IIBF JAIIB May / June 2016 Syllabus – Page 2
IIBF JAIIB May 2016 Syllabus
Paper 1 – Principles & Practices of Banking
The candidates would be able to acquire knowledge in the following :
- Various functions associated with banking.
- Practice and procedures relating to deposit and credit, documentation, monitoring and control.
- An insight into marketing of banking services and banking technology.
Module A : Indian Financial System
Indian Financial System – An Overview : Role of RBI, Commercial Banks, NBFCs, PDs, FIs, Cooperative Banks, CRR, SLR; Equity & Debt Market; IRDA.
Banking Regulation : Constitution, Objectives, Functions of RBI; Tools of Monetary Control; Regulatory Restrictions on Lending.
Retail Banking, Wholesale and International Banking : Retail Banking- Products, Opportunities; Wholesale Banking, Products; International Banking, Requirements of Importers & Exporters, Remittance Services; Universal Banking; ADRs; GDRs; Participatory Notes.
Role Of Money Markets, Debt Markets & Forex Market : Types of Money & Debt Market Instruments incl. G-Secs; ADs, FEMA, LIBOR, MIBOR, etc.
Role and Functions of Capital Markets, SEBI : Overview of Capital Market; Stock Exchange; Commonly used Terms; Types of Capital Issues; Financial Products/Instruments including ASBA, QIP; SEBI; Registration of Stock Brokers, Subbrokers, Share Transfer Agents, etc; QIBs;
Mutual Funds & Insurance Companies, Bancassurance & IRDA : Types of Mutual Funds, its Management & its Role; Role & Functions of Insurance Companies; Bancassurance; IRDA.
Factoring, Forfaiting Services and Off-Balance Sheet items : Types & advantages of Factoring & forfaiting services; Types of off balance sheet items.
Risk Management, Basel Accords : Introduction to Risk Management; Basel I, II & III Accords.
CIBIL, Fair Practices Code for Debt Collection, BCSBI : Role and Functions of CIBIL; Fair Practices Code for Debt Collection; Codes of BCSBI.
Recent Developments in the Financial System : Structure, Reforms in the Indian Financial System; recent developments in Money, Debt, Forex Markets; Regulatory Framework; Payments and Settlement System.
Module B : Functions of Banks
Banker Customer Relationship : Types; Different Deposit Products & Services; Services to Customers & Investors.
KYC/ AML / CFT norms : PMLA Act; KYC Norms.
Bankers’ Special Relationship : Mandate; POA; Garnishee Orders; Banker’s Lien; Right of Set off.
Consumer Protection – COPRA, Banking Ombudsman Scheme : Operational Aspects of COPRA Act & Banking Ombudsman Scheme.
Payment and Collection of Cheques and Other Negotiable Instruments : NI Act; Role & Duties of Paying & Collecting Banks; Endorsements; Forged Instruments; Bouncing of Cheques; Its Implications; Return of Cheques; Cheque Truncation System.
Opening accounts of various types of customers : Operational Aspects of opening and Maintaining Accounts of Different Types of Customers including Aadhar, SB Rate Deregulation.
Ancillary Services : Remittances; Safe Deposit Lockers; Govt. Business; EBT.
Cash Operations : Cash Management Services and its Importance.
Principles of lending, Working Capital Assessment and Credit Monitoring : Cardinal Principles; Non-fund Based Limits; WC; Term Loans; Credit Appraisal Techniques; Sources of WC Funds & its Estimation; Operating Cycle; Projected Net WC; Turnover Method; Cash Budget; Credit Monitoring & Its Management; Base Rate.
Priority Sector Advances : Targets; Sub-Targets; Recent Developments.
Agricultural Finance : Types of Agricultural Loans; Risk Mitigation in agriculture ( NAIS, MSP etc ).
Micro, Small and Medium Enterprises : MSMED Act, 2006 Policy Package for MSMEs; Performance and Credit Rating Scheme; Latest Developments.
Government Sponsored Schemes : SGSY; SJSRY; PMRY; SLRS.
Self Help Groups : Need for & Functions of SHGs; Role of NGOs in Indirect Finance to SHGs; SHGs & SGSY Scheme; Capacity Building.
Credit Cards, Home Loans, Personal Loans, Consumer Loans : Operational Aspects, Advantages, Disadvantages & Guidelines of Credit Cards; Procedure and Practices for Home Loans, Personal Loans and Consumer Loans.
Documentation : Types of Documents; Procedure; Stamping; Securitisation.
Different Modes of Charging Securities : Assignment; Lien; Set-off; Hypothecation; Pledge; Mortgage.
Types of collaterals and their characteristics : Land & Buildings; Goods; Documents of Title to Goods; Advances against Insurance Policies, Shares, Book Debts, Term Deposits, Gold, etc; Supply Bills.
Non Performing Assets : Definition; Income Recognition; Asset Classification; Provisioning Norms; CDR.
Financial Inclusion : BC; BF; Role of ICT in Financial Inclusion, Mobile based transactions, R SETI.
