BFM MODULE – A: International Banking
BFM i.e Bank Finance management Module A – International banking, CAIIB study material 2023, CAIIB mock tests, CAIIB exam 2023.
One can take the Certified Associate of Indian Institute of Banker (CAIIB) exam, another flagship course of the Indian Institute of Banking and Finance (IIBF), after passing the JAIIB exam. The goal of the CAIIB exam 2023 is to provide advanced information necessary for better decision-making in areas such as international banking, economic analysis, balance sheet management, risk management, and Treasury management.
SUBJECTS for CAIIB Exam 2023 are
Mandatory–
- ABM
- BFM
Elective– any 1 paper can be chosen from the given six options
- Information technology
- Human resource management
- Retail banking
- Rural banking
- Central banking
- Risk management
We have CAIIB study material 2023 compiled according to the latest CAIIB syllabus Nov 2023. This CAIIB study material will be discussed further in this article.
Read Also: CAIIB Exam – Bank Financial Management [BFM] Case Study
ELIGIBILITY FOR CAIIB 2023
Candidates must have passed the JAIIB or PART-1 of the Associate Examination, and they must not have any unpaid membership dues.
BFM MODULE – A: INTERNATIONAL BANKING
We know that an international bank is a financial organisation that conducts business outside of its place of origin and offers financial services to clients worldwide. An international bank that must abide by the laws of both its home country and the country it is operating in is one that has foreign bank branches. In this module we discuss various aspects of international banking which include the following:
- factors influencing currency exchange rates, Spot/forward rates, premium and discount, cross rates, as well as direct and indirect quotes.
- Swaps, options, and forward exchange rate contracts are the fundamentals of forex derivatives. NRI accounts, correspondent banking.
- UCPDC 600 Documentary Letters of Credit, various services for exporters and importers Foreign trade risks, the ECGC’s function, different types of insurance and guarantee coverage, or ECGC.
- Exim Bank’s role, the RBI’s role in exchange control, Indian regulations, FED’s mandate and regulations, FEMA’s mandate and regulations.
Some explanation for the contents of the module of international banking is given below:
Foreign Exchange: Converting currencies from the invoice currency to the exporters’ home currency is referred to as foreign exchange. Foreign Exchange is defined as “All deposits, credits, and balances payable in foreign currency as well as any draughts, traveler’s checks, LCs, and bills of exchange expressed or drawn in Indian Currency and payable in any foreign currency” by the Foreign Exchange Management Act (FEMA), which was passed in 1999. A contract for the exchange of money from one currency for money from another at a set rate or on a predetermined basis is known as a foreign exchange transaction.
Exchange rate: The cost, ratio, or value at which one country’s money is exchanged for another country’s money.
Forex Markets: The forex markets are extremely active since, on average, the major currencies’ exchange prices change every four seconds, thereby registering 21,600 changes per day (15 times X 60 seconds X 24 hours)
Operation: These markets typically are open from “Monday to Friday” throughout the world, with the exception of the Middle East and some Islamic nations, which are open on Saturday and Sunday (with limits) to serve local requirements but are closed on Friday. The majority of Forex markets operate on an OTC (Over Counter) basis.
TOM: In this forex delivery, the money is settled on the following business day. The settlement date will be determined the following working day in both nations if either of the two countries’ respective holidays coincide with the case’s settlement date.
Spot: The second working day after or after the contract or deal date is when money is settled. The settlement date will be the following working day in both nations if either of the two countries’ settlement days falls on a holiday.
Forward: In a forward contract, money is delivered on any day that follows the SPOT date. Conversely, when the currencies are delivered at a date later than the spot date, the forward rate is used.
Fixed vs. Floating Exchange Rates: The official exchange rate set by the monetary authorities for one or more currencies is known as the fixed exchange rate. While under a floating exchange rate, the value of the currency is determined by supply and demand variables for a particular currency, it is typically tied to one or more currencies. While the world’s economies have used a floating exchange rate system since 1973, India only started using one in 1993.
Bid and Offered Rates: Bid and Offered rates are the terms used to describe the buying and selling rates.
Now that we are done discussing Module A: international banking, we would like to tell you about our excellent study material that we have prepared for you which will help you clear the CAIIB exam nov 2023 with flying colors.
Read Also: FREE BFM MOCK TEST 2023 | CAIIB BFM TEST SERIES 2023
CAIIB STUDY MATERIAL 2023
Our experts have come up with excellent CAIIB study material for 2023. This CAIIB material is made according to the latest trends of examination. Our study material is very short and concise which will help you revise all the concepts in a very short time. You won’t have to spend long hours on various books for the best material because we provide concise content for you.
We also offer short and easy notes in the form of ePDFs which can be accessed on our apps. We have three apps in total, for android users- ‘IIBF LEARNING CENTER’ and ‘LEARNING SESSIONS PRO’; and for iOS users we have ‘MY INSTITUTE APP’. You can go through the ePDFs via these apps anytime and anywhere as per your convenience.
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