Chapter 6 - Credit Policy

Which of the following is not a risk area in banking identified in Chapter 6?

• Liquidity Risk

• Reputation Risk

• Cyber Security Risk

• Compliance Risk

Which of the following is not an attribute of an effective loan policy?

• Structured to ensure operational efficiency

• Tool to manage risk

• Establishes a frameworks for the bank to serve the legitimate credit needs of its market

• Supports a lending environment to easily approve loans

What is the Supervisory Loan To Value Limit for Primary Residential Real Estate?

(a)  

What is the Bank's defined market area for CRA purposes?

• State of Texas

• Dallas County

• Collin County

• City of Dallas

Select all of the following that best describe Ethical Business Conduct.

• Cultivates strong teamwork and productivity

• Promotes a positive public image

• Helps avoid losses to the bank

• All of the above

Which of the following is not part of the required loan documentation for an auto loan?

• Security Agreement

• Deed of Trust

• Certificate of Title or Lien Recording

• Promissory Note

What is the Supervisory Loan to Value limit for Raw Land?

(a)  

What is the maximum Loan to Value for Owner Occupied Commercial Real Estate according to loan policy?

(a)  

Which of the following is considered a sign that a Loan Policy needs to be tuned up or reviewed?

• Policy has not been revised or reapproved in more than 1 year.

• New Regulations are properly addressed.

• The policy is free of error including misspellings, typos, and grammatical errors.

• The policy is less than 5 pages long.

Who has the power to grant lending authority according to the text?

• CEO

• EVP of Credit

• Board of Directors

• Credit Committee