certified commercial banker brochure
DESCRIPTION
Vskills offering certification in Commercial Banking. Vskills Certification in Commercial Banking are for those candidates looking for opportunities in commercial banking sector catering to wide variety of services such as leasing, credit card banking, international finance and trade credit. Vskills certification significantly improves the chances of getting the desired role and is an added knowledge for the candidate.TRANSCRIPT
Certified Commercial Banker
VS-1038
Certified Commercial Banker
www.vskills.in
Certified Certified Certified Certified Commercial BankerCommercial BankerCommercial BankerCommercial Banker
Certification Code Certification Code Certification Code Certification Code VS-1038
Commercial banking primarily involves providing banking services to individuals, small
businesses and large organizations. Commercial Banking as a career has been growing at a
very fast pace and offers exciting opportunities to learn about business, interaction with
clients and develop business relations. There is a wide range of opportunities in
commercial banking, such as leasing, credit card banking, international finance and trade
credit.
Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?
Vskills Certification in Commercial Banking are for those candidates looking for
opportunities in commercial banking sector catering to wide variety of services such as
leasing, credit card banking, international finance and trade credit. Vskills certification
significantly improves the chances of getting the desired role and is an added knowledge for
the candidate. This certification can be taken by candidates looking for new job
opportunities or promotion or just for skill assessment.
Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?
Vskills Certification in Commercial Banking is for candidates who are well-prepared and
enthusiastic about entering the field and Job seekers looking to find employment in
Finance department of companies or candidates who wish to improve their skill set and
make their CV stronger. The Certification also assists the existing employees looking for a
better role and proves their employers the value of their skills.
Test DeTest DeTest DeTest Details:tails:tails:tails:
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in
this module.
Fee Structure:Fee Structure:Fee Structure:Fee Structure:
Rs. 2,000/- (Includes all taxes)
Certified Commercial Banker
www.vskills.in
Companies that hireCompanies that hireCompanies that hireCompanies that hire Vskills Vskills Vskills Vskills Certified Commercial BankerCertified Commercial BankerCertified Commercial BankerCertified Commercial Banker
Vskills Certified Commercial Banker finds employment in big or small companies as a
Credit Analyst, Loan Officer, Branch Manager or Mortgage Banker. Many companies
contact us on a regular basis, and we forward them a list of our certified candidates, and the
candidates are highly in demand.
Certified Commercial Banker
www.vskills.in
Table of ContentTable of ContentTable of ContentTable of Content
1.1.1.1. Trends in BankingTrends in BankingTrends in BankingTrends in Banking 1.1 Global Trends
1.2 Domestic Trends
1.3 Dichotomous Approach in the Banking System
1.4 Holistic Overview
1.5 Autonomy in the Banking System
1.6 Asset Quality
1.7 Currency Convertibility
1.8 Off-shore Banking System
2.2.2.2. Evolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking System 2.1 Different Financial Systems
2.2 Money Lending System in Ancient India
3.3.3.3. Banking SystemsBanking SystemsBanking SystemsBanking Systems 3.1 Introduction
3.2 Type of Banking Systems
3.3 Universal Banking System
4.4.4.4. Functions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial Bank 4.1 Nature of Commercial Bank
4.2 Characteristics of Commercial Bank
4.3 Intermediation
4.4 Payment and Settlement System
4.5 Financial Services
5.5.5.5. Scheduled Commercial BankScheduled Commercial BankScheduled Commercial BankScheduled Commercial Bank 5.1 Analysis of Assets and Liabilities
5.2 Capital Adequacy and Risk adjusted Requirement