Financial Literacy : Importance of financial literacy, customer awareness.
Module C : Banking Technology
Essentials of Bank Computerization : Computer Systems; LANs; WANs; UPS; Core Banking.
Payment Systems and Electronic Banking : ATMs; HWAK; PIN; Electromagnetic Cards; Electronic Banking; Signature Storage & Retrieval System; CTS; Note & Coin Counting Machines; Microfiche; NPC; RUPAY.
Data Communication Network and EFT systems : Components & Modes of Transmission; Major Networks in India; Emerging Trends in Communication Networks for Banking; Evolution of EFT System; SWIFT; Automated Clearing Systems; Funds Transfer Systems; Recent Developments in India.
Role of Technology Upgradation and its impact on Banks : Trends in Technology Developments; Role & Uses of Technology Upgradation; Global Trends; Impact of IT on Banks.
Security Considerations : Risk Concern Areas; Types of Threats; Control Mechanism; Computer Audit; IS Security; IS Audit; Evaluation Requirements.
Overview of IT Act : Gopalakrishna Committee Recommendations.
Preventive Vigilance in Electronic Banking : Phishing; Customer Education; Safety Checks; Precautions.
Module D : Support Services – Marketing of Banking Services / Products.
Marketing – An Introduction : Concept; Management; Products & Services; Marketing Mix; Brand Image.
Social Marketing / Networking : Evolution, Importance & Relevance of Social Marketing / Networking.
Consumer Behaviour and Product : Consumer Behaviour; Product Planning, Development, Strategies, etc; CRM.
Pricing : Importance, Objectives, Factors, Methods, Strategies of Pricing; Bank Pricing.
Distribution : Distribution Channels; Channels for Banking Services; Net Banking; Mobile Banking.
Channel Management : Meaning, Levels, Dynamics, Advantages.
Promotion : Role of Promotion in Marketing; Promotion Mix.
Role Of Direct Selling Agent / Direct Marketing Agent in a bank : Definition; Relevance; Banker as DSA / DMA; Delivery Channels in Banks; Benefits.
Marketing Information Systems – a longitudinal analysis : Functions & Components of MKIS; MKIS Model; Use of Computers & Decision Models; Performance of MKIS; Advantages.
IIBF CAIIB Syllabus 2016
Compulsory Paper – I : Advance Bank Management :
Module – A: Economic Analysis :
The fundamentals of Economics : Scarcity and Efficiency – Microeconomics & Macroeconomics in brief – Types of economies – Market, Command and Mixed Economies – Macroeconomics : Business cycles – Money and banking – Unemployment & inflation – Interest rate determination and various types of interest rates.
Indian Economy (a) Overview of the Indian economy including recent reforms (b)Interaction between fiscal, monetary & exchange rate policies in India – Financial Markets (i) Money Market 3 (ii) Capital Market (iii) Foreign Exchange Market – globalisation and its impact – Challenges ahead – Banking & Finance – current issues.
Module – B : Business Mathematics
Concept of time Value of Money – Net Present Value – Discounted Cash Flow – Sampling methods – presentation of data – analysis and interpretation of sample data – hypothesis testing – Time series analysis – mean / standard deviation – co-relation – Regression – covariance and volatility – Probability distribution – Confidence interval analysis – estimating parameters of distribution – Bond valuation – duration – modified duration.
Linear programming – decision making-simulation – Statistical analysis using spreadsheets. Features of Spread sheet – Macros, pivot table, statistical and mathematical formulae.
Module – C : HRM in banks
Fundamentals of HRM, development of HRM in India, Relationship between HRM and HRD, Structure and functions of HRD, Role of HR professional, Human implications of organizations; training and development, attitude and soft skills development, role and impact of training, career path planning and counseling, employee behaviour, theories of motivation and their practical implications, role concepts and analysis, self development., Performance Management and appraisal systems; Reward / punishment and compensation systems., HRM and Information Technology, information and data management, knowledge management.
Module – D : Credit Management
Principles of Credit Management Credit Appraisal Analyzing Financial Performance – Relationship between items in Balance Sheet and Profit and Loss Account. Trend Analysis, Comparative Statement – Common size Statement, Preparation of projected Financial Statements. – Ratio analysis – Interpretation and analysis of different Ratios, Limitation of the use of ratios. Statement of Sources and Applications of Funds.
Structuring a Credit Proposal – Working Capital Concept and Management Appraisal techniques for different constituents – trade cycle – credit rating – Technical and economic feasibility studies – Credit Rating – Rating Methodology – Objectives and benefits of rating – Term Lending – Debt Service Coverage Ratio – Cash Flow Analysis – Cash Budget – Bill Finance – Deferred Payment Guarantee – Credit Scoring – Credit Delivery System – Documentation – Post sanction supervision, Control and monitoring of credit – Consortium finance, Multiple banking, Syndication of loans. Infrastructure financing.
