DAIBB

Suggestions for DAIBB

Management of Financial Institutions

1.    What are financial institutions? What are the different types of financial institutions? What are their functions?

2.    Why is financial intermediary necessary? 

3.    Explain the different types of services provided by a bank.

4.    What is commercial bank and what are their major functions?

5.    Discuss the impact of Government policy on financial statement of financial institutions.

6.    What are the sources of funds of a commercial bank and what are the regulations imposed on commercial banks?

7.    What are the sources & uses of funds of a non-bank/ depository financial institution?

8.    What is minimum capital and liquidity requirement for a non-bank financial institution?

9.    What are the sources of revenue and areas of expenses for a bank & insurance company?

10.  What are the processes for measuring and evaluating the performance of a financial institution? 

11.  Discuss rate sensitive asset and rate sensitive liabilities with example.

12.  Explain liability structure.

13.  Explain re-pricing model with example.

14.  What are the rationales of liquidity and liability management?

15.  Why are financial institutions concerned with liquidity/importance?

16.  Explain interest rate risk with example.

17.  Define depository institutions and describe its different types.

18.  Explain the different types of liabilities dealt with the financial institutions with example.

19.  What are the principal money market and capital market instruments available to the banks in Bangladesh?

20.  What is financial intermediary and what are the advantages enjoyed by market participants from this?

21.  What is meant by non-banking financial institutions and what are its different types?

22.  What is an insurance company and what are its various types?

23.  What is an investment company and what are its different types?

24.  What are the ways in which an investment-banking firm may be involve in the issuance of a new security?

25.  What are the components of Tier-I & Tier-II capital according to Basel Accord?

26.  Point out the major guidelines regarding management of capital according to Basel-II.

27.  Discuss the purpose of Market Discipline in relation with accounting disclosures under revised Regulatory Capital Framework for banks in line with Basel-II.

28.  What are the justifications of maintaining adequate capital? Define different capital requirement.

29.  Discuss the market value of capital considering the increase and decrease in the value of loan.

30.  What are the differences between market value and book value of capital?

31.  What is meant by liquidity management and what are its different strategies?

32.  What is meant by Asset Liability Management (ALM) of a financial institution? 

33.  What do you mean by Loan Securitization? Explain its impact on banks.

34.  What do you mean by mutual fund? Discuss the different aspects of mutual funds. 

35.  Explain the forces of demand for and supply of liquidity.

36.  Discuss the risk management process for a financial institution.

37.  Explain different types of risks faced by a financial institution.

38.  Define credit risk. What are the three steps in credit risk management process?

39.  What do you mean by reputation risk? What type of losses may be induced in a bank due to reputation risk?

40.  Define CAMELS rating and write down the composite ratings of this.

41.  Describe the functions of Credit Administration Department of a bank. 

42.  Define loan sale and explain different types of loan sale.

43.  Discuss the different types of loan sales contract.

44.  Why banks and other financial institutions sell loan?

45.  Short Note:

§  Securitization

§  Loan Sales

§  Mobile Banking

§  Spread & Burden

This content misses the mathematical problems which will be shared later 

Lending Operation & Risk Management

1.    Discuss different types of credit facilities that a commercial bank can offer to its clients.

2.    What do you mean by credit planning? What factors are to be taken into consideration while making a credit plan for a bank?

3.    Discuss the important components those are to be taken in consideration in formulating the lending operational policy of a bank.

4.    Discuss the important points to be looked into while selecting a prospective good borrower.

5.    In selecting a borrower, it is perfectly made, “loan cannot be turned into bad” Elaborate your comments.

6.    Explain why creditworthiness of an applicant is assessed and what aspects are to be taken into consideration in assessing the creditworthiness?

7.    Define SME credit with reference to BB’s given definition. List out the booster sectors financed under SME scheme.

8.    Do you think that the credit delivery under SME scheme is given due weight-age by the bank and financial institutions form the viewpoint of national interest? Explain. 

9.    Distinguish between SME & Agricultural credit.

10.  List down the activities those are financed as included in the credit portfolio of your bank.

11.  Define Portfolio Management. Highlight the role and responsibilities of a branch manager in identifying a borrower, loan processing, and appraisal of the loan proposal. *

12.  What do you mean by Asset – Liability Management (ALM)? Absence of good ALM of a bank may lead to different crisis to jeopardize the image and soundness of the bank – explain.

13.  Banks usually extend credit against securities. List down the different types of securities against which banks sanction loan to its customers.

