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ISQ Syllabus Guide
Lending: Products,Operations andRisk Management
Stage 2
The Institute of Bankers Pakistan
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Lending: Products, Operations and Risk Management | Stage 2 33
Table of Contents
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Preface
1 Aims/ObjectivesoftheISQ
2 ISQSchemeofStudy
3 RationaleoftheISQProgram
4 JAIBPProgramFormat
5 Aims/ObjectivesoftheLending:Products,OperationsandRisk
ManagementCourse
6 Syllabus
7 SpecicLearningObjectives(SLOs)
8 SchemeofAssessment
9 RecommendedTextsandReferenceMaterials
10 DenitionofCognitiveLevelsandCommandWordsoftheSLOs
Annexure1TransitionProcessforMid-streamCandidates
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ISQ Syllabus Guide4
For queries and feedback
TheInstituteofBankersPakistan,M.T.KhanRoad,Karachi74200,Pakistan
UAN
111-IBP-ISQ(111427477)
Phone
+92(21)35680783,35689718,35694244,35694247
Fax
+92(21)35683805,35222416
Email
ibp@ibp.org.pk
Website
www.ibp.org.pk
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Lending: Products, Operations and Risk Management | Stage 2 5
Preface
IBPSuperiorQualication(ISQ)providesauniqueopportunitytothosewhowishtopursue
aprofessionalqualicationinbanking.
TheISQhasbeendesignedsuchthatitnotonlyencourageslearninginatraditionalmannerbut
alsoencouragestheunderstandingandapplicationofconceptsandbankingpractices.Developed
usingcontemporarycurriculumdesignmethodology,webelievethattheISQwillenhancetheskills
andknowledgeofcurrentandpotentialbankers,providingtheindustrywithahealthypool
ofqualiedprofessionals.
Sinceourbankingprofessionalsaregeographicallymobile,investmentinaqualicationwhich
iswidelyrecognizedintheregionandgloballyistheneedofthehour.TheInstituteisproudto
introducefromJuly2011thenewJuniorAssociateshipleveloftheISQqualication(JAIBP)whichisaccreditedbyUKsCharteredBankerInstituteandcandidatescompletingtheJAIBPlevelwiththe
newcurriculumwillbeeligibletoattaintheAssociateCharteredBankertitleawardedbyChartered
BankerInstitute.
TheInstituteofBankersPakistancontinuestoendeavortofulllitsmandateofprovidingquality
professionaltrainingandtechnicalexpertiseforthebankingindustryandthenewISQisastep
inthatdirection.
ThisbookcontainsdetailsabouttheLending:Products,OperationsandRiskManagementcourse
oftheJAIBPprogram.Weencourageyoutostudythisindetailandwishyouthebestofluckinyour
knowledgeendeavors.
Shahnoor Meghani
HeadofStrategicInitiatives
TheInstituteofBankersPakistan
July2011
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1 Aims/ Objectives of the ISQ
IBPSuperiorQualication(ISQ)istheonlyrecognizedprofessionalqualicationforbankersin
Pakistan,whichisrecognizedbyboth,theStateBankofPakistanaswellasthebankingandnancialservicesindustry.
ISQisaprofessionalqualicationprogramwhichisaimedatempoweringthepresentandaspiring
prospectivemanagement-levelbankerswithpracticalknowledgeaboutthebankingindustryandits
functions.TheprimaryobjectiveoftheISQprogramistoequipentrantsofthebankingindustryand
existingmid-levelbankerswithnecessaryskillsandknowledgetobecomewell-roundedbanking
professionals.
TheJuniorAssociateshipofIBP(JAIBP)portionoftheISQprogramhasundergoneacomplete
updation,intermsofstructureandcurriculum,tomakeitrelevanttothecurrentbankingindustryneedsaswellasinternationalmarketpractices.
ThenewJAIBPprogramiseffectivefromtheWinter2011examination.Candidateswhoenroll
fortheISQprograminJuly2011willstarttheircourseofstudywiththenewsyllabusofferings.
CandidateswhoenrollfortheISQprograminJuly2011willstarttheircourseofstudywiththenew
syllabusofferings.CandidateswhohadenrolledandappearedfortheJAIBPexampriortoJuly2011
(mid-streamcandidates)willbetransitionedtothenewprogram.Mid-streamJAIBPcandidates
needtothoroughlyreviewtheTransitionProcessprovidedinAnnexureI.Kindlyreadtheprocess
andfamiliarizeyourselfwiththestepsandprocedurestobeundertakentoequateyourselftothe
newandupdatedISQprogram.
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ISQ Syllabus Guide8
TheISQprogramisa3-LevelSelf-StudyProgram:
Junior Associateship of IBP (JAIBP) Associateship of IBP (AIBP) Fellowship of IBP (FIBP)
Stage1FourSubjects
Stage2FourSubjects
Stage3ThreeSubjects
PlusoneSpecializationSubject
JAIBP
3yearsofTotalBankingExperience
60HoursCPD
FourSubjects
PlusoneSpecializationSubject
AIBP
5yearsPostAIBPBankingExperience
TwoSubjects
Specialization
DissertationplusVivaandtwopublishedarticlesinareputedjournal
FortheWinter2011examinationsession,theInstitutehasrevampedonlytheJunior
AssociateshipofIBP(JAIBP).
TheJAIBPisathreestage,selfstudyprogram,designedspecicallytocreatewell-rounded
bankingprofessionals.TheupdatedJAIBPstructureisasfollows:
Stage 1
1 BusinessCommunicationforFinancialServices
2 IntroductiontoFinancialSystemsandBankingRegulations
3 InformationTechnologyinFinancialServices
4 BranchBanking
Stage 2
5 AccountingforFinancialServices
6 Lending:Products,OperationsandRiskManagement
7 HumanResourceManagementandOrganizationalBehavior
8 Economics
Stage 3
9 MarketingofFinancialServices
10 FinanceofInternationalTrade&relatedTreasuryOperations
11 ManagementAccountingforFinancialServices
AtStage3,candidateswillhavetosuccessfullycompleteoneSpecializationSubjectfromthe
following:
Leasing and Micro Finance
SMEs and Agriculture Finance
Islamic Banking and Finance
Retail and Consumer Banking Operations
StudentsenrollingintheJAIBPprogramhaveamaximumperiodof5yearstocompletetheJAIBP.
The5yearperiodcommencesfromthedateofappearanceintherstexam.Furtherdetailsare
availableintheISQHandbook.
2 ISQ Scheme of Study
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Lending: Products, Operations and Risk Management | Stage 2 9
The Chartered Banker Institute Accreditation of ISQs JAIBP
TheUKsCharteredBankerInstitutehasaccreditedtheJuniorAssociateshipofIBP(JAIBP)portionof
theIBPSuperiorQualication(ISQ)program.
