IBP has a change again !

Soon after giving a new look to their website, IBP has brought some major changes in their flagship certification J.A.I.B.P.

IBP certification Junior Associateship of Institute of Bankers Pakistan (J.A.I.B.P) would now be accredited by UK’s Chartered Banker Institute.


Change in Subjects & Syllabus

To have this extrea accreditation the J.A.I.B.P's has to take some additional papers. There is a change in the subject and a new subject of Branch Banking has been introduced in stage one and Marco-economics subject has been merged with Monetary economics by introducing a single paper of economics in stage II. Subject of Law for Financial Institutions has been renamed to  Introduction to Financial Systems and Banking Regulations which is in the first Stage. Lending Operations & Risk Management is renamed as Lending: Products, Operations and Risk Management. [http://www.ibp.org.pk/new_syllabus_subjects.aspx]


Change in Registration Forms


There are new forms of two types,

• For Graduates [http://www.ibp.org.pk/pdfs/files/ISQ%20Examination%20Form.pdf] 
• For Non-Graduates [http://ibp.org.pk/pdfs/files/ISQ_RegForm_NonGrads.pdf]

Transition Process for Mid-stream JAIBP Candidates

Mid-stream JAIBP candidates are those candidates who enrolled and appeared for the JAIBP exams prior to July 2011. Details of transition process of Mid-Stream candidates have been sent by IBP to candidates which I will share in couple of days !

Untill then enjoy the result !

Good Luck Examinees !

As exams are over now its time to relax and have fun ! even if you know that your paper was not well attempted ! Because its no use crying over spilt milk ! Whatever you have done cannot be reversed, so its no use worrying about that ! But you should always learn from your experience and mistakes, and it is wiser if you learn from the experience and mistakes of others rather then making them all yourself. Therefore, I would recommend you all to share your experiences, write them down on some blog, post it here or just tell the other examinees verbally.

Share with us that how was your experience regarding these tests ?  How was the paper ? was that difficult ? how was the pattern ? Changed or same as previous one ? How was the examination Hall ? was that comfortable as its a hot weather going on with long duration loadsheddings.

If you have any solved papers of IBP also share with us ! Any Material, any Book related to IBP exam preparation would be a great favour for the upcoming examinees !

Wish you good luck for your result !

Solved Papers of IBP !

First of all there are no solved papers of Institute of Bankers Pakistan (IBP) available on the internet right now !

Nine out of ten emails I receive are asking for the solved papers of IBP. Come one guys ! you are suppose to learn something from these exams, merely taking the papers and passing the test should not be the target. I am trying to provide solved papers on IBP, but it would take time and in the mean time I always offer the examinees of IBP that papers can be solved one by one. So if we do collective effort we can prepare online version of solved papers of IBP.

If you are facing questions which are bigger than you ! then you are welcome to email me those questions and I would try my best to obtain an answer for you.

You can pass some subjects through selective and one day study, but I would recommend that don't use the short cuts in every subject. That can be very risky ! Just simple taking the solved papers would not help you in the exams, because IBP papers contains practical questions which can only be answered if you have clear concepts !

Spend sometime solving these questions !

Wish you Good Luck in exams !

IBP Should Modernize itself !

Now is the era of e-learning, and IBP being an organization aimed to educate bankers professionally should keep pace along-with the coming technologies. Institute of Bankers Pakistan should launch e-books version of all its publications which should be available for download or they should use their website to launch some e-learning programs. There is a dire need of a discussion forum of IBP where all the examinees can share their experiences, can post their questions, can get their papers solved with the help of others and can discuss various matters. Such an online platform would definitely boost the access to banking information but would also help the examinees to interact with each other more effectively.

Now a days all bankers are well equipped with the computer and internet knowledge and would definitely use such online resources to educate themselves. Recently, IBP has launched their website which give it a refreshing look, but the material in the website is almost the same. They should also focus on website development by introducing some other options.

Here comes a point in mind that IBP is avoiding such steps to keep reaping the revenue it gets from the training workshops, sales of books etc. But in my view they can also earn from such resources by introducing advertisements of various banks on their websites, they can promote their workshops more effectively and there is always a room to generate revenue from such activities.

