Monday, 2 November 2020

Risk management recollected questions on 01.11.2020

 Risk Management/Risk in financial services - Level -1

===============


Date : 01.11.2020


Questions were straight forward . Major questions from credit and market risk. (Module B and Module D).


Numericals: 

1. Case study on Measurement of duration ,modified duration ,convexity 

(Face value =3000

Coupon rate = 8% qrty 

Yield = 8%)

2. Case study for measurement of charge capital of market risk

3. Case study on Calculation on MCLR ,it was out of the syllabus 😋

4. Case study on Liquidity /maturity 

5. Case study on BPV 

6. Case study on FX and related calculation

7. Calculation of volatility ,VAR and sensitivity

Types of mortgage

 Types of mortgage

Registered mortgage:

It is also called the legal mortgage. In this a mortgage deed is written and stamped as per stamp act of the concerned state. The deed is then executed in the presence of two witness. It is then registered with the registrar of assurances within 4 months of execution in terms of Indian registration act 1908.

Simple Mortgage:

In a simple mortgage, mortgagor makes a promise to himself to pay the mortgage money and agree that if he fails to pay a loan amount, a mortgagee will have right to sell the mortgaged property through the intervention of the court and cover the loan amount. Neither the possession nor the ownership of property is transferred to the mortgagee.

Right of foreclosure cannot be exercised by the mortgagee.

Mortgage by conditional sale:

In a mortgage by conditional sale, there is some condition included in contract at the time of the agreement between the mortgagor and mortgagee.

A condition may be like if, in case of default of payment of loan amount after a certain date, a sell become unavoidable or many more conditions.

The property continues to be in possession of the mortgagor.

Mortgagee can exercise the right of foreclosure.

Usufructuary mortgage

In a usufructuary mortgage, possession of the property is transferred to the mortgagee.The mortgagee is entitled to retain possession of the property and recover its dues from the income accruing from the property.Mortgagee does not have the right of foreclosure.Mortgagee has no right to sue the mortgagor in his personal capacity or file a suit for sale of mortgaged property.

English mortgagee:

In English mortgagee, a mortgagor makes a promise to pay the mortgage amount on a certain date and transfer ownership to the debtor with a provision that he has to re transfer the ownership once the payment is done by the mortgagor.

Anomalous Mortgage

The anomalous mortgage is the which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage or a mortgage by deposit of title deeds within the section 58 is called an anomalous mortgage.

Equitable mortgage

Ø In an equitable mortgage, a mortgagor gives original title deed to the bank with an aim to create security there on.

Ø An equitable mortgage is created by depositing the original title deeds along with documents. In exceptional case an equitable mortgage can be created by certified copy of the title deed provided there is proof that original is lost or irretrievably lost.

Ø In this, a mortgage has no need to be registered with sub-registrar. But in case of a limited company charge in respect of equitable mortgage under section 125 of the companies act, 1956 must be registered with registrar of companies.

Ø The tile deed may be deposited by mortgagor or his agent.

Ø Title deed can be a sale deed, partition deed, lease deed, gift deed, and deed of assignment.

Ø Deposit of title deeds to be done at Mumbai Kolkata, Chennai or any other town notified by the state government.

Ø Bank should not part with the title deed even for a short duration.

Balloon Mortgages

Ø Balloon mortgages are just for short term and it has fixed rate mortgage.

Ø In balloon mortgage, a monthly payment is lower because of large payment at the end of a term.

Ø A balloon payment is for the honest and qualified borrowers who have good credit history.

Reverse mortgage

Ø A reverse mortgage as the name suggests it works on reveres stream. It is mortgage loan in which a lender pays monthly installments to the borrower.

Ø A reverse mortgage is helpful to the older people in their financial need.

Priority of mortgage: The priority of mortgage is considered from the date of execution of mortgage deed (for registered mortgage) or from the date of creation of mortgage by deposit of title deeds.

Right of redemption: Right of the mortgagor to get back his mortgaged property on repayment of the loan, is called the right of redemption. Limitation period of redemption suit is 30 years.

Right of foreclosure: It is the right of the mortgage to deny the mortgagor of the property to exercise his right of redemption that is debarring the mortgagor forever to get back the mortgaged property is called as the right of foreclosure. This right is available to the mortgagee in case of mortgage by conditional sale and can be exercised through a court of law. Such suit is called suit of foreclosure and has limitation period of 30 years.