TheUKsCharteredBankerInstituteistheoldestbankinginstituteintheworld.Itdevelopsand
promotesprofessionalstandardsforbankersandprovidesworldclassprofessionalqualicationsfor
thenancialservicesindustryintheUKandoverseas.
TheCharteredBankerInstituteisalsotheonlyorganizationworldwidethatcanconferChartered
BankerstatusonitsMembersandFellows.MembershipoftheCharteredBankerInstitutemeans
thatonemeetstheprofessionalstandardsofexcellence,whicharerecognizedandrespectedall
overtheworld.BeingamemberoftheCharteredBankerInstituteisavaluableassetinones
professionalcareerasitprovidestheworldwiderecognitionthattheydeserveandalsohelpskeep
themaheadoftheirpeersinthebankingandnancialservicesindustry.
Inaddition,membershipoftheCharteredBankerInstituteformsasolidbaseforasuccessfulcareer
inbankingandnancialservices.MemberswillbenetfromtheCharteredBankerInstitutesstatus,
condenceandprofessionalstandingandinturnbemoreemployableandhavebettercareer
prospectsinthefuture.
What does the Chartered Banker Institutes accreditation of the JAIBP mean for me?
ThisaccreditationoftheJAIBPmeansthatallindividualswhosuccessfullycompletetheJAIBPhave
theopportunitytoreceiveaportablecerticationthatisinternationallyrecognizedthroughthe
accreditationbyarenownedinstitution.
1 Candidates who enroll for the JAIBP program in July 2011
AllJAIBPqualiedindividualswhoenrolledintheISQprograminJuly2011,whichisaccredited
byCharteredBankerInstitute,uponcompletionwillreceiveajointcerticationbyIBPandthe
CharteredBankerInstitute,andwillalsobeeligibletousethetitleoftheAssociateChartered
Banker(throughon-goingpaymentofthesubscribedfee).
2 Mid-stream ISQ Candidates
Mid-streamJAIBPcandidateswillhavetopassacomprehensiveexaminationtofulllthe
requirementsoftheCharteredBankerInstitutesaccreditationoftheJAIBPprogram,inadditionto
paymentofsubscriptionfee.
ThescheduleandfeeforthecomprehensiveexaminationwillbeannouncedontheIBPwebsite
(www.ibp.org.pk).
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ISQ Syllabus Guide10
Eligibility Criteria for the JAIBP Program
TheentrycriterionfortheJAIBPprogramhasbeenrevisedforcandidatesenrollingfromJuly2011
onwards.JAIBPisopenforthefollowing:
1 Graduatesinanydisciplinewithaminimum2ndDivision
AND
2 Studentswhoarepursuingtheirdegreeina4-yearundergraduateprogram(post
Intermediate/Alevelsorequivalent)areeligibletoenrollfortheISQprogramduringtheir3rd
or4thyearofstudy.Studentswhoarepursuingtheirdegreeina2-yearundergraduate
program(postIntermediate/Alevelsorequivalent)areeligibletoenrollfortheISQprogram
duringtheirnalyearofstudy.
DocumentationrequiredforstudentsregisteringintheISQprogramwillbeattestedmarksheet
forIntermediateorAlevelswithapassgradeof45%andaletterfromtheiracademicinstitution
conrmingtheirenrollmentinthespeciedundergraduateprogram.Theawardofthecompleted
JAIBPqualicationwouldbesubjecttothecandidatehavingagraduatedegree.
Note: More details about the program can be found in the ISQ Handbook or on the IBP website:
www.ibp.org.pk
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Thegeneralrationalebehindtheprogramrevampissimple.Withtherapidgrowthand
developmentofthenancialsectoranditschangingdynamics,theneedsofthebankingindustryintermsoftheknowledgerequiredfromyoungentrantshaveincreased.TheInstitute,inorderto
providethebankingindustrywiththemostrelevantandup-to-dateprogramandtohelpequip
thebankingindustryrecruitswithessentialindustryexpertise;hasupdateditsprogramtoalign
itwiththeneedsoftheindustryinPakistanaswellasglobalindustrytrends.IBPhasdeveloped
theISQprograminamannerthatiscontemporaryandinlinewithinternationalstandardsbothin
termsofthecourseofstudyi.e.creatingacomprehensive,standardizedprogramanddesignwhich
incorporatesinternationalrenownedmethodologiesforcurriculumdevelopmentandassessment
andtesting.Furthermore,theISQprogramprovidesworkingprofessionalswiththeexibilityto
pursuetheircareerwhileenhancingtheirprofessionalqualications.Moreover,theISQprogramisalsobenecialforfull-timestudentsasthisqualicationwillassisttheminpavingthewaytoenter
intothebankingandnancialservicesindustry.
3 Rationale of the ISQ Program
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ThesyllabusforeachofthecompulsoryJAIBPcoursehasbeenupdatedtoreectthecurrent
bankingindustryrequirements.
IBPisnowprovidingallcandidatesoftheJAIBPprogramwithSpecicLearningObjectives(SLOs).
TheSLOsarebasicallyalearningresourceoratool,aidingcandidatesinstudyingthemosttestable
coursematerial.TheSLOplanprovidedinsection7isindicativeandismeantasastudyguide.
Cognitivelevelsmentionedarealsoindicativeandstudentsareencouragedtostudythesubject
deeplyandbeyondthestatedcognitiveleveltoenhancetheirlearning.Thisbookisspecically
aSyllabusGuidefortheLending: Products, Operations and Risk Managementcourse.More
informationabouttheISQprogramcanbefoundintheISQ Handbookoronourwebsite.
TheSLOsinSection6ofthisbookcorrespondwiththesyllabusofaspeciccourse.Eachlearning
objectiveorSLObeginswithacommandword,suchas,list,dene,describe,explainetc.Each
commandwordisassociatedwithacognitivelevel.Thecommandwordshelpthecandidates
inidentifyingthelevelofdetailexpectedfromthemintheircourseofstudy.Theexamination
questionsarealsoframedusingthesametypeofcommandwords.PleaseseeSection10toobtain
thedenitionsofthecommandwords.
The SLOs are classied under three cognitive levels:
1 Knowledge(K)
2 Understanding(U)3 Applicationofknowledgeandskills(A)
DenitionsareprovidedinSection10
Candidates must thoroughly review the following sections while preparing
for their examination:
Section6:Syllabus
Section7:SpecicLearningObjectives(SLOs)
Section8:SchemeofAssessment
Section9:RecommendedTextsandReferenceMaterials Section10:DenitionofCognitiveLevelsandCommandWordsoftheSLOs
This book contains information specic to the Lending: Products, Operations and Risk
Management course.
