IIBF CCP (Certified Credit Professional) Syllabus 2024

IIBF CCP Syllabus 2024

The IIBF CCP Syllabus is important for preparing for the IIBF CCP Exam. Before you start studying, make sure to review the syllabus carefully so you know what to expect. This course is ideal for those who want to work as credit officers in finance. In this post, we have provided the Certified Credit Professional (CCP) Syllabus for 2024 in detail for every module.

Certified Credit Professional Syllabus 2024

The CCP Course teaches people about different credit facilities like Letters of Credit, Bank Guarantees, Co-acceptances, Buyer’s Credit, and Supplier’s Credit. Its main goal is to create skilled credit officers who can handle credit tasks and problems effectively in banks. If you’re interested in the CCP Course, make sure to check out the CCP Syllabus 2024 and plan your study accordingly. The syllabus has five modules, which we’ll explain in detail below.

Also Check: IIBF CCP Exam Date 2024

CCP Syllabus 2024 – Module A

Principles of Lending: Safety, Liquidity, Profitability, Purpose of Loan, Diversification Risk.

Credit Policy: Importance, Contents, Exposure Norms, Model MSE Policy.

Types of Borrowers & Types of Credit Facilities: Individuals – Major, Minor, Married Women, Pardhanashin Women, Illiterate Persons, Agent, Attorney, Joint Borrowers, Hindu Undivided Family (HUF), Proprietorship Firms, Partnership Firms, Limited companies, Statutory Companies, Holding Companies, Government Companies, Private and Pubic Limited Companies, Registration of charges, Limited Liability Partnerships (LLP). Various Types of Credit Facilities – Cash Credit, Overdrafts, Demand Loan, Bills Finance – Drawee Bill Scheme, Bills Discounting.

Credit Delivery: Types of Facilities, Modes of Delivery, Sole Banking Arrangement, Multiple Banking Arrangement, Consortium Lending, Syndication. Credit Thrust, Credit Priorities, Credit Acquisitions, Statutory & Regulatory restrictions on Advances.

Credit Appraisal: Validation of proposal, Dimensions of Credit Appraisals, Six “C” s, Structuring of Loan documents, Credit Risk, Credit Risk Rating, Credit Worthiness of Borrower, Purpose of Loan, Source of Repayment, Cash Flow, Collateral.

Credit Rating: Measurement of Risk, Objective of Rating, Internal & External Rating, Model Credit Rating, Methodology of Rating, Internal & External Comparison, Model Rating Formats.

Capital Adequacy (Credit Risk – Standardised Approach & Advanced Approaches):

• Probability of Default (PD): Estimating the likelihood of borrower default
• Exposure at Default (EAD): Measuring the amount of exposure at the time of default
• Loss Given Default (LGD): Assessing the loss expected in case of default

Importance & Application of RAROC (Risk-Adjusted Return on Capital): Concept of RAROC and its significance, Calculation of risk-adjusted returns, Application in credit decision-making, Comparing risk-adjusted returns across different credit products.

CCP Syllabus 2024 – Module B

Analysis of Financial Statements: Balance Sheet – Definition, Balance Sheet & Banker, Classification of Assets & Liabilities, Current Assets, Fixed Assets, Non-current Assets, Fresh Casino, Intangible & Fictitious Assets, Liabilities – Current Liabilities, Medium & Term Liabilities, Capital & Reserve, Classification of Current Assets & Current Liabilities, Balance Sheet Analysis, Analysis of Profit & Loss Account, Auditor’s Note. Ratio Analysis – Classification of Ratios, Liquidity Ratios, Leverage Ratios, Activity Ratios, Profitability Ratios, Other important Ratios, Interpretation of important Financial Ratios, Uses of Ratios, Fund Flow Statements, Techniques Fund Flow and Cash Flow Statements, Illustrations.

Non-financial Risk Analysis & Macroeconomic Factors: Non-Financial Risks: Operational Risk, Legal Risk, Compliance Risk, Macroeconomic Factors: Inflation, Interest Rates, Economic Growth, Exchange Rates, Industry and Sector Analysis, Political and Regulatory Environment, Technological Changes, Social and Demographic Factors.

Project Appraisal/Term Loan Appraisal: Technical Appraisal, Commercial/ Market Appraisal, Managerial Appraisal, Financial Appraisal, Economic Appraisal, Environmental Appraisal, Project Cost & Means of Finance, Cost of Production & Profitability, Sensitivity Analysis, Break-even Analysis, Capital Budgeting – Pay Back Period Method, Time Value Money, Net Present Value, Internal Rate of Return, Life of the Project.

