IBSL Diploma in Banking and Finance (DBF) Exam study guide
IBSL Diploma in Banking and Finance (DBF) Exam · Work through your exam, one topic at a time.
The Diploma in Banking & Finance (DBF) is a professional programme of the Institute of Bankers of Sri Lanka (IBSL), an institute first established in 1964 in the name of the Bankers' Training Institute (Ceylon) by the Central Bank of Sri Lanka and re-incorporated in 1979 by the Institute of Bankers of Sri Lanka (Incorporation) Act No. IBSL lists the DBF alongside the Higher Diploma in Banking & Finance (HDBF) among its new-syllabus professional programmes, and the two share published lecture timetables and model answers. The IBSL Diploma in Banking and Finance (DBF) Exam study guide has 5 sections and about 1,590 words.
01Principles and Practices of Banking
Banking questions here revolve around what a bank legally does, how the banker–customer relationship shifts with the product, and how deposits create credit. Start from the statutory idea of banking: accepting money from the public, repayable on demand, for lending or investment.
331 words, about 2 min02Financial Accounting and Reporting
Bank financial statements are prepared on the accrual basis under the going concern, consistency and prudence conventions. Every transaction has two effects; the trial balance proves arithmetic equality only, never correctness.
331 words, about 2 min03Economics and Financial Markets
Monetary policy works through quantities (CRR, SLR, open market operations, refinance) and prices (repo, reverse repo, marginal standing facility, bank rate). A repo cut lowers the cost of short-term funds and, with a working transmission mechanism, pulls lending rates down and expands credit; a CRR hike withdraws liquidity and shrinks the money multiplier.
301 words, about 2 min04Law and Regulatory Framework relating to Banking
The framework is layered. The RBI Act 1934 covers central banking, CRR (Section 42) and monetary policy.
314 words, about 2 min05Credit and Risk Management
Credit work starts with appraisal: character, capacity, capital, collateral and conditions, supported by ratio analysis (DSCR, debt–equity, current ratio, working capital cycle) and a credit bureau report. Limit setting uses exposure ceilings and the large exposure framework; pricing uses risk-adjusted return on capital.
313 words, about 2 min