Disclaimer:
The Institute reserves the right to revise its policies, procedures and program structure at any point.
Please refer to the Institutes website for latest information.
4 JAIBP Program Format
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Thecourseaimstoprovideinsightsintothenatureoflendingproducts,therelatedoperations
andtheroleofriskmanagementinmaintainingahealthylendingportfolio.Informationabouttheprevailingmarkuprates,theirstructuresandtheimpacttheyhaveonincomerecognitionismade
partofthesyllabus.Thiscoursealsointroducesthevarioustypesofnancingfacilitiesavailable
inthelocalaswellastheglobalmarket.Furthermore,thecoursegivesaninsightabouttherisk
managementconceptsalongwithbasicknowledgeoffraudandhowtoassesslendingriskandrisk
appetite.
Specic Objectives
Afterthesuccessfulcompletionofthiscourse,participantswillhave:
Knowledge and understanding of: Typesandstructuresofnancingfacilitiesavailableinthemarket
Variouskindsofownershipstructures
Importanceofevaluatingcustomersbusinessnature,size,andinherentrisks
Theconceptsofre-schedulingandre-structuringofborroweraccounts
Account,assetandcollateralmonitoring,systemsandpostdisbursalprocesses
Typesandsourcesofrisksinnancingoperations
Identication,typesandlegalhandlingoffraudulentcases
Clear understanding and functional knowledge of:
Themarkuprates,KIBOR,SBPdiscountrateandPIBrates
Thedifferentapproachestothemarkupratestructuringprocess
Methodsandfrequencyofmarkuprecoveryandimpactonincomerecognition
Conceptofbankingspreadanddebttoliquidityratio
FinancialRiskAssessment,riskappetiteandriskportfolioofthebank
AssessingcustomerIntegrityandcapabilityviamarketsources
Transactionstobenanced,identicationandcapturingofrepaymentsources
Clear understanding and functional knowledge of:
Financialcontrolsandsupervisoryregulations
Regulationsprescribinginternalcontrolmeasuresforbanks
LoanLossProvisioning
Examiningcustomersrisktakingcapacitysalientaspectsofnancialstatementslike
authenticityandcredibilityofassets,demarcationoffreeandalreadypledgedassets,realizable
valueofreportedfreeassetsandnatureofcurrentandcontingentliabilities.
5 Aims/ Objectives of the Lending: Products,Operations and Risk Management Course
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1 Lending- A core banking practice/function
a) Role of bankers as lendersb) Building a disciplined lending culture
c) Cash ow lending as opposed to security-base lending
2 Lending Products
a) Categories of borrowers
i)Corporate Borrowers
Type of products
1) Short-term Lending- Working Capital Financing
Running Finance- Advanced Merchandise/Demand Finance
Receivable Financing- Factoring, Invoice Discounting Inventory Financing
Trade Finance (L/c)
2) Long-term Lending
Term Loan
Trade Finance (L/c)
Purpose of borrowing
1) Working capital- nancing of business cycle-receivables, inventory
2) New ventures and business expansion
Classication
1) Secured, unsecured/clean, asset-backed
2) Funded and non-funded facilities/direct and contingent
3) Size-Corporate, Commercial, SME
ii)Individuals/Consumers
Type of products
1) Overdrafts, loans, revolving credit
2) Credit Cards
3) Leasing
4) Mortgage
Purpose of borrowing 1) Personal use- running nance
2) Property
3) Automobile
iii)Classication
Secured, unsecured/clean, asset-backed
b) Regulations and Practices
i)Relevant SBP laws for lending including: lending limits, exposure calculation, disclosure and reporting
requirements
ii)Prevalent market practices and bank policies with respect to lending productsc) Pricing
i)Calculation of pool rates and internal cost of funds
6 Syllabus
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ii)Structuring oating mark-up rates and their impact during change of interest rates
iii)The basis for oating mark-up rates using: Karachi Inter-bank Offer Rates (KIBOR),
SBP Discount Rate and
PIB Rates matching the facility tenor
iv)Banks spread over cost of deposits relating to customer and transaction risks
v)Methods and frequency of mark-up recovery and their impact on income recognition
3 Lending Risk Assessment and Management
a) Overview
i)Fundamental concept of Risk Management
ii)Risk and the economic environment iii)Corporate governance and organizational structure
iv)External reporting
b) Sources of lending risk
i)Obligor Risk
ii)Obligor Business and industry risk cycles, price trends of raw materials, price trends of
competition products
iii)Transaction failure risk
iv)Other risks political, economical, market, liquidity, foreign exchange, interest rate risk
c) Risk Assessment
i)Financial analysis
ii)Market check
iii)Market research
iv)Compliance with regulation requirement
v)Customer Integrity and capability
d) Risk Management
i)Credit Policy
ii)Delinquency portfolio trends and control measures
iii)Collection and Recovery strategies and methods
e) Types of collateral i)Stated and implied lien over customers assets
ii)Hypothecation
iii)Assignment of receivables
iv)Pledge of paper securities
v)Pledge of goods
vi)Mortgage of immovable assets
4 Documentation and Collateral
a) Different types of nancing agreements
i)Project nancing ii)Account receivable nancing
iii)Lease nancing
b) Types of collateral documentation
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i)Hypothecation agreement
ii)Lien agreement iii)Pledge agreement
iv)Standby letter of credit
c) Safe-keeping of borrower/customer documentation
i)In-house arrangements and its modus operandi
ii)Ex-house arrangements and its modus operandi
iii)Arrangements for storage of documents and the system for recording
iv)Procedures to be followed for depositing and retrieving documents
d) Banks risk under various types of collateral
e) Monitoring of charge/margin i)Appointment and role of Muccudums
ii)Obligations of the custodial services under the arrangement
iii)Monitoring Guarantees- issuers status, guarantee validity, conditions for claims
iv)Monitoring of Insurance Policies- issuers status, policy validity, conditions for claims
v)Monitoring of Immovable Assets
vi)Monitoring of stock reports and valuation
vii)Proper system and credible sources for monitoring prices of nanced assets and collateral
5 Management of Credit
a) Facility account monitoring
i)Frequency of peak/low facility utilization, swing in account balances
ii)Frequency of irregularities in facility accounts
