Commercial banking primarily involves providing banking services to individuals, small businesses and large organizations. Commercial Banking as a career has been growing at a very fast pace and offers exciting opportunities to learn about business, interaction with clients and develop business relations. There is a wide range of opportunities in commercial banking, such as leasing, credit card banking, international finance and trade credit. http://www.vskills.in/certification/Certified-Commercial-Banker

1. Certified Commercial Banker
VS-1038

2. Certified Commercial Banker
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CertifiedCertifiedCertifiedCertified Commercial BankerCommercial BankerCommercial BankerCommercial Banker
Certification CodeCertification CodeCertification CodeCertification Code VS-1038
Commercial banking primarily involves providing banking services to individuals, small
businesses and large organizations. Commercial Banking as a career has been growing at a
very fast pace and offers exciting opportunities to learn about business, interaction with
clients and develop business relations. There is a wide range of opportunities in
commercial banking, such as leasing, credit card banking, international finance and trade
credit.
Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?
Vskills Certification in Commercial Banking are for those candidates looking for
opportunities in commercial banking sector catering to wide variety of services such as
leasing, credit card banking, international finance and trade credit. Vskills certification
significantly improves the chances of getting the desired role and is an added knowledge for
the candidate. This certification can be taken by candidates looking for new job
opportunities or promotion or just for skill assessment.
Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?
Vskills Certification in Commercial Banking is for candidates who are well-prepared and
enthusiastic about entering the field and Job seekers looking to find employment in
Finance department of companies or candidates who wish to improve their skill set and
make their CV stronger. The Certification also assists the existing employees looking for a
better role and proves their employers the value of their skills.
Test DTest DTest DTest Details:etails:etails:etails:
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in
this module.
Fee Structure:Fee Structure:Fee Structure:Fee Structure:
Rs. 4,000/- (Includes all taxes)

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Companies that hireCompanies that hireCompanies that hireCompanies that hire VskillsVskillsVskillsVskills Certified Commercial BankerCertified Commercial BankerCertified Commercial BankerCertified Commercial Banker
Vskills Certified Commercial Banker finds employment in big or small companies as a
Credit Analyst, Loan Officer, Branch Manager or Mortgage Banker. Many companies
contact us on a regular basis, and we forward them a list of our certified candidates, and the
candidates are highly in demand.

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Table of ContentTable of ContentTable of ContentTable of Content
1.1.1.1. Trends in BankingTrends in BankingTrends in BankingTrends in Banking
1.1 Global Trends
1.2 Domestic Trends
1.3 Dichotomous Approach in the Banking System
1.4 Holistic Overview
1.5 Autonomy in the Banking System
1.6 Asset Quality
1.7 Currency Convertibility
1.8 Off-shore Banking System
2.2.2.2. Evolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking System
2.1 Different Financial Systems
2.2 Money Lending System in Ancient India
3.3.3.3. Banking SystemsBanking SystemsBanking SystemsBanking Systems
3.1 Introduction
3.2 Type of Banking Systems
3.3 Universal Banking System
4.4.4.4. Functions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial Bank
4.1 Nature of Commercial Bank
4.2 Characteristics of Commercial Bank
4.3 Intermediation
4.4 Payment and Settlement System
4.5 Financial Services
5.5.5.5. Scheduled Commercial BankScheduled Commercial BankScheduled Commercial BankScheduled Commercial Bank
5.1 Analysis of Assets and Liabilities
5.2 Capital Adequacy and Risk adjusted Requirement
5.3 Risk Weighted Approach
5.4 Inter Bank Borrowing
5.5 CRR and SLR
5.6 Types of Deposits
5.7 Ownership of Deposits
5.8 Investments in Government and other Securities
5.9 Loans and Advances
5.10 NPA Resolution
5.11 Micro Prudential Norms
5.12 CBSR 1998
5.13 Credit Repression

