OSCB Banking Assistant cheat sheet

Clearing vs. settlement: clearing is the exchange and reconciliation of payment instructions between institutions; settlement is the actual transfer of funds that discharges the obligation.

Nostro account = our bank's account held at another bank in that bank's currency; vostro account = another bank's account held with us.

End-of-day reconciliation rule: opening balance + credits − debits = closing balance; any unexplained residual is an exception item requiring research, not automatic write-off.

A CHIPS-style large-value net system settles at designated times; RTGS settles each payment individually and irrevocably in central bank money.

Value dating: back-value debits the customer later, forward-value credits the customer later; both change available balance, not ledger balance timing alone.

Double-entry rule: every transaction affects at least two accounts and total debits must equal total credits for the entry to post.

Dormant-to-inactive conversion typically follows a defined period of no customer-initiated activity; interest postings and bank-initiated fees usually do not reset the clock.

Stop-payment orders are time-limited and must be re-verified before expiry; a stale order should not be relied on to return a subsequent item.

Batch processing failures are handled by reversing the entire batch and reprocessing; partial posting of a batch creates duplicate-risk exposure.

Service recovery sequence: acknowledge the failure, take ownership, set an expectation with a time, resolve, then confirm the customer's satisfaction.

Escalation trigger rule: escalate when the request exceeds your authority, involves potential loss to the customer, or the customer repeats the complaint a third time.

Complaint root-cause categories: process, people, product, and policy - misclassification leads to repeat complaints after an ineffective fix.

Relationship profitability is measured on a full-relationship basis (deposits, loans, fees, referrals), not on the margin of a single product.

Customer lifetime value approximation: average annual contribution × expected retention years, discounted for attrition risk.

First-contact resolution rate and average handle time trade off against each other; optimizing only handle time typically raises repeat contacts.

Vulnerability indicators (recent bereavement, cognitive decline, coercion by a third party) require adjusted communication and possible escalation to a specialist team.

Cross-sell suitability test: the product must meet an identified need, be affordable, and be understood by the customer before it is proposed.

Available balance = ledger balance − holds − uncleared deposits + available credit lines; the ledger balance alone is not spendable.

Regulation CC-style holds: next-day availability for cash, wire, and certain government checks; case-by-case holds are capped in duration and require notice.

Check endorsement chain: restrictive endorsement ("for deposit only") limits further negotiation; a missing endorsement makes the item returnable.

Checks are stale-dated after six months in many jurisdictions; a bank may refuse or pay at its discretion and should verify with the drawer.

Reg D-style savings limits historically capped convenient withdrawals/transfers at six per month; exceeding them triggers fee or conversion, not automatic closure.

Joint account tenancy: joint tenants with right of survivorship pass the balance to the survivor outside probate; tenants in common do not.

Stop payment on a check requires the account number, check number, amount, and payee; an inaccurate description weakens the order's enforceability.

Reg E-style error resolution: provisional credit within a set number of business days, investigation within 45 days (90 for certain exceptions), written notice to the customer.

Cashier's checks and money orders are bank-obligations; a stop payment on them is generally unavailable once negotiated, so loss claims follow a separate indemnity process.

Five Cs of credit: character, capacity, capital, collateral, conditions - capacity (cash flow) is usually the strongest predictor of repayment.

Debt service coverage ratio = net operating income ÷ total debt service; a ratio below 1.0 means the borrower cannot cover payments from operations.

Loan-to-value = loan amount ÷ appraised value; a higher LTV raises loss-given-default and usually requires mortgage insurance or a lower limit.

Amortization: payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where r is the periodic rate and n the number of payments.

Annual percentage rate includes fees and finance charges, so APR ≥ nominal interest rate whenever fees are non-zero.

Credit score drivers by weight: payment history and amounts owed dominate; length of history, new credit, and mix are secondary.

Covenants are affirmative (do this) or negative (don't do this); a breach triggers default remedies only if the loan agreement says so.

Classification ladder: pass → special mention → substandard → doubtful → loss; provisions rise with each downgrade.

