DETAILED SYLLABUS AND SUGGESTED READING MATERIALS FOR DIPLOMAED ASSOCIATE OF THE INSTITUTE OF BANGKERS, BANGLADESH (DAIBB)

PAPER 1 : MANAGEMENT OF FINANCIAL INSTITUTIONS Full Marks : 100 MODULE A: INTRODUCTION TO BUSINESS OF FINANCIAL INSTITUTIONS An Overview of Banks and Non-Banks and Their Services, Economic Analysis of Financial Institutions, Impact of Govt. Policy and Regulations, Financial Statements of Financial Institutions. Module B: Asset-Liability Management (ALM) Techniques Asset and Liability Management Strategy, Fund Management Strategy, Interest Rate RisksGap and Duration Management, Futures, Options and Other ALM Techniques, Investment Functions and Instruments, Demand for Supply of Liquidity, Liquidity Problems-Strategies for Liquidity Management. Module C: Managing Sources of Funds Deposit and Non-Deposit Funds, Off-Balance Sheet Sources Securitization, Loan Sale etc. Management of Capital BASEL-II Framework (BB Guideline). Module D: Profitability and Productivity and Consumers Measuring and Evaluating Financial Institutions Performance, CAMELS Rating. Module E: Risk Management of Financial Institutions Risk Identification, Measurement, Mitigation Technique, Core Risk Management Guidelines of Bangladesh Bank, Market Risk, Operational Risk & Reputation Risk. References 1 Core Risk Management Guidelines of Bangladesh Bank. 2 Mishkin, Frederic S. The Economics of Money, Banking and Financial Markets. Harper- Collins, New York. 3 Rose, Peter S. Commercial Bank Management. IRWIN, International Edition, New York.

PAPER 2 : LENDING OPERATIONS AND RISK MANAGEMENT Full Marks : 100 Module A : Introduction of Loan Portfolio Management in Financial Institution Credit Planning, Policy and Vision, Complete Transaction. Module B : Principles of Good Lending and Credit Process Different Types of Borrowers and Loan Accounts, Selection of a Borrower, Loan Interviewing and Credit Investigation, Loan Sanctioning and Disbursement Process. Module C : Commercial Lending Environment Characteristics of a Good Credit Officer, Features of Good Loan Policies. Module D : Basic Financial Analysis Financial Statement Analysis, Financial Spread Sheet: Communize and Comparative Financial Statements, Cash Flow, Fund Flow, Ratio Analysis, Credit Scoring System. Module E : Term Lending by Banks Appraisal of Term Lending Cases, Technical Aspect, Marketing Aspect, Managerial Aspect, Financial Aspect and Economic Aspect, Cost of The Project and Means of Financing, Capital Budgeting Techniques, Internal Rate of Return (IRR), Economic Rate of Return (ERR), CostVolume-Profit Relationships. Module F : Working Capital Lending Requirements, Estimation and Techniques. Module G : Financial Projection Projected Financial Statements, Cash Budget. Module H : Lending Risk Management Concept and Technique, Credit Risk Grading (CRG) Techniques, Bangladesh Bank Guidelines and Regulations, Portfolio Risk Assessment and Management Technique, Asset Securitiesation, Credit Derivatives, Loan Syndication, Loan Sales etc. Module I : Loan Structuring and Pricing Module J : Modes of Charging Securities, Loan Documentation Module- H : Follow-up, Repayment and Reporting, Problem Loans References 1 Bedi, H.L. and V.K. Hardikar. Practical Banking Advances. Institute of Banking Studies, India. 2 IBB guidelines and Circulars. 3 Morsman, Jr. Edgar M. Commercial Loan Portfolio Management. Robert Morris Associates, U.S.A 4 Ruth, George E. Commercial Lending. American Bankers Association, U.S.A. 5 Signoriello, Vincent J. Commercial Loan Practices and Operations. Bankers Publishing Company, U.S.A. 6 Simha, S.L.N. Credit Management. IFMR, Madras.