Sunday, 1 November 2020

CAIIB making it possible

 *For CAIIB aspirants...*


Hai to CAIIB aspirants... day by day toughness of the CAIIB  exam is going to increase...Prepare exam with conceptual clarity... Clear before major changes in syllabus and new rules and increase of fees


For *case studies* watch *ns toor YouTube* channel... It wil help you definitely... Live ns toor classes also help u alot( *check nstoor YouTube channel , material and subscribe it for regular updates of class timings*)

Check Youtube channel Two hands ,learn with vipool, initiative , learning lesson, middle class investor

For *PDF's*


Follow the below website (follow it in web version)


https://iibfadda.blogspot.com/?m=0


Atleast 3 modules u have to read Mac millan text book thoroughly... Now a days Case studies playing a pivotal role in clearing d exam. Utilise time , plan properly spend 1 hour daily revise it weekend. Utilise free resources. Visit recollected questions u will get an idea


: BFM   


The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;

-International Banking

-Risk Management

-Treasury Management

-Balance Sheet Management

Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.

All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.

Module A-International Banking

Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers

Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.

Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.

Module B-Risk Management

All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.

Module C- Treasury Management

Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.

Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.

Module-D Balance Sheet Management

Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.

Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.

Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.

ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis

MODULE – B : Business Mathematics

MODULE – C : HRM in banks

MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.

If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.

IMPORTANT TOPICS FROM EACH MODULE

Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.

No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.

Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment

Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.

Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT

You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.

Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.

Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.

Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.

At ur convinent time practice daily mocktests for checking ur preparation levels in the below link after creation of userid and password.


http://jaiibcaiibmocktest.com

https://iibfadda.blogspot.com/

Very useful links for Important PDFs


IIBF certifications :

https://iibfadda.blogspot.com/2018/08/all-iibf-certifications-pdfs-in-single.html?m=1


ABM case studies :


https://iibfadda.blogspot.com/2018/08/caiib-abm-300-case-studies-mcqs.html?m=1


BFM case studies ::


http://iibfadda.blogspot.com/2018/09/caiib-bfm-case-studies.html


JAIIB recollected single link::


http://iibfadda.blogspot.com/2018/09/single-link-for-jaiib-recollected.html


Caiib recollected single link:


http://iibfadda.blogspot.com/2018/09/caiib-single-link-for-all-recollected.html


 Urs 

*Aravind , MBA, CAIIB.*


All d best💐😊👍

Digital banking recollected questions on 01.11.2020

 Digital banking recollected questions 


Benefits of digital Banking 

Security in digital Banking 

CIA

UPI Vs IMPS

Features of UPI

BHIM App 

NPCI

NETC

BICCODE

NUUP

NEFT Features

NG RTGS feature

Clearing and Settlement 

AEPS

IMT

Customer Data Flow

Big Data

Bitcoin technology 

SHA

SSL

Block Chain

AI

Weak AI

CRM

FI

mPOS Vs POS

ISO/IEC 7813

Bot

CTS

Merchant Establishment 

Ripple /Bitcoin /ethereum

Hyperledger 

BC middleware 

BCA

POS -GPRS/PSTN

ATM/CDM

White ATM

CCIL

Spoofing /Squatting 

Rupay pay secure 

EMV

OTP

Cross Sell

Salami Slicing 

Open loop/Closed loop

NACH

MICR

PPC

OOH 

Digital Marketing

Jaiib caiib tips

 5 TIPS TO CRACK JAIIB-CAIIB IN 1st ATTEMPT.


If you've just joined the Banking Industry, you must have applied for JAIIB/CAIIB or If not, you'll be applying room & 1 thing everyone wants to know is how to pass JAIIB/CAIIB is get an extra increment. So sooner you pass the Exam, earlier you get an extra increment. If you've as Officer JMGS-I (PO), your initial basic salary would be ₹.23700. If You Clear JAIIB/CAIIB, you get 2 increments & your basic salary increase by ₹.1940. So if you miss it 1st time, your Increment gets delayed by 6months. That means loss of ₹.11640+DA. So it becomes important to clear JAIIB/CAIIB Exam in 1st attempt itself.

