The CAIIB BFM paper is a combination of theoretical and numerical questions that require a solid understanding of the basic concepts. As a busy banking professional, you may face limited time for preparation and find it difficult to access the right resources.
To help you overcome these challenges, we’ve developed a practical study plan for the CAIIB BFM paper specifically designed for bankers. You’ll also find the latest syllabus, key topics for each module, and recommended study materials to help you qualify the BFM paper.
CAIIB BFM Preparation Strategy
Before getting started with the BFM preparation strategy, it’s crucial to familiarize yourself with the latest CAIIB BFM syllabus. Read the article, “CAIIB Latest Syllabus” to get familiar with CAIIB BFM syllabus.
1. Identifying Important Topics of BFM for CAIIB
The first step of your BFM preparation strategy is identifying high-weightage topics. To help you identify these, we have analyzed the PYQs of BFM.
Based on our analysis, here are the module-wise most important topics of BFM.
| CAIIB BFM Important Topics Module A | |
| Chapters | Topics |
| Exchange Rates and Forex Business | Characteristics of Forex Markets RBI/FEDAI Guidelines Foreign Exchange Arithmetic |
| Liberalised Remittance Scheme (LRS) and Other Remittance Facilities for Residents | Key Sections Under FEMA vis-à-vis Liberalised Remittance Scheme (LRS) Capital Account Transactions |
| Correspondent Banking and NRI Accounts | Electronics Modes of Transmission NRI Accounts |
| Documentary Letters of Credit (LC) | Definition of LC Parties Involved in LC and Their Role Uniform Customs and Practice for Documentary Credits |
| Facilities for Exporters and Importers | Export Data Processing and Monitoring System (EDPMS) Exchange and Trade Control Guidelines for Exporters & Importers Trade Credit |
| External Commercial Borrowings and Foreign Investments in India | Concept of External Commercial Borrowings (ECBs) Operational Guidelines |
| Risks in Foreign Trade – Role of ECGC | Types of Risks in International Trade ECGC Ltd. – Role and Products |
| Role of EXIM Bank, Reserve Bank of India, Exchange Control in India-FEMA and FEDAI and Others | EXIM Bank – Role and Functions |
| International Financial Service Centre (IFSC), GIFT City | Regulatory Framework with Respect to IFSCs Entities at GIFT City |
| Technology in International Banking | Digital Platforms in International Banking FINTECH in International Banking |
| CAIIB BFM Important Topics Module B | |
| Chapters | Topics |
| Risk and Basic Risk Management Framework | Concept of Risk Risk Management Framework |
| Risks in Banking Business | Risk Identification Banking Risks – Definitions |
| Risk Regulations in Banking Industry | Basel III Accords |
| Market Risk | Market Risk Identification Risk Measurement Risk Reporting |
| Credit Risk | Measurement and Management of Credit Risk Credit Risk Through Loan Review Mechanism (LRM) |
| Operational Risk and Integrated Risk Management | Concepts of Operational Risk and Integrated Risk Management Operational Risk Management |
| Liquidity Risk Management | Liquidity Risk Management – Need & Importance Overseas Operations of the Indian Banks’ Branches and Subsidiaries and Branches of Foreign Banks in India |
| Basel-III Framework on Liquidity Standards | Liquidity Coverage Ratio (LCR) Net Stable Funding Ratio (NSFR) |
| CAIIB BFM Important Topics Module C | |
| Chapters | Topics |
| Introduction to Treasury Management | Treasury Management – Concept |
| Treasury Products | Products of Forex Markets and Money Markets |
| International Equity and Debt Products | Regulatory Environment GDRs & IDRs |
| Funding and Regulatory Aspects | CRR & SLR Liquidity Adjustment Facility (LAF) |
| Treasury Risk Management | Value at Risk (VaR) Use of Derivatives in Risk Management |
| Derivative Products | Types of Derivative Products RBI Guidelines on Risk Exposure |
| Treasury and Asset-Liability Management | Meaning of Asset-Liability Management |
| CAIIB BFM Important Topics Module D | |
| Chapters | Topics |
| Components of Assets and Liabilities in Bank’s Balance Sheet and Their Management | Components of Assets and Liabilities in Bank’s Balance Sheet Asset Liability Management as Co-ordinated Balance Sheet Management |
| Capital Adequacy-Basel Norms | Pillars of Basel Norms |
| Asset Classification and Provisioning Norms | Asset Classification and NPAs Insolvency and Bankruptcy Code, 2016 (IBC) |
| Liquidity Management | Meaning of Liquidity Risk Management Types of Liquidity Risks |
| Interest Rate Risk Management | Sources of Interest Rate Risks Interest Rate Risk Measurement Techniques RBI Guidelines on Interest rate Risk in Banking Book |
| RAROC and Profit Planning | Risk Adjusted Return on Capital (RAROC) Risk Aggregation and Capital Allocation NaBFID |
- Important Topics of ABM
- Important Topics of BFM
- Important Topics of ABFM
- Important Topics of BRBL
2. Identifying Important Modules of BFM for CAIIB
Prioritizing CAIIB BFM modules ensures that you allocate more time to ones that carry higher weightage. Below, we have explained the sequence in which you should start your preparation.
