CAIIB BFM Syllabus 2023, Download the Syllabus PDF

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CAIIB BFM Syllabus 2023

IIBF will conduct the Bank Financial Management paper for the December cycle on 3rd December 2023. Aspiring candidates must be aware of the detailed syllabus of the BFM Paper in order to create an effective preparation strategy for the remaining month. This paper consists of four modules each consisting of various models. This blog will provide you with a detailed CAIIB BFM Syllabus 2023.

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CAIIB 2023 – Overview

Candidates who will be appearing for the examination must be aware of the overall details of the CAIIB. We have mentioned below the overview details of the CAIIB 2023 for the candidates.

CAIIB 2023Details
Name of organizationInstitute of Banking and Finance
InstitutionIndian Institute of Banking & Finance (IIBF)
Name of ExaminationCAIIB exam
EligibilityMembers Only
Mode of ApplicationOnline
Mode of examOnline written exam
Exam conductedTwice a year
Official websiteiibf.org.in

CAIIB BFM Syllabus

Bank Financial Management is one of the important compulsory papers of the CAIIB 2023. Candidates who will be appearing for the BFM Paper must be aware of the detailed topic-wise syllabus to understand the questions properly. We have mentioned below the topic-wise detailed syllabus of the CAIIB BFM Paper.

Module A: International Banking

UnitsTopics
Exchange Rates and Forex BusinessForeign Exchange – Definition and Markets
Factors Determining Exchange Rates
Exchange Rate Mechanism
Foreign Exchange Dealing Room Operations
Derivative Products
RBI / FEDAI Guidelines
Foreign Exchange Arithmetic – Concepts and Examples
Liberalised Remittance Scheme (LRS) and other Remittance Facilities for ResidentsCapital Account Transactions and Current Account Transactions
Key Sections under FEMA vis-à-vis Liberalized Remittance Scheme
Permissible/Non-permissible Remittances under LRS
Operational Guidelines
Remittances under LRS for Current Account Transactions
Tax Collected at Source (TCS)
LRS vis-à-vis Capital Account Transactions
Reporting Requirements under LRS
Correspondent Banking and NRI AccountsCorrespondent Banking – Accounts and other Service
Nostro, Vostro and Loro Accounts
Electronic Modes of Transmission/Payment Gateways – SWIFT, CHIPS, CHAPS, RTGS, etc.;
NRI Banking; NRI accounts – Rupee and Foreign Currency Accounts
Facilities to NRIs
Advances to Non-Residents against Non-Resident Deposits
Housing Loans to Non-Resident Indians
Documentary Letters of CreditDefinition of Letter of Credit
Types of Letters of Credit
Operations of Letter of Credit
UCP 600 and Important Articles
Liabilities
Responsibilities and Rights of the Parties
Documents under LC – Scrutiny
Crystallization
Follow-up for Bills under LC and Safeguards for Banks
Risks Relating to LC Transactions; Standby Letter of Credit (Similar to Guarantees)
Uniform Rules for Bank-to-Bank Reimbursements (URR–725)
International Standard Banking Practice – 745 (ISBP 745)
Incoterms
Case Studies
Facilities for Exporters and ImportersExchange and Trade Control Guidelines for Exporters
Facilities for Exporters
Export Finance; Gold Card Scheme for Exporters
Export Data Processing and Monitoring System (EDPMS)
Factoring and Forfaiting; Exchange and Trade Control Guidelines for Importers
Import Finance; Import Data Processing and Monitoring System (IDPMS)
Trade Credit – Supplier’s Credit and Buyer’s Credit
Case Study on Export Finance
External Commercial Borrowings and Foreign Investments in IndiaExternal Commercial Borrowings – Concepts; ECBs – Other Operational Concepts
Reporting Requirements
Conversion of ECB into Equity
Foreign Investments
Key Concepts
Eligible Foreign Investors
Eligible Investee Entities
Eligible Investment Instruments
Prohibited Sectors
Rules Governing Pledge of Shares
Operational Guidelines
Snap Shot of Non-Debt Instruments (NDI) Rules
List of Documents for Obtention of Foreign Investments
List of Documents for Refund of Foreign Investments Risks in Foreign Trade – Role of ECGC Definition of Risk and Risks in International Trade
Country Risk
Export Credit Insurance in International Trade
ECGC Role and Products
ECGC Policies
ECGC’s Products for Banks
Other Aspects Relating to ECGC Policies and Guarantees
Some of the Common “To Do Points” under ECGC Policies; Claims
Role of EXIM Bank, Reserve Bank of India, Exchange Control in India – FEMA, FEDAI and OthersEXIM Bank – Role
Functions and Facilities
Reserve Bank of India – Role and Exchange Control Regulations in India
Foreign Exchange Management Act (FEMA) 1999
Role of FEDAI and FEDAI Rules
Short Notes on Other Topics
ECB and ADR/GDRs and FCCB;
International Financial Service Centres (IFSC), GIFTCityScope of IFSC in India
Opportunities at Gift City
Guidelines relating to setting up of IFSC Banking Units (IBUs)
Role of IFSCA
Regulatory Framework
Permissible Activities at IBUs
Relaxations for the FPI (Foreign Portfolio Investors) Entities at GIFT City
Technology in International BankingIntroduction to Digitization in International Banking – An Overview, Evolution of Technology in International Banking; Benefits and Limitations of Technology in International Banking; Digital Platforms in International Banking; FINTECH and evolution of FINTECH in International Banking; Delivery channels under FINTECH in International Banking; Sample process of International Trade Using Blockchain Technology; Challenges in FINTECH

