(Notification) IIBF: Certified Banking Compliance Professional Course - 2016

About:

The course on compliance in banks has been planned based on the suggestions made by the Governing Council members of IIBF. The Institute pursued the suggestion by organizing workshops in collaboration with International Compliance Association (ICA), London. As compliance function primarily deals with local laws and regulations, the Institute decided to develop the courseware internally and seek collaboration for offering a certification course.

The Institute of Company Secretaries of India (ICSI), New Delhi came forward for offering a joint certification with IIBF to their members as also the CAIIB holders to make available well qualified candidates to work in the compliance department in banks.

ELIGIBILITY

The examination is open to :

Members of IIBF who have passed CAIIB and working in Banks
Members of ICSI (who have passed final CS course)

SUBJECTS OF EXAMINATION

1) Risk, Regulation & Governance
2) Compliance in Banks

PASSING CRITERIA:

1. Minimum marks for pass in the subject is 60 out of 100.
2. Candidates securing at least 50 marks in each subject with an aggregate of 60% marks in all subjects of examination in a single attempt will also be declared as having completed the Examination.

MEDIUM OF EXAMINATION

Examination will be conducted in English only.

PATTERN OF EXAMINATION:

(i) Question Paper will contain 100 objective type multiple choice questions for 100 marks including questions based on case studies/ case lets. The Institute may however vary the number of questions to be asked for a subject
(ii) The examination will be held in Online Mode only
(iii) There will NOT be negative marking for wrong answers.

DURATION OF EXAMINATION:

The duration of the examination will be of 2 hours

EXAMINATION FEES

	For Members of IIBF	For Members of ICSI
First two attempts	6,000/- *	6,000/- *
Subsequent each attempt	3,000/- *	3,000/- *

* Plus Service Tax as applicable (Reg. No. AAATT3309DSD002)

CLASSROOM LEARNING FEE

Class room learning at IIBF, Leadership centre, Mumbai (Non-residential): Rs. 20,000/-*

* Plus Service Tax as applicable (Reg. No. AAATT3309DSD002)

Fees for Class room learning at ICSI Centres will be informed separately by ICSI to the eligible candidates.

Syllabus for online examination

The details of the prescribed syllabus which is indicative are furnished in this booklet. The Institute however, also reserves to itself the right to vary the syllabus / rules / fee structure from time to time. Any alterations made will be notified.

Paper-I : Risk, Regulation & Governance

Module-A : An overview

a) Risk definition / policies

Risk Process-Risk Organization - Key risks-Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk and currency risk

b) Asset Liability Management

ALM Concept - ALM organization - ALCO techniques / tools - Simulation, Gap, Duration analysis, Linear and other statistical methods of control

c) Risk measurement & Control

Calculation - Risk exposure analysis - Risk management / mitigation policy - Risk immunization policy / strategy for fixing exposure limits - Risk management policy and procedure - Risk adjusted return on capital - Capital adequacy norms

d) Risk management

Capital adequacy norms - Prudential norms - Exposure norms - Concept of Mid office - Forwards - Futures - Options - Strategies and Arbitrage opportunities - Regulatory prescriptions of risk management

Module-B : Credit Risk Management

Introduction - Basel-I - Three pillars of Basel-II and Capital for Operational risk - Frame work for risk management - RBI guidelines on risk management

- Risk rating and risk pricing - Methods for estimating capital requirements - Credit risk - standardized approach - Credit risk - advanced approach - Credit rating / credit scoring and rating system design - Credit Bureaus - Stress test and sensitivity analysis - Internal Capital Adequacy Assessment Process (ICAAP) - Introduction to structured products

Module-C : Operational Risk

Introduction, Basel-I & II - RBI guidelines - Likely forms of operational risk and causes for significant increase in operational risk - Sound Principles of Operational Risk Management (SPOR) - SPOR - organizational set up and key responsibilities of ORM - SPOR - policy requirements and strategic approach for ORM - SPOR identification, measurement, control / mitigation of operational risks - Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methods - Computation of capital charge for operational risk

Module-D : Market Risk

- Introduction and definition - Prescriptions of Basel-I & II - Liquidity risk - Interest rate risk - Foreign exchange risk - Price risk (Equity) - Commodity risk
- Treatment of market risk under Basel

a) Standardized duration method
b) Internal measurement approach - VaR

Basel-III guidelines

- Risk Management Policy - ALCO structure and functions.