14.  Distinguish between Pledge & Hypothecation. As a banker which one will you prefer? Justify your answer.

15.  What is loan pricing? Discuss the components those are required to be taken into account in pricing of loan. In competitive market, Variable or fixed – which pricing model as banker would you advocate? Explain.  

16.  Proper pricing is most essential before launching a new loan product- explain.

17.  Distinguish between term credit and short-term credit. Why do the private commercial banks prefer short term lending? Explain. *

18.  National economy will not flourish if all banks do not equally participate in financing the long term investment projects – Argue on behalf.

19.  What do you mean by Working Capital Loan? Discuss the importance of working capital loan for running an industrial project. Distinguish between WCL & CC.

20.  How would you assess the working capital requirement of poultry industry? Prepare a case study assuming 5000 birds in the poultry firm.

21.  What do you mean by a project? List down the cost components of a Rice Mill Project.

22.  What do you mean by project appraisal? During appraisal of a project loan proposal, what factors does a banker take into consideration?

23.  Mr. X, proprietor of an enterprise of your branch area applied for a loan for tk. 10 Lac to establish a fishery project. Write an appraisal report explaining the following points:

§  Technical aspects

§  Financial aspects

§  Commercial aspects

§  Managerial aspects

§  Recommend the loan amount

24.  What is fund flow? Discuss the importance of fund flow statement for a bank.

25.  Discuss the differences between fund flow and cash flow statement. Write a sample of a cash flow statement.

26.  Explain why core risk management is getting so much highlighted for proper financing of a bank.

27.  Distinguish between Money Market & Capital Market. Can increased call money rate influence the capital market? Elaborate with example.

28.  What do you mean by SEC? Elaborate its functions. Do you think that SEC is performing its role properly by monitoring and controlling capital market of our country?

29.  What do you mean by CRG? What is its purpose? Explain different aspects of Credit Risk Grading (CRG) with grading points. Write down the components of CRG.

30.  What should be the expected minimum CRG requirements for extending credit? Explain with example.

31.  Distinguish between Lending Risk Analysis (LRA) & Risk Grading (CRG).

32.  List down the risks factors those can make an industry sick. Explain how each factor accelerates the sickness? 

33.  What is Provisioning? Discuss the basis of determining the status of classified loans and advances.

34.  It is due to the increase of classified loans of the bank that they now facing liquidity problems and borrower inter bank call money at very high rate? Justify the viewpoint.

35.  What is loan write-off? Before sending a loan write-off proposal to the Head Office, list down the preconditions to be fulfilled for the borrower to be eligible to get the write-off facility.

36.  Distinguish between interest remission and write-off. Among those, which one will you prefer? Why?   

37.  Distinguish between loan write-off and loan re-scheduling/re-structuring.

38.  Discuss loan-rescheduling rules set by Bangladesh Bank.

39.  Discuss loan write-off rules set by Bangladesh Bank. Does it have any effect on banks balance sheet? Explain.

40.  Short Notes:

§  Debt-Equity Ratio

§  Debt Service Coverage Ratio

§  Non-performing Asset

§  Loan Pricing

§  Loan Portfolio

§  Corporate Banking

§  SME Financing

§  Asset Liability Management (ALM)

§  Break-even Point

§  Capital Market

§  Micro-credit

§  Packing Credit

§  Loan Documentation

§  Back-to-Back L/C 

§  Discrepant L/C 

§  Loan Syndication

§  Pari-passue Charge

§  Micro-credit Regulatory Authority (MRA)

§  Sensitivity Analysis

§  Bankers Book Evidence Act

§  Preference Share

§  Economic Rate of Return

§  Green Banking

§  Liquidity Management

 

International Trade and Foreign Exchange

Foreign Trade 

1.    Briefly discuss Foreign Trade & foreign exchange and trace their relationship.

2.    What are the sources from which foreign exchange is supplied in the black market (hundi) and the purposes for which it is used? How this market is used for money laundering? ² 

3.    What are the various methods of payments that are used to settle payments arising from international trade? Briefly describe them.^3*

4.    Who are the authorized dealers in Bangladesh? Briefly enumerate the roles of ADs in relation to export & import trade of Bangladesh.