Around JAIIB 1.50lacs & CAIIB 1lac candidates appear for the Exam. Only 22-25% candidates are able to clear the exam each time. So does it mean that JAIIB/CAIIB is difficult to crack? What should be the Strategy to clear the Exam in 1st Attempt? How 1 should prepare for Exam?

Passing marks for JAIIB are 50% aggregate & 45% in each Subject. If aggregate marks less than 50% or Marks in a particular paper less than 45%, but you score 50%/more in any other 2 sub. You don't qualify the exam but need not give that particular paper in 2nd,3rd,4th attempt, in which you score 50%/more. The best part of Exam is that result of each paper is shown to you immediately after submit your online Exam.


Simple 5 Steps to Prepare for the JAIIB/CAIIB Exam:

Take off the burden from your mind, you're required to score only 50% which's not very difficult & the Good thing is that there's No NEGATIVE (-) Marking.

Here is a simple step by step guide which will help the Bankers to be prepared for JAIIB/CAIIB.

If you come from Commerce/Finance background (BBA/MBA), It's relatively easy to break the JAIIB/CAIIB. Because you would have studied atleast 65% of topics covered. If you're not from Commerce/Finance backgroue you need to make little Extra Efforts.

1. GET THE RIGHT BOOKS: After reg. for JAIIB/CAIIB, 1st thing you should do is to get the Books for all 3 Subjects. Best books available for JAIIB/CAIIB are by McMillan, which IIBF also suggest. these Books are available on Amazon:

-JAIIB (PPB-AFB-LRAB)

-CAIIB (ABM-BFM-OPTIONAL SUB).

These Books might seem bulky but has covered the entire syllabus & has everything you need to know. The Book is designed in a way that 1can easily be prepared by just reading the definition & summary. the MCQs will give you a fair Idea of level of preparations.

If you don't have enough time & don't want to study IIBF Books, you can by the Books JAIIB/CAIIB by N.S.Toor, which are in QA format.

2. KNOW YOUR SYLLABUS: As a Banker it's likely that there will not be a lot of time left for studies after a hectic day of work. Hence it's best to start early. the Idea is to plan for the Syllabus & Time them so that the Level of Preparedness is High. Knowing your syllabus will give Idea, how much time need to prepare.

If you've been a Commerce student, you'll find the AFB & some part of LRAB, you've already covered during your studies earlier. So 60% of your Job is already done. You can mark these topics & focus on those topics which you've not studied earlier.

If You've been Arts/Science & Engg Student, everything is New for you & need to prepare for everything..


3. MAKE A STRATEGY FOR STUDYING: ( I've already posted about JAIIB-CAIIB Study Strategy & Study Plan a Month Ago, You must keep follow them out of action).


4. PRACTICE & ATTEMPT SOME MOCK TESTS: Another great step is to find out previous 3years Question Papers. Prepare them all leaving 1 which will work as a model test before you actually face the Exam. the Idea is to practice a lot of question type compared to cramming. You can attempt in JAIIB-CAIIB Forum, Blogs website 'Free Mock Tests for JAIIB-CAIIB', which will give you an Idea how the actual exam is held. attempting Mock Test help you practice the actual Exam conditions.

5. ON THE ACTUAL TEST DAY: Choose the easy questions 1st as they will give you an estimate of the Score. then come back to the Questions which were missed. Also, there's No NEGATIVE (-) Marking, so attempt all Questions. If you stuck in a question, leave that by Marking & Go ahead..


ALL THE VERY BEST.

WISH YOU GOOD LUCK...



Caiib BFM Strategy

 BFM::;;


The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;


-International Banking


-Risk Management


-Treasury Management


-Balance Sheet Management


Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.


All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.


Module A-International Banking


Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers


Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.


Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.


Module B-Risk Management


All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.


Module C- Treasury Management


Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.


Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.


Module-D Balance Sheet Management


Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.


Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.


Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.



CAIIB ABM Strategy

 CAIIB ABM Strategy


ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.


This subject also contains 4 modules


MODULE – A: Economic Analysis


MODULE – B : Business Mathematics


MODULE – C : HRM in banks


MODULE – D : Credit Management


As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?


-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.


If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.


IMPORTANT TOPICS FROM EACH MODULE


Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.


No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.


Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment


Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.


Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT


You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.


Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.


Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.


Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.