iii)Difculties in operating within present limits
iv)Meeting facility turnover requirement and quantum of business booked
b) Facility monitoring systems
i)Signicance and use of reports on activity in facility account
ii)Due date diaries for retrieval of due amounts or settlement of facilities
6 Past Due Accounts
a) Classication
i)Basis for classication/classication triggers ii)Action steps based on classication level
b) Past-due account management
i)Activating remedial action
ii)Customer contact modes depending on severity of failure in meeting commitments
iii)Determining net exposure and status of nanced assets and collateral
iv)Reporting defaults for in-house remedial action i.e. fulllment of any inter-bank commitments that cannot be
met any longer from borrowers repayment
c) Rescheduling and restructuring of borrower accounts
d) Loan loss provisioning
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7 Specic Learning Objectives (SLOs)
Lending: Products, Operations and Risk Management
Chapter Candidates Learning Outcome CognitiveLevels
Introduction Candidates should be able to: K U A
1 Lending-Acorebankingpractice/function
a. Describetheroleofbankersaslenders *
b. Discusstheimportanceofbuildingadisciplinedlendingculture *
c. Discusstheimportanceofcashowlendingasopposedtosecurity-basedlending *
2 Lending Products Candidates should be able to: K U A
2.1 Categoriesofborrowers
2.1.1 Businessborrowers a. Statevariousreasonsforbusinessborrowing *
b. Describethetypesoflendingproductsavailabletobusinessborrowers *
c. Differentiatebetweenshorttermandlongtermlending *
d. Differentiatebetweenfundedandnon-fundedfacilities *
e. Describevarioustypesoflongtermlendingfacilitiesavailabletobusinessborrowers *
2.1.2 Individuals/Consumers a. Describethecharacteristicsofanindividualborrowerandexplainhowtheydifferfrombusinessborrowers
*
b. Describethetypesofproductsavailabletoindividualcustomers *
c. Explainthepurposeofindividual/consumerborrowingandstatetheclassicationofloansunderconsumerlending
*
2.2 RegulationsandPractices a. DiscusstheSBPlawsrelevanttodecidingthelendinglimitsforbothbusinessandconsumerborrowers
*
b. DiscussthelendingexposurelimitsasperSBPregulations *
c. Describetheregulationsconcerninglendingdisclosureandreportingrequirementsforconsumerlending
*
d. Describetheregulationsconcerninglendingdisclosureandreportingrequirementsforbusinesslending
*
e. Denefcreditpolicy,targetmarketsandriskassessmentcriteriaanddiscusstheirimportancein
lendingdecisions
*
f. Explainprudentialregulationsconcerningthebusiness/commerciallendingoperations *
g. Statetheminimumrequirementsforconsumernancingaspertheprudentialregulations *
h. ExplainthegeneralSBPPrudentialregulationsconcerningconsumerlending *
2.3 Pricing a. Recallthevarioustypesofpricingmechanismsavailableacrosstheindustry *
b. Explaintheindustry-widemethodologyusedforcalculationofpoolrates *
c. Explaintheconceptofinternalcostoffundsanddiscusshowitisdetermined *
d. Explaintheprocessofdevelopingapricingmodelbasedonoatingmarkuprate *
e. Discusstheprosandconsofusingaoatingmarkuprateascomparedtousingxedrate *
f. Discussriskbasedandrelationshipyieldpricingmodels *
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g. Explaintheconceptofopportunitycost,riskrewardpricingandre-pricingintervals *
3 Lending RiskAssessment andManagement Candidates should be able to: K U A
3.1 Overview a. Explaintheimportanceofevaluatingthelevelofriskinlending *
b. Differentiatebetweenriskassessmentandmanagement *
c. Discusstherisksposedbytheeconomicenvironmenttolendingoperations *
d. Discusstheroleofcorporategovernanceandorganizationalstructureinensuringsmoothrunningoflendersoperationsanditsimpactonthebanksassessmentoflendersriskrating
*
e. DescribethevarioustypesofSBPreportingrequirementstoensureindustrywideeffectiveriskassessmentandmanagementforbusinessandconsumerlending
*
3.2 SourcesofLendingrisk a. Recallvarioustypesofrisksthatimpactthelendingdecision *
b. Discusstheconceptsofobligorriskrating(ORR)andfacilityriskrating(FRR) *
c. Discusstheobligorrisksassociatedwithlendingtoanindividualandabusinessclient *
d. identifythedifferenttypesofindustryrisksthatmustbeconsideredwhilemakingthelendingdecision
*
e. Explainthetransactionfailureriskandsuggestwaystoavoidit *
f. Explainforeignexchangeandinterestraterisk *
g. Presentotherfactorswhichcanbeasourceofrisktothebankslendingportfolio *
3.3 RiskAssessments a. Discussthewaysinwhichamarketcheckcanbeconductedforaconsumerandbusinessclient *
b. identifyvariousmeansofmarketresearchavailableforconsumerandbusinessclients *
c. Explaintheroleofdatacheck,searchreport,eCIBandSBPriskratingrequirementsintheriskassessmentprocess
*
d. DescribetheSBPsriskratingrequirementsanddiscusstheimpactofthissteponoverallindustryriskassessmentpractices
*
e. DiscusstheSBPPrudentialRegulationsrelatingtoriskmanagementforbusinessclients *
f. DiscusstheSBPPrudentialRegulationsrelatingtoriskmanagementforconsumerclients *
g. Discusstheeligibilitycriteriaforconsumerlendingdecisionsforvariousproductsunderconsumerportfolio
*
h. Calculaterelevantnancialratiosimportantwhilemakingbusinesslendingdecisions *
i. Demonstratetheuseofdebtburdeninmakinglendingdecisionsforconsumerclients *
3.4 RiskManagement a. Discusscreditpolicyandstateitssalientparameters *
b. Differentiatebetweenconsumerandbusinessparametersinthecreditpolicy *
c. Explainwhatismeantbydelinquent/remedialportfolioandthemannerinwhichbanksmanagethese
*
d. Discussthemethodsofmeasuringdelinquencywithinaconsumerandbusinessportfolioandexplaintheroleoftrendanalysis
*
e. Discussthevariousdelinquencycontrolmeasuresandcommentontheiraccuracy *
f. Explaintheconceptofcollectionpolicyintheconsumerportfolioandremedialmanagementinthebusinessportfolioandrecallitsprominentparameters
*
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g. Discusstheconceptofrecoverypolicyandrecallitsprominentparameters *
h. Differentiatebetweencollectionandrecoverypolicies *
i. Appreciatefewcollectionandrecoverystrategiesbeingusedindustrywide *
j. Explaintheriskmanagementstrategiesbeingusedforun-securedlendingproductsundertheconsumerproductumbrella
*
k. ExplainthegeneralreservesrequirementsasimposedbySBPonbanksdealinginconsumerlending
*
l. ExplaintheSBPregulationsconcerningcollectionmethodologyanddescribethestrategiesadoptedbybanksforbothbusinessandconsumerlending