Foreign Exchange Market & Rate

5.    What do you mean by forward exchange?

6.    Why foreign exchange is booked forward? ³

7.    Who are the main participants in forward exchange deal?

8.    Why do customers take forward exchange cover?

9.    What types of risks are covered through forward exchange transactions?

10.  What are the factors that influence the forward margins, i.e., premium of discount?

11.  How can a bank cover its own risks arising from forward transactions with customers?

12.  How does a forward exchange differ from a spot exchange?

13.  What are the main features of foreign exchange market in Bangladesh? What further steps are necessary to introduce dynamism in the market? What is meant by exchange position?

14.  Distinguish between:

·         Fixed and Floating Exchange Rate

·         Spot Rate & Forward Rate

·         Direct Rate & Indirect Rate

·         Devaluation & Revaluation 

15.  Why does the need for exchange of one currency into another arise?

16.  What are the factors responsible for appreciation or depreciation of a currency?

17.  What are the factors that contributed to depreciation of Bangladesh Taka recently?   

18.  What are the causes of changes in the exchange rates of currencies?

19.  Distinguish between fixed and floating exchange rate.

20.  What are the factors that affect exchange rates under the floating rate system?

21.  Discuss the kind of exchange rate system that operates in respect of Bangladesh taka.

22.  What does exchange control means? What are the main features of exchange control in Bangladesh?

23.  How does the central bank maintain controls over foreign exchange transactions in Bangladesh?

24.  Suggest the changes that can be made in the exchange control regulations to create a conductive and market friendly business environment.

Foreign Trade Credit

25.  Briefly describe the purposes and the types of export credits/pre-shipment export credit.

26.  What are the precautions a bank should take to ensure safety of funds lent to the customers as pre-shipment credit?

27.  Describe the types of credit facilities offered to the importers/exporters by banks in Bangladesh.

28.  What are major risks involved in financing for the importers/exporters and what are to do against these risks? ^2*

29.  Distinguish between LIM & LTR. Briefly discuss the advantages and disadvantages of financing imports under LTR.

30.  What are the risks associated with LTR and the steps a bank should take to avoid these risks?

31.  Describe the importance of exports and imports in the context of Bangladesh. Give a brief account of the assistance provided by banks in Bangladesh in respect of export & import. ³  

Letter of Credit

32.  What are the various types of letter of credit? What are the parties involved in a letter of credit?

33.  Briefly discuss the rights & responsibilities of the following parties under a confirmed letter of credit/ Documentary Credit:

·         Applicant of the credit

·         Beneficiary

·         Opening/Issuing Bank

·         Advising Bank

·         Negotiating Bank

·         Reimbursing Bank

34.  What the negotiating bank should do if there are discrepancies in the documents presented by the beneficiary?

35.  Define Documentary Credit. What are the advantages of a Documentary Credit?

36.  Distinguish between Back-to-Back letter of credit and transferable letter of credit.

37.  Describe briefly the types of frauds that occur in connection with documentary credit.

38.  Distinguish between documentary credit and documentary collection.

Balance of Payments

39.  What is meant by balance of payments?

40.  Describe the factors responsible for adverse balance of payments. 

41.  What corrective steps a developing country like Bangladesh can take to correct an adverse balance of payments?

42.  How does Balance of Trade differ from Balance of Payments? ²

Foreign Investment

43.  What are the principal incentives offered for foreign investment in Bangladesh?

44.  Analyze the favorable and adverse impacts of foreign investment on Bangladesh economy

45.  What are the measures you would suggest to improve the climate for foreign investment in Bangladesh.

46.  What do you mean by Flight of Capital? Describe why & how capital flight from Bangladesh? What preventive steps you would suggest to stop capital flight?

Foreign Remittance

47.  Describe the various methods available to overseas Bangladesh Nationals for transfer of funds to the home country. What are the problems normally encountered by them for such transfer?

48.  Discuss the trends and main sources of foreign exchange remittances.

49.  Discuss the importance of foreign exchange remittances by Bangladesh Nationals on our economy.

50.  What are your suggestions for improvement of the banking channel for remittances to Bangladesh at low cost and greater speed?