5.3 Risk Weighted Approach
5.4 Inter Bank Borrowing
5.5 CRR and SLR
5.6 Types of Deposits
5.7 Ownership of Deposits
5.8 Investments in Government and other Securities
5.9 Loans and Advances
5.10 NPA Resolution
5.11 Micro Prudential Norms
5.12 CBSR 1998
5.13 Credit Repression
Certified Commercial Banker
www.vskills.in
6.6.6.6. Banking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance Measurement 6.1 Internal Performance
7.7.7.7. Capital ManagementCapital ManagementCapital ManagementCapital Management 7.1 Introduction to Bank Capital
7.2 Long Term Debt and Loss Reserves
7.3 Capital Deficiency Correction
7.4 Recapitalization
8.8.8.8. Commercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertainties 8.1 Risk and Transformation Services
8.2 Internationalization of Banking System
8.3 RBI Guidelines for Risk Management
9.9.9.9. Derivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk Management 9.1 Nature and Type of Derivatives
9.2 Risk Regulation
10.10.10.10. Liquidity Risk ManagementLiquidity Risk ManagementLiquidity Risk ManagementLiquidity Risk Management 10.1 Introduction
10.2 Measuring Liquidity
10.3 Liquidity Management
11.11.11.11. Credit RiskCredit RiskCredit RiskCredit Risk 11.1 Nature of Credit Risk
11.2 Selection and Limitation
11.3 Credit Derivatives
11.4 Bank Lending Services
11.5 Syndicated Loan
11.6 Direct and Export Credit
11.7 Leasing
12.12.12.12. Interest Rate Risks (IRR)Interest Rate Risks (IRR)Interest Rate Risks (IRR)Interest Rate Risks (IRR) 12.1 Net Interest Income
12.2 Future, Option and Swaps
12.3 Forward Rate Swaps and Interest Rate Swaps
13.13.13.13. Investment ManagementInvestment ManagementInvestment ManagementInvestment Management 13.1 Portfolio Behavior of Commercial Banks
13.2 REPO and Reverse REPOs
13.3 Type of Government Securities
13.4 Yield Curve and Yield Measures
13.5 Bond Pricing and price volatility
Certified Commercial Banker
www.vskills.in
14.14.14.14. Foreign Currency DealingForeign Currency DealingForeign Currency DealingForeign Currency Dealing 14.1 Foreign Exchange Market
14.2 Technology and Trading
14.3 Participants in Foreign Exchange Market
14.4 Foreign Exchange Rates and Exchange Quotations
14.5 Ready Exchange Rate and Exchange Rate Points
14.6 Cross Points
14.7 Currency Arbitrage
15.15.15.15. Foreign Currency RiskForeign Currency RiskForeign Currency RiskForeign Currency Risk 15.1 Hedging and Forward Contracts
15.2 Forward Premium and Discounts
15.3 Futures
15.4 Currency Swaps
15.5 Foreign Currency Options
15.6 Option Strategies
15.7 Cross Currency Option Trading in India
16.16.16.16. International BankingInternational BankingInternational BankingInternational Banking 16.1 Introduction
16.2 International Banking Regulation
16.3 International Banking Activities
16.4 Country Risk and Euromoney
16.5 Loan Syndication and Agreement Provisions
16.6 Euro Loan Syndication
Certified Commercial Banker
www.vskills.in
Course OutlineCourse OutlineCourse OutlineCourse Outline
1.1.1.1. Trends in BankingTrends in BankingTrends in BankingTrends in Banking � Demonstrates the global trends in the financial service industry such as
consolidation and convergence of banks, development of financial institutions,
banks, asset management firms and insurance firms.
� Describes the domestic trends prevalent in the financial system and financial
liberalization.
� Explains the dichotomous approach in the banking system consisting of both
formal and informal sector.
� Explains the need for a holistic overview to the banking system to appreciate the
development in response to the need.
� Explains the three tier structure and the micro prudential norms
� Describe the need to have an autonomous central bank to facilitate the setting of
benchmarks, control inflation, asses the changing financial environment and
implementing policies.
� Explains the need to assess the quality of asset and illustrates the activities
performed by Board of Financial Supervision under of aegis of RBI.
� Explains the process of converting currency i.e., the restriction imposed on foreign
exchange transactions or exchange control.