Credit Risk Analytics & Credit Scoring Models: Credit Risk Assessment Techniques, Probability of Default (PD) Models, Loss Given Default (LGD) Models, Exposure at Default (EAD) Models, Credit Scoring Models: FICO Score, Altman Z-Score, Logistic Regression Models, Model Validation and Backtesting, Use of Big Data and Machine Learning in Credit Risk, Basel III and Regulatory Requirements

CCP Syllabus 2024 – Module C

Working Capital Assessment: Concept of Working Capital, Gross Working Capital, Net Working Capital, Working Capital Gap, Components of Working Capital, Source of Working Capital, Operating/ Working Cycle, Computation of storage/ Retention Period, Various Methods of Assessment of Working Capital, Computation of Working Capital – Turnover Method, MPBF Method, Cash Budget System, Illustrations, Impact of inadequate Working Capital, Working Capital Finance to IT. & Software Industry, Loan Delivery System, Cash Flow
Analysis, Commercial Paper, Credit Delivery, Analysis of CMA data.

Quasi Credit Facilities: Advantages of Non-Fund Facilities, Various types of NFB Facilities, Various types Letter of Credits, Assessment of LC limits, Bills Purchase/ Discounting under LC.

Various types of Bank Guarantees: Performance Guarantee, Financial Guarantees, Deferred Payment Guarantees, Types of Performance and Financial Guarantees, Assessment of Bank Guarantees Limit, Period of Claim under Guarantee.

Co-acceptance Facilities: RBI Guidelines, Co-acceptance of Bills covering supply of Goods & Machinery.

Also Check: IIBF CCP Registration Process 2024

CCP Syllabus 2024 – Module D

Export Finance: Pre-Shipment Finance-Export Packing Credit in Rupees, Running Account Facility, Pre shipment credit to specific sectors – Sub Suppliers, Construction Contractors, Export credit to Processors/ exporters – Agri Export Zones, Export Credit Insurance Whole Turnover Packing Credit, Pre-Shipment Credit in Foreign Currency (PCFC), Running Account Facility in all currencies, Deemed Exports, Diamond Dollar Account Scheme, Post Shipment Rupee Export Finance, Purchase/ Discount of Export Bills, Negotiation of Export Bills, Export on Consignment basis, Advance against Duty Draw Back Entitlements, ECGC Whole Turnover Post-Shipment Guarantee Scheme, Interest Rate of Rupee Export Credit, ECNOS, Rupee Export Credit Interest Rate Subvention, Post-Shipment Finance in Foreign Currency, Gold Card Scheme for Exporters, Crystallization of Export Bills.

Priority Sector Lending/ Government Sponsored Schemes: Different Categories of Priority Sector borrowers, Agriculture (Direct & Indirect) Finance, MSME Finance. (Direct & Indirect), Micro Credit, Government Sponsored Schemes, Swarnajayanti Gram Swarozgar Yojana (SGSY), Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Self-Employment Scheme for Rehabilitation of Manual Scavengers (SRMS), Swarna Jayanti Shahari Rozgar Yojana, Education Loans, Housing Finance, Weaker Sections, Export Credit, Differential Rate of Interest Scheme, Priority Sector Targets.

Retail Loans: Characteristic of Retail Loans, Advantages of Retail Loans, Retail Banking Vs Corporate Banking, Various Retail Banking Products, Model Retail Banking Products – Home Loans, Vehicle Loan, Personal Loan,
Pensioner Loan Scheme, Property Loan, Holiday Loan Scheme, Gold Loan Scheme,
Education Loan, etc., Guidelines on CERSAI registration.

Forward Exposure Limit & Pre-settlement Risk: Definition and Importance of Forward Exposure Limits, Management of Forward Exposure, Calculation and Monitoring of Exposure Limits, Pre-settlement Risk: Definition and Impact, Risk Mitigation Strategies.

Structured Finance Options: Definition and Components of Structured Finance, Types of Structured Financial Products: Securitization, Collateralized Debt Obligations (CDOs), Asset-Backed Securities (ABS), Risk Management in Structured Finance, Benefits and Drawbacks, Market Trends and Innovations.

Alternative Source of Funding: Types of Alternative Funding: Venture Capital, Angel Investing, Crowdfunding, Private Equity, Characteristics and Benefits, Comparison with Traditional Financing, Regulatory Considerations, Evaluation and Selection of Alternative Funding Sources.

