CAIIB BFM Exam Analysis 2023, 3rd December Exam Review

CAIIB BFM Exam Analysis 2023, 03 December, Shift 2 & 3

People who took the CAIIB BFM Nov-Dec Exam in Shift 2 & 3 thought the questions were long and required a lot of calculations. Overall, they rated the paper as moderate. Here are some of the topics and questions that showed up in the CAIIB BFM Exam Analysis for December 3, Shifts 2 & 3:

• ECB (European Central Bank): Likely involved understanding the functions, policies, and roles of the European Central Bank in monetary policy and financial stability within the Eurozone.
• NPA Provisioning-2 Case Study: This might have presented a scenario where Non-Performing Assets (NPAs) were addressed and discussed, possibly exploring how banks provision for such assets.
• Pillar 3 Requirements under Basel III Framework Refers To: Referring to the disclosure requirements of Basel III, focusing on risk management and regulatory frameworks for banking institutions.
• Case Study on CRAR (Capital to Risk-Weighted Assets Ratio): Assessing the capital adequacy of banks concerning their risk-weighted assets, a crucial metric for banking regulation.
• Chain Rule: A mathematical concept applied in calculus, potentially used in financial contexts for calculating rates of change or derivatives.
• How many DDA Accounts Can Be Opened?: Probably related to the regulations or limitations concerning the opening of Demand Deposit Accounts in banks.
• CDS and TRS Comparison: Comparing Credit Default Swaps (CDS) and Total Return Swaps (TRS), possibly in terms of their functionality, risk, or application.
• 7 Categories of Operational Risk: Addressing various types or classifications of operational risk that financial institutions encounter in their operations.
• Commercial Beta Factor: Likely related to the assessment of systematic risk in commercial investments, possibly involving the calculation or understanding of beta.
• Credit Derivatives: Exploring financial instruments whose value is derived from the performance of an underlying asset or credit-related event.
• Monetary Policy: Examining the tools, objectives, and impact of monetary policy on economic stability, typically controlled by central banks.
• Incoterms Case Study: Probably involving an analysis of International Commercial Terms (Incoterms) used in international trade to define seller and buyer responsibilities.
• Current Account Transaction: Assessing transactions related to the current account in the balance of payments, including imports, exports, and services.
• IFSC Establishment Year: Inquiring about the year in which the International Financial Services Centre was established.
• CET1 Case Study: Possibly delving into Common Equity Tier 1 capital and its significance in the capital adequacy of banks.
• What Is ECB2 From?: Likely referring to a specific aspect or version of the European Central Bank, possibly its extended functions or policies.
• DSIB-2 Questions: Assessing knowledge related to Domestic Systemically Important Banks (DSIBs) and their regulations or functions.
• Haircut % When Currency Differ: Probably related to the concept of 'haircut' in financial transactions, specifically when dealing with different currencies.
• Case Study On Export Bill: Likely involved in understanding the processes, documentation, and financial aspects related to exporting goods and associated bills.
• Additional Tier 1 Capital: Exploring the components and importance of Additional Tier 1 capital in the capital structure of banks.
• MPC (Monetary Policy Committee): Addressing the committee responsible for setting monetary policy in a country.
• Credit Portfolios: Discuss portfolios consisting of credit-related assets and their management strategies.
• NRE & NRO: Likely exploring the differences between Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts for non-resident Indians.
• ECGC Standard Policy: Exploring the policies offered by the Export Credit Guarantee Corporation concerning export credit insurance.
• Function Of Integrated Treasury: Possibly discussing the roles and responsibilities of an integrated treasury in a financial institution.
• Stock & Flow Approach: Likely involves an economic analysis approach to understand the stock (accumulation) and flow (movement) of goods, money, or assets.
• Irrevocable LC (Letter of Credit): Examining the characteristics and implications of an irrevocable letter of credit in international trade.
• ADRs (American Depositary Receipts): Addressing the financial instruments representing shares of foreign companies traded in the U.S. financial markets.
• Statement Of Structural Liquidity: Likely involving a statement or analysis of a bank's structural liquidity position.
• FBG Mac Remittance: Possibly referring to a specific type of remittance or financial transfer system.
• Farmer's Loan for Sugarcane Yield NPA Scenario: Presenting a scenario regarding a farmer who received a loan for sugarcane yield and the conditions leading to Non-Performing Asset (NPA) status if repayment is delayed.
• Three Risk Categories of ICAAP (Internal Capital Adequacy Assessment Process): Assessing the different risk categories addressed in the Internal Capital Adequacy Assessment Process.
• CRR (Cash Reserve Ratio): Likely examining the ratio of a bank's cash reserve maintained with the central bank to its total deposits.
• Climate Risk: Discuss the risks posed by climate change on financial institutions and their strategies to address these risks.
• ATM ITM OTM Questions: Possibly involving questions related to options trading - At-the-Money (ATM), In-the-Money (ITM), and Out-of-the-Money (OTM) options.
• Diamond Dollar Account: Likely discussing a specific type of dollar-denominated account with unique features.
• IFSC Under Sez Act: Examining the regulations or provisions concerning the International Financial Services Centre under the Special Economic Zone Act.
• Capital Charge To Gross Profit: Addressing the capital charges deducted from gross profits for regulatory compliance.
• RWA Calculation (Risk-Weighted Assets): Possibly involving the calculation or assessment of a bank's risk-weighted assets.
• Legal Compliance: Assessing the knowledge and understanding of legal requirements and compliance standards in the banking sector.