� Describes the need for setting up off-shore banking system preface to convertibility
on capital account
2.2.2.2. Evolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking System � Explains different financial systems - Market and Bank Oriented Financial Systems
� Explains the money lending system followed in Ancient India
� Types of Money Lenders and indigenous bankers
3.3.3.3. Banking SystemsBanking SystemsBanking SystemsBanking Systems � Brief introduction about the evolution of the banking system in India
� Describes type of banking system and comparison between their operations
� Explains the working and functionalities of Branch Banking
� Illustrates the factors affecting Banking Systems
� Explains the concept of Retail Banking and Wholesale Banking and their practices
� Explains the reason for gap between Regulated and Wholesale deposit rates
� Explains the concept of banking marketisation.
� Elaborates the concept of Universal Banking in Germany, UK and India.
4.4.4.4. Functions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial Bank � Describes the nature and characteristics of Commercial Bank
� Explains the functions of Commercial Bank
Certified Commercial Banker
www.vskills.in
� Describes the role of Financial Intermediaries to provide intermediary services
such as brokerage and asset transformation.
� Describes the differences between trading activities and commercial banking
� Explains the need of payment and settlement system for improving the conduct of
monitory policy in the economy.
� Explains other financial services that a commercial bank provides – securities
related services, advice on managing the portfolio or investment counseling.
5.5.5.5. Scheduled Commercial BankScheduled Commercial BankScheduled Commercial BankScheduled Commercial Bank � Banking Regulation Act, 1949
� Analyses the assets and Liabilities of commercial banks
� Explains the functions of Bank Capital
� Describes the financial risks involved and need for capital adequacy in the financial
system
� Describes the prescribed capital standards to be followed by commercial banks and
focus on adjusting the risks faced by the entire banking industry on account of the
density of relations amongst banks.
� Classifies the capital of banks, explains the funded risk assets, funded risk assets,
off-balance sheet items and norms as prescribed to maintain minimum capital
funds.
� Explains the Risk Weighted Approach followed to strengthen the banking system
by addition to equity.
� Explains the concept of Inter Bank Borrowing, functions of Call Money Market
and explains the collateralized borrowing and lending obligation
� Describes the relation between Money Market and Foreign Exchange Market
� Explains the concept of CRR and SLR on inter-bank deposits
� Explains different types of deposits – Term and Fixed Deposits
� Describes Ownership of Deposits
� Illustrate different type of assets of commercial banks
� Identify Investments in Government and other Securities
� Explains the accounting standards for investment, illustrate Investment Fluctuation
reserve, maturity classification of investments in Government Securities
� Explains the process of Retail Banking, growth in housing finance and describes
risky loans (also called non-performing assets) as an indicator.
� Describes NPA Resolution and Moral Hazards
� Classification of assets
� Describes Micro Prudential Norms and its elements – income recognition, asset
classification, provision for loans & advances and capital adequacy.
� Illustrates on Committee Banking Sector Reform (CBSR) 1998
� Describes valuation of all investment on mark to market basis to facilitate the
development of a healthy secondary market
� Explains the concept of Credit Repression
6.6.6.6. Banking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance Measurement � Explains the need and importance of strengthening the financial system
Certified Commercial Banker
www.vskills.in
� Describes the system and methods used in banks, structural issues being faced and
integration of financial markets
� Explains the legal and legislative framework as recommended the amendment to
RBI and Banking Regulation act.
� Describes the need for evaluation of bank performance – Internal and external
performance.
� Illustrates the planning process of the bank and personnel development
� Explains Income Statement, Financial Ratios, Profit Ratios, Asset Quality
Management, Non-Performing Assets, Liquidity Ratios and evaluating operational
efficiency.
7.7.7.7. Capital ManagementCapital ManagementCapital ManagementCapital Management � Introduction to Bank Capital
� Explain Long Term Debt and Loss Reserves
� Explains the corrective actions to be taken at the time of capital deficiency such as
change in asset, change in dividend payout ratio, employee stock ownership, change
in profitability and addressing capital issues
� Explains the concept of Recapitalization and merger among banks
� Explains the process of crisis management and recommendation
� Describes restructuring, process of addressing both systematic & Macro level issues
and policies for orderly restructuring.
8.8.8.8. Commercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertainties � Explains the nature of risk and need for risk management
� Describes Risk Transformation Services such as Risk Management, Source of Risk,
Credit Analysis, Bank Marketisation and liability management.
