advantages and disadvantages in appointing a third party in collecting bad debt in Malaysia.
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(Urgent) Credit Analysis & Lending Management
Doubtful debts are those debts which is unlikely to be able to collect, bank hiring a collection agency use to recover funds or collecting delinquent debts. Banking primary focus is running business, but a collection agency's primary focus is to collect debts. Therefore, examine the advantages and disadvantages in appointing a third party in collecting
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- Credit Analysis & Lending Management Question: Doubtful debts are those debts which is unlikely to be able to collect, bank hiring a collection agency use to recover funds or collecting delinquent debts. Banking primary focus is running business, but a collection agency's primary focus is to collect debts. Therefore, examine the advantages and disadvantages in appointing a third party in collecting bad debt in Malaysia.A bank is considering implementing a business rules management system for assessing the riskand creditworthiness of individuals as part of the loan approval process.• List and explain 3 benefits of such a system?• List 2 potential legal or ethical issues that might arise in the use of such a systemState and discuss the essential elements of an effective and efficient credit administration system. examine factors most important for banks in managing the incidence of bad debts in order to improve profitability.
- When a customer is delinquent on paying a notes receivable, your company has the option to continue to attempt collection or sell the debt to a collection agency. Research the benefits and challenges with each of these options and in a short essay, answer the following questions. A. What are the benefits and challenges of continuing to attempt collection yourself? B. What are the benefits and challenges of selling debt to a collection agency? C. If you had a dishonored notes receivable, which option would you select and why? D. Would you weight certain benefits or challenges differently when making your selection? How?The objectives of Receivables Management are as follows: a. All of above O b. To maintain the debtors at minimum according to the credit policy offered to customers. O C. To control the cost of receivables, cost of collection, administrative expenses, bad debts and opportunity cost of funds blocked in the receivables. O d. To obtain optimum (non maximum) value of sales;2. Substantial amount of credit losses is due to poor loan monitoring. In view of this, suggest how might one safeguard a bank's interest when providing loans.
- Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?Credit Analysis and Lending Management Question: How can bankers be spotting potential fraud among the loan grantedOverdrafts are a result of a.loans made against certificates of deposit b.banks paying wire transfers made during one business day c.banks extending credit beyond the amount specified in a line of credit d.banks paying on checks or wire transfers drawn on uncollected balances. Loan participations are: a. parts of loans that are sold to banks b. participation in the underwriting c. parts of securitized investments d. downstream investment Convenience use of credit cards refers to a. the line of credit may be raised as needed b. amounts owed being paid in full when billed c. the open-end use of the card d. none of the above
- Which statement is incorrect? Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers. none of the above1. If households and businesses lend their surplus cash directly to borrowers, there would be no need for financial institutions. Discuss the relevance of financial institutions with reference to this statement. 2. Describe four (4) categories of bank regulations that are established to deal with financial instability within the banking system. 3. Identify the major types of Off-Balance Sheet (OBS) activities engaged by a financial institution and discuss what a FI hopes to achieve with the use of OBS activities.When a lender refuses to make a loan, although borrowers are willing to pay the stated interest rate or even a higher rate, the bank is said to engage in strategic holding out. collusive behavior. coercive bargaining. credit rationing.