Module B – Risk Management

UnitsTopics
Risk and Basic Risk Management FrameworkWhat is Risk?
Linkages among Risk
Capital and Return
Why Risk Management?
Basic Risk Management Framework
Risks in Banking BusinessRisk Identification in Banking Business
The Banking Book
The Trading Book
Off-Balance Sheet Exposures
Banking Risks – Definitions
Risk Regulations in Banking IndustryRegulation of Banking Industries – Necessities and Goals
The Need for Risk-based Regulation in a Changed World Environment
Basel I: The Basel Capital Accord; 1996 Amendment to Include Market Risk
Basel II Accord – Need and Goals
Basel II Accord; Towards
Basel III; Capital Charge for Credit Risk
Credit Risk Mitigation
Capital Charge for Market Risk
Capital Charge for Operational Risk
Pillar 2 – Supervisory Review Process
Pillar 3 – Market Discipline
Capital Conservation Buffer
Leverage Ratio
Countercyclical Capital Buffer
Systemically Important Financial Institutions (SIFIs
Risk Based Supervision (RBS)
Market RiskMarket Risk – Concept
Market Risk in Banks
Market Risk Management Framework
Organization Structure
Risk Identification
Risk Measurement
Risk Monitoring and Control
Risk Reporting
Managing Trading Liquidity
Risk Mitigation
Credit RiskGeneral
Credit Risk Management Framework
Organisation Structure
Risk Identification
Risk Measurement
Credit Risk Control and Monitoring
Credit Risk Policies and Guidelines at Transaction Level
Credit Control and Monitoring at Portfolio Level
Active Credit Portfolio Management
Controlling Credit Risk through Loan Review Mechanism (LRM)
Credit Risk Mitigation
Securitisation
Credit Derivatives (CDs)
Operational Risk and Integrated Risk ManagementOperational Risk – General
Operational Risk – Classification
Operational Risk Classification by Event Type – Definitions
Operational Risk Management Practices
Management Overview and Organisational Structure
Processes and Framework
Risk Monitoring and Control Practices
Operational Risk Qualification
Operational Risk Mitigation
Scenario Analysis
Integrated Risk Management
The Necessity of Integrated Risk Management
Integrated Risk Management – Challenges
Integrated Risk Management – Approach
Liquidity Risk ManagementLiquidity Risk Management – Need & Importance
Potential Liquidity Risk Drivers
Types of Liquidity Risk
Principles for Sound Liquidity Risk Management
Governance of Liquidity Risk Management
Liquidity Risk Management Policy, Strategies and Practices
Management of Liquidity Risk
Ratios in respect of Liquidity Risk Management
Stress Testing; Contingency Funding Plan
Overseas Operations of the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India
Broad Norms in Respect Of Liquidity Management
Liquidity Across Currencies
Management Information System
Reporting to the Reserve Bank of India; Internal Controls
Basel III Framework on Liquidity StandardsLiquidity Coverage Ratio
Liquidity Risk Monitoring Tools
Net Stable Funding Ratio

