Topic & revision guideCAIIB
An asset and liability committee connects funding, pricing and investment choices with the bank's risk appetite. Learn to turn a balance-sheet report into a decision with an owner, evidence and a review trigger.
Topic & revision guideCAIIB
A liquidity maturity ladder arranges expected receipts and payments by time. Learn why a comfortable total balance can conceal an early cash shortage and why behavioural assumptions need evidence and regular challenge.
Topic & revision guideCAIIB
Repricing gap analysis compares assets and liabilities whose interest terms reset within a period. Learn to distinguish rate sensitivity from cash maturity and to state the assumptions behind a simplified earnings estimate.
Topic & revision guideCAIIB
Duration summarises the timing and interest-rate sensitivity of bond cash flows. Learn why economic value can fall even when near-term income looks steady, and why duration is an approximation with defined limits.
Topic & revision guideCAIIB
Funds transfer pricing assigns internal funding credits and charges to business activities. Learn how it separates customer margins from funding responsibility and why the chosen maturity and liquidity assumptions shape performance comparisons.
Topic & revision guideCAIIB
Stress testing explores how adverse conditions could affect a bank's position. Learn to distinguish scenario assumptions from forecasts and to connect test results with decisions that remain feasible when several risks interact.
Topic & revision guideCAIIB
Expected credit loss is a probability-weighted assessment of loss, while unexpected loss concerns variability around expectations. Learn the roles of default probability, exposure and recovery assumptions without confusing a teaching estimate with an accounting or regulatory rule.
Topic & revision guideCAIIB
Credit concentration can arise from shared sectors, geography, collateral or repayment drivers. Learn why a large number of individually different borrowers may still expose the bank to the same underlying economic shock.
Topic & revision guideCAIIB
Risk-adjusted performance compares earnings with the resources and risks needed to generate them. Learn why a larger margin may not represent better business when credit losses, operating costs and capital use differ.
Topic & revision guideCAIIB
Capital supports loss absorption, while liquidity concerns making payments when due. Learn why one cannot substitute automatically for the other and how a bank can face different combinations of solvency and cash-flow pressure.
Topic & revision guideCAIIB
A bond's coupon, market price and yield describe different aspects of its cash flows and valuation. Learn why an unchanged coupon does not imply an unchanged return for someone buying at a different price.
Topic & revision guideCAIIB
A repo combines a securities sale with an agreement to reverse it under specified terms. Learn to distinguish the funding purpose, collateral role and cash-flow obligations without treating security ownership language as the whole economic story.
Topic & revision guideCAIIB
Treasury controls distinguish trading decisions, independent risk monitoring and transaction completion. Learn why separate roles, timely confirmations and reconciliations matter even when a dealer's positions appear profitable and within the reported limits.
Topic & revision guideCAIIB
A two-way foreign-exchange quote gives the dealer's buying and selling prices for the base currency. Learn to identify currency units, customer direction and quotation viewpoint before multiplying, dividing or comparing a spread.
Topic & revision guideCAIIB
A forward contract fixes an exchange relationship for a specified future transaction under agreed terms. Learn to align currency, amount and timing with the exposure and to judge the hedge by the underlying cash flow.
Topic & revision guideCAIIB
An FX swap exchanges currencies on one date and reverses them on another under agreed terms. Learn to trace both legs, distinguish temporary currency funding from an outright forward and identify the cash-flow obligations that remain.
Topic & revision guideCAIIB
A counterparty can fail before a trade settles or during the exchange of payments and deliveries. Learn why replacement exposure differs from principal settlement exposure and why a small market value does not settle both questions.
Topic & revision guideCAIIB
Working-capital analysis follows money through inventory, sales, receivables and supplier payments. Learn why revenue growth can increase funding needs and why balance-sheet ratios need support from the business's actual collection and payment behaviour.
Topic & revision guideCAIIB
Debt-service analysis compares a defined cash resource with scheduled interest and principal obligations. Learn why accounting profit is insufficient by itself and why the numerator, denominator and timing must be stated before interpreting a coverage ratio.
Topic & revision guideCAIIB
Project appraisal connects construction assumptions, operating performance and financing obligations. Learn how delays and cost overruns can interact, and why sensitivity analysis should examine the cash-flow consequences rather than change isolated numbers without explanation.
Topic & revision guideCAIIB
Risk appetite describes the risks an institution is willing to accept in pursuing its objectives. Learn how a broad statement becomes measurable boundaries, escalation triggers and decisions that remain connected with the bank's capacity.
Topic & revision guideCAIIB
A balanced scorecard connects strategic goals with financial, customer, process and capability measures. Learn to choose indicators that test the strategy's causal logic and avoid treating increased activity as proof of a better customer outcome.
Topic & revision guideCAIIB
Net present value compares discounted incremental cash inflows and outflows. Learn to distinguish project cash flows from accounting allocations, recognise opportunity costs and test the assumptions behind an attractive investment result.
Topic & revision guideCAIIB
Workforce planning compares service demand with the capabilities and capacity needed to deliver it. Learn why headcount alone misses workload variation, skill requirements and the continuity risks created by dependence on a few experienced employees.