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6.6.6.6. Banking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance Measurement
6.1 Internal Performance
7.7.7.7. Capital ManagementCapital ManagementCapital ManagementCapital Management
7.1 Introduction to Bank Capital
7.2 Long Term Debt and Loss Reserves
7.3 Capital Deficiency Correction
7.4 Recapitalization
8.8.8.8. Commercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertainties
8.1 Risk and Transformation Services
8.2 Internationalization of Banking System
8.3 RBI Guidelines for Risk Management
9.9.9.9. Derivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk Management
9.1 Nature and Type of Derivatives
9.2 Risk Regulation
10.10.10.10.Liquidity Risk ManagementLiquidity Risk ManagementLiquidity Risk ManagementLiquidity Risk Management
10.1 Introduction
10.2 Measuring Liquidity
10.3 Liquidity Management
11.11.11.11.Credit RiskCredit RiskCredit RiskCredit Risk
11.1 Nature of Credit Risk
11.2 Selection and Limitation
11.3 Credit Derivatives
11.4 Bank Lending Services
11.5 Syndicated Loan
11.6 Direct and Export Credit
11.7 Leasing
12.12.12.12.Interest Rate Risks (IRR)Interest Rate Risks (IRR)Interest Rate Risks (IRR)Interest Rate Risks (IRR)
12.1 Net Interest Income
12.2 Future, Option and Swaps
12.3 Forward Rate Swaps and Interest Rate Swaps
13.13.13.13.Investment ManagementInvestment ManagementInvestment ManagementInvestment Management
13.1 Portfolio Behavior of Commercial Banks
13.2 REPO and Reverse REPOs
13.3 Type of Government Securities
13.4 Yield Curve and Yield Measures
13.5 Bond Pricing and price volatility

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14.14.14.14.Foreign Currency DealingForeign Currency DealingForeign Currency DealingForeign Currency Dealing
14.1 Foreign Exchange Market
14.2 Technology and Trading
14.3 Participants in Foreign Exchange Market
14.4 Foreign Exchange Rates and Exchange Quotations
14.5 Ready Exchange Rate and Exchange Rate Points
14.6 Cross Points
14.7 Currency Arbitrage
15.15.15.15.Foreign Currency RiskForeign Currency RiskForeign Currency RiskForeign Currency Risk
15.1 Hedging and Forward Contracts
15.2 Forward Premium and Discounts
15.3 Futures
15.4 Currency Swaps
15.5 Foreign Currency Options
15.6 Option Strategies
15.7 Cross Currency Option Trading in India
16.16.16.16.International BankingInternational BankingInternational BankingInternational Banking
16.1 Introduction
16.2 International Banking Regulation
16.3 International Banking Activities
16.4 Country Risk and Euromoney
16.5 Loan Syndication and Agreement Provisions
16.6 Euro Loan Syndication

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Course OutlineCourse OutlineCourse OutlineCourse Outline
1.1.1.1. Trends in BankingTrends in BankingTrends in BankingTrends in Banking
Demonstrates the global trends in the financial service industry such as
consolidation and convergence of banks, development of financial institutions,
banks, asset management firms and insurance firms.
Describes the domestic trends prevalent in the financial system and financial
liberalization.
Explains the dichotomous approach in the banking system consisting of both
formal and informal sector.
Explains the need for a holistic overview to the banking system to appreciate the
development in response to the need.
Explains the three tier structure and the micro prudential norms
Describe the need to have an autonomous central bank to facilitate the setting of
benchmarks, control inflation, asses the changing financial environment and
implementing policies.
Explains the need to assess the quality of asset and illustrates the activities
performed by Board of Financial Supervision under of aegis of RBI.
Explains the process of converting currency i.e., the restriction imposed on foreign
exchange transactions or exchange control.
Describes the need for setting up off-shore banking system preface to convertibility
on capital account
2.2.2.2. Evolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking SystemEvolution of Commercial Banking System
Explains different financial systems - Market and Bank Oriented Financial Systems
Explains the money lending system followed in Ancient India
Types of Money Lenders and indigenous bankers
3.3.3.3. Banking SystemsBanking SystemsBanking SystemsBanking Systems
Brief introduction about the evolution of the banking system in India
Describes type of banking system and comparison between their operations
Explains the working and functionalities of Branch Banking
Illustrates the factors affecting Banking Systems
Explains the concept of Retail Banking and Wholesale Banking and their practices
Explains the reason for gap between Regulated and Wholesale deposit rates
Explains the concept of banking marketisation.
Elaborates the concept of Universal Banking in Germany, UK and India.
4.4.4.4. Functions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial BankFunctions of a Commercial Bank
Describes the nature and characteristics of Commercial Bank
Explains the functions of Commercial Bank

