CAIIB Paper II Syllabus | CAIIB Paper II Examination Syllabus

CAIIB (2010) (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 rates, 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 cover s or ECGC.Role of Exim Bank-Role of RBI and exchange control-Regulations in India, Role of FEDAI and FEDAI rules.-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 , rating methodology, risk weights, eligible collateral for mitigation, guarantees; credit ratings, default probabilities, Credit risk spreads, risk migration, transition matrices 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.

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6 thoughts on “CAIIB Paper II Syllabus | CAIIB Paper II Examination Syllabus

  1. vijaya manikrao wasnik

    i had applied for caiib may-june’10 session.accordingly i had paid the fees for two attempts but i could not pass any of the paper.please advise me that what are the rules for examination fees and syllabus for me.

    Reply
  2. 5551190-Nashikkar Ratnakar D.

    I have cleared JAIIB in Nov/Dec,2010 result in 15-01-2011, Now I want to appear for CAIIB Revised Syllabus Exam, Please provide information immediately – 1. How may subje, 2. Name the subjects, 3. Whether to select only 1 optional subject & have to clear only 3 subjcts with 2 compulsory. 4.Fees for how many blocks and attempts to be paid. Total how many subjects to be cleared in CAIIB after completing JAIIB ?

    Reply
  3. ramen sinha

    cleared caiib-1 in the yr.1985,thereafter i wish to clear
    part-2. what to do. i am a life member of the institute.

    Reply
  4. rinki verma

    I WANT TO APPLY FOR CAIIB EXAM , SO WANT TO KNOW ABOUT REVISED SYLLABUS DETAILS OF CAIIB EXAM ON MY MAIL,AND HOW CAN I BECOME LIFE MEMBER OF THE INSTITUTE, PLZ GUIDE ME?

    Reply

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