� Explains the concept of rollover loans and flexi rates
� Explains the concept of Banking Internationalization to facilitate Asset-Liability
Management.
� Illustrates the overall and types risks of a bank – Credit Risk, Interest Rate Risk,
Liquidity Risk, Operational Risk and Foreign Exchange Risk.
� Explains the Treasury Functions and techniques to monitor risks.
� Explains the RBI Guidelines for Risk Management
9.9.9.9. Derivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk Management � Describes the nature, type and characteristics of derivatives
� Explains different categories of risk associated with derivates and risk regulation.
10.10.10.10. Managing Managing Managing Managing Liquidity Risk Liquidity Risk Liquidity Risk Liquidity Risk � Explains the concept of liquidity risk and ability to meet anticipated and contingent
cash needs
� Elaborates various sources of liquidity and collateralized lending facility
� Explains the process and need for liquidity measurement
� Explains the various theories of Liquidity Management including Commercial Loan
Theory, Shiftability Theory, Anticipated Income Theory and liability Management
theory
Certified Commercial Banker
www.vskills.in
11.11.11.11. Managing Managing Managing Managing Credit RiskCredit RiskCredit RiskCredit Risk � Explains nature of credit risk
� Explains the principles in credit risk management – selection, limitation and
diversification
� Explains the method of reducing credit risk
� Explains the relation between credit risk and asset liability management
� Explains the importance of credit derivatives as a means of evaluating and
transferring credit risk
� Explains the uses of credit derivatives, types of credit derivatives, credit spread
options and credit linked notes
� Explains different type of bank lending services for infrastructure projects, advances
against shares and debentures, bridge loans, loan against working capital etc
� Explains loans against cash credit and features of loan system
� Explains the procedure of loan syndication, process of syndication and syndication
documents
� Illustrates the terms and condition of term loans
� Explains the concept of direct and export Credit
� Explains the process of leasing and describes the type of leases – Sales and lease
back, operating lease and Financial/ capital lease
� Explains the concept of housing finance
12.12.12.12. Managing Interest Rate RiskManaging Interest Rate RiskManaging Interest Rate RiskManaging Interest Rate Risk (IRR)(IRR)(IRR)(IRR) � Explains the concept of Net Interest Income to determine the profitability of banks
� Explain derivative instrument that allows banks to alter interest rate exposure i.e.,
Future, Option and Swaps
� Explain the Types of Interest rate swaps and their uses
� Illustrates forward rate agreement and interest rate swaps
13.13.13.13. Investment ManagementInvestment ManagementInvestment ManagementInvestment Management � Explains the portfolio behavior of commercial banks by accommodation principle,
profit maximizing principle and stock adjustment principle
� Explains REPO and reverse REPOs as a tool to manage the liquidity and maximize
bank returns
� Explains different type of Government securities
� Explains the different type of investment risks and security specific risk
� Explains the concept and behavior of yield curve and measures to evaluate yield
� Explains the various measures of bond price volatility
14.14.14.14. Foreign Currency DealingForeign Currency DealingForeign Currency DealingForeign Currency Dealing � Describes Foreign Exchange Market and Euro-dollar market
� Explains the purpose and organization of foreign exchange markets
� Describes the impact of technology on trading
� Explains the relationship between exchange and money markets
� Participants in Foreign Exchange Market – Commercial Banks, Traders and
Investors, Dealers and Brokers, Investment Banks, Central Banks and Arbitrageurs
� Explains the concept of foreign exchange rates and exchange quotations
Certified Commercial Banker
www.vskills.in
� Explains the functioning of Ready Exchange Rate and Exchange Rate Points such
as spot exchange rates, forward exchange rates and calculations
� Explains the concept of cross rates and spot contracts
� Explains the concept of currency arbitrage and their type - two point currency
arbitrage and triangular arbitrage
15.15.15.15. Foreign Currency RiskForeign Currency RiskForeign Currency RiskForeign Currency Risk � Defines exchange risk
� Explains the concept of Hedging and Forward Contracts
� Explains the concept of transactional exposure, translation exposure, economic
exposure and their impact
� Describes the technique to cover exchange risk