PAPER 3 : INTERNATIONAL TRADE AND FOREIGN EXCHANGE Full Marks : 100 Module A: An Overview of Foreign Trade Importance and Trends of International Trade Composition and Trends of Bangladesh Foreign Trade The Role of WTO for Removal of Tariff and Non-Tariff Barriers Inco-Terms Terms Used in the International Trade Payments and Clearing Unions EU, NAFTA, LAFTA, ACU Balance of Trade and Balance of Payments Salient Features of Export and Import Policies of Bangladesh Incentives Including GSP for Exports from Bangladesh Module B: General Knowledge Regarding International Organizations Like IMF, World Bank, IFC, IDA, ADB, Islamic Development Bank (IDB), etc. Module C: Role of Banks in Foreign Trade Methods of Settlement of Payments for International Trade Cross Border Fund Transfer Systems Including SWIFT and Other Forms of Electronic Fund Transfers Documents Used in International Trade and Their Scrutiny by the Banks Main Features of Uniform Customs and Practice for Documentary Credits (UCPDC) (ICC Publication No.600) Main Features Uniform Rules for Collection (ICC Publication No. URC 522) Arrangement for Settlement of International Payments: Correspondence Relationship, Nostro And Vostro Accounts Module C: Protection Against Risk in Foreign Trade Precautions Against Common Frauds and Forgeries Protection Against Political and Economic Risks and Export Credit Guarantee Schemes in Force in Bangladesh Module D: Exchange Control Regulations Salient Features of Foreign Exchange Regulation Act, 1947 Exchange Control Regulations Regarding Forex Operation by Authorised Foreign Exchange Dealers Foreign Investment in Bangladesh Including Export Processing Zones Special Provisions in the Anti-Money Laundering Act, 2008 Affecting International Payments Module E: Exchange Rates Changing Pattern of Exchange Rates Since World War I Factors Affecting Exchange Rates Various Types of Exchange Rates Management of Exchange Rates in Bangladesh Module F: Foreign Exchange Markets In Bangladesh Overseas and Euro-Currency Market Module G: Dealing In Foreign Exchange Foreign Exchange Positions Trading in Foreign Exchange Offshore Banking Operations Lending and Borrowing in Foreign Currencies and Derivatives in Foreign Currencies Module H: Financing of Foreign Trade in Bangladesh Various Forms of Financing Exports From and Imports into Bangladesh Arrangements and Forms of Export From and Imports into Bangladesh

 Role of Bangladesh Bank Regarding Export and Import Finance Module I: Exchange Arithmetic Selection of Buying and Selling Rates for Spot and Forward Transactions Calculation for Buying and Selling Rates Spot, Forward and SWAP for Export and Import Bills, Investment and Other Miscellaneous Payments. References 1 Ali, Syed Ashraf: Foreign Exchange and Financing and Risk Management, 2nd Edition, Mowla Brothers (Dhaka, Bangladesh). 2 Andly, K. K. : Foreign Exchange. 3 Awasthi, G. D. Trade Payments (Academy of Business Studies, Delhi, India). 4 Keskamat. V. V. : Foreign Exchange An Introduction. 5 Lall, G. S. Finance of Foreign Trade and Foreign Exchange (HPJ Kappor, New Delhi.). 6 Verghese, S. K. : Foreign Exchange and Financing of Foreign Trade. 7 Watson, A. J. W. : Finance of International Trade (Institute of Bankers, London). 8 Whiting, D. P. : Finance of International Trade (McDonald & Evans). 9 Wheble B. S. : Uniform Rules for Collection (Chartered Institute of Bankers, London).

PAPER 4 : INFORMATION TECHNOLOGY IN FINANCIAL SERVICES Full Marks : 100 Module A: Introduction to IT and Computer Systems Concept and Importance of IT, Role of IT in Financial and Business World. MIS. Electronic Banking and Electronic Commerce. Computer Hardware Anatomy of Computer, Types of Computers, Central Processing Unit (CPU), Main Memory, Computer Systems, Peripheral Controllers, Peripherals (Terminal, Printer, Floppy Drive, Disk Drive, Compact Disk, Tape Drive, Cartridge, Tape Drive Graph Plotter, Mark Sense Readers, Etc.), Current Trends. Computer Software Need for Software, What is Software ? Types of Software, Systems Software, Operating Systems, Language Translators (Compilers, Interpreters), Programming Language Data Base Management Systems (DBMS), 4th Generation Language Tools, Application Software, Application Areas, Packaged and Tailored Software, Software Development, Current Trends. Module B: Security Considerations Accidental Damage, Power Failures, Malicious Damage, Operational Problems, Data, Encryption and Decryption, Standards, Audit Trails. Accountability, Liability & Control ; System Vulnerability & Abuse ; Creating Control Environment ; Internet Security ; Development A Control Structure ; Ensuring System Quality. Module C: Different Approaches to Bank Mechanization Stand Alone Computer System, Local Area Networks (LAN), Local Processing With Batch Updates, On-Line Updates With Shadow Posting, Remote Computing Facility With Batched Input On Line Systems With Mini Computer Networking and With Mainframe Computer, Duplication of Databases at Different Levels. Module D: Electronic Payment Systems & Funds Transfer Systems Teller Machines at Bank Counters, Cash Dispensers, Stand Alone Automated Teller Machines (ATMs), ATM with On-Line Inquiry and Update Facilities, Home Banking & E-Commerce (Corporate and Personal). Plain Messages (Telex or Data Communication), Structured Messages (SWIFT, Etc.), Direct Fund Settlement Systems (CHIPS, Etc.), two Level Funds Transfer Settlement (FEDWIRE, BANKWIRE Point-of Sale Systems). Module E: Document Handling Systems, Additional Banking Applications & Other Aspects Cheque Sorting and Balancing Systems (MICR, OCR, Etc.), Document Storage and Retrieval Systems (Microfilming), Document Transmission Systems (FAX). Inter-Branch Reconciliation, Foreign Exchange Dealing, Investment Management Systems, Cash Management Systems, Statistical Analysis. Personal Identification Numbers and Their Use in Conjunction with Magnetic Cards of Both Credit and Debit Types, SMART Cards, Signature Storage and Display by Electronic Means, Cheque Truncation, Microfische, Note and Coin Counting Devices. Module F: Risk Management and Legal Framework in IT National ICT Policy 2002, ICT Act-2006, Bangladesh Bank Guidelines, Cyber Law References 1 Bajwa K.S. Bank Mechanisation (Skylark Publication). 2 Different journals and periodicals on computer. 3 Hunt R. and Shelley J. Computer and Common Sense (Prentice-Hall of India Private Limited, Latest Edition). 4 Lipis, Marschall, Linkers Electronics Banking (John Wiley and Sons). 5 Rangarajan Committee Report Mechanisation and Automation in the Banking Industry, Reserve Bank of India (1984). 6 Rajgopalan R. Understanding Computer (Tata McGraw Hill Publishing Co. Ltd.) 7 Study of Use of Modern Tools in Banking (Indian Banks Association, 1993).