*
4 Collateral andDocumentation Candidates should be able to: K U A
4.1 Differenttypesofnancingagreements
a. Recallthedifferenttypesofnancingagreementsavailableintheindustry *
4.2 TypesofCollateral a. Describedifferenttypesofcollateralsbeingusedindustrywidewithrespecttoconsumerandbusinesslending
*
b. Describevariousattributesofacollateralandexplaintheconceptsofeaseofenforcement,realizationandmarketabilitywithregardtothetypeofcollateral
*
c. Differentiatebetweenthepledgeofpapersecuritiesandthatofgoods *
d. Denehypothecationandidentifyinstanceswherethisformofcollateralisused *
e. Explainhowassignmentofreceivablesisusedascollateralandrecallinstanceswherethisformisused
*
f. Explaintheuseofmortgageofimmovableassetsascollateralandstateitsapplication *
g. Explaintheconceptofstatedandimpliedlienovercustomersassets *
h. Explaintheconceptofcharge,itstypesandranking *
i. Deneguaranteeandprovideexamplesfortheiruse *
4.3 Typesofcollateraldocumentation
a. Recalldifferenttypesofcollateralagreements *
b. Differentiateamongahypothecation,mortgage,lien,oatingchargeandapledgeagreement *
4.4 Safe-keepingofborrower/customerdocumentation
a. Discussin-housesafekeepingarrangementsandexplaintheirmodusoperandi *
b. Discusstheex-housesafekeepingarrangementsandexplaintheirmodusoperandi *
c. Writethearrangementsforstorageofdocuments *
d. Explainthesystemofrecordingusedfordocumentstorage *
e. Statetheprocedurestobefollowedfordepositingandretrievingdocumentsanddiscusstheprecautionsthatmustbeexercisedintheprocess
*
f. RecallthescopeofSBPsguidelinesconcerningthehandlingoflendingdocuments *
4.5 Banksriskundervarioustypesofcollateral
a. Discusstherisksfacedbybanksundervarioustypesofcollateralsused *
b. Recallstrategiesadoptedbybanksandregulatorybodiestomitigatethisrisk *
4.6 Monitoringofcharge/margin
a. DenethetermMuccudumanddescribeitsrolef *
b. DescribetheconditionsandmethodologyusedforappointmentandrotationofaMuccadum *
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c. Discusstheobligationsofthecustodialservicesunderthemonitoringarrangement *
d. Explainthemonitoringmethodologyofimmovableassetsandthatofstockreportsandvaluation *
e. Differentiatebetweenmonitoringmethodologyofguaranteesandthatofinsurancepolicies *
f. Explainthemonitoringofguaranteesintermsofissuersstatus,validityandconditionsforclaims *
g. Explainthemonitoringofinsurancepoliciesintermsofissuersstatus,validityandconditionsforclaims
*
h. Discusstheconceptofasearchreportforchargemonitoring *
i. Describetheparameters(denedbywhom)anddiscusstheimportanceofaproperandcrediblesourceformonitoringpricesofnancialassetsandcollateral
*
5. Management of Credit Candidates should be able to: K U A
5.1 Facilityaccountmonitoring
a. Recalldifferentwaysoffacilityaccountmonitoringinuse *
b. Discussthedifcultiesthatmaybeencounteredinoperatingthefacilitywithinpresentlimits *
c. Recalltherequirementsformeetingfacilityturnoverandquantumofbusinessbookedunderthefacility
*
d. Differentiatebetweenmonitoringfrequencyofpeak/lowfacilityutilizationandthatofirregularitiesintheaccounts
*
5.2 Facilitymonitoringsystems
a. Discussthesignicanceanduseofreportsonactivityinfacilityaccounts *
b. Denefacilitymonitoringsystems *
c. Explaintheuseofduedatediariesforretrievalofdueamountsorsettlementoffacilitiesinafacilitymonitoringsystems
*
6. Past Due Accounts/OverDue Accounts
K U A
6.1 Classication a. Statethebasisforclassicationofpastdueordelinquentaccounts *
b. Discusstheactionstepsbasedonclassicationlevelofpastdueaccounts *
6.2 Pastdueaccountmanagement
a. Discussthemanagementtechniquesusedindealingwithpastdueaccounts *
b. Commentoncustomercontactmodesuseddependingonseverityoffailureinmeetingcommitmentsincaseofbusinessandconsumerlending
*
c. DiscusstheregulationsasimposedbySBPconcerningthecollectionandrecoveryprocesseswhiledealingwithconsumerandbusinessclients
*
d. Discusstheglobalbestpracticesandsubjectiveclassicationadoptedbyvariousbanksaspartofriskmanagementstrategy
*
e. Recalltheprocessofdeterminingnetexposureandstatusofnancialassetsandcollateralincaseofdelinquency
*
f. Discusstheconditionsforactivatingremedialactionsincaseofdelinquency *
6.3 Reschedulingandrestructuringofborroweraccounts
a. Explaintheconceptofreschedulingandrestructuringofborroweraccounts *
b. Discusstheneedandbenetobtainedfromreschedulingborroweraccounts*
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Lending: Products, Operations and Risk Management | Stage 2 21
6.4 Loanlossprovisioning a. Discusstheconceptoflossprovisioningforlendingportfolio *
b. Statetheimportanceofloanlossprovisioninganddiscussitsbenetsinnancialreporting *
6.5 WriteOff a. Explaintheconceptofwriteoffloansandstatetheconditionsforwriteoff *
b. DiscusstheconceptofFSVincaseofwriteoffandstatetheregulatoryrequirementsgoverningit *
c. DiscusstheSBPregulationsconcerningwriteoffloans *
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ISQ Syllabus Guide22
a) Thepatternoftheexaminationpaperalongwithmarksdistributionisasfollows:
Type of Question No. of Questions Marks / Question Total Marks
MCQs 30 1.5 45
CRQs 7 5 35
ERQs 2 10 20
Total 39 100
b) Therewillbeoneexaminationforthecourse.
c) Thedurationoftheexaminationwillbe3hours.
d) AllConstructedandExtendedResponseQuestionswillbeinabookletwhichwill
alsoserveasananswerscript.
Key Denitions
i) Multiple-Choice Questions (MCQs)
Multiple-choicequestionisaformofassessmentinwhichrespondentsareaskedtoselectthe
bestpossibleanswer(oranswers)outofalistofchoices.Onlyoneanswercanbekeyed
ascorrect.
ii) Constructed Response Questions (CRQs)
ConstructedResponsequestionsareopen-ended,shortanswerquestionsthatmeasure
application-levelcognitiveskillsaswellascontentknowledge.Thesequestionsprovide
candidateswiththeopportunitytogenerateandweaveideasintoashortresponse.The
candidatesuppliesaresponseintheformofafewsentences,agraphicorganizer,orasimple
drawing/diagramwithexplanation.
iii) Extended Response Questions (ERQs)
Extendedconstructed-responsequestionsarelengthierandmorecomplexexercisesthatallow
foranerlevelofdiscriminationinscoringtheresponses.Extended-responsequestionsrequire candidatestoconsiderasituationthatdemandsmorethananumericalresponseorashort
verbalcommunication.Candidatesarerequiredtomodel,asmuchaspossible,realproblem
solvinginalarge-scaleassessmentcontext.
