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2026 Statistics

Key Facts: NIBAF CTM Exam

100

Exam Questions

NIBAF / CFA Society

2 hours

Exam Duration

NIBAF / CFA Society

60%

Passing Score

NIBAF / IBP Rules

Finance

Exam Domain

Taxonomy Registry

20%

Islamic Treasury

Syllabus Weight

60-120 hrs

Recommended Prep

Candidate Average

The NIBAF CTM exam contains 100 multiple-choice questions with a 2-hour time limit and costs PKR 15,000. Developed with the CFA Society Pakistan, it covers Treasury Foundations, Financial Arithmetic, ALM, FX, and Islamic Treasury.

Sample NIBAF CTM Practice Questions

Try these sample questions to test your NIBAF CTM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following functions is primarily performed by the middle office of a commercial bank's treasury?

A.Measuring, monitoring, and managing treasury market and liquidity risks

B.Verifying deal confirmations, matching trade details, and settling payments

C.Executing foreign exchange spot transactions with interbank counterparties

D.Formulating the central bank's monetary policy and policy rate corridor

Explanation: The middle office of a treasury is responsible for risk management, which includes measuring, monitoring, and managing market risk, liquidity risk, and operational risk. The front office executes transactions (option A), the back office handles verification, matching, and settlement (option B), and the central bank (State Bank of Pakistan) formulates monetary policy (option D).

2Under the State Bank of Pakistan (SBP) rules, what is the default day-count convention used for the calculation of interest/accrual on Government of Pakistan Treasury Bills (T-Bills)?

A.Actual/365

B.Actual/360

C.30/360

D.Actual/Actual

Explanation: In Pakistan's financial markets, the standard day-count convention mandated by the State Bank of Pakistan (SBP) for government debt securities, including Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs), is Actual/365. This differs from international markets like the US or Europe, which often use Actual/360 or 30/360.

3Which monetary policy tool is utilized by the State Bank of Pakistan (SBP) to set a ceiling for overnight interbank money market rates?

A.SBP Standing Deposit Facility (SDF) Floor Rate

B.CRR (Cash Reserve Ratio) requirement

C.SLR (Statutory Liquidity Ratio) requirement

D.Open Market Operation (OMO) Clean Outright Sale

Explanation: The SBP Standing Deposit Facility (SDF) Floor Rate acts as the floor (lower boundary) of the monetary policy corridor. SBP Standing Reverse Repo Facility (ceiling rate) acts as the ceiling. The floor rate represents the rate at which banks can place excess liquidity with the SBP overnight.

4Which of the following describes the Standing Reverse Repo Facility (Ceiling Rate) of the State Bank of Pakistan (SBP)?

A.The rate at which the SBP provides overnight liquidity to commercial banks against eligible collateral.

B.The target rate around which the SBP aims to keep the weighted average overnight interbank rate.

C.The rate at which commercial banks can deposit excess funds with the SBP overnight.

D.The rate at which the SBP purchases government securities through outright OMO operations.

Explanation: The SBP Standing Reverse Repo Facility (Ceiling Rate) is the ceiling of the monetary policy corridor. It is the rate at which commercial banks can obtain overnight funding from the SBP against eligible collateral (like T-Bills or PIBs) when they face a liquidity deficit.

5What is the frequency at which Pakistani commercial banks are required to maintain their daily Cash Reserve Ratio (CRR) on average with the State Bank of Pakistan (SBP)?

A.On a fortnightly average basis (over a 14-day period)

B.Daily basis with no averaging allowed

C.On a monthly average basis

D.On a weekly average basis

Explanation: Under SBP regulations, the Cash Reserve Ratio (CRR) is required to be maintained on a fortnightly average basis (14-day period), subject to a minimum daily maintenance level. This gives treasury managers flexibility to manage short-term liquidity fluctuations by averaging reserves.

6What is the primary objective of the State Bank of Pakistan's Open Market Operations (OMOs)?

A.To maximize the profitability of the central bank's own treasury operations

B.To manage interbank market liquidity to keep the overnight rate close to the SBP Target Rate

C.To directly regulate the exchange rate of the Pakistan Rupee (PKR)

D.To finance the federal government's budget deficit directly through credit creation

Explanation: The primary objective of Open Market Operations (OMOs) conducted by the SBP is to manage short-term liquidity in the banking system, ensuring that the overnight interbank market rate remains close to the SBP's Policy Target Rate.

7In Pakistan, which entity is eligible to be designated as a Primary Dealer (PD) for Government of Pakistan Securities (T-Bills and PIBs)?

