This is an independent topic guide, not the official syllabus. Compare it with the current paper outline and rules published by the examination authority.
01 / UNDERSTANDING
Learning objectives
Study single-name, group, sector, geographic and collateral concentration as different lenses. Build a network showing how apparently separate businesses depend on the same demand source. The objective is to identify an overlooked common driver and propose a measurement or scenario that makes it visible without inventing a universal acceptable exposure limit.
02 / UNDERSTANDING
The concept in context
A portfolio can appear diversified by name while remaining dependent on a small set of common drivers. Suppliers, distributors and employees associated with the same industry may all weaken together. Concentration analysis therefore examines connected repayment sources and economic relationships as well as the size of individual borrower exposures.
03 / UNDERSTANDING
A worked learning case
A fictional bank lends to hotels, taxi operators, food suppliers and local retailers in one tourist destination. Borrower names and business categories differ, but a sustained decline in visitors could affect them all. The analyst maps dependence on tourism and checks whether the same local property market also supports much of the collateral.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Does lending to many differently named borrowers prove that a portfolio is diversified?
Show the answer and reasoning
No; borrowers may share the same economic repayment driver.
Borrower count describes the number of relationships, not their independence. Several businesses may depend on one employer, sector, region or market, causing losses to rise together under a common shock. Diversification analysis should examine those links and collateral dependencies rather than treating different names as sufficient evidence of separate risks.
Two traps to watch for.
- Measuring diversification only by the number of loan accounts.
- Ignoring a common collateral market after mapping borrower sectors.
YOUR TOPIC-SPECIFIC LEARNING MAP
Your revision map
Map repayment drivers across the fictional businesses.
Identify collateral dependencies separately from income dependencies.
Design one scenario that challenges the shared exposure.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- iibf.org.in https://iibf.org.in/caiib-certified-associate-IIBF
- iibf.org.in https://iibf.org.in/documents/RulesSyllabus/2026/FlagshipCourses/60%20-%20CAIIB_24.07.25_Change_Final%20Website_23.02.2026.PDF
- rbi.org.in https://rbi.org.in/scripts/NotificationUser.aspx?Id=12281
For CAIIB preparation, check the current official notice before relying on changing dates, rules or examination requirements.
