- 20 Marks
BORMPTM – APR 2023 – L3 – Q5 – Maturity and Asset Transformation, Cashless Products, Loan Classification
Explain maturity and asset transformations in banking, identify five cashless products, and list loan classification categories per Act 930.
Question
a) The financial intermediation role performed by banks results in the banks engaging in ‘maturity transformation’ and ‘asset transformation’. Explain the concepts of maturity and asset transformations. [10 marks]
b) Ghana’s economy is gradually drifting away from cash – based transactions to a cashless economy with the introduction of various digital payment channels in recent times. Identify five (5) major products that support the cashless system. [5 marks]
c) Section 75 of the Banks and Specialized Deposit – Taking Institutions Act, 2016, Act 930 requires banks to classify their advances into five categories to determine the level of provisions required. Identify and list the various categories in the order as stipulated by the Act. [5 marks]
[Total: 20 marks]
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