51.  What are your suggestions to encourage Bangladesh Nationals to send remittance through official channel?

Short Notes:

Foreign Exchange Market	Export Policy of Bangladesh	Received for Shipment Bill of Lading
Nostro and Vostro Accounts	Long & Short Exchange Position; Open Position	Authorize Dealer in Foreign Exchange
Generalized System of Preference	Back-to-Back Letter of Credit	International Monetary Fund
Red Clause Letter of Credit	Value Date	Off-shore Banking
Exchange Position	Floating Exchange Rate	Floating Exchange Market
European Union	Asian Development Bank	World Trade Organization
Asian Clearing Union	Special Drawing Rights	Foreign Correspondents
Revolving Letter of Credit	D/P Bills & D/Bills	Option Forward
Bill of Exchange	Bill of Lading	Transport Documents
Consular Invoice	Certificate of Origin	Pre-shipment Inspection
Convertibility of Taka	Financial Derivatives	Money Laundering
Interest Arbitrage	Consignment Sale	Packing Credit
SWIFT	Cross Rate	Forced LIM
Inco-terms	Swap	Libor
EPZ	Euro-currency

 This content misses the mathematical problems which will be shared later  

                   Information Technology in Financial Services

Computer Basics:

1.     What is a computer? Describe the features of different generation of computers with example. ³

2.     Describe different types of computer based on capacity and performance/capacity. ³

3.     Describe the classification of computers on the basis of construction & working principles. ^3-*** 

4.     What are the main functional units of a computer? Describe the functions of each unit.

5.     Draw the block diagram of a micro-computer and describe its control unit. ²

6.     Draw the organization of microcomputer system showing its bus and important components.

7.     Name the elements residing on the motherboard of a microcomputer.

8.     Using a diagram describe the Central Processing Unit (CPU) of a digital computer. ⁵

9.     What are the major security threats in the use of computer? How can you prevent those?

10.  Briefly discuss the capabilities & limitations of a computer. ³

ICT Policy:

1.     What is Audit Trail & ICT Audit? Explain the usefulness of ICT Audit in banking operation. ^6***

2.     Discuss on ICT Policy of Bangladesh.

3.     Discuss how to achieve the objectives of digital Bangladesh?

Computer & Financial Sector: 

1.     ‘Modern society cannot run without computer’ – explain.

2.     Discuss the impact of computers in banking sector. ²  

3.     Name some computer aided delivery channels of modern banking

4.     Describe Business Continuity Plan (BCP). Discuss its importance for a bank. ^2***

5.     Describe the use of computer for cash management. ³

6.     How can a computer play in important role in foreign exchange transaction? ²

7.     Discuss how computer can help investment management for a bank. ^4*** 

8.     ‘Banking sector has to play the vital role to make digital Bangladesh a success’ – Discuss.

9.     Discuss the impact of computer on efficiency of financial sector.

10.  Describe the role of computer system in statistical analysis of a bank. ²

11.  Briefly discuss about the back-up strategy of a core banking system.

12.  What are the problems of banking computerization in Bangladesh? What is your opinion to overcome the problems?  

13.  Discuss the impact of computerization on modern society. ²

14.  Discuss the advantages and disadvantages of home banking. ²  

Number System:

1.     Describe different types of number system with example. ⁹

2.     What do you mean by ‘Parity Bit’? Describe the use of Parity Bit. What is the difference between odd and even parity bit? Describe Odd & Even Parity check. ⁴

3.     What is the number system directly used by computer? How it represent the other number systems?

4.     Why is number conversion necessary for computers? Convert the following numbers:

(10011011)2 to decimal	(100.01)2 to decimal	(AC15)16 to binary	(10-01)2 to decimal
(111111.001)2 to decimal	(10110.1101)2 to decimal	(B105)16 to binary	(99C)16 to binary
(75.232)8 to decimal	(A 1 B)16 to decimal	(6258)10 to octal	(10001000)2 decimal
(1058)10 to octal	(A 2 B)16 to decimal	(275)8 to binary	(253)10 to binary
(95A)16 to decimal	(AB8C)16 to binary	(15)8 to binary	(AB8C)16 to binary
(5B.EF)16 to binary	(205.5)10 to binary	(527.46)8 to binary	(AB12)16 to binary

Software:

1.     What is computer software? What are various types of software? Discuss about utility software. ²  

2.     Define system and application software and their differences. Name two core banking software, four package software, three utility software, five anti-virus software, three operating system, three application package, and Network operating system.

3.     Write down the names of any four banking software system. Discuss the advantages of using banking software.

4.     Describe the stages of software development life cycle. ^4***

5.     What is an Operating System and its features? Write down the name and features of three modern operating systems with functions. ⁵

6.     What do you understand by Basic Input/Output System (BIOS)? Explain the role of BIOS while turning on of a computer.