8 Scheme of Assessment
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Lending: Products, Operations and Risk Management | Stage 2 23
9 Recommended Texts& Reference Materials
Recommended Readings
1. Pak is tan,Insti tuteofBankers Lending:Pro ducts,Operat io nsandRisk2011
2. Pakistan,InstituteofBankers BankLending
3. CharteredBanker SpecializedLendingBook1&2
Supplementary Readings
1. Dr.AsrarH.Siddiqi PracticeandLawofBanking
2. Sinkey CommercialBankManagement
3 Pond,Keith&Lipsombe,Geof fery TheBusinessofBanking
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ISQ Syllabus Guide24
i) Cognitive Levels (Knowledge, Understanding and Application)
Knowledge (K)
Thisrequiresknowingandrememberingfactsandgures,vocabularyandcontexts,andtheabilitytorecallkeyideas,
concepts,trends,sequences,categories,etc.Itcanbetaughtandevaluatedthroughquestionsbasedon:who,when,
where,what,list,dene,identify,label,quote,name,state,etc.
Understanding (U)
Thisrequiresunderstandinginformation,graspingmeaning,interpretingfacts,comparing,contrasting,grouping,inferring
causes/reasons,seeingpatterns,organizingparts,makinglinks,summarizing,solving,identifyingmotives,nding
evidence,etc.itcanbetaughtandevaluatedthroughquestionsstartingwith:why,how,show,demonstrate,paraphrase,
interpret,summarize,explain,prove,identifythemainidea/theme,predict,compare,differentiate,discuss,chartthecourse/direction,report,solve,etc.
Application (A)
Thisrequiresusinginformationorconceptsinnewsituations,solvingproblems,organizinginformationandideas,
usingoldideastocreatenewones,generalizingfromgivenfacts,analyzingrelationships,relatingknowledgefrom
severalareas,drawingconclusions,evaluationworth,etc.Itcanbetaughtandevaluatedthroughquestionsstarting
with:distinguish,analyze,showrelationship,proposeanalternative,prioritize,givereasonsfor,categorize,illustrate,
corroborate,compareandcontrast,create,design,formulate,integrate,re-arrange,reconstruct/recreate,reorganize,
predictconsequencesetc.
ii) Denition of Command Words
Knowledge
Arrange: Toputsomethinginaparticularorder
Dene(thetermorterms):
Onlyaformalstatementorequivalentparaphraseisrequired.Noexamplesneedtobegiven.Specifymeaning.
Find: Ageneraltermthatmayvariouslybeinterpretedascalculate,measure,determineetc.
Give: Providemeaningorquantityorafactaboutsomething
Identify: Describewithspecicexamplesofhowagiventermorconceptisappliedindailylife
List: Nameitem-by-item,usuallyinoneortwowords,preciseinformationsuchasdates,characteristics,places,names.
Measure: Todetermineextent,quantity,amountordegreeofsomethingasdeterminedbymeasurementorcalculation
Name: Mentionthecommonlyusedmeaningsofthings,objects,people,books,etc
Outline: Impliesbrevity,i.e.restrictingtheanswertogivingessentials
Recal l: Tobringbacktomindandwritedown,asit isgiveninthetextyouhavealreadymemorized
Recognize: Involveslookingatagivenexampleandstatingwhatitis
Skim: Toreadquicklytosearchforkeyinformation
State: Impliesaconciseanswerwithlittleornosuppor tingargumentUse: Todeploytherequiredattributeinaconstructedresponse
Write: Toconstructfullsentencesofcontinuousprose,notabbreviatedtext
10 Denition of Cognitive Levels& Command Words of the SLOs
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Understanding
Acknowledge: Toacceptthat istrue
Appreciate: Tojudgewithheightenedperceptionorunderstanding
Arrange: Toputsomethinginparticularorder
Clarify: Impliesfurtherexplanationofanygiveninformationthatelaboratesthekeycomponents
Comment: Presentaninformedopinion
Compare: Listthemaincharacteristicsoftwoentitiesclearlyidentifyingsimilarities(anddifferences).Identifysimilaritiesanddifferences.
Comprehend: Tounderstandsomethingthatiscomplicated/difcult
Conceptualize: Makeanunderstandingonagiventopicwiththehelpofexamples,graphsanddata,etc
Convey: Useorapplyappropriatelyincontext
Deduce: Gobeyondtheinformationgiventodrawaconclusionwhichisnotexplicitlystatedinthestimulusmaterial
Describe: RequiresCandidatestostateinwords(usingdiagramswhereappropriate)themainpointsofthetopic.Itisoftenusedwithreferenceeithertoparticularphenomenaortoparticularexperiments.Intheformerinstance,thetermusuallyimpliesthattheanswershouldincludereferenceto(visual)observationsassociatedwiththephenomena.
Develop: Tomakeanargumentorideasclearerbystudyingitinmoredetail.Tobuildastatement
Differentiate: Identifythosecharacteristicswhichalwaysorsometimesdistinguishtwocategories
Discuss: Presentadvantagesanddisadvantagesorstrengthsandweaknessandgiveaconclusion
Distinguish: Toidentifythosecharacteristicswhichalwaysorsometimesdistinguishbetweentwocategories
Draw: Impliesasimplefreehandsketchordiagram.Careshouldbetakenwithproportionsandtheclearlabelingofparts.
Elaborate: Clarifyorenrichgivenstatementsordenitions,byprovidingrelevantdetailsorexamples
Eliminate: Toremoveavariablefromtwoormoresimultaneousequations
Establish: Toprovecorrectortrueonthebasisoffacts,argumentorotherevidencetocometoconclusion
Explain: Mayimplyreasoningorsomereferencetotheory,dependingonthecontext
Explore: Toexamineordiscusssomethingcarefullyinordertondoutmoreaboutit
Express: Useappropriatevocabulary,languagestructureandintonationtocommunicatethoughtsandfeelings
Followinstruction: Demonstrateanunderstandingoftheinformationgivenespeciallytherequiredsequenceofevents
Highlight: Tobringtofront,makeevident,bringtolight,withemphasis
Identify: Selectthemostappropriatefrommanypossibilitiesonthebasisofrelevantcharacteristics.ItwillnotnormallybeexpectedthattheCandidatejustiesthechoiceunlessspecicallyaskedtodoso.
