CAIIB BFM Syllabus 2022 PDF & Exam Pattern

CAIIB BFM Syllabus 2022: Candidates preparing for the CAIIB BFM Exam scheduled to be on 4th December 2022 should be familiar with the syllabus. Bank Financial Management(BFM) is the second compulsory paper of CAIIB. The Syllabus gives a brief overview of the topics to prepare for the examination. To qualify for BFM with a better score aspirants must go through the CAIIB BFM Syllabus 2022 thoroughly so that they do not miss any topic. In this article, we have discussed in detail the CAIIB BFM Syllabus & Exam Pattern 2022.

CAIIB BFM Syllabus 2022: Overview

Aspirants can go through an overview of CAIIB BFM Syllabus 2022 in the table mentioned below.

CAIIB BFM Syllabus 2022

Candidates will get an outlay of how to prepare after examining the CAIIB BFM Syllabus 2022. In this article, we have dealt with the Bank Financial Management(BFM) Paper, second paper of CAIIB Exam 2022. CAIIB BFM Syllabus 2022 has four modules and all the four modules and their important topics that a candidate has to deal with for the upcoming CAIIB Exam 2022 are mentioned here. Topic wise detailed syllabus will be highly beneficial for all those aspirants who are going to appear in the CAIIB Exam 2022. Some additions have been made in the CAIIB BFM Syllabus 2022 and aspirants must be acquainted with the updated syllabus. Candidates can click on the link and download the PDF to get the detailed information about the updated syllabus.

CAIIB Exam Pattern 2022

CAIIB(Certified Associate of Indian Institute of Bankers) is one of the flagship courses conducted by IIBF (Indian Institute of Banking &Finance). CAIIB aims at providing advanced knowledge necessary for better decision-making covering Treasury Management, Risk Management, Balance Sheet Management, Credit Management, International Banking, Economic Analysis etc. CAIIB Exam 2022 is scheduled to be held on 27th November, 04th December and 10th December 2022. Indian Institute of Banking and Finance(IIBF) provides the exam pattern for CAIIB. The main highlights of the CAIIB Exam 2022 are as given below:

• The CAIIB Exam 2022 will be conducted in Online Medium only.
• CAIIB Exam 2022 has three papers, two compulsory papers( Advanced Bank Management and Bank Financial Management) and one elective paper of the choice of candidate.
• Each of the three papers will be having 100 multiple choice questions of 100 marks.
• The time duration allotted to complete each paper will be 2 hours.
• The exam paper will be bilingual i.e. both in English and Hindi Language.
• There is no negative marking in the CAIIB Exam 2022.

CAIIB BFM Syllabus 2022 Module A: International Banking

The first Module of CAIIB BFM Syllabus 2022 is International Banking. The important topics that a candidate should focus on for the CAIIB Exam 2022 are given here.

• Forex Business-Factors determining exchange rates, Direct and indirect quotations, Spot or forward rates, premium, and discount, Cross rates, Basics of forex derivatives, Forward exchange rate contracts, Options, Swaps. Correspondent banking, Non-Resident Indian accounts are covered in this unit.
• Documentary Letters of Credit – The topics dealt in this unit are: UCPDC 600 (Uniform Customs and Practice for Documentary Credits), various facilities to exporters and importers, Risks in foreign trade, the role of ECGC (Export Credit Guarantee Corporation of India), 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 (Foreign Exchange Dealers Association of India), Role of FEMA and its rules.

CAIIB BFM Syllabus 2022 Module B: Risk Management

Risk Management is one of the important module that an aspirant has to understand. In this chapter mainly the risk concepts and its related terms are dealt with. Some of its topics are mentioned here.

• Risk Management: Overview- This chapter covers Risk-Concept, Risk in Banks, Risk Management Framework, Organizational Structure, Risk Identification, Risk Measurement or Sensitivity, Basis Point Value (BPV), Downside Potential, Value at Risk(VaR), Back Testing, Stress Testing, Risk Monitoring and Control, Risk Reporting, Market Risk identification, Methodology of Rating, Risk weights, eligible collateral for mitigation, guarantees, Measurement and management of credit risk, credit ratings, transition matrices, Credit risk spreads, risk migration, default probabilities, Counterparty Risk, and credit metrics, Credit exposures, recovery rates, risk mitigation techniques, Operational and Integrated Risk Management, Risk and Capital Management, ‘Basel Norms- Current guidelines on risk management.

CAIIB BFM Syllabus 2022 Module C: Treasury Management

The third module of CAIIB BFM Syllabus 2022 is Treasury Management. Treasury Management is the creation and governance of policies and procedures that ensure the company manages financial risk successfully. The important topics of this module are:

• 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( Commercial Papers), IBPs Securitization, and Forfaiting Refinance and rediscounting facilities, Derivatives – Credit Default Swaps/ Options are mainly highlighted in this module.

CAIIB BFM Syllabus 2022 Module D: Balance Sheet Management

Balance Sheet Management is the fourth module of CAIIB BFM Syllabus 2022. Balance Sheet Management covers regulatory policy for investment securities, Bank-Owned Life Insurance (BOLI), liquidity risk, and interest rate risk for national banks, as well as the assessment of interest rate risk and liquidity risk for the national banking system as a whole. The main topics that a candidate has to focus on are.

• Prudential norms –Capital Adequacy
• Implementation of ‘Basel Norm’s 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 and Business Strategies-Profit and profitability analysis, Asset Classification, Provisioning – effect of NPA on profitability, Shareholder value maximization & Economic Value added (EVA), Profit planning measures to improve profitability, Disclosure guidelines

 CAIIB BFM Syllabus 2022: Download PDF

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FAQs: CAIIB BFM Syllabus 2022

Q.1 Where can we get the detailed syllabus of BFM Paper for CAIIB Exam 2022?

Ans. The detailed syllabus of BFM Paper for CAIIB Exam 2022 is discussed above.

Q.2 How many modules are there in CAIIB BFM Syllabus 2022?

Ans. There are four modules in CAIIB BFM Syllabus 2022.