corporate governance regulations issued by the CBSL

• A shareholder owning a material interest in the bank

• A close relation of a material shareholder of the bank

• A close relation of a key management personal

• Bank’s subsidiary company

Bank is in the process of granting a credit facility to a spouse of a Director of the bank. Which of the following could be accepted as security for such facility

• 70% of the surrender value of his/her life insurance policy

• 80% of a cash deposit

• 40% of the market value of the mortgaged stock in trade

• 50% of the market value of shares of a public quoted company

Officers performing executive functions in the bank are considered as key management persons (KMPs) of the bank. Which of the following function holder is  not considered as a  KMP of the bank?

• Company Secretary

• Head of Legal

• Head of Information Technology

• Head of Cards

With a view to meeting the challenges faced by businesses and individuals due to prevailing extraordinary macroeconomic circumstances, the Central Bank of Sri Lanka has instructed banks to suspend new recovery actions till ……………….

• 31.12.2022

• 31.03.2023

• 30.06.2023

• 30.09.2023

Bank has granted a credit facility against the business property of Mr. A which is non performing at present. The property in concern was last valued in 2020. When should the same be revalued.

• 2022

• 2023

• 2024

• 2025