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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

5

7

8

11

12

13

14

17

21

22

23

26

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

[email protected]

Website

www.ibp.org.pk


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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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ISQ Syllabus Guide6


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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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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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6.4 Loanlossprovisioning a. Discusstheconceptoflossprovisioningforlendingportfolio *

b. Statetheimportanceofloanlossprovisioninganddiscussitsbenetsinnancialreporting *

6.5 WriteOff a. Explaintheconceptofwriteoffloansandstatetheconditionsforwriteoff *

b. DiscusstheconceptofFSVincaseofwriteoffandstatetheregulatoryrequirementsgoverningit *

c. DiscusstheSBPregulationsconcerningwriteoffloans *


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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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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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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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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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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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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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