CAIIB · BFM

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.

1 video class 65 one-liners
Quick revision

One-liners from this chapter

Free sample — 8 of 65 rapid-fire Q&A cards.

Q

What is the primary objective of Bank Financial Management (BFM) in the CAIIB curriculum?

A

BFM aims to equip bankers with skills in managing bank assets, liabilities, capital, and risk to ensure profitability and regulatory compliance.

Q

What is the formula for calculating Net Interest Income (NII) of a bank?

A

NII equals interest income minus interest expense.

Q

Which module of CAIIB BFM deals with treasury and balance sheet management?

A

Module B of CAIIB BFM covers treasury management and balance sheet management, including ALM and risk measurement.

Q

What is Basis Risk in the context of interest rate risk management?

A

Risk from imperfect correlation between different interest rate indices.

Q

What does NII stand for in the context of bank financial management?

A

NII stands for Net Interest Income, which is the difference between interest earned on assets and interest paid on liabilities.

Q

What is Re-pricing Risk in ALM and how does it arise?

A

Risk from assets and liabilities repricing at different times or rates.

Q

How is Net Interest Margin (NIM) calculated for a bank?

A

NIM is calculated as Net Interest Income divided by Average Earning Assets, expressed as a percentage.

Q

What is the difference between Coupon Rate and Yield to Maturity of a bond?

A

Coupon is fixed rate; YTM is actual return if held to maturity.

Unlock all 65 one-liners

Self-quiz mode with hidden answers + printable deck.

Open the deck
Watch & learn

Video classes for this chapter

Master the full BFM syllabus

Every chapter of Bank Financial Management — videos, tests, notes and one-liner decks in one place.