OSCB Assistant Manager flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Dual control

A control requiring two authorized officers to jointly handle or approve cash, vault access, negotiable instruments, or high-value transactions so that no single person can complete the action alone.

Teller difference memo

The record prepared at shift close when a cash drawer does not tally, documenting the overage or shortage, the amount, the cause if known, and the reviewing officer's sign-off.

Clearing return window

The defined period within which an outward cheque may be returned unpaid by the paying bank; after this window, liability for the instrument shifts to the collecting bank.

Suspense account

A temporary ledger account holding unallocated or unidentified amounts pending investigation; balances must clear within the aging window and never remain parked indefinitely.

Five Cs of credit

Character, capacity, capital, collateral, and conditions; the standard framework for assessing a borrower's willingness and ability to repay before sanction.

Debt Service Coverage Ratio

Net operating income available for debt service divided by total debt service due in the period; a value below one means operations cannot cover installments.

FOIR

Fixed Obligation to Income Ratio: total monthly obligations divided by net monthly income; retail lenders typically cap it between 40 and 55 percent by income band.

Loan-to-Value ratio

Loan amount divided by the appraised value of the collateral; a lower ratio means a larger borrower equity cushion and a lower loss given default.

Drawing power

The borrowing limit available against pledged stock and book debts, computed after margin and after excluding overdue or obsolete items from the statement.

Daily product interest

Savings interest computed as the sum of closing balance multiplied by days held, times the rate, divided by days in the year; compounding follows the product master.

Premature withdrawal penalty

The rate reduction applied when a fixed deposit is closed before maturity, usually paying the card rate for the run tenor minus a disclosed spread.

Dormant account

An account with no customer-initiated transaction for the defined period, commonly 24 months; it is restricted and reactivation requires fresh identification.

Depositor education fund

The fund receiving balances from accounts untouched for ten years; the bank remains liable to pay the customer on a valid claim.

Nomination

A customer's designation of a person to receive deposit proceeds on death; every account should carry one or a written opt-out.

Placement stage

The first AML stage, where illicit cash enters the financial system through deposits, purchases, or cash-intensive businesses, making it the most visible point of detection.

Enhanced due diligence

The higher CDD tier applied to politically exposed persons, high-risk cash businesses, and weak-regime jurisdictions, requiring source-of-wealth checks and senior approval.

Beneficial ownership

The natural person who ultimately owns or controls a customer entity above the set percentage threshold, or who exercises control by other means; must be identified and verified.

Suspicious Transaction Report

The confidential report filed with the financial intelligence unit when transactions appear linked to illicit activity; tipping off the customer is prohibited.

Structuring

Splitting transactions to stay below reporting thresholds; it is itself a red flag and a reportable pattern even where the underlying funds are lawful.

Segregation of duties

The control that separates origination, authorization, custody, and reconciliation so no single officer can both create and conceal a fraudulent transaction.

Key Risk Indicator

A threshold metric such as exception counts or reconciliation breaks that signals rising risk early and triggers escalation before losses occur.

Liquidity coverage ratio

High-quality liquid assets divided by net cash outflows over a 30-day stress period; it measures short-term survival capacity under a run scenario.

Operational risk loss register

A central log of losses by category, namely process, people, systems, and external events, used for control remediation and capital assessment.

COSO components

Control environment, risk assessment, control activities, information and communication, and monitoring; the standard framework for evaluating internal control design and operation.

Accrual accounting

Recognition of income and expense when earned or incurred, not when cash moves; interest income accrues over time and is suspended on impaired loans.

Nostro reconciliation

Matching the bank's mirror account against the correspondent bank statement, aging and investigating unmatched items, and escalating those beyond the clearing window.

Trial balance

A listing of all ledger balances at a date proving total debits equal total credits; it feeds the general ledger and the financial statements.

Specific provision

The charge against profit for individually identified impaired loans, computed per the regulatory matrix and reviewed at each reporting date.

Situational leadership

Adapting style to follower readiness: directing for new staff, coaching for developing staff, supporting for variable performers, and delegating for proven self-starters.

SBI feedback model

Situation, behavior, impact: a feedback structure that describes the specific context, the observed behavior, and its consequence, keeping the conversation factual and timely.

Multi-factor authentication

Requiring two or more independent factors, namely knowledge, possession, or inherence, before granting access or approving a high-risk digital transaction.

Recovery point objective

The maximum acceptable data loss measured in time; it sets backup frequency and is validated only by a tested disaster recovery failover.