Corporate Banking Practice Exam

About Corporate Banking
Corporate banking is the tailor-made financial services that financial institutions offer to corporations in the context of corporate financing and raise capital.

Typically, corporate banking is a specialized division of a commercial bank that offers various banking solutions, such as credit management, asset management, cash management, and underwriting to large corporations as well as to small and medium-sized enterprises (SMEs).

Commercial banks focus on business banking as it is one of their major sources of profit and assign specialized finance professionals, able to assist corporations to meet their business objectives. Unlike what many people think, business banking is completely different than investment banking; however, the terms are often used interchangeably.

Characteristics of Corporate Banking:
•    Clientele or Customer: They are small to middle-sized businesses and large conglomerates.
•    Authority: A corporate banking accounts can only be opened after obtaining consensus from the board of directors of the company. It means that they must authorize by an official vote or a corporate resolution. As well as, the company’s treasurer usually opens corporate accounts.
•    Credit rating: The conduct or functioning of the corporate account forms part of the credit history of the company. It affects the valuation and share prices of the company, the interest rates applicable to loans extended to the company, etc.
•    Expertise: Corporate banking requires expertise and corporate bankers are extremely well paid.

Corporate Banking Services
•    Credit - Loans and related credit products are offered to corporate customers.
•    Treasury services - Companies manage their working capital requirements and also facilitate currency conversion.
•    Fixed asset requirement financing - Needed by capital-intensive industries for the purchase of equipment, machinery, etc.
•    Employer services - It includes selection of retirement plans and healthcare plans, as well as payroll facilities, for employees.
•    Commercial services - It includes portfolio analysis, leverage analysis, debt and equity restructuring, analyses of real assets, asset management services and underwriters for initial public offering (IPOs), etc.

Why is Corporate Banking important?
There are many advantages that you get when you have a proper corporate banking account. They provide deposit services as well as business loans and real estate financing for business operation. There are chances for you to have more finance accounts for varying needs when your company starts growing. Corporate banking customers may also use this for getting some funding at the time of any financial crisis. They can secure special term loans for trade finance and business operations. Corp banking interest rate can also be much affordable. Customers receive special treatment when doing transactions. The banks provide service by designated staffs that are specially trained. These banks serve customers separately from the regular customers.

The importance of corporate banking is to
•    Provides deposit services as well as business loans and real estate financing for business operation.
•    Corporate accounts may also be used for getting some funding at the time of any financial crisis.
•    Can secure special term loans for trade finance and business operations.
•    Corp banking interest rate can also be much affordable.
•    Receive special treatment when doing transactions.
•    Service provided by designated staff that is specially trained.
•    Corporate banks serve customers separately from the regular customers
•    Can also provide bills of exchange

Who should take the Corporate Banking Exam?
•    Finance, banking or accounting  professionals
•    Business owners
•    Entrepreneurs
•    Anyone who wants to assess their banking skills
•    Banking, finance or accounting managers and senior executives
•    Professionals working in outsourced companies responsible for corporate banking operations
•    Any professional with skills and knowledge on corporate banking
•    Students

Corporate Banking Exam Objectives

Corporate Banking Exam tests your corporate banking skills covering marketing and management of business deposit and loan services of banks and financial institutions.

Corporate Banking Exam Prerequisite

Corporate Banking exam has no prerequisite.

Corporate Banking Certification Course Outline
1.    Banking Systems
1.1 Introduction
1.2 Type of Banking Systems
1.3 Universal Banking System

2.    Functions of a Commercial Bank
2.1 Nature of Commercial Bank
2.2 Characteristics of Commercial Bank
2.3 Intermediation
2.4 Payment and Settlement System
2.5 Financial Services

3.    Investment Management
3.1 Portfolio Behavior of Commercial Banks
3.2 REPO and Reverse REPOs
3.3 Type of Government Securities
3.4 Yield Curve and Yield Measures
3.5 Bond Pricing and price volatility

4.    Foreign Currency Dealing
4.1 Foreign Exchange Market
4.2 Technology and Trading
4.3 Participants in Foreign Exchange Market
4.4 Foreign Exchange Rates and Exchange Quotations
4.5 Ready Exchange Rate and Exchange Rate Points
4.6 Cross Points
4.7 Currency Arbitrage

5.    International Banking
5.1 Introduction
5.2 International Banking Regulation
5.3 International Banking Activities
5.4 Country Risk and Euromoney
5.5 Loan Syndication and Agreement Provisions
5.6 Euro Loan Syndication

6.    Corporate Banking
6.1 Corporate Banking Products (Fund and Non-Fund based )
6.2 Working Capital Loans,
6.3 Long Term Loans
6.4 LCs & Cash Management
6.5 International Trade
6.6 ALM Function

Exam Format and Information
Certification name – Corporate Banking Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199