7.     Distinguish between machine language, assembly language, and high level language.

8.     Discuss the features of Fourth Generation languages. Name four languages of this generation. ⁴

9.     What are the functions of below described software’s?

·          Operating System***

·          Productivity Software

·          Antivirus Software

·          Database Management System

·          Application Software ***

·          System software

10.  What do you understand by ERP Software?

11.  What is computer virus? How can we prevent it? ^5*** 

Hardware, Memories & Storages:

1.     What is CHIPS? Discuss its functionalities.

2.     Briefly discuss the functions of RAM, ROM, Hard Disk, BIOS and Cache Memory. ²

3.     Name and describe two input, two output, and four storage devices.

4.     What is microprocessor? What do you mean by “Intel dual core, 2.4 GHz”? 

5.     What is computer memory? Briefly discuss different types of computer memory.

6.     Briefly discuss the functions of different kinds of computer memories. ***

7.     Distinguish between main memory & auxiliary memory. ²

8.     What do you understand by storage devices? Name and describe various types of storage devices.²

9.     Explain the mechanism in storing data in hard disks. How are numbers and alphabets stored in computer memory?

10.  Describe the recording method in computer disk. 

11.  Ditinguish between Stabilizer and UPS. ²  

Networking: 

1.     What is computer network? Describe various networks.

2.     Discuss the benefits a bank can derive from the use of computer networks. ^{2 ***}

3.     What is firewall? Why and where is it necessary?

Data Security:

1.     Briefly describe encryption & decryption process for data confidentiality and point out the importance for encryption & decryption keys. ²  

2.     How data is kept secured by Encryption & Decryption method?***

3.     Explain the usefulness of data back-up.

4.     What is Digital Signature? How does it ensure that data are genuine?

5.     Briefly describe security measures for software, data, and networks. ³

6.     What are the features, techniques, functions & importance of Data Center (DC) and Disaster Recovery Site (DRS)? ³

7.     Discuss the Physical and Environmental setup for Data Center (DC).

8.     Write down the characteristics and functions of RDBMS. ³

9.     What is database management system? Discuss about its usage. Comment on duplication of databases at different levels. Discuss the benefits of database against flat file. ***

Electronic Fund Transfer (EFT):

1.     Briefly discuss the Electronic Fund Transfer (EFT) system. ³

2.     Discuss the settlement procedure for online transaction in EFT.

3.     What is SWIFT? Describe the mechanism of transmitting messages through SWIFT from one place to another.

4.     Discuss about SWIFT and its uses in banks³. 

5.     Discuss about electronic payment system. ⁴

6.     Discuss about the BACH & BEFTN operations in Bangladesh.

On-line & Internet Banking:

1.     What is the current status of on-line banking in Bangladesh?

2.     What are the limitations for achieving true on-line banking sector?

3.     What are the benefits of online banking? ²

4.     Discuss about on-line processing and batch processing. ^6***

5.     What do you understand by inter-bank and inter-branch reconciliation? Describe the use of computer in inter-branch reconciliation. ⁴

6.     Discuss about the process of Automated Clearing House. How MICR Codes in bank cheques help the ACH process? ⁶

7.     What is cheque truncation? ⁴

8.     What are the differences among OMR, OCR & MICR? What are their functions? ^3***

9.     What is Phishing? How can we prevent it in Internet banking? ³

10.  Distinguish between an Internet and an Intranet. What is the Internet?

ATM & Plastic Money:

1.     What is an ATM? Discuss the operation of an ATM in connection with online and offline systems. ³

2.     ATM has made our life easy- explain/why it is so attractive? 

3.     What is plastic money? Discuss various forms of plastic money used in banking system.

4.     What are the differences/functional differences between Debit & Credit card? ²

5.     Briefly discuss about/features of Debit Card, Credit Card & Smart Card. ⁴

E-commerce & E-banking:

1.     What is e-commerce? How does banking sector play an important role for e-commerce? What are the benefits of e-commerce?*

2.     What is e-banking? Describe the security measures that should be taken in e-banking procedure.

3.     What is e-governance? Describe its necessity in banks. ²

Short Notes:

LAN	CPU	ICT Audit	Internet
WAN	MAN	Smart Card	Intranet
P/N	EBCDIC	SPAM	Extranet
ATM	MICR	Spyware	Phone Banking
CHIPS	ASCIL	Firmware	SMS Banking
BCD	Motherboard	Phishing	Input & Output Devices
ASCII	E-payment Gateway	Virus	Any Branch Banking
PIN	Hacking & Hacker	Digital Signature	Website
UPS	Inter-bank reconciliation	Cash Memory	Web Browser
RAM	E-banking	Open Source Software	Unicode System
RDBMS	Digital Bangladesh	Primary Memory	VISA & MasterCard