Managing risk of hire purchase financing at SnF Bank

A new CEO was appointed for the SnF Bank and a management reshuffle was carried out with the aim of increasing the loan volume and to improve the quality of loan assets. Following the appointment of the CEO, in 2009, Mr. Ben Gan was appointed as the new Head of Hire Purchase Financing Division of...

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Bibliographic Details
Main Authors: Siew, Goh Yoke, Abdul Rahman, Nora Azureen, Nordin, Norhafiza
Format: Monograph
Language:English
Published: Universiti Utara Malaysia 2015
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Online Access:http://repo.uum.edu.my/15164/1/case%20study%202.pdf
http://repo.uum.edu.my/15164/
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Institution: Universiti Utara Malaysia
Language: English
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Summary:A new CEO was appointed for the SnF Bank and a management reshuffle was carried out with the aim of increasing the loan volume and to improve the quality of loan assets. Following the appointment of the CEO, in 2009, Mr. Ben Gan was appointed as the new Head of Hire Purchase Financing Division of the bank.On the first day in his new position, Mr. Ben had a meeting with the new CEO. He was given the task to improve the quality of the auto financing portfolio. After going through the bank reports, he decided to plan the strategies and the credit underwriting policies to manage the risk in hire purchase financing.This case is designed to assist students to identify risks and analyze the risks in consumer lending environment.The students will also learn how to mitigate risks in lending.