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Describes the role of Financial Intermediaries to provide intermediary services
such as brokerage and asset transformation.
Describes the differences between trading activities and commercial banking
Explains the need of payment and settlement system for improving the conduct of
monitory policy in the economy.
Explains other financial services that a commercial bank provides – securities
related services, advice on managing the portfolio or investment counseling.
5.5.5.5. Scheduled Commercial BankScheduled Commercial BankScheduled Commercial BankScheduled Commercial Bank
Banking Regulation Act, 1949
Analyses the assets and Liabilities of commercial banks
Explains the functions of Bank Capital
Describes the financial risks involved and need for capital adequacy in the financial
system
Describes the prescribed capital standards to be followed by commercial banks and
focus on adjusting the risks faced by the entire banking industry on account of the
density of relations amongst banks.
Classifies the capital of banks, explains the funded risk assets, funded risk assets,
off-balance sheet items and norms as prescribed to maintain minimum capital
funds.
Explains the Risk Weighted Approach followed to strengthen the banking system
by addition to equity.
Explains the concept of Inter Bank Borrowing, functions of Call Money Market
and explains the collateralized borrowing and lending obligation
Describes the relation between Money Market and Foreign Exchange Market
Explains the concept of CRR and SLR on inter-bank deposits
Explains different types of deposits – Term and Fixed Deposits
Describes Ownership of Deposits
Illustrate different type of assets of commercial banks
Identify Investments in Government and other Securities
Explains the accounting standards for investment, illustrate Investment Fluctuation
reserve, maturity classification of investments in Government Securities
Explains the process of Retail Banking, growth in housing finance and describes
risky loans (also called non-performing assets) as an indicator.
Describes NPA Resolution and Moral Hazards
Classification of assets
Describes Micro Prudential Norms and its elements – income recognition, asset
classification, provision for loans & advances and capital adequacy.
Illustrates on Committee Banking Sector Reform (CBSR) 1998
Describes valuation of all investment on mark to market basis to facilitate the
development of a healthy secondary market
Explains the concept of Credit Repression
6.6.6.6. Banking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance MeasurementBanking System and Performance Measurement
Explains the need and importance of strengthening the financial system

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Describes the system and methods used in banks, structural issues being faced and
integration of financial markets
Explains the legal and legislative framework as recommended the amendment to
RBI and Banking Regulation act.
Describes the need for evaluation of bank performance – Internal and external
performance.
Illustrates the planning process of the bank and personnel development
Explains Income Statement, Financial Ratios, Profit Ratios, Asset Quality
Management, Non-Performing Assets, Liquidity Ratios and evaluating operational
efficiency.
7.7.7.7. Capital ManagementCapital ManagementCapital ManagementCapital Management
Introduction to Bank Capital
Explain Long Term Debt and Loss Reserves
Explains the corrective actions to be taken at the time of capital deficiency such as
change in asset, change in dividend payout ratio, employee stock ownership, change
in profitability and addressing capital issues
Explains the concept of Recapitalization and merger among banks
Explains the process of crisis management and recommendation
Describes restructuring, process of addressing both systematic & Macro level issues
and policies for orderly restructuring.
8.8.8.8. Commercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertaintiesCommercial Banking Risk and uncertainties
Explains the nature of risk and need for risk management
Describes Risk Transformation Services such as Risk Management, Source of Risk,
Credit Analysis, Bank Marketisation and liability management.
Explains the concept of rollover loans and flexi rates
Explains the concept of Banking Internationalization to facilitate Asset-Liability
Management.
Illustrates the overall and types risks of a bank – Credit Risk, Interest Rate Risk,
Liquidity Risk, Operational Risk and Foreign Exchange Risk.
Explains the Treasury Functions and techniques to monitor risks.
Explains the RBI Guidelines for Risk Management
9.9.9.9. Derivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk ManagementDerivatives for Risk Management
Describes the nature, type and characteristics of derivatives
Explains different categories of risk associated with derivates and risk regulation.
10.10.10.10.ManagingManagingManagingManaging Liquidity RiskLiquidity RiskLiquidity RiskLiquidity Risk
Explains the concept of liquidity risk and ability to meet anticipated and contingent
cash needs
Elaborates various sources of liquidity and collateralized lending facility
Explains the process and need for liquidity measurement
Explains the various theories of Liquidity Management including Commercial Loan
Theory, Shiftability Theory, Anticipated Income Theory and liability Management
theory

