BFM in 7 DAYS _ CAIIB SYLLABUS PRIORITY _ Module wise numerical case studies
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary objective of Bank Financial Management (BFM) in the CAIIB curriculum?
BFM aims to equip bankers with skills in managing bank assets, liabilities, capital, and risk to ensure profitability and regulatory compliance.
What is the formula for calculating Net Interest Income (NII) of a bank?
NII equals interest income minus interest expense.
Which module of CAIIB BFM deals with treasury and balance sheet management?
Module B of CAIIB BFM covers treasury management and balance sheet management, including ALM and risk measurement.
What is Basis Risk in the context of interest rate risk management?
Risk from imperfect correlation between different interest rate indices.
What does NII stand for in the context of bank financial management?
NII stands for Net Interest Income, which is the difference between interest earned on assets and interest paid on liabilities.
What is Re-pricing Risk in ALM and how does it arise?
Risk from assets and liabilities repricing at different times or rates.
How is Net Interest Margin (NIM) calculated for a bank?
NIM is calculated as Net Interest Income divided by Average Earning Assets, expressed as a percentage.
What is the difference between Coupon Rate and Yield to Maturity of a bond?
Coupon is fixed rate; YTM is actual return if held to maturity.
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