� Explains the concept of hedging with forward contract – Hedging a long position
and short position
� Explains the concept of forward premium and discounts
� Describes the money market alternative and its comparison with forward contract
� Explains concept of Futures – Hedging with Futures, Trading of futures, Types of
Traders, Contract Characteristics, Prices and Daily Settlement and determining
gains/losses
� Explains the concept of currency swaps, uses and growth of swaps, pricing of swaps,
swap transactions
� Defines foreign currency options and its features
� Explains the concept of hedging with options and basic option strategies such as
buying a call, buying a put, selling a call and selling a put
� Explains the techniques of pricing currency options and the role of Foreign
Exchange Rate Volatility, Spot Rate, Expiration Time and Interest Rate Differential
� Explains the concept of Cross Currency Option Trading in India
� RBI Guidelines for currency option trading in India
16.16.16.16. International BankingInternational BankingInternational BankingInternational Banking � Introduction, origin and development of international banking
� Defines the International Banking Regulation
� Explains the activities of International Banks such as bankers acceptance, CP and
CD
� Illustrates loan syndication and loan agreement provisions
� Defines guidelines for Euro Loan Syndication projects in India
Certified Commercial Banker
www.vskills.in
Sample QuestionsSample QuestionsSample QuestionsSample Questions
1. 1. 1. 1. Which of thWhich of thWhich of thWhich of the following ought to be the core objective of a monetary policy? e following ought to be the core objective of a monetary policy? e following ought to be the core objective of a monetary policy? e following ought to be the core objective of a monetary policy?
A. Stability in employment
B. Price stability
C. Money supply
D. Growth in employment
2. 2. 2. 2. The RBI is assigned the role of performing supervisory functions by virtue of the The RBI is assigned the role of performing supervisory functions by virtue of the The RBI is assigned the role of performing supervisory functions by virtue of the The RBI is assigned the role of performing supervisory functions by virtue of the
powers conferred powers conferred powers conferred powers conferred by the RBI Act, 1934. Which one of the following is not included by the RBI Act, 1934. Which one of the following is not included by the RBI Act, 1934. Which one of the following is not included by the RBI Act, 1934. Which one of the following is not included
under the RBI Act, 1934?under the RBI Act, 1934?under the RBI Act, 1934?under the RBI Act, 1934?
A. Inspection of banks
B. Issues related to furnishing credit information from the commercial banks
C. Power of RBI to impose penalties
D. Definition of NBFCs
3. Wh3. Wh3. Wh3. Which of the following is not true with regard to the impact of NPAs on banks?ich of the following is not true with regard to the impact of NPAs on banks?ich of the following is not true with regard to the impact of NPAs on banks?ich of the following is not true with regard to the impact of NPAs on banks?
A. Erode current profits
B. Diminution in the value of loan assets
C. Reduction in interest income
D. Limit recycling of funds
4444. . . . A loan that is structured and supported specifiA loan that is structured and supported specifiA loan that is structured and supported specifiA loan that is structured and supported specifically by the operation and cally by the operation and cally by the operation and cally by the operation and
performance of a specific business or enterprise is called aperformance of a specific business or enterprise is called aperformance of a specific business or enterprise is called aperformance of a specific business or enterprise is called a _____________._____________._____________._____________.
A. Commercial loan
B. Personal loan
C. Educational loan
D. Overdraft
5555. . . . Which country by their policy statement, though often referring to price stabilWhich country by their policy statement, though often referring to price stabilWhich country by their policy statement, though often referring to price stabilWhich country by their policy statement, though often referring to price stability, ity, ity, ity,
attaches importance to controlling inflation?attaches importance to controlling inflation?attaches importance to controlling inflation?attaches importance to controlling inflation?
A. USA
B. Germany
C. Canada
D. Australia
Answers:Answers:Answers:Answers: 1 (B1 (B1 (B1 (B), 2 (A), 3 (), 2 (A), 3 (), 2 (A), 3 (), 2 (A), 3 (BBBB), 4 (), 4 (), 4 (), 4 (AAAA), 5 (), 5 (), 5 (), 5 (AAAA))))
Certified Commercial Banker
www.vskills.in