Banking: Products, Processes, and The Regulatory Environment
25 Questions
A. Products (P)
- Lending/Loans
a. Commercial
b. Residential
c. Consumer
d. Leases
e. Credit Card
f. Letters of Credit
- Deposits
a. Time (e.g., CDs, savings account)
b. Demand (e.g., checking account)
- Electronic Services
a. Wire Transfer
b. Automated Clearing House
c. Online Banking
d. Credit Card/Merchant Services
e. Other Electronic Services
- Foreign Exchange
- Asset Management/Trust
- Repurchase Agreements
B. Processes (P)
- Risk Management
a. Credit and Operational Risk
b. Allowance for Loan and Lease Losses
c. Asset/Liability Management (e.g., pricing, liquidity)
d. Reserves
e. Trading Market
- Underwriting
a. Loans
b. Private Placement
- ATMs
a. Proprietary
b. Shared
- Treasury Operations
- Back-office Operations
a. Payroll/Employee Benefits
b. Branch Operations
c. Derivatives
d. Wire Transfer
- Marketing Sales and Distribution (e.g., Bank Branches)
- Rating Advisory Service
- Mergers and Acquisitions
- Loan Operations (e.g., Collateral Issues, Perfecting Liens)
- Dealing Activities
C. The Regulatory Environment (P)
- Overview (e.g., Function of Central Bank)
- Laws and Regulations
a. Equal Credit Opportunity
b. Home Mortgage Disclosure
c. Reserve Requirements
d. Lending Disclosure
e. Deposit Disclosure and Protection
f. Real Estate Sales Disclosure
g. Self-assessment of Internal Controls/Risk Management
h. Financial and Personal Information Privacy
i. Anti-money Laundering
- Money and Banking
a. Role of Money and Banking
b. Effect of Interest Rate Movements
c. Monetary Management Theories
P=Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these topic areas.
A=Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these topic areas.