Paper-II : Compliance in banks

Module-I : Regulation and Regulatory framework

1) Need for regulation in banks; importance of regulation, the role of regulators, the instruments of regulation, regulatory models, regulatory authorities.

Module-II : Compliance programme

1) Compliance Risk and significance of Compliance Function; Compliance Policy; Compliance principles, process and procedures; Steps taken by Banks for compliance; Scope of compliance function; The Compliance Programme

2) Compliance governance structure; Organizational structure; Responsibility of the Board and Senior Management; Compliance structure at corporate office; Functional departments; Field level; Internal controls and its importance

3) Compliances issues; Compliance Risk; Inherent risk and Control risk; Independent testing and effective audit programme; Reporting Framework and Monitoring compliance, Reporting of breaches / non-compliances observed; Role of Audit and Inspection; Essentials for good compliance

4) Creating compliance culture across the organization; Governance, risk and compliance - GRC framework; Benefits of Taking an Integrated GRC Approach; Whistleblower mechanism; The Components of a Whistle-Blower Policy; Reasons for compliance failures

Module-III : Regulatory compliances

1) Disclosures in Financial statements of Banks; Disclosure Requirements; Capital; Repo Transactions, Investment Portfolio; Derivatives; Asset Quality; Asset Re-construction, Business Ratios; Asset Liability Management; Accounting Standard; Disclosures relating to Securitisation

2) Exposure norms; credit exposure to individuals / groups; exposure to certain industries; exposure to capital markets; exposures to joint ventures abroad

3) Computation of CRR / SLR

4) Capital adequacy, Basel II, Basel III

5) KYC / Anti-Money Laundering guidelines

Module-IV : Statutory, Regulatory Restrictions and Guidelines on Loans and Advances

1) Statutory, Regulatory restrictions on certain sectors
2) Priority sectors and MSME
3) Interest rates on advances
4) NPAregulations

Module-V : Foreign currency operations under FEMA and other regulations

1) Investment in India and abroad
2) Guidelines for exports
3) Guidelines for External commercial borrowings (ECB)
4) Money changing, Miscellaneous Remittances from India - Facilities for Residents; Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals; Risk Management and Inter-bank Dealings
5) Guidelines for import of goods and services
6) Deposit accounts for NRIs; Memorandum of Instructions for opening and maintenance of Rupee / Foreign Currency / Vostro Accounts of Non-resident & Exchange Houses

Module-VI : Guidelines for customer service

1) Customer Service Committee of the Board; Role of the Customer Service Committee; Board approved policies on Customer Service, government business, Frauds
2) Financial distribution : Insurance, Mutual funds
3) Alternate delivery channels : credit / debit cards; smart cards; NEFT; RTGS

How to Apply:

Application for examination should be registered online from the Institute’s website www.iibf.org.in. The schedule of examination and dates for registration will be published on IIBF website.

Important Dates:

Particulars	Cut-off Date of Guidelines /Important Developments for Examinations
For the exams to be conducted by the Institute during May / June 2016 and May / June 2017	31st December 2015 and 31st December 2016 respectively
For the exams to be conducted by the Institute during November / December 2016 and November / December 2017	30th June 2016 and 30th June 2017 respectively

CONTACT DETAILS:

Member Support Service Office:

Indian Institute of Banking & Finance
191-F, Maker Towers, 19th Floor,
Cuffe Parade, Mumbai - 400 005
Tel. : 022-2218 3302 / 2218 5134
For training/contact classes related queries contact:

Leadership Centre

Indian Institute of Banking & Finance
Kohinoor City, Commercial-II, Tower-I, 3rd Floor,
Kirol Road, Off L.B.S.Marg, Kurla West, Mumbai 400 070.
Tel : 022 25039746 / 9604 / 9907