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11.11.11.11.ManagingManagingManagingManaging Credit RiskCredit RiskCredit RiskCredit Risk
Explains nature of credit risk
Explains the principles in credit risk management – selection, limitation and
diversification
Explains the method of reducing credit risk
Explains the relation between credit risk and asset liability management
Explains the importance of credit derivatives as a means of evaluating and
transferring credit risk
Explains the uses of credit derivatives, types of credit derivatives, credit spread
options and credit linked notes
Explains different type of bank lending services for infrastructure projects, advances
against shares and debentures, bridge loans, loan against working capital etc
Explains loans against cash credit and features of loan system
Explains the procedure of loan syndication, process of syndication and syndication
documents
Illustrates the terms and condition of term loans
Explains the concept of direct and export Credit
Explains the process of leasing and describes the type of leases – Sales and lease
back, operating lease and Financial/ capital lease
Explains the concept of housing finance
12.12.12.12.Managing Interest Rate RiskManaging Interest Rate RiskManaging Interest Rate RiskManaging Interest Rate Risk (IRR)(IRR)(IRR)(IRR)
Explains the concept of Net Interest Income to determine the profitability of banks
Explain derivative instrument that allows banks to alter interest rate exposure i.e.,
Future, Option and Swaps
Explain the Types of Interest rate swaps and their uses
Illustrates forward rate agreement and interest rate swaps
13.13.13.13.Investment ManagementInvestment ManagementInvestment ManagementInvestment Management
Explains the portfolio behavior of commercial banks by accommodation principle,
profit maximizing principle and stock adjustment principle
Explains REPO and reverse REPOs as a tool to manage the liquidity and maximize
bank returns
Explains different type of Government securities
Explains the different type of investment risks and security specific risk
Explains the concept and behavior of yield curve and measures to evaluate yield
Explains the various measures of bond price volatility
14.14.14.14.Foreign Currency DealingForeign Currency DealingForeign Currency DealingForeign Currency Dealing
Describes Foreign Exchange Market and Euro-dollar market
Explains the purpose and organization of foreign exchange markets
Describes the impact of technology on trading
Explains the relationship between exchange and money markets
Participants in Foreign Exchange Market – Commercial Banks, Traders and
Investors, Dealers and Brokers, Investment Banks, Central Banks and Arbitrageurs
Explains the concept of foreign exchange rates and exchange quotations

