JAIIB · AFM

AFM Syllabus Priority 2025

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

What is the full form of AFM in the JAIIB syllabus?

A

AFM stands for Accounting and Financial Management for Bankers, which is a compulsory subject in the JAIIB examination covering accounting principles and financial analysis relevant to banking operations.

Q

What is the concept of 'evergreening' of loans in bank accounting?

A

Disbursing new loans to repay old ones to avoid NPA classification

Q

Which module in JAIIB AFM covers extra and miscellaneous topics beyond core accounting?

A

Module E (Extras) in the JAIIB AFM subject covers supplementary topics such as syllabus priorities, emerging areas in banking finance, and additional concepts that complement the core modules.

Q

What is the difference between funded and non-funded credit facilities in banking?

A

Funded involves actual fund disbursement; non-funded are contingent commitments like guarantees

Q

What is the primary regulatory body overseeing accounting standards applicable to Indian banks?

A

The Reserve Bank of India (RBI) oversees accounting standards for banks, in coordination with the Institute of Chartered Accountants of India (ICAI), which issues Indian Accounting Standards (Ind AS).

Q

What is the International Financial Reporting Standard (IFRS) 9 and its relevance to banks?

A

IFRS 9 introduces Expected Credit Loss model for provisioning in bank financial statements

Q

Which international accounting framework have Indian banks been transitioning towards as per RBI guidelines?

A

Indian banks have been transitioning towards Indian Accounting Standards (Ind AS), which are converged with International Financial Reporting Standards (IFRS), as mandated by the RBI roadmap.

Q

What is the purpose of Prompt Corrective Action (PCA) framework by RBI?

A

To intervene early in weak banks by imposing restrictions based on capital, NPA, and leverage

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