Subject: MICROFINANCE AND RURAL BANKING

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MRB – OCT 2022 – L4 – Q8 – Data Sources for Strategic Risk Management in MFIs

Write short notes on four data sources (government initiatives, regulator pronouncements, media publications, business performance data) and how they aid strategic risk management in MFIs.

  1. In measuring the probability and potential impact of the various strategic risks on the MFIs, the Board and Key Management Personnel will focus on the adequacy of internal policies and procedures as well as the extent to which these policies and procedures are effective to control the occurrence and mitigate the potential effect of identified risks. Write short notes on the following data sources of information and indicate how they help strategic risk management of MFIs.

• Government initiatives and programs (5 Marks)

• Periodic pronouncements of the regulator (5 Marks)

• Media publications and changes in the industry landscape (5 Marks)

• Data on business performance (5 Marks)

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MRB – OCT 2022 – L4 – Q7 – Policies and Procedures in Microfinance Institutions

Differentiate between policy and procedure; discuss four benefits of policies and procedure manuals for MFIs.

There is a general believe that given the size of microfinance institutions in Tier 2 down to Tier 4, there are too many demands for policies and procedures from the management and board of these institutions.

a) Differentiate between policy and procedure. (4 Marks)

b) Discuss four (4) benefits MFIs may derive from polices and procedure manuals for their businesses.

(16 Marks)

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MRB – OCT 2022 – L4 – Q6 – Justifications for Disqualification of Directors in MFIs

Discuss four compelling justifications for disqualification of persons as Directors or Key Management in MFIs under Section 58 of Act 930.

Section 58 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) prohibits a person from being appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI. Discuss 4 compelling justifications of the disqualification of a person appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI.

(20 Marks)

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MRB – OCT 2022 – L4 – Q6 – Justifications for Disqualification of Directors in MFIs

Discuss four compelling justifications for disqualification of persons as Directors or Key Management in MFIs under Section 58 of Act 930.

Section 58 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) prohibits a person from being appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI. Discuss 4 compelling justifications of the disqualification of a person appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI.

(20 Marks)

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MRB – OCT 2022 – L4 – Q5 – Differences Between Banks and Specialized Deposit-Taking Institutions

List and explain five areas of differences between Banks and Specialized Deposit-Taking Institutions under Act 930.

How different are Banks from the Specialized Deposit-Taking Institutions according to the Act, 2016 (Act 930)?

List and explain five (5) areas of differences that exist between the two categories of financial intermediation.

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MRB – OCT 2022 – L4 – Q4 – Repercussions of E-Levy on Digital Transformation in Rural Banks

Discuss the repercussions of the E-levy on digital transformation and savings mobilization in Rural and Community Banks

The Electronic Transaction Levy (E-levy) of a 1.5% taxation on electronic transactions, came into effect on the 1st of May, 2022. The levy applies to mobile money payments, bank transfers, merchant payments, and inward remittances (MoF 2022 Budget Highlights). The aim was to capture the informal sector and providing an opportunity for every Ghanaian to contribute towards nation building and also ensure that the hidden, submerged or informal economy is brought within the remit of the formal economy. More specifically, the move was a necessary economic tool to widen the tax net which would increase the country’s tax to GDP.
Discuss the repercussions of the levy on the digital transformation drive in Rural and Community Banks regarding the use of digital platforms in savings mobilization.

(20 Marks)

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MRB – OCT 2022 – L4 – Q3 – Responsibilities of Key Management in Mitigating Strategic Risks

List and discuss five specific responsibilities of key management personnel in mitigating strategic risks in Rural and Community Banks

What are specific responsibilities of the Key Management Personnel team in ensuring appropriate measures are in place to mitigate strategic risks in Rural and Community Banks? List and discuss any 5 specific responsibilities of key management personnel of RCBs.

(20 Marks)

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MRB – OCT 2022 – L4 – Q2 – Achievements of Rural and Community Banks in Ghana

List and explain five achievements of Rural and Community Banks in Ghana.

As a manager of your organization you were asked by the Board of Directors to prepare and deliver a paper on the achievement of Rural and Community Banks in Ghana. List and explain five (5) achievements of Rural and Community Banks in Ghana.

(20 Marks)

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MRB – OCT 2022 – L4 – Q1 – Crop Yield Failure and Loan Repayment Strategies

Advise on strategic steps for farmers to ensure loan repayment amid crop yield failures due to climate change.

Crop yield failure is a common phenomenon in small scale farming more also in the era of increasing effect of climate change.

What strategic steps will you advise farmers take to ensure the repayment of their loans?

(20 Marks)

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MRB – APR 2023 – L4 – Q8 – Gender Provisions in MFI Product Development

Outline appropriate steps to ensure provisions for women and girls in the product development or review process of an MFI, aligning with SDG Goal 5.

The SDG Goal 5 stipulates the achievement of gender equality and empowerment of all women and girls. In developing new products or the review of your existing products of your MFI, what steps will you consider as appropriate in ensuring adequate provisions are made for women and girls in your product development process in your MFI?