- Start with modules A and B, as 55-65% of questions in BFM paper are asked from these 2 modules. Modules A and B provide a solid foundation, enhancing your grasp of various concepts. This understanding is invaluable for answering application-based questions effectively during the exam.
- Next go to Modules C and D. While it is preferable to cover these modules comprehensively, if time is limited, aim to cover at least the basics to gain an overview of the concepts.
- Important Topics of ABM
- Important Topics of BFM
- Important Topics of ABFM
- Important Topics of BRBL
3. Important Books for BFM Preparation
Here are the most relevant books you can use to prepare for the CAIIB BFM paper:
| Books for CAIIB BFM Preparation | |||
| Books | Author | Publisher | Buy Here |
| Bank Financial Management | IIBF | Macmillan | Buy Online |
Other Recommended Sources for CAIIB BFM Preparation
Below are the other recommended sources that can help you further enhance your preparation.
- IIBF e-Learning Portal
IIBF offers an e-learning portal where you can access digital study material, online courses, and mock tests to prepare for the CAIIB BFM paper. This is an excellent resource to enhance your understanding of the exam topics.
- Online Learning Platforms
Multiple online learning platforms offer CAIIB BFM courses. These platforms offer a wide range of study materials, interactive lessons, practice quizzes, mock tests, and guidance from experienced educators.
- RBI Website
Information on the RBI website, such as Regulations, Guidelines, and Circulars, is important for CAIIB BFM preparation. Make sure you also include these in your preparation.
- YouTube Videos
EduTap CAIIB YouTube channel provides free insightful tutorials and explanations on important BFM topics, allowing you to understand complex CAIIB BFM topics through quality video lectures.
- Other Recommended Sources
In addition to the above-mentioned sources, you should join free Telegram channels such as the EduTap Telegram Channel. It allows you to connect with peers and you’ll gain exposure to a variety of approaches and insights you might not have considered on your own.
4. Study Plan Cum Time Table for CAIIB BFM Preparation
The next step would be to make an easy-to-follow timetable to make your preparation easy and more effective.
| CAIIB BFM Preparation Time Table | ||
| Module | Time | Instructions |
| Module A International Banking | 15 hours | It has maximum weightage. At least 10 to 20 % of questions come from Exchange Rates, Forex Business, and LRS. |
| Module B Risk Management | 10 hours | It is the most challenging module.Prepare the case studies and numerical-based questions. |
| Module C Treasury Management | 10 hours | It has mostly theoretical chapters.Thorough revision is required to remember facts. |
| Module D Balance Sheet Management | 10 hours | It has both theory and numerical-based questions. The chapters are small and thus can be completed easily from the IIBF book. |
| Total | 35 hours | Prepare the case studies, examples, and numerical-based questions from Modules A, B, and D in this Module thoroughly.Do not ignore the Annexures of Module A. |
5. Tips for CAIIB BFM Preparation
The last step would be to keep the following tips in mind when preparing for the CAIIB BFM exam:
- Structure your studies around your work schedule. Consider utilizing weekends for longer study sessions to optimize your time.
- Take short breaks (5-10 minutes) between sessions. These mental refreshers boost focus and information retention.
- Practice mock tests and PYQs to identify your strengths and weaknesses.
- To make your preparation easier, you can sign up for crash courses and test series.
Important Note:
- If you’re looking for a comprehensive solution that increases your chances of clearing the CAIIB BFM exam, you can opt for the EduTap CAIIB BFM Master Course.
- It comes with recorded and live sessions, concepts, notes, solved PYQs, and multiple mock tests. In addition, you can connect with our mentors if you need answers to your queries.
- Important Topics of ABM
- Important Topics of BFM
- Important Topics of ABFM
- Important Topics of BRBL
Conclusion
Start your CAIIB BFM preparation by focusing on the most important topics, chapters, and modules. Make sure you customize and follow the timetable. Regularly practice mock tests and analyze PYQs to refine your strengths and improve your weaknesses.