Risk-based pricing sets the rate from expected loss (PD × LGD × EAD) plus funding cost, operating cost, and target margin.

KYC/CIP minimum elements: name, date of birth, address, and identification number, verified within a defined period after account opening.

CDD vs. EDD: enhanced due diligence applies to higher-risk customers (PEPs, high-risk jurisdictions, unusual cash activity) and requires source-of-wealth evidence.

SAR/STR filing is confidential; tipping off the subject is prohibited and is itself a reportable breach.

Recordkeeping rule of thumb: five years for CIP records and for SAR supporting documentation in many regimes; confirm the applicable local rule.

Structuring is the deliberate breaking up of transactions to stay below a reporting threshold; it is a crime even when the underlying funds are legitimate.

Conflicts of interest are managed by disclosure, recusal, or separation of duties - disclosure alone does not neutralize a material conflict.

Fair lending prohibits disparate treatment (intentional) and disparate impact (neutral policy with unequal effect) unless justified by business necessity.

Privacy principle: collect only what is needed, use only for the stated purpose, retain only as long as required, and disclose the basis for sharing.

Fraud triangle: pressure, opportunity, rationalization; controls primarily reduce opportunity through segregation of duties and dual authorization.

Red flags for account takeover: new device, password reset followed by payee addition, address change plus card replacement, sudden large transfer to a new beneficiary.

Check fraud indicators: altered payee, mismatched courtesy amount and legal amount, missing or inconsistent MICR line, endorsement that does not match the payee.

Card-present vs. card-not-present: CNP transactions carry higher chargeback risk; CVV and address verification shift some liability to the issuer.

Phishing vs. vishing vs. smishing: email, voice, and SMS channels respectively; the defense is out-of-band verification, never using contact details supplied by the requester.

Social engineering defense: verify identity through an independent channel, apply a callback rule to a known number, and never accept urgency as authorization.

Suspicious activity escalation should preserve evidence (logs, recordings, transaction data) before any account restriction is applied.

Wire fraud recall is time-critical; the receiving institution can freeze funds only if notified before the funds are withdrawn, so immediate contact matters.

Deposit product ladder: checking/current (transactional, low or no interest), savings (limited withdrawals), money market (tiered rates, check access), CD/time deposit (fixed term, penalty for early withdrawal).

Yield comparison must use annual percentage yield, which compounds, not nominal rate; APY = (1 + r/n)^n − 1.

Mutual fund vs. ETF: both are pooled; ETFs trade intraday on an exchange, mutual funds price once at end-of-day net asset value.

Bond price and yield move inversely; duration approximates the percentage price change for a 1% change in yield.

Insurance products sold by banks (credit life, payment protection) are regulated as insurance; suitability and disclosure rules attach.

Annuity accumulation vs. payout phase: accumulation builds value, payout converts to income; surrender charges usually decline over a schedule.

Overdraft protection options: linked savings transfer, line of credit, or opt-in overdraft - each has different fee and consent requirements.

Fiduciary vs. suitability standard: fiduciary must act in the client's best interest; suitability requires only that the recommendation fit the client's profile.

Plain-language rule: replace jargon with the customer's terms, state the fee, the timing, and the next step in that order.

Authority limits: never exceed your delegated approval limit; escalate rather than split a transaction to stay under the limit, which is itself a control breach.

Customer confidentiality: discuss account details only with an authenticated party and only on a need-to-know basis, including internally.

Documentation standard: record what was said, when, by whom, and what was agreed; an undocumented promise is unenforceable and an audit finding.

Bribery red flags: unusual gifts, payments to third parties, requests to bypass process, and a counterparty insisting on speed or secrecy.

Active listening technique: paraphrase the customer's concern and confirm understanding before offering a solution; this reduces repeat contacts.

Conflict between sales targets and suitability is resolved in favor of the customer; mis-selling is a conduct breach even if the product performs well.

Error disclosure: report your own errors promptly to your supervisor; concealment converts a correctable mistake into a disciplinary matter.