[20 Marks]

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MRB – OCT 2022 – L4 – Q8 – Data Sources for Strategic Risk Management in MFIs

Write short notes on four data sources (government initiatives, regulator pronouncements, media publications, business performance data) and how they aid strategic risk management in MFIs.

  1. In measuring the probability and potential impact of the various strategic risks on the MFIs, the Board and Key Management Personnel will focus on the adequacy of internal policies and procedures as well as the extent to which these policies and procedures are effective to control the occurrence and mitigate the potential effect of identified risks. Write short notes on the following data sources of information and indicate how they help strategic risk management of MFIs.

• Government initiatives and programs (5 Marks)

• Periodic pronouncements of the regulator (5 Marks)

• Media publications and changes in the industry landscape (5 Marks)

• Data on business performance (5 Marks)

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MRB – OCT 2022 – L4 – Q7 – Policies and Procedures in Microfinance Institutions

Differentiate between policy and procedure; discuss four benefits of policies and procedure manuals for MFIs.

There is a general believe that given the size of microfinance institutions in Tier 2 down to Tier 4, there are too many demands for policies and procedures from the management and board of these institutions.

a) Differentiate between policy and procedure. (4 Marks)

b) Discuss four (4) benefits MFIs may derive from polices and procedure manuals for their businesses.

(16 Marks)

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MRB – OCT 2022 – L4 – Q6 – Justifications for Disqualification of Directors in MFIs

Discuss four compelling justifications for disqualification of persons as Directors or Key Management in MFIs under Section 58 of Act 930.

Section 58 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) prohibits a person from being appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI. Discuss 4 compelling justifications of the disqualification of a person appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI.

(20 Marks)

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MRB – OCT 2022 – L4 – Q6 – Justifications for Disqualification of Directors in MFIs

Discuss four compelling justifications for disqualification of persons as Directors or Key Management in MFIs under Section 58 of Act 930.

Section 58 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) prohibits a person from being appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI. Discuss 4 compelling justifications of the disqualification of a person appointed, elected or from accepting an appointment or election as a Director or Key Management Person of an MFI.

(20 Marks)

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MRB – OCT 2022 – L4 – Q5 – Differences Between Banks and Specialized Deposit-Taking Institutions

List and explain five areas of differences between Banks and Specialized Deposit-Taking Institutions under Act 930.

How different are Banks from the Specialized Deposit-Taking Institutions according to the Act, 2016 (Act 930)?

List and explain five (5) areas of differences that exist between the two categories of financial intermediation.

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MRB – OCT 2022 – L4 – Q4 – Repercussions of E-Levy on Digital Transformation in Rural Banks

Discuss the repercussions of the E-levy on digital transformation and savings mobilization in Rural and Community Banks

The Electronic Transaction Levy (E-levy) of a 1.5% taxation on electronic transactions, came into effect on the 1st of May, 2022. The levy applies to mobile money payments, bank transfers, merchant payments, and inward remittances (MoF 2022 Budget Highlights). The aim was to capture the informal sector and providing an opportunity for every Ghanaian to contribute towards nation building and also ensure that the hidden, submerged or informal economy is brought within the remit of the formal economy. More specifically, the move was a necessary economic tool to widen the tax net which would increase the country’s tax to GDP.
Discuss the repercussions of the levy on the digital transformation drive in Rural and Community Banks regarding the use of digital platforms in savings mobilization.

(20 Marks)

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MRB – OCT 2022 – L4 – Q3 – Responsibilities of Key Management in Mitigating Strategic Risks

List and discuss five specific responsibilities of key management personnel in mitigating strategic risks in Rural and Community Banks

What are specific responsibilities of the Key Management Personnel team in ensuring appropriate measures are in place to mitigate strategic risks in Rural and Community Banks? List and discuss any 5 specific responsibilities of key management personnel of RCBs.

(20 Marks)

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MRB – OCT 2022 – L4 – Q2 – Achievements of Rural and Community Banks in Ghana

List and explain five achievements of Rural and Community Banks in Ghana.

As a manager of your organization you were asked by the Board of Directors to prepare and deliver a paper on the achievement of Rural and Community Banks in Ghana. List and explain five (5) achievements of Rural and Community Banks in Ghana.

(20 Marks)

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MRB – OCT 2022 – L4 – Q1 – Crop Yield Failure and Loan Repayment Strategies

Advise on strategic steps for farmers to ensure loan repayment amid crop yield failures due to climate change.

Crop yield failure is a common phenomenon in small scale farming more also in the era of increasing effect of climate change.

What strategic steps will you advise farmers take to ensure the repayment of their loans?

(20 Marks)

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MRB – APR 2023 – L4 – Q8 – Gender Provisions in MFI Product Development

Outline appropriate steps to ensure provisions for women and girls in the product development or review process of an MFI, aligning with SDG Goal 5.

The SDG Goal 5 stipulates the achievement of gender equality and empowerment of all women and girls. In developing new products or the review of your existing products of your MFI, what steps will you consider as appropriate in ensuring adequate provisions are made for women and girls in your product development process in your MFI?

[20 Marks]

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