Illustrate: Togiveclearexamplestostate,clarifyorsynthesizeapointofview
Infer: Gobeyondtheinformationgiventoidentifywhatisimpliedbutnotstated
Interpret: Clarifyboththeexplicitmeaningandtheimplicationsofgiveninformation
Investigate: Thoroughlyandsystematicallyconsideragivenproblemorastatementinordertondouttheresultorruleapplied
Makearelationship: Putdifferentitemstogethertodevelopasetofrelateddata
Outline: Setoutthemaincharacteristics
Paraphrase: Repeatatextusingdifferentwords
Pointout: Pickoutandrecognizespecicinformationfromagivencontentand/orsituation
Practice: Doinganactivityortrainingregularlysothatyoucanimproveyourskills
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ISQ Syllabus Guide26
Predict/anticipate: Makeinferencesaboutprobable/possibleturnsofeventfromtheinformationgivensofar
Present: Towritedowninalogicalandsystematicwayinordertomakeaconclusionorstatement
Prove: Pro po seab asetosuppo rttheo utcom e
Rec ti fy: Toco rre ctsomethingthatiswro ng
State: Impliesaconciseanswerwithlittleornosupportingargument
Suggest: Toputforwardanideaoraplan
Summarize: Writeashorterversionofagiventextcapturingthemainpointsandeliminatingdetail.Thewritingmustbegrammaticalandthereferentofeachstatementmustbeclear.
Verify: Toprove,checkordeterminethecorrectnessandaccuracyoflaws,rulesorreferencegiveninthesettask
Application
Analyze: Useinformationtorelatedifferentfeaturesofthecomponentsofspeciedmaterialsoastodrawconclusionsaboutcommoncharacteristics.Breakinformationintocomponentpartsandidentifycharacteristics.
Advise: Suggestsolutions,withjustication,toproblems
Apply: Tousetheavailableinformationindifferentcontextstorelateanddrawconclusions
Assess: Makeaninformedjudgment
Calculate: Showworkingstoarriveatanumericalanswer
Clarify: Impliesfurtherexplanationofanygiveninformationthatelaboratesthekeycomponents
Classify: Stateabasisforcategorizationofasetofrelatedentitiesandassignexamplestocategories
CompareandContrast: Involves(a)listingthemainpointsorcharacteristicsoftwodistinctand(b)clearlyidentifyingsimilaritiesanddifferencesbetweencharacteristics
Compose: Formapieceofwritingwithanumberofparts
Comprehend: Tounderstandsomethingthatiscomplicated/difcult
Construct: Tobringtogethergivenelementsinaconnectedorcoherentwhole
Convey: Useorapplyappropriatelyincontext
Demonstrate: Toshowbyargument,factsorotherevidencesthevalidityofastatementorphenomenon
D eri ve: Toarr iveatagener alfor mulabycalculatingstepbystep
Elaborate: Clarifyorenrichagivenstatementordenition,byprovidingrelevantdetailsorexamples
Evaluate: Makeajudgmentbasedonevidence
Formulate: Todevelopaplanorproposalanddecideallthedetailsofhowitwillbedone
Portray: Todescribeorrepresentsomethingorsomeone.Todescribeorshowsomeoneorsomethinginaparticularwayaccordingtoyouropinionofthem
Predict/anticipate: Makeinferencesaboutprobable/possibleturnsofeventfromtheinformationgivensofar
Summarize: Toexpressthemostimportantfactsandideasinashortandclearform
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Thissectionpertainstomid-streamJAIBPcandidates(i.e.thoseISQcandidateswhoenrolledand
appearedfortheJAIBPexamspriortoJuly2011andhavenotcompletedtheirJAIBPasofJuly2011).Mid-streamJAIBPcandidatesarerequestedtoreviewthissectionthoroughly.Thissectionprovides
mid-streamcandidateswiththedetailsofthetransitionprocess,theimpactthatthestructural
changesintheJAIBPprogramwillhaveonthemandhowtheywillbefacilitatedtocompletetheir
JAIBPprogramunderthenewstructure.
Old Structure New Structure
Stage 1
BusinessCommunicationforFinancialServices* BusinessCommunicationforFinancialServices*
LawsRelatingtoFinancialServices ** IntroductiontoFinancialSystemsandBankingRegulations **
AccountingforFinancialServices *** InformationTechnologyinFinancialServices ***
MacroEconomicsandFinancialSystemofPakistan **** BranchBanking****
Stage 2
InformationTechnologyinFinancialServices *** AccountingforFinancialServices ***
LendingOperationsandRiskManagement** Lending:Products,OperationsandRiskManagement**
HumanResourceManagementBasicPractices** HumanResourceManagementandOrganizationalBehavior**
MarketingofFinancialServices*** Economics**
Stage 3
MonetaryEconomics** MarketingofFinancialServices ***
InternationalTradeFinance&ForexOperations * FinanceofInternationalTrade&relatedTreasuryOperations **
ManagementAccountingforFinancialServices * ManagementAccountingforFinancialServices *
* Same as before in terms of sequence
** Expansion in contents
*** Changed the sequence of appearance
**** New or changed course
ThestructuralchangesmadetotheISQprogramarediscussedindetailbelow:
Stage shifts
AccountingforFinancialServiceshasbeenmovedfromStage1toStage2
InformationTechnologyinFinancialServiceshasbeenmovedfromStage2toStage1
MarketingofFinancialServiceshasbeenmovedfromStage2toStage3
Course merger/ restructuring
MacroEconomicsandFinancialSystemsofPakistanhasbeenbrokenintotwocomponents:
i) Therstcomponent,namelyMacroEconomicshasbeenmergedwithMonetary EconomicsandtheresultantcoursehasbeennamedEconomics
Annexure 1 Transition Processfor Mid-stream Candidates
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ISQ Syllabus Guide28
ii)Thesecondcomponent,namelyFinancialSystemofPakistanhasbeenmergedwithLaws
RelatingtoFinancialServicesandtheresultantcoursehasbeennamedIntroductionto FinancialSystems&BankingRegulations.
ThismeansthattheEconomicssyllabuswillnowcoverbothmacroandmonetaryeconomics,
whereasLawsrelatingtoFinancialServicesandFinancialsystemofPakistanwillbecovered
inthesubjectnamely,IntroductiontoFinancialSystems&BankingRegulations.
WehavealsointroducedanewcourseBranchBankingasitisacrucialpillarofthebanking
sectorandrequiresadedicatedsubjectforitspeculiaritiestobeaddressedindetail.
Impact of Structural Changes on Mid-stream Candidates
Theabove-mentionedstructuralchangesoftheJAIBPprogramwillimpactthemid-stream
candidatesinseveralways.Hence,thereisaneedtocreateabridgetohelpmid-stream
candidateswhoareintheprocessofcompletingtheircourserequirementsconverttothe
newJAIBPstructure.