PAPER 5 : MANAGEMENT ACCOUNTING Full Marks : 100 Module A: Definition and Scope of Management Accounting The Place of Management Accounting/Short comings of The Traditional Methods of Credit Analysis Its Definition and Scope, Distinction Between Financial Accounting and Management Accounting Role of Management Accountant Analysis and Interpretation of Finance Statements. Planning Process Setting of Objectives Module B: Costing and Pricing Methods of Costing Classification of Costs Implication of Costing for Bankers Objectives of Pricing Common Misconceptions in Pricing Cost, Volume, Profit Relationship Break-Even Analysis Limitations of Break-Even Analysis Planning for Profit. Module C: Budgeting and Expenditure Importance of Budgeting Objectives of Budgeting Preparation of Budgets Importance of Budgets to Bankers, Standard Costing Control Through Budgets. Method of Appraisal; Shortcomings of Appraisal Methods Capital Budgeting Its Importance to Lending Banker. Module D: Planning for Liquidity Cash Flow Forecast Objectives of Cash Flow Preparing A Cash Flow Forecast/Using The Cash Flow/Cash Flow Forecast and Lending Banker. Statement of Sources and Application of Funds Module E: Working Capital Management Factors Affecting Working Capital Requirements Short Term Financial Forecasts Assessment of Working Capital Production and Operating Cycle Inventory Management Cash and Receivables Managements Methods of Financing Working Capital Different Forms of Bank Credit Management Reports Types of Information and its Relevance to Banks Module F: Leasing and Hire Purchase Financing Against Lease Forms of Lease Financing Economics of Leasing-Financing against Hire Purchase Agreements Relative Merits of Leasing Finance and Hire Purchase Finance from Customer and Lending Bank Point of View s s References 1 Bhattacharya, S. K. and John Deanden Accounting for Management : Texts & Cases Hingorani & Chawla. Management Accounting (Indian Institute of Bankers, Published by Himalaya Publishing House, Mumbai, India). 2 Egginton, D. A. Accounting for the Banker, (Longman). 3 Fisher, J. Financial Analysis and Management Accounting for the Banker (The Institute of Bankers in Scotland). 4 Kuchhal, S. C. Financial Management An Analytical & Conceptual Approach. 5 Khan, Md. Mainuddin Advanced Accounting (Ideal Library Dhaka). 6 Pitcher, M. A. Management Accounting for the Lending Bankers.

PAPER 6(c) : SME AND CONSUMER BANKING Full Marks : 100 Module A: Role of SME Role of SMEs in The Economic Development of Bangladesh, Policy Environment and Initiatives of SMEs, Experiences of SME Foundation.

Module B: Sources and Modes of SME Finance Role of FIs, Bangladesh Bank Guidelines, Equity Entrepreneurship Fund (EEF), NGOs, Venture Capitalists and Informal Sector.

Module C: Formulation of Business Plan and Project Appraisal for SMEs Essentials of Business Plans Sector Specific Requirements Project Appraisal Marketing Aspect, Technical Aspect, Financial Aspect, Cash Flow Analysis, Financial Projections, Cost of The Project and Means of Financing, Break-Even Point, Capital Budgeting Techniques, NPV, BCR and IRR, Assessment of Working Capital, Assessment of Risks, Identification and Selection of Entrepreneurs.

Module D: Operational Procedures in SME Financing Asset Based Financing, Factoring, Leasing, Tripartite Agreements, Documentation and Creation of Charges on Securities, Repayment Schedule of Loans, Monitoring and Counseling.

Module E: Consumer Banking Overall Objectives, Critical Elements of Consumer Banking, Consumer Banking Products, Operational Aspects, Legal Framework and Bangladesh Bank Guidelines.

Module F: Recovery of SME and Consumer Credit Identification of Non-Performing Loans, Procedures Relating to Recovery- Legal and Non-Legal aspects.

References 1 2 Bangladesh Bank reports Reports of SME Foundations