Sallah Ram
Sallah Ram Limited is the biggest customer of ABC Bank, an International Bank with a N150bn shareholders fund and loan portfolio of N800mn. The company has a Contract Finance Facility of N26bn and Bid Bond of N6bn running with the Bank. It also has a loan N20bn running with XYZ Bank.The sole sponsor, Mr. Gabriel, had earlier introduced another company, fully owned by his brother, to the Bank for a loan of N12bn, which is not performing. Sallah Ram has applied for a bid bond of N4.5bn.

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* 1. Is Sallah Ram currently in compliance with CBN’s single obligor limit?

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* 2. In assessing potential compliance to the single obligor limit with regards to Sallah RAM, the following elements will be considered except.

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* 3. In assessing if Sallah RAM will be within the Single obligor limit when the loan is granted, what is the total eligible exposure that ABC Bank will consider.

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* 4. If Bank ABC grants the request for a bid bond, will the Bank be in breach of CBN’s single obligor limit?

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* 5. What is ABC Bank’s single obligor Limit

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* 6. should the exposure to Mr Gabriel’s brother be considered in determining single obligor limit.

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* 7. which of the following statements is true?

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* 8. Under the CBN guidelines, which statement is true regarding ABC Bank’s exposure to Salah Ram and his brother.

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* 9. What size of exposure should ABC bank consider a large exposure

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* 10. The determination of a large exposure is a function of the following except

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