Digital Finance – P2P Lending via FinTech: Overview of Peer-to-Peer (P2P) Lending, Role of FinTech in Digital Finance, Benefits and Risks of P2P Lending, Regulatory Framework, Comparison with Traditional Lending, Popular P2P Lending Platforms.

Green Finance: Definition and Principles of Green Finance, Types of Green Financial Products: Green Bonds, Green Loans, Environmental Impact and Benefits, Regulatory Framework and Standards, Examples of Green Finance Projects, Role in Sustainable Development and Climate Change Mitigation.

CCP Syllabus 2024 – Module E

Documentation: Meaning, Importance, Types of documents, Requisites of documentation, Selection of documents, Stamping of different documents, Mode and time of Stamping, Remedy for un-stamped/ under-stamped documents, Documents of which registration is compulsory, Time limit of registration, Consequence of non-registration, Execution, Mode of Execution by different executants, Period of Limitation, Law of Limitation to Guarantor.

Types of Charges: Purpose, Various types of charges, Types of Security, Mode of charge, Lien, Negative Lien, Set Off, Assignment, Pledge, Right of Banker as a Pledgee, Duties as a Pledgee, Mode of Charges, Hypothecation, Mortgage – different types of mortgages, Difference between Simple and Equitable Mortgage.

Follow up, supervision & credit monitoring u Periodical Scrutiny of Exception Reports u
AI/ML based analytics tools to analyse the transactions to predict “likely to default”: Credit Monitoring – Meaning, Monitoring Goals, Process of Monitoring, Different Monitoring Tools, Check-list for Monitoring, monitoring by using various statements, QIS Formats/ guidelines, Supervision & Follow Up.

Resolution of Stressed Assets: Identifying Stressed Assets, Strategies for Asset Resolution, Legal Framework and Procedures, Role of Asset Reconstruction Companies (ARCs), Case Studies and Best Practices.

Fair Practices Code on Lender’s Liability: Applicability, Practices to be adopted, Loan Processing, Assessment, Disbursement, Administration, Recall/ Repayment of Loan, Grievance Redress Mechanisms.

Insolvency & Bankruptcy Code (IBC), 2016 [including all amendments & top 5 judgments]: Introduction, Credit Monitoring, NPA why & how? NPA Management Policy, Definition of Sick Unit, Non-Performing Assets (NPA), Income Recognition Policy, Assets Classification, Guidelines on Asset Classification, Projects under implementation, Project Loans under Infrastructure and Non-Infrastructure Sectors, Projects under Commercial Real Estate Sector, Income Recognition, take out Finance, Provisioning Norms for NPA, Provisioning Coverage Ratio (PCR), Options available to banks in Stressed Assets, Prudential Guidelines on Restructuring Eligibility criteria for restructuring, Asset Classification Norms for Restructured Assets, Mahapatra Committee Recommendations, Revised Prudential Guidelines on Restructuring of Advances, General Provision on Restructured Standard Accounts, Up-gradation of Restructured Accounts, Rehabilitation, Viability Period, Viability Parameters, Incentives for Quick implementation of Restructuring Package, Corporate Debt Restructuring (CDR) Mechanism, CDR Structure & Operations, New RBI Framework for Distressed Assets, Wilful Defaulters, Penal Measures, Compromise, Legal Action, Civil litigation, Pre and Post – filing precautions, Type of Decrees, Modes of Execution of Decree, Lok Adalats, Debt Recovery Tribunal, SARFAESI, Write Off.

Fraud Risk Management in Credit:

• Early Warning Signals:
  • Identifying Potential Warning Signs
  • Annexure 16/3 of Current Book
• Red Flagging of Accounts:
  • Criteria for Red Flagging
  • Procedures and Actions
• Identification & Reporting of Fraud:
  • Techniques for Detecting Fraud
  • Reporting Mechanisms
• Forensic Audit:
  • Definition and Importance
  • Process and Techniques
• Wilful Defaulters:
  • Identification and Consequences
  • Legal and Financial Implications
• Non-Cooperative Borrowers:
  • Strategies for Dealing with Non-Cooperation
• Fugitive Economic Offender:
  • Definition and Handling
  • Legal Framework
• Look Out Circular:
  • Purpose and Implementation
• Criminal Offenses and Investigative Agencies:
  • Types of Criminal Offenses in Credit
  • Role of Investigative Agencies
  • Procedures for Investigation

Also Check: What is the IIBF CCP Exam?

IIBF CCP Syllabus 2024 – FAQs

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