A.Any corporate entity registered with the Securities and Exchange Commission of Pakistan (SECP)

B.Commercial banks and development financial institutions (DFIs) that meet SBP criteria

C.Only foreign commercial banks operating branch networks in Pakistan

D.Only asset management companies and insurance companies registered in Pakistan

Explanation: Only commercial banks and development financial institutions (DFIs) that meet the stringent criteria set by the SBP are eligible to be appointed as Primary Dealers (PDs). PDs have the exclusive obligation to participate in primary auctions and act as market makers in the secondary market.

8Under SBP regulations, what is the maximum Net Open Position (NOP) limit in foreign exchange typically based on?

A.A fixed nominal amount of PKR 10 billion for all banks

B.A percentage of the bank's Total Regulatory Capital (Tier 1 + Tier 2 Capital)

C.A percentage of the bank's Paid-up Capital

D.The total value of the bank's foreign currency deposits

Explanation: The SBP sets Net Open Position (NOP) limits for individual banks as a percentage of their Total Regulatory Capital (Tier 1 and Tier 2 capital), taking into account their FX trading volume and risk management capabilities. This limits a bank's exposure to exchange rate risk relative to its capital buffer.

9What is the name of the real-time gross settlement (RTGS) system used in Pakistan for large-value interbank funds transfer?

A.NIFT (National Institutional Facilitation Technologies)

B.PRISM (Pakistan Real-time Interbank Settlement Mechanism)

C.1LINK interbank switch

D.Raast Instant Payment System

Explanation: PRISM (Pakistan Real-time Interbank Settlement Mechanism) is the RTGS system operated by the SBP. It settles large-value, time-critical interbank payments on a transaction-by-transaction basis in real time, eliminating settlement risk.

10Which SBP regulation defines the exposure limits, liquidity requirements, and operational risk boundaries for treasury operations?

A.Foreign Exchange Manual

B.Prudential Regulations for Corporate/Commercial Banking

C.SECP Code of Corporate Governance

D.Guidelines on Internal Risk Management Framework

Explanation: The SBP's Prudential Regulations for Corporate/Commercial Banking lay down the primary rules on exposure limits (Regulation R-1 for Single/Group exposure limits), reserve requirements, and risk concentration guidelines that treasuries must comply with.

About the NIBAF CTM Exam

The Certification in Treasury Management (CTM) is a highly respected professional credential offered by the National Institute of Banking and Finance (NIBAF) Pakistan, in collaboration with the CFA Society Pakistan. Designed to align with the regulatory and technical demands of the Pakistani financial sector, the CTM program validates core competencies in conventional and Shariah-compliant treasury operations. It covers key domains including Treasury Foundations, SBP regulations, Financial Arithmetic, Fixed Income markets, Balance Sheet Management (ALM), Foreign Exchange markets, and Shariah structures like Waad, Salam, and Tahawut, alongside professional ethics.

Assessment

100 multiple-choice questions (scored, scenario-based, and numeric calculations)

Time Limit

2 hours

Passing Score

60%

Exam Fee

PKR 15,000 (National Institute of Banking and Finance (NIBAF) Pakistan)

NIBAF CTM Exam Content Outline

20%

Treasury Management Foundations & SBP Regulations

Role of bank and corporate treasuries, money market players, central bank monetary policy tools, and SBP prudential regulations.

20%

Financial Arithmetic & Fixed Income Analysis

Time value of money, discount rates, yield to maturity (YTM), pricing of T-bills and PIBs, yield curve dynamics, and benchmarks.

20%

Balance Sheet Management (ALM) & Risk Management

Asset Liability Committee (ALCO) roles, liquidity risk, interest rate risk, gap analysis, duration matching, and Basel III ratios.

20%

Foreign Exchange & Capital Markets

FX spot and forward pricing, interest rate parity, purchasing power parity, hedging strategies, derivatives, and capital market overview.

20%

Islamic Treasury & Ethical/Compliance Code

Islamic money market instruments (Sukuk), FX operations (Waad, Salam, Tahawut), Shariah treasury guidelines, and SBP Code of Ethics.

How to Pass the NIBAF CTM Exam

What You Need to Know

Passing score: 60%
Assessment: 100 multiple-choice questions (scored, scenario-based, and numeric calculations)
Time limit: 2 hours
Exam fee: PKR 15,000

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

NIBAF CTM Study Tips from Top Performers

1Practice key financial arithmetic calculations, including compounding, discounting, and yield-to-maturity (YTM) for PIBs.

2Understand the mechanics of pricing Treasury Bills (T-bills) on a discount basis versus yield-bearing instruments.

3Study SBP prudential regulations and monetary policy transmission mechanisms.

4Master the role of ALCO, liquidity gap analysis, and interest rate sensitivity models.

5Differentiate between conventional forward contracts and Shariah-compliant FX hedging using Waad or Tahawut.

6Review the SBP Code of Ethics, specifically guidelines on market practice, dealing protocols, and dispute mediