Banking Diploma

Banking Diploma

JAIBB and DAIBB

Subjects for JAIBB and DAIBB Examinations are as follows:

Junior Associate of the Institute of Bankers, Bangladesh (JAIBB)
Compulsory subjects
1 Principles of Economics & Bangladesh Economy
2 Business Communication
3 Organization & Management
4 Laws and Practice of Banking
5 Marketing of Financial Services
6 Accounting for Financial Services
Diplomaed Associate of the Institute of Bankers, Bangladesh (DAIBB)

Compulsory subjects
1 Management of Financial Institutions
2 Lending Operation & Risk Management
3 International Trade & Foreign Exchange
4 Information Technology in Financial Services
5 Management Accounting
Optional Subjects (Six)
In addition to the aforesaid compulsory subjects, any one of the following optional subjects shall be chosen by a candidate for passing DAIBB:

(a) Central Banking & Monetary Policy
(b) Agriculture & Microfinance
(c) SME & Consumer Banking
(d) Islamic Banking
(e) Investment Banking & Lease Financing
(f) Treasury Management


SYLLABUS of JAIBB


PAPER 1 : PRINCIPLES OF ECONOMICS AND BANGLADESH ECONOMY

Full Marks : 100

Module A: Concepts of Economics and Demand Supply Analysis
         Economics, Scarcity, Opportunity Cost, Micro and Macro Economics
          Law of Demand and Supply, Changes in Demand and Supply
          Demand Supply Interaction, Market Equilibrium, Shortage and Surplus, Price Ceiling and Floor
          Price Elasticity, Income and Cross Elasticity of Demand

Module B: Production, Cost and Market structure
          Theory of Production and Cost, Law of Variable Proportions, Returns to Scale, Short and Long-Run Costs.
          Different forms of Market: Perfect Competition, Monopoly, Oligopoly and Monopolistic Competition; Their Characteristics and Equilibrium Situations.

Module C: Macroeconomics
          Overview on Macroeconomics; Macroeconomic Goal, Policies and Accounts
          Macroeconomic Accounts: National Income Account, Fiscal Account, Monetary Account and BOP Account.
          Macroeconomic Policies and their Interactions

Module D: Bangladesh Economy
          Structure and Macroeconomic Performance of Bangladesh Economy; Savings, Investment and Capital Formations, Fiscal and Monetary Policies of Bangladesh; Inflation, Unemployment and External Sector Situation of Bangladesh.
References:

1          Dornbusch. R, and Fischer, S. Macroeconomics
2          Mishkin, F.S. The Economics of Money, Banking and Financial Market
3          Ministry of Finance, Bangladesh Economic Review
4          Publications of Bangladesh Bank (Economic Trend, Annual Reports and other reports)
3          Samuelson, P.A and Nordhaus, W.D. Economics
PAPER 2 : BUSINESS COMMUNICATION
Full Marks : 100

Module A: Theory and Process of Communication
          Meaning and Importance of Communication, Business and Banking Communication. Principles of Business Communication, Process of Effective Communication (Model), Factors Affecting Communication

 Module B: Classification and Methods of Communication
          Types of Communication, Downward, Upward, Horizontal, External, Internal, Formal, Informal, Oral and Written, Spoken Communication and Listening.
Module C: Fundamentals of Business Writing
          Adaptation and Selection of Words, Construction of Clear Sentences and Paragraphs, Effective Writing. Directness in Initiating Routine Letters, Answering Routine Letters, Indirectness for Bad-News and Persuasion.
Module D: Fundamentals of Report Writing
          The Shorter form Report Structure, Long Formal Reports
Module E: Standard and Physical Aspects of Communication
          Graphic Aids to Communication, Physical Presentation of Reports and Letters, Correctness of Communication.
          Communication in the Financial Institutions and Banks of Bangladesh
References:

  1          Lesiker, Raymond V. Basic Business Communication
  2          Narayan, N.C Complete Banking Correspondence
  3          Singh, L.R. A Guide of Bank Correspondence
  4          Slocun, Keith. Business English with Programmed Reinforcement

PAPER 3 : ORGANIZATION AND MANAGEMENT
Full Marks : 100


 Module A: Fundamentals of Organizational Behavior and Environment
 Working with People, Social Systems, Formal and Informal Organization, Mainsprings of Motivation, Motivating Employees, Job Satisfaction, Developing a Sound Organizational Climate. Organizational Structure & Design, Technology & People, Quality of Work Life, The Individual in the Organization.
Module B: Leadership and Its Development
 Leadership and Supervision, Employee Participation, Interpersonal and Group Dynamics,
Managing Change & Conflict, Organizational Development and Training.
Module C: Organizational Behavior in Perspective
          Models of Organizational Behavior, Limitations of Organizational Behavior. Applied Aspects of Human & Organizational Behavior in Banks
Module D: Basic Management Concept, Environment and Process
          Management Science, Theory and Practice; Patterns of Management Analysis. Internal Environment, External Environment and Management Process (Planning, Staffing, Organizing, Leading and Controlling).
Module E: Personal Management
          Perspective of Personnel Management, Organization for Personnel Management, Manpower Planning, Job Analysis and Job Evaluation, Personnel Compensation, Manpower Recruitment and Selection, Career Planning, Appraising Personnel Performance, Manpower Development, Handling Personnel Grievances, Disciplinary Actions.

Module F: Organizational Ethics, Business Ethics, Code of Conduct, Conflict Resolutions
References:

1          Davis, Keith. Human Behavior At Work (Organizational Behavior).
2          Hersey, Paul and K.H. Blanchard. Management of Organization Behavior.
3          Ivancevich & Matteson. Organizational Behavior & Management. 
4          Juicus, M.J. Personnel Management.
5          Terry, G.R. Principles of Management.
6          Weihrich, Heniz and Harold, Koontz. Management.

PAPER 4 : LAWS AND PRACTICE OF BANKING
Full Marks : 100


Module A: Business Related Laws
          Company Act
          Contract Act
          Transfer of Property Act
          Limitation Act
          Bankruptcy Act
          Sale of Goods Act
          Stamp Act
          Partnership Act
          Registration Act

 Module B: Financial Institutions Related Laws
          Bank Company Act
          Financial Institutions Act
          Bangladesh Bank Order
          Bankers Book Evidence Act
          Artho Rin Adalat

 Module C: Financial Instrument Related Laws
          Negotiable Instrument Act
          Money Laundering Prevention Ordinance & Anti Terrorism Ordinance
References:

1          Ali, S. Ashraf & Howlader, R.A. Banking Law and Practice
2          Bashar, M.A. Bangladesh Laws on Banks and Banking
3          Debnath, R.M. Banks and Legal Environment
4          Relevant Govt. Gazettes
5          Varshney, P.N. Banking Law and Practice
PAPER 5 : MARKETING OF FINANCIAL SERVICES
Full Marks : 100

 Module A: The Role of Marketing
          Introduction- The Marketing Function- The Comparative Development of Marketing for Banks and Financial Institutions. Elements of Marketing.
Module B: Customer Behavior and Market Segmentation
          Introduction- Consumer Behavior and Attitudes- Types of Market Segmentation- Segmentation of Retail vs Corporate Markets.
Module C: Branch Location and Distribution
          Introduction- Means of Distributing Financial Services- Locating Bank Branches- New Technology and Branching- Creating the Branch Image.
Module D: Advertising and Communication
          The Roles of Advertising- Advertising Channels- Promotions- Publicity- The Contribution of Advertising and Communications to Marketing Programmes of Financial Institutions.
Module E: Product Development and Pricing
          Product Development and Segmentation- Special Features of Product Development- Product Development Strategies- the Implications of New Technology for Bank Product Development. Pricing Systems- Methods of Pricing- Price Policies: Strategic V. Tactical Goals- the Marketing Programmes of Financial Institutions.
Module F: Marketing Strategies of Financial Institutions
          Introduction- Corporate Planning- Formulating a Marketing Strategies for Banks and Financial Institutions, Implementing Marketing Strategy. Marketing Strategy of New Products.
Module G: Marketing Administration
          Administering the Marketing Programme- Administration of Retail V. Corporate Financial Markets. Future Outlook.
Module H: Marketing Research in Financial Institutions
          The Role and Functions of Marketing Research in Financial Institutions- The Research Methodology- Evaluating Marketing Research Programmes- Applications of Marketing Research in Financial Institutions.
Module I: Marketing of Financial Services in Bangladesh
References:

1          Andrew, Kenneth. Bank Marketing Handbook.
2          Arthur, Mechian. Bank Marketing Management.
3          Kotler, Marketing Management


PAPER 6 : Accounting for Financial Services
Full Marks : 100


Module A: Introduction and Environment

          Purpose, Nature, Uses and Users of Accounting Information, Functional and Operational Definition of Accounting, Accounting Principles, Standards and Regulations, Forms of Business Organizations and Accounting systems.

Module B: Analysis of Financial Statement

          Objectives of Financial Statement Analysis, Financial Statement Analysis, Horizontal and Vertical Analysis, Comparative Financial Statements, Communize Statements, Financial Ration Analysis, Trend Percentage, Specialized Analysis, Cash Forecasts, Analysis of Changes in Financial Position, Break-Even Analysis, Cash Flow Statement, Unadjusted Trial Balance and Adjustments.

Module C: Processing and Recording of Accounting Information

          Transaction, Analysis of Transaction, Accounting Cycle, Recording of Transaction, Double Entry System, Golden Rule of Debit and Credit, Posting of transactions to the Ledger, T Form and Multi Column Ledger, Preparation of Cash Book, Single Column, Double Column and Triple Column Cash Book, Preparation of Trial Balance, Suspense Accounts, Reflection of Errors Adjusting Entries and Closing Entries Accrued and Deferred Revenue and Expenses.

Module D: Financial Statements for Different Entities

          Service, Merchandise and Manufacturing Operation: Income Statement, Cost of Goods Sold, Cash Flow Statement, Balance Sheet, Limitation of Balance Sheet. 
          Partnership and Joint Stock Companies: Specific Characteristics of Financial Statements of Partnership  Capital Account, Current Account, Profit and Loss Adjustments Account. Distinguishing Characteristics of Financial Statements of Companies. 
          Banks and Other Financial Institutions: Provisions of Bank Company Act, 1991 (with Amendments), Preparation of Profit and Loss Account and Balance Sheet of Banks. Provisions of Financial Institutions Act, 1993 (with Amendments), Preparation of Profit and Loss Account and Balance Sheet of Financial Institutions.

Module E: Accounting for Assets

          Current Assets: Inventory Valuation, Periodic and Perpetual Method for Ascertaining Closing Inventory, Average, Last In First Out (LIFO), First In First Out (FIFO), Account Receivables. 

          Fixed Assets: Depreciation Methods, Recording of Depreciation, Valuation of Fixed Assets, Depreciation as a Cost Allocation. 

Module F: Journal Rules for Journalizing

          Different Types of Journals, Sub-Division of Journals, Posting of Accounts, Ledger, Interpretation of Ledger Account, Writing of Different Types of Cash Book in Columnar Form, Imprest System of Petty Cash, Bank Reconciliation System, Journal Proper.

References:

1          Anthony, Reece  Accounting Principles (Richard D, Irwin, Inc. U.S.A.).
2          Anthony, Robert N.  Essentials of Accounting  (IRWIN, U.S.A.).
3          Harmenson, Edwards, MAHER  Accounting Principles (IRWIN, U.S.A.).
4          Khan, Md. Mainuddin  Advanced Accounting (Ideal Library, Dhaka).
5          Weygandt, Kieso Kell  Accounting Principles (John Wiley and Sons Inc. U.S.A.).


REGULATIONRegulations and Syllabus for BANKING DIPLOMA EXAMINATIONS

Birth of the IBB:
At their meeting held on the 26th July, 1972, a few eminent Bankers and other professionals decided to establish the Institute of Bankers, Bangladesh (IBB), as a professional body of banks and financial institutions in Bangladesh. The IBB was registered on the 6th February, 1973 bearing Registration No. 3894145/3 of 1972-1973 as an Association under the Societies Registration Act, 1860 (Act No. XXI of 1860)
Mission
IBB would develop a professionally sound human resource base, through continuous education, training and orientation process, for the financial sector to face the challenges of the modern era in the backdrop of the new global economic order
Vision
Be the premier institute in the banking and financial sector for developing competent and skilled professionals of international standard and repute.
Objectives of the IBB:
 The objectives for which the IBB was established are :
(i) to develop professionally qualified and competent bankers primarily through a process of training, examinations and continuing professional development programmes
(ii) to design, organise and conduct examinations to test the proficiency of employees of banks and financial institutions in various banking-related subjects ;
(iii) to award diploma to the examinees of the IBB successful in the examinations ;
(iv) to provide necessary educational support-services such as coaching classes, etc.
(v) to disseminate knowledge on banking and financial services through publication of journals, newsletters and by organising lectures, seminars, etc. ;
(vi) to organise and manage efficient library for the examinees ; and
(vii) to undertake any other activity incidental to, and facilitating, the achievement of the basic objectives of the IBB as mentioned above.
Two-Tier Certificate Courses
The IBB conducts the Banking Diploma Examination, Part-I and Part-II usually twice a year at such centers as may be determined by the Council of the IBB from time to time. Part-I Examination aims at giving basic and fundamental knowledge of banking and Part-II Examination is designed to update the advanced knowledge in the field of banking and allied matters to enable better decision making by bankers.
Under the New Regulations and Syllabus persons passing Part I Banking Diploma Examination will be awarded Junior Associateship of the Institute and be called "JAIBB" (Junior Associate of the Institute of Bankers, Bangladesh) and the title of "DAIBB" (Diplomaed Associate of the Institute of Bankers, Bangladesh) be retained for persons passing Part II Examinations.
Subjects
The subjects for JAIBB and DAIBB Examinations are as follows:
Junior Associate of the Institute of Bankers, Bangladesh (JAIBB)
Compulsory subjects
1                    Principles of Economics & Bangladesh Economy
2                     Business Communication                                                                     
3                    Organization & Management                                                               
4                     Laws and Practice of Banking                                                                   
5                    Marketing of Financial Services                                                       
6                     Accounting for Financial Services
Diplomaed Associate of the Institute of Bankers, Bangladesh (DAIBB)
Compulsory subjects
1                    Management of Financial Institutions
2                    Lending Operation & Risk Management                                                       
3                     International Trade & Foreign Exchange                                                     
4                    Information Technology in Financial Services                                             
5                    Management Accounting
Optional Subjects (Six)
 In addition to the aforesaid compulsory subjects, any one of the following optional    subjects shall be chosen by a candidate for passing DAIBB:
(a)            Central Banking & Monetary Policy
(b)            Agriculture & Microfinance                                                                   
(c)            SME & Consumer Banking                                                                     
(d)            Islamic Banking                                                                                   
(e)            Investment Banking & Lease Financing                                                   
 (f)            Treasury Management
Regulations Syllabus
 The details of the prescribed syllabus and the suggested books/reading materials are furnished in Annex-1 to this booklet. Although the detailed syllabus has been prepared for each of the subjects mentioned above, the same is only indicative and NOT exhaustive. Keeping in view the professional nature of the examinations, all matters falling within the realm of the subject concerned will have to be studied by a candidate as questions may be asked on all the relevant matters under the subject. A candidate should prepare himself/herself for answering questions that may be asked on the latest developments taking place under the various subjects of the examinations. The examinees will also be asked to answer case study based/practice oriented questions.
Question setting pattern
 The question setting patterns will be both narrative as well as practice oriented based on case studies. Initially 25%, later on 50% and then up to 75% questions of both JAIBB and DAIBB Examinations will be based on case studies/practice oriented. Such limits may be attained in two to three years (2010, 2011 and 2012, respectively) after making the course contents, reading materials, library facilities and coaching facilities available to the candidates. Subject wise question setting patterns are delineated as under:
A Junior Associate of the Institute of Bankers, Bangladesh (JAIBB)
Subjects under narrative/descriptive type of questions shall be:
 Principles of Economics & Bangladesh Economy
 Business Communication
Organization & Management
Subjects under case studies/practice-oriented questions shall be
Practice & Law of Banking
Marketing of Financial Service
 Accounting for Financial Services
Banking  Diplomaed Associate of The Institute of Bankers, Bangladesh (DAIBB)
Subjects under narrative/descriptive type of questions shall be:
 Management of Financial Institutions                                               
Information Technology in Financial Services
Subjects under case studies/practice-oriented questions shall be