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Explains the functioning of Ready Exchange Rate and Exchange Rate Points such
as spot exchange rates, forward exchange rates and calculations
Explains the concept of cross rates and spot contracts
Explains the concept of currency arbitrage and their type - two point currency
arbitrage and triangular arbitrage
15.15.15.15.Foreign Currency RiskForeign Currency RiskForeign Currency RiskForeign Currency Risk
Defines exchange risk
Explains the concept of Hedging and Forward Contracts
Explains the concept of transactional exposure, translation exposure, economic
exposure and their impact
Describes the technique to cover exchange risk
Explains the concept of hedging with forward contract – Hedging a long position
and short position
Explains the concept of forward premium and discounts
Describes the money market alternative and its comparison with forward contract
Explains concept of Futures – Hedging with Futures, Trading of futures, Types of
Traders, Contract Characteristics, Prices and Daily Settlement and determining
gains/losses
Explains the concept of currency swaps, uses and growth of swaps, pricing of swaps,
swap transactions
Defines foreign currency options and its features
Explains the concept of hedging with options and basic option strategies such as
buying a call, buying a put, selling a call and selling a put
Explains the techniques of pricing currency options and the role of Foreign
Exchange Rate Volatility, Spot Rate, Expiration Time and Interest Rate Differential
Explains the concept of Cross Currency Option Trading in India
RBI Guidelines for currency option trading in India
16.16.16.16.International BankingInternational BankingInternational BankingInternational Banking
Introduction, origin and development of international banking
Defines the International Banking Regulation
Explains the activities of International Banks such as bankers acceptance, CP and
CD
Illustrates loan syndication and loan agreement provisions
Defines guidelines for Euro Loan Syndication projects in India

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Sample QuestionsSample QuestionsSample QuestionsSample Questions
1.1.1.1. Which of tWhich of tWhich of tWhich of the following ought to be the core objective of a monetary policy?he following ought to be the core objective of a monetary policy?he following ought to be the core objective of a monetary policy?he following ought to be the core objective of a monetary policy?
A. Stability in employment
B. Price stability
C. Money supply
D. Growth in employment
2.2.2.2. The RBI is assigned the role of performing supervisory functions by virtue of theThe RBI is assigned the role of performing supervisory functions by virtue of theThe RBI is assigned the role of performing supervisory functions by virtue of theThe RBI is assigned the role of performing supervisory functions by virtue of the
powers conferredpowers conferredpowers conferredpowers conferred by the RBI Act, 1934. Which one of the following is not includedby the RBI Act, 1934. Which one of the following is not includedby the RBI Act, 1934. Which one of the following is not includedby the RBI Act, 1934. Which one of the following is not included
under the RBI Act, 1934?under the RBI Act, 1934?under the RBI Act, 1934?under the RBI Act, 1934?
A. Inspection of banks
B. Issues related to furnishing credit information from the commercial banks
C. Power of RBI to impose penalties
D. Definition of NBFCs
3. W3. W3. W3. Which of the following is not true with regard to the impact of NPAs on banks?hich of the following is not true with regard to the impact of NPAs on banks?hich of the following is not true with regard to the impact of NPAs on banks?hich of the following is not true with regard to the impact of NPAs on banks?
A. Erode current profits
B. Diminution in the value of loan assets
C. Reduction in interest income
D. Limit recycling of funds
4444.... A loan that is structured and supported specifA loan that is structured and supported specifA loan that is structured and supported specifA loan that is structured and supported specifically by the operation andically by the operation andically by the operation andically by the operation and
performance of a specific business or enterprise is called aperformance of a specific business or enterprise is called aperformance of a specific business or enterprise is called aperformance of a specific business or enterprise is called a _____________._____________._____________._____________.
A. Commercial loan
B. Personal loan
C. Educational loan
D. Overdraft
5555.... Which country by their policy statement, though often referring to price stabiWhich country by their policy statement, though often referring to price stabiWhich country by their policy statement, though often referring to price stabiWhich country by their policy statement, though often referring to price stability,lity,lity,lity,
attaches importance to controlling inflation?attaches importance to controlling inflation?attaches importance to controlling inflation?attaches importance to controlling inflation?
A. USA
B. Germany
C. Canada
D. Australia
Answers:Answers:Answers:Answers: 1 (B1 (B1 (B1 (B), 2 (A), 3 (), 2 (A), 3 (), 2 (A), 3 (), 2 (A), 3 (BBBB), 4 (), 4 (), 4 (), 4 (AAAA), 5 (), 5 (), 5 (), 5 (AAAA))))

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