CAIIB Updated Syllabus 2023 | Oliveboard

CAIIB Updated Syllabus 2023: IIBF conducts the Certified Associate of Banking (CAIIB) exam twice every year. This is usually during May/June and November/December. From 2023 onward, IIBF has introduced some changes in the exam pattern and syllabus of CAIIB. This blog will provide details of the changes in the CAIIB 2023 syllabus and a comparison to the old one. Being aware of the changes early on will help you, the candidate, prepare earlier and make the changes feel less daunting as you study.

CAIIB Updated Syllabus 2023

New Syllabus

Let’s see the papers and modules for CAIIB 2023.

Compulsory Papers

Module	Paper 1 – Advanced Bank Management	Paper 2 – Bank Financial Management	Paper 3 – Advanced Business and Financial Management	Paper 4 – Banking Regulations and Financial Laws
A	Statistics	International Banking	The Management Process	Regulations and Compliance
B	Human Resource Management	Risk Management	Advanced Concepts of Financial Management	Important Acts/Laws & Legal Aspects of Banking Operations – Part A
C	Credit Management	Treasury Management	Valuations, Mergers and Acquisitions	Important Acts/Laws & Legal Aspects of Banking Operations – Part B
D	Compliance in Banks and Corporate Governance	Balance Sheet Management	Emerging Business Solutions	Commercial and Other Laws with respect to Banking

Electives

Module	Paper 1 – Risk Management	Paper 2 – Information Technology and Digital Banking	Paper 3 – Central Banking	Paper 4 – Human Resource Management	Paper 5 – Rural Banking
A	An Overview	Introduction to Information Technology	Rationale Functions of Central Bank	Human Resource Management	Rural India
B	Credit Risk Management	Systems and Design	Central Banking in India	Building an HR Strategy	Financing Rural Development
C	Operational Risk Management	Applications in Banking	Monetary Policy and Credit Policy	Motivation, Training and Skill Development	Priority Sector Financing and Government Initiatives
D	Market Risk	Information System, Security, Controls, and Audit	Supervision and Financial Stability	Personnel Management and Industrial Relations	Problems and Prospects in Rural Banking
E	Appendix		Non-Banking Financial Companies and Primary Dealers	Emerging Scenario in HRM

CAIIB 2022 Syllabus

Now, let’s take a look at the syllabus that was followed until CAIIB 2022.

Paper 1- Advanced Bank Management

Economic Analysis: Module A

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 (ii) Capital Market (iii) Foreign Exchange Market – globalization and its impact – Challenges ahead – Banking & Finance – current issues

Business Management: Module B

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 – Correlation – 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 Spreadsheet – Macros, pivot table, statistical and mathematical formulae

Human Resource Management in Bank: Module C

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 behavior, 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

Credit Management: Module D

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, Limitations 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

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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, and write-offs. Disclosure of the list of defaulters: objectives and procedure. Appraisal methodology for different types of clients/ products.

CAIIB Syllabus For Compulsory Paper 2- Bank Financial Management

Module A: International Banking

Forex Business; factors determining exchange rates, Direct and indirect quotations, spot/ forward rates, premium and discount, and cross rates.Basics of forex derivatives; forward exchange rate contracts, Options, Swaps. Correspondent banking, NRI accounts.

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Documentary letters of Credit – UCPDC 600, various facilities to exporters and importers. Risks in foreign trade, the 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 – Organizational 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,

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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 Norms – 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,

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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 Securitization, and Forfaiting; refinance and rediscounting facilities. Derivatives – Credit Default Swaps/ Options.

Module D: Balance Sheet Management

Prudential norms – Capital Adequacy. Implementation of ‘Basel Norm’s guidelines: RBI guidelines. Banks Balance Sheet – Components of assets/ Liabilities/ ALM Implementation – Gap Analysis – Mechanics, Assumptions, and Limitations – Illustrations of Actual Gap Reports – The Relationship Between Gap and Income Statement – FundingLiquidity

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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 Papers

The candidate can choose any one of these 11 subject options as their Elective Paper.

1: Central Banking

1. Module A: Rationale & Functions of Central Bank
2. Module B: Central Banking in India
3. Module C: Monetary Policy and Credit Policy
4. Module D: Supervision and Financial Stability

2: International Banking

1. Module A: International Banking and Finance
2. Module B: Foreign Exchange Business
3. Module C: International Trade
4. Module D: Derivatives

3: Rural Banking

1. Module A: Rural India
2. Module B: Financial Rural Development
3. Module C: Priority Sector Financing and Government Initiatives
4. Module D: Problems and Prospects in Rural Banking

4: Financial Advising

1. Module A: Introduction To Financial Advising
2. Module B: Financial Planning
3. Module C: Financial Investment Products 
4. Module D: Taxation

5: Corporate Banking

1. Module A: Corporate Banking & Finance
2. Module B: Investment Banking
3. Module C: Project & Infrastructure Finance

6: Retail Banking

1. Module A: Introduction
2. Module B: Retail Products
3. Module C: Marketing/ Selling Of Products, Mis/Accounting
4. Module D: Other Issues Related To Retail Banking

7: Co-Operative Banking

1. Module A: Principles & Laws Of Co-Operative Banking And Rule Related To Co-Op Banks
2. Module B: Co-Operative Banking Operations
3. Module C: Technology And Risk Management

8: Human Resources Management 

1. Module A: Human Resource Management
2. Module B: Building An HR Strategy
3. Module C: Motivation, Training And Skill Development
4. Module D: Personnel Management And Industrial Relations

9: Information Technology

1. Module A: Introduction To Information Technology
2. Module B: Systems & Designs
3. Module C: Applications In Banking
4. Module D: Security, Controls And Guidelines

10: Treasury Management

1. Module A: Overview Of Treasury Management
2. Module B: Treasury Operations
3. Module C: Treasury And International Banking
4. Module D: Risk Management

11: Risk Management

1. Module A: Introduction Of Risk Management
2. Module B: Credit Risk Management
3. Module C: Operational Risks
4. Module D: Market Risk
5. Module E: Risk Organization and Policy

CAIIB Updated Syllabus 2023: A Comparison

Let us now see what the changes are between the two syllabi:

Particulars	CAIIB 2022	CAIIB 2023
Number of Papers	3 (2 Compulsory + 1 Elective)	5 (4 Compulsory + 1 Elective)
Marks	100	120
Questions	100	100
Duration	2 hours	2 hours

CAIIB Updated Syllabus 2023: Salient Points

• For compulsory papers, instead of 2, candidates will have to appear for 4 papers.
• Advanced Business and Financial Management and Banking Regulations and Business Laws are the two newly introduced papers.
• Electives have been reduced from 11 to 5
• Total papers candidates have to appear for under the new pattern: 5

CAIIB Updated Syllabus 2023: Conclusion

The IIBF has brought about changes in the CAIIB syllabus to keep up with the growing need for skilled individuals. With the integration of technology into every process and the growing demand for skilled and professional competent workers, the IIBF has seen the need to update its courses to match. Candidates preparing for the June 2023 cycle of the CAIIB exam should keep this updated exam pattern in mind as they prepare. Also, study the changes in the CAIIB Exam Pattern and Passing Criteria here. Make sure to follow our YouTube channel to get the latest updates on CAIIB, JAIIB, and other government and banking exams!

Best of luck!

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