Dealing with credit defaults, Stressed assets, Corporate Debt restructuring, SARFAESI, NPAs, recovery options, write-off. Disclosure of the list of defaulters : objectives and procedure. Appraisal methodology for different type of clients / products.
Compulsory Paper – II : Bank Financial Management
Module – A : International Banking
Forex Business; factors determining exchange rates, Direct and indirect quotations, spot / forward rates, premium and discount, cross rates. Basics of forex derivatives; forward exchange rate contracts, Options, Swaps. Correspondent banking, NRI accounts Documentary letters of Credit – UCPDC 600, various facilities to exporters and importers. Risks in foreign trade, role of ECGC, types of insurance and guarantee covers or ECGC. Role of Exim Bank – Role of RBI and exchange control – Regulations in India, Role and rules of FEDAI – Role of FEMA and its rules.
Module – B : Risk Management
Risk – Concept – Risk in Banks – Risk Management Framework – Organisational Structure – Risk Identification – Risk Measurement / – Sensitivity – Basis Point Value ( BPV ) – Duration -Downside Potential – Value at Risk, Back Testing – Stress Testing – Risk Monitoring and Control – Risk Reporting – Market Risk identification, Measurement and management / credit risk – rating methodology, risk weights, eligible collateral for mitigation, guarantees ; credit ratings, transition matrices, default probabilities, Credit risk spreads, risk migration and credit metrics , Counterparty risk.
Credit exposures, recovery rates, risk mitigation techniques, – / Operational and integrated Risk Management – Risk management and capital Management – Basel-II – Current guidelines on risk management.
Module – C : Treasury Management
Concepts and function; instruments in the treasury market, development of new financial products, control and supervision of treasury management, linkage of domestic operations with foreign operations. Interest rate risk, interest rate futures Mix / Pricing of Assets, Liabilities – On-Balance Sheet Investment and Funding Strategies – Stock options, debt instruments, bond portfolio strategy, risk control and hedging instruments. Investments – Treasury bills, money market instruments such as CDs, CPs, IBPs Securitisation and Forfaiting; refinance and rediscounting facilities. Derivatives – Credit Default Swaps / Options.
Module – D : Balance Sheet Management
Prudential norms-Capital Adequacy. Implementation of Basel – II guidelines : RBI guidelines. Banks Balance Sheet – Components of assets / Liabilities / ALM Implementation – RBI Guidelines – Gap Analysis – Mechanics, Assumptions, and Limitations – Illustrations of Actual Gap Reports – The Relationship Between Gap and Income Statement – Funding Liquidity – Trading / Managing Liquidity – Contingency Funding – Business Strategies : Profit and profitability analysis, Asset Classification – provisioning – effect of NPA on profitability, Shareholder value maximization & EVA – profit planning-measures to improve profitability. Disclosure guidelines.
Elective Paper – I : Central Banking
Module – A : Rationale and Functions of Central Bank
- Evolution and Functions of Central Banking : Evolutions of Theory and Practice of Central Banking, Development of Central Banks in Developed and Developing countries.
- Functions of a Central Bank : Banker to Government, Banker to Banks, Monetary policy Functions, Currency Issue and Management, Payment system function, Maintaining Internal and External values of currency, Regulation, Facilitation and supervision of Financial System, Promotional Functions to support growth and other National
objectives, Development of Financial Markets, Institutions and communication policies.
- Contemporary Issues : Desirability, Autonomy and independence, Credibility, accountability and transparency of a Central Bank, conflict with fiscal policies.
Module – B : Central banking in India
- Reserve Bank of India : Organisational evolution, Constitution and Governance, Major organizational and Functional Developments over time, Recent Developments, RBI Act.
- India Specific Issues : Banking Regulation Act, FEMA, Banking Ombudsman Scheme, Financial Sector reforms, other financial regulators and division of functions. Institutions set up by RBI; NABARD, IDBI, DFHI, IRBI, UTI.
- Glossary of Central Banking Terms.
Module – C : Monetary Policy and Credit Policy
- Monetary Policy : Objectives, Reconciling dual objectives, The Taylor Rule, Indicators of Policy, instruments of policy ( Bank Rate, OMO, CRR, SLR etc.), policy Transmission mechanism and channels, transparency of policies, Lags in policy.
- Credit Policy : Objectives, Theory and Practice, Instruments.
- An over view of Fiscal Policy : Importance of Budgets, Union Budget, State Budget, Finances of Union and State Governments, Finance Commission.
- Striking balance between inflation and growth through monetary and fiscal policies.
Module – D : Supervision and Financial Stability
- Indian Financial System : Constituents of Indian Financial Markets and their Regulation. Evolution of Bank Regulation and supervision.
- Financial Stability : Financial Development Vs Financial stability, Risks to Financial stability, Early warning signals and remedial action, Liquidity Management, Regulation and supervision of Banks, Risk Management in Banks, The Basle Norms, Prudential Norms, Effect of liberalisation and Globalisation on Financial Stability, Linkage to International Financial Stability, International standards and codes. Role of Supervisor under Basel-II.