Module C – Treasury Management

UnitsTopics
Introduction to Treasury ManagementThe Concept
Functions of Integrated Treasury
The Process of Globalisation
Evolving Role of Treasury as Profit Centre
Organisation of Treasury
Treasury ProductsProducts of Foreign Exchange Markets
Money Market Products
Securities Market Products
Domestic and Global Markets
International Equity and Debt ProductsRegulatory Environment
Global Depository Receipts
Indian Depository Receipts
External Commercial Borrowings
Trade Credits
Rupee Denominated Bonds
Funding and Regulatory AspectsReserve Assets: CRR and SLR
The Liquidity Adjustment Facility (LAF)
Payment and Settlement Systems
Treasury Risk ManagementSupervision and Control of Treasury
Market Risk and Credit Risk
Risk Measures
VaR and Duration
Use of Derivatives in Risk Management
Derivative ProductsDerivatives and the Treasury
OTC and Exchange Traded Products
Forwards, Options, Futures and Swaps
Interest Rate and Currency Swaps
Developments in Indian Markets and RBI Guidelines on Risk Exposure
Treasury and Asset-Liability ManagementMeaning of Asset-Liability Management (ALM)
Liquidity Risk and Interest Rate Risk
Role of treasury in ALM
Use of derivatives in ALM
Credit risks and Credit Derivatives
Transfer pricing, Policy Environment

Module D – Balance Sheet Management

UnitsTopics
Components of Assets and Liabilities in Bank’s Balance Sheet and their ManagementComponents of a Bank’s Balance Sheet
What is Asset Liability Management?
Significance of Asset Liability Management
Purpose and Objectives of Asset Liability Management
ALM as Co-ordinated Balance Sheet Management
Capital Adequacy – Basel NormsScope of Application
Pillar-1 – Minimum Capital Requirements
Pillar 2- Supervisory Review Process
Pillar 3 – Market Discipline;
Asset Classification and Provisioning NormsAsset Classification
Provisioning Norms
Liquidity ManagementDefinition
Dimensions and Role of Liquidity Risk Management
Measuring and Managing Liquidity Risk
Interest Rate Risk ManagementEssentials of Interest Rate Risk
Sources of Interest Rate Risk
Effects of Interest Rate Risk
Measurement of Interest Rate Risk
Interest Rate Risk Measurement Techniques
Strategies for Controlling Interest Rate Risk
Controls and Supervision of Interest Rate Risk Management
Sound Interest Rate Risk Management Practices
RBI’s Draft Guidelines on Interest Rate Risk in Banking Book
RAROC and Profit PlanningProfit Planning
Risk Aggregation and Capital Allocation
Economic Capital and RAROC

CAIIB BFM Syllabus PDF

Candidates who are preparing for the BFM Paper must have a detailed syllabus always available to them to revise their preparation strategy. Candidates can download the CAIIB BFM Syllabus PDF from the direct link mentioned below:

We hope this blog gave you a better understanding of the CAIIB BFM Syllabus 2023. To read more such blogs, visit the Oliveboard website!



CAIIB BFM Syllabus 2023 – Frequently Asked Questions

Q.1 What is the CAIIB BFM Syllabus 2023?

Ans. Candidates can check the detailed CAIIB BFM Syllabus 2023 mentioned in this blog.

Q.2 From where can I download the PDF for CAIIB BFM Syllabus 2023?

Ans. Candidates can download the free PDF of the syllabus from the direct link provided in this blog.


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