ThesixdifferentwaysinwhichMid-streamcandidateswillbeaffectedareasfollows:
1 Course Equivalence
Thetablebelowdetailshowequivalencesfor8courses(withnoneoronlyminorchanges)
intheexistingstructurewillbehandled:
Straight Equivalence
Subjects based onOld JAIBP Syllabus
Corresponding Equivalent SubjectsIn The New JAIBP Syllabus
Subjects with no structural changes:
If the mid-stream candidate has passed: s/he will be exempted from:
BusinessCommunicationforFinancialServices BusinessCommunicationforFinancialServices
AccountingforFinancialServices AccountingforFinancialServices
InformationTechnologyinFinancialServices InformationTechnologyinFinancialServices
MarketingofFinancialServices MarketingofFinancialServices
ManagementAccountingforFinancialServices ManagementAccountingforFinancialServices
Subjects with minor course enhancements:
If the mid-stream candidate has passed: s/he will be exempted from:
LendingO perationsandRiskManagement Lending:Product s,Oper ationsandRiskManagement
HumanResourceManagementBasicPractices HumanResourceManagementandOrganizationalBehavior
InternationalTradeFinance&FOREXOperations FinanceofInternationalTrade&relatedTreasuryOperations
If the mid-stream candidate is yet to pass any of the above subjects, now they will have to pass the equivalent subjectsas per the new structure
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Equivalence for Restructured/ Merged Courses
Fortheremaining3coursesintheJAIBP,namelyLawsRelatingtoFinancialServices,MacroEconomicsandFinancialSystemofPakistanandMonetaryEconomics,majorstructuralchanges
havebeenmade.Allpossiblescenariosformid-streamcandidateshavebeencapturedinthe6
casesgivenbelow.
Case 1
IntheoldJAIBPstructure,ifthemid-streamcandidatehasNOTpassedbothLawsRelatingto
FinancialServicesandMacroEconomicsandFinancialSystemofPakistan,s/hewillhaveto
appearinIntroductiontoFinancialSystems&BankingRegulations.
Case 2IntheoldJAIBPstructure,ifthemid-streamcandidatehaspassedbothLawsRelatingtoFinancial
ServicesandMacroEconomicsandFinancialSystemofPakistan,s/hewillbegivenanexemption
inIntroductiontoFinancialSystems&BankingRegulationsinthenewstructure.
Case 3
IntheoldJAIBPstructure,ifthemid-streamcandidatehasonlypassedLawsRelatingtoFinancial
Services,orhasonlypassedMacroEconomicsandFinancialSystemofPakistan,s/hewillhaveto
appearinIntroductiontoFinancialSystems&BankingRegulationsasperthenewISQstructure.
Case 4
IntheoldJAIBPstructure,ifthemid-streamcandidatehasonlypassedMacroEconomicsand
FinancialSystemofPakistanandhasnotpassedMonetaryEconomics,s/hewillhavetoappear
inEconomicsasperthenewISQstructure.
Case 5
IntheoldJAIBPstructure,ifthemid-streamcandidatehaspassedbothMacroEconomicsand
FinancialSystemofPakistanandMonetaryEconomics,s/hewillbegivenanexemptionin
Economicsinthenewstructure.
Case 6
IntheoldJAIBPstructure,ifthemid-streamcandidatehaspassedLawsRelatingtoFinancial
Services,MacroEconomicsandFinancialSystemofPakistanandMonetaryEconomics,
s/hewillbegivenanexemptioninIntroductiontoFinancialSystems&BankingRegulations
andEconomicsinthenewstructure.
NOTE: All mid-stream candidates who have more than 4 courses remaining to complete their JAIBP
will have to pass an additional Branch Banking course.
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ISQ Syllabus Guide30
2 Stage Completion
ThreecourseshavebeenmovedtoaligntheJAIBPcoursesbetterwiththerequirementsinthe careersofPakistanibankers.Detailsaregiveninthetablebelow:
Course Name Stage shift
Acco unt ingfo rF inanc ialS ervices Move dd ownf ro mStag e1toStag e2
InformationTechnologyinFinancialServices MovedupfromStage2toStage1
Market ingofF inancialS ervice s Move dd ownf ro mStag e2toStag e3
Detailsofhowdifferentscenarioswillbehandledaregivenbelow:
Astagecompletedbyacandidateaspertheearliercoursestructurewillremaincompleteafter thesechangestakeeffect.However,suchmid-streamcandidateswillberequiredtofulllthe
stagecompletionrequirementsasperthenewcoursestructureandpasstheremainingcourses
inthenexttwoattempts(i.e.inWinter2011andSummer2012).
Mid-streamcandidateswhohavestartedastagebutnotyetcompleteditwillnowhavetofulll
therequirementsofstagecompletionasperthenewcoursestructure.
3 Stage Commencement Eligibility
Allmid-streamcandidateswillhavetocomplywiththerequirementstostartthenextstage
asperthenewcoursestructure.Speciccasesforeachstagearegivenbelow:
TostartStage2,mid-streamcandidateswillhavetopassatleasttwocoursesofStage1asper
thenewstructureandappearfortheremainingcoursesinStage1inthesamesession.
TostartStage3,candidateswillhavetopassallcoursesofStage1andatleasttwocourses
ofStage2asperthenewcoursestructureandappearfortheremainingcoursesinStage2inthe
samesession.
4 ISQ Completion for Mid-stream Candidates who have 4 or Less Courses Remaining
Allmid-streamcandidateswhohave4orlesscoursesremainingforcompletionoftheirJAIBPwill
nothavetoappearfortheadditionalBranchBankingcoursetocompletetheirJAIBP,provided thattheypasstheremainingsubjectsbySummer2012.However,suchcandidatescanopttotake
theBranchBankingcourseiftheysowish.
5 Additional Time Period and Chances Allowed for Mid-stream Candidates
i) Mid-stream candidates who have to take the additional Branch Banking Course
Allmid-streamcandidateswith5ormorecoursesremainingwillhavetotaketheadditional
BranchBankingCourseunderthenewstructureandwillbeallowed12chancesoratime
periodof6yearstofullltheircourserequirementsfortheISQprogram.
ii) Mid-stream candidates who DO NOT take the additional Branch Banking Course
Allmid-streamcandidateswhocompletetheISQprogramaccordingtotheoldstructureand
have4orlesscoursesremainingwillbeallowed10chancesoratimeperiodof5years
tofullltheircourserequirementsfortheISQprogram.
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6 Award of Associate Chartered Banker title by UKs Chartered Banker Institute
Allmid-streamcandidateswhowishtoacquiretheAssociateCharteredBankertitlebyUKs CharteredBankerInstitutewillberequiredtoappearforaComprehensiveTest.
Test schedule and details will be available at a later date.
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