 Lending Operation & Risk Management                                                   
International Trade & Foreign Exchange                                                 
 Management Accounting
Question papers of all the six optional subjects under DAIBB (to be chosen by the candidates) shall be of descriptive type.
Eligibility Criteria
The eligibility criteria for appearing at the JAIBB (Junior Associate of the Institute of Bankers, Bangladesh) shall be at least pass certificate holder of H. S. C. Examination or its equivalent. Candidates must be employees of the member Banks/FIs of IBB.
Examination & Other Fees
IBB will charge an Enrolment Fee/Examination Fee of Tk 1000/- (Taka one thousand) only from each candidate for appearing in each examination (JAIBB & DAIBB) for the first time. Unsuccessful candidates will, however, pay an examination fee of Tk 300/- (Taka three hundred) only per subject for each subsequent appearance: The new Enrolment Fees will be effective from the next Winter (November 2009) session. A fee of Tk 50/- (Taka fifty) only might be paid for issuing Provisional Certificate and Tk 100/- (Taka one hundred) only for issuing a Final Certificate of both JAIBB and DAIBB.
The examination fee once paid for any examination is neither refundable nor can be used for the subsequent examination even if the candidate withdraws his/her application for examination or absents himself/herself from appearing at the examination and/or he/she is disallowed to sit for the examination for any reason, whatsoever
The Examination fee and other fees payable by a candidate to the IBB should be paid through a Bank Draft or Pay Order drawn in favour of the Institute of Bankers, Bangladesh
When a candidate makes the payment of any fee to the IBB, he/she should check with the IBB if the receipt of such payment is acknowledged by the IBB within a reasonable time
 The Examination Entry Form duly filled in, together with the Demand Draft/Pay Order representing the examination fee, should be sent by a candidate to the IBB well before the announced last date
Incomplete Examination Entry Form or such Form containing incorrect information shall be rejected by the IBB
Availability of Forms, etc.
 The Application Form for Enrolment, Examination Entry Form and other information may be obtained from the office of the Institute of Bankers, Bangladesh, Dhaka, or from the office of the General Manager, Bangladesh Bank at Chittagong, Sylhet, Rajshahi, Bogra, Khulna, Barisal and Rangpur as well as the office of Sonali Bank and other Banks as may be designated by the IBB for the purposes in view from time to time.
Submission of Examination Entry Form, etc.
 A candidate wishing to appear at any examination shall submit the prescribed Examination Entry Form duly filled in, together with the prescribed examination fee, to the IBB through the respective Administration Section of the Bank’s/financial institution’s Principal Office/Regional Office/Branch within the time as specified by the IBB before each examination
Date of examination, etc.
The time, place and date of each examination will be announced by the IBB from time to time
Issuance of Admit Cards
 On receipt of Entry Forms duly filled in by the candidates along with the Demand Drafts/ Pay Orders for enrolment fees and examination fees, the Institute will issue Admit Cards, signed by the Secretary General or any other person authorized by him, to the candidates. The Institute will indicate the name of examination centre and Roll Number of the candidate in the Admit Card. The Admit Cards of the candidates of Dhaka city will be sent by the Institute to the Local Office/Zonal Office/Regional Office/Administration Department of the Head Office of their respective bank/financial institution. The Admit Cards of the candidates of the places outside Dhaka city, where there is no office of Bangladesh Bank, will be sent to the Principal Office/Regional Office of Sonali Bank located there. Where there are offices of Bangladesh Bank, the Admit Cards will be sent by the Institute to those offices. The Candidates will have to collect their Admit Cards from the above mentioned offices of their respective Banks/Sonali Bank/Bangladesh Bank, as the case may be
Duration of examination
 The examination in all the subjects will be in writing, and the time allowed for each subject of both JAIBB and DAIBB of the Examination is three hours save and except for the following subject :    three and half hours  time will be allowed for the paper on Management Accounting of DAIBB Examination
Language of answers
Answer to the questions on all subjects shall be written either in Bangla or in English at the option of the examinee
Condition for appearing at DAIBB Examination, etc.
 No candidate will be allowed to sit for DAIBB without passing all the subjects of JAIBB Examination. No candidate will also be allowed to sit simultaneously for both JAIBB and DAIBB Examinations.
Change of Centre
 Change of examination centre will not be permitted except in the case of transfer of the candidate by his employer. An application for the change of examination centre duly certified by the bank/financial institution concerned under the circumstances mentioned above shall be sent to the Secretary General of the IBB at least fifteen days before the commencement of the examination
Time limit for passing examination
 The total time limit for passing both tiers of the Banking Diploma Examination is eight years: four years for JAIBB and four years for DAIBB. The time limit will commence from the month in which a candidate first appears at any examination. A candidate can avail of all the chances of appearing at the examination during the stipulated time limit. No extension of the time limit shall be allowed to any candidate. If a candidate can not pass JAIBB and/or DAIBB Examination within the stipulated time limit, he/she shall have to be registered afresh with the IBB if he/she desires to appear again at such examination in the future
Improvement examination
A candidate who has passed the examination on any subject shall not be allowed to sit for examination on the same subject again for the purpose of improving his/her result or for any other purpose.
Exemption/Waiver

No exemption shall be granted to any candidate from appearing at the examination on any subject of either JAIBB or DAIBB of the Banking Diploma Examination in consideration of his/her higher academic degree in the relevant subject. However, candidates who passed various subjects in former Part-I and Part-II Examination will be entitled to a waiver of the respective subject(s) as outlined below:

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