 I strongly recommend IBP to think upon such latest avenues of training and they should plan to launch such facilities in future. 

Some Movies Bankers should see !

Below are some moview which I found very interesting especially as a banker !

Catch Me if You can !
The Bank Job
ENRON - The Smartest Guys in the Room
Wall Street - Money Never Sleeps
Oceans Eleven

But those who are preparing for the Institute of Bankers Pakistan J.A.I.B.P exams, I should mention that these movies would help you very little is taking your exam. So please focus on your preparation and you can always watch these movies after the exams.

And the first one is must watch for Bankers !

Enjoy !

Question: Issues with a DD !

Question:You have issued a DD of Rs.50000 on one of your branch in another city what you will do in the following problems

A) DD bears only one signature,instead of mandatory two

B)The TEST does not agree

C)DD has been presented for payment but Inter Branch Credit Instructions from the issuing branch have not been received in your branch

_______________________________________________________________
Following could be the solutions to the questions, 


A) Take Conformation of 2nd Signature through fax


B) ETD (Electronic Technology Division) HelpDesk 
Coz there might be some technical issue due to which the test is not agreed. Test is a method through which bankers confirm /verify the genuineness of a transaction


B) New test can be applied through preferred on NIL Amount.
If there is some technical issue in test, a new test can be applied with a NIL amount just to confirm the transaction. 


C) Will Demand Credit Advise from respective branch through Fax.
If funds are not transfered from the issuing branch, to the branch on which the DD is drawn (or who will pay the DD) then we can ask for the Credit Advice from the issuing branch. Such situations should make banker suspicious about the genuineness of the instrument but the reason could be some error at the end of issuing branch. 

C) Can pay from Suspense A/C but early settlement will be made on priority.
This option is only suggested when it is confirmed through phone or other medium that the DD is actually issued by the issuing branch. 

Question : Why does SBP require the banks to classify their loans?

A) Why does SBP require the banks to classify their loans?

B) What are different catagories of Classification?

C) Differentiate between time-based and subjective classification.which would you prefer for your bank?

__________________________________________________________________________

Those who are working in banks especially credits department are well aware of the term "classification".

In common words a classified loan is a loan which is not regular and is experiencing any problem.

Prudential Regulations of SBP comprehensively covers this topic and SBP have provided guidelines for banks to report their loans when they are not behaving regular. Regulation R-11 of PRs deals with the CLASSIFICATION AND PROVISIONING FOR ASSETS.

There are two types of classification, Time-based and subjective. 

In time based its obvious that we have to consider the time period in order to classify the loan,

Annexure III of SME PRs gives the following time based criteria for classification of loans,

Sub-Standard :       Mrak-up/Interest or Principal overdue 90 days or more from due date 

Doubtful :               Mrak-up/Interest or Principal overdue 180 days or more from due date 

Loss:                      Mrak-up/Interest or Principal overdue 365 days or more from due date 

(Time Based classification is different in different sectors, i.e. Agriculture, Consumer. Check PRs of those sectors for further details)

on the basis of this classification the SBP has provided the guidelines to make proper provisioning of income, details of which are available in PRs.

Subjective Classification

In addition to the time-based criteria prescribed in Annexure-III, subjective evaluation of performing and non-performing credit portfolio shall be made for risk assessment and, where considered necessary, any account including the performing account will be classified, and the category of classification determined on the basis 

of time based criteria shall be further downgraded. Such evaluation shall be carried out on the basis of credit worthiness of the borrower, its cash flow, operation in the account, adequacy of the security, inclusive of its realizable value and documentation covering the advances.

Hence, reason for subjective classification can be anything which shows some irregularity in the loan and give a hint that loan is attracting classification. Such classification help banks to make proper provisions and closely monitor such loans in order to minimize risk and NPLs. 

which would you prefer for your bank?

Time-based classification is more standardized and can easily be applied to a large number of clients, preferable in case of small clients.

However, subjective classification is not feasible in case of small loans, therefore, it is suggested for large borrowers.