CAIIB BFM Syllabus 2023, Download the Syllabus PDF

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.

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 2023	Details
Name of organization	Institute of Banking and Finance
Institution	Indian Institute of Banking & Finance (IIBF)
Name of Examination	CAIIB exam
Eligibility	Members Only
Mode of Application	Online
Mode of exam	Online written exam
Exam conducted	Twice a year
Official website	iibf.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

Units	Topics
Exchange Rates and Forex Business	Foreign 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 Residents	Capital 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 Accounts	Correspondent 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 Credit	Definition 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 Importers	Exchange 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 India	External 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 Others	EXIM 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), GIFTCity	Scope 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 Banking	Introduction 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

Units	Topics
Risk and Basic Risk Management Framework	What is Risk? Linkages among Risk Capital and Return Why Risk Management? Basic Risk Management Framework
Risks in Banking Business	Risk Identification in Banking Business The Banking Book The Trading Book Off-Balance Sheet Exposures Banking Risks – Definitions
Risk Regulations in Banking Industry	Regulation 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 Risk	Market 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 Risk	General 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 Management	Operational 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 Management	Liquidity 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 Standards	Liquidity Coverage Ratio Liquidity Risk Monitoring Tools Net Stable Funding Ratio

Module C – Treasury Management

Units	Topics
Introduction to Treasury Management	The Concept Functions of Integrated Treasury The Process of Globalisation Evolving Role of Treasury as Profit Centre Organisation of Treasury
Treasury Products	Products of Foreign Exchange Markets Money Market Products Securities Market Products Domestic and Global Markets
International Equity and Debt Products	Regulatory Environment Global Depository Receipts Indian Depository Receipts External Commercial Borrowings Trade Credits Rupee Denominated Bonds
Funding and Regulatory Aspects	Reserve Assets: CRR and SLR The Liquidity Adjustment Facility (LAF) Payment and Settlement Systems
Treasury Risk Management	Supervision and Control of Treasury Market Risk and Credit Risk Risk Measures VaR and Duration Use of Derivatives in Risk Management
Derivative Products	Derivatives 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 Management	Meaning 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

Units	Topics
Components of Assets and Liabilities in Bank’s Balance Sheet and their Management	Components 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 Norms	Scope of Application Pillar-1 – Minimum Capital Requirements Pillar 2- Supervisory Review Process Pillar 3 – Market Discipline;
Asset Classification and Provisioning Norms	Asset Classification Provisioning Norms
Liquidity Management	Definition Dimensions and Role of Liquidity Risk Management Measuring and Managing Liquidity Risk
Interest Rate Risk Management	Essentials 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 Planning	Profit 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!

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CAIIB BFM Syllabus 2023 – Frequently Asked Questions