Common Bank Interview Questions and Answers

Common Bank Interview Questions and Answers

Here are 20 interview questions commonly asked in Nigeria bank interviews along with multiple-choice options and suggested answers:

Question: What is the role of the Central Bank of Nigeria (CBN) in the banking sector?

Options:

a) Regulates monetary policies

b) Oversees commercial banks

c) Manages foreign exchange reserves

d) All of the above

Answer: d) All of the above

Question: What is the purpose of KYC (Know Your Customer) regulations in banking?

Options:

a) To prevent money laundering

b) To ensure customer satisfaction

c) To increase customer transactions

d) To streamline internal processes

Answer: a) To prevent money laundering

Question: What is the primary function of a commercial bank?

Options:

a) Lending money to customers

b) Accepting deposits from customers

c) Issuing credit cards

d) Providing investment services

Answer: b) Accepting deposits from customers

Question: What is the role of a bank teller?

Options:

a) Handling customer inquiries and transactions

b) Managing investment portfolios

c) Developing marketing strategies

d) Conducting internal audits

Answer: a) Handling customer inquiries and transactions

Question: What does the term "liquidity" refer to in banking?

Options:

a) The ability to convert assets into cash

b) The number of bank branches

c) The level of customer satisfaction

d) The profitability of the bank

Answer: a) The ability to convert assets into cash

Question: What is a non-performing loan (NPL)?

Options:

a) A loan given to high-net-worth individuals

b) A loan with low interest rates

c) A loan that has defaulted on repayments

d) A loan given to government entities

Answer: c) A loan that has defaulted on repayments

Question: What are the components of Basel III?

Options:

a) Minimum capital requirements

b) Liquidity management

c) Stress testing

d) All of the above

Answer: d) All of the above

Question: What is the purpose of the Nigeria Deposit Insurance Corporation (NDIC)?

Options:

a) To provide insurance coverage for bank deposits

b) To regulate interest rates

c) To oversee foreign exchange transactions

d) To manage government bonds

Answer: a) To provide insurance coverage for bank deposits

Question: What is the function of the Treasury Department in a bank?

Options:

a) Managing the bank's cash flow

b) Handling customer complaints

c) Promoting the bank's services

d) Conducting market research

Answer: a) Managing the bank's cash flow

Question: What are the key elements of credit risk analysis?

Options:

a) Borrower's credit history

b) Collateral provided

c) Loan repayment capacity

d) All of the above

Answer: d) All of the above

Question: What is the purpose of the Nigerian Interbank Settlement System (NIBSS)?

Options:

a) To facilitate electronic payments between banks

b) To regulate interest rates

c) To manage foreign exchange reserves

d) To provide loans to customers

Answer: a) To facilitate electronic payments between banks

Question: What is the role of a relationship manager in a bank?

Options:

a) Acquiring new customers

b) Maintaining and enhancing existing customer relationships

c) Providing investment advice

d) All of the above

Answer: d) All of the above

Question: What is the purpose of the Nigerian Electronic Fraud Forum (NeFF)?

Options:

a) To address issues related to electronic fraud in the banking industry

b) To promote digital banking services

c) To manage foreign currency exchange rates

d) To regulate interest rates

Answer: a) To address issues related to electronic fraud in the banking industry

Question: What is the role of a compliance officer in a bank?

Options:

a) Ensuring the bank's adherence to regulatory requirements

b) Managing customer complaints

c) Handling loan approvals

d) Conducting market research

Answer: a) Ensuring the bank's adherence to regulatory requirements

Question: What is the purpose of the Asset Management Corporation of Nigeria (AMCON)?

Options:

a) To manage and resolve non-performing loans of banks

b) To promote investment opportunities for customers

c) To regulate interest rates in the banking sector

d) To provide insurance coverage for bank deposits

Answer: a) To manage and resolve non-performing loans of banks

Question: What is the significance of the Bank Verification Number (BVN) in Nigerian banking?

Options:

a) It provides a unique identification for customers across multiple banks.

b) It determines the interest rates for loans.

c) It regulates foreign exchange transactions.

d) It monitors the bank's liquidity position.

Answer: a) It provides a unique identification for customers across multiple banks.

Question: What are the key responsibilities of a bank branch manager?

Options:

a) Managing branch operations and staff

b) Building and maintaining customer relationships

c) Achieving branch targets and profitability

d) All of the above

Answer: d) All of the above

Question: What is the function of the Risk Management Department in a bank?

Options:

a) Identifying and mitigating potential risks

b) Providing customer support and assistance

c) Developing marketing campaigns

d) Conducting financial audits

Answer: a) Identifying and mitigating potential risks

Question: What is the purpose of the Financial Reporting Council of Nigeria (FRCN)?

Options:

a) To set accounting and financial reporting standards

b) To regulate interest rates in the banking sector

c) To oversee foreign exchange transactions

d) To manage government bonds

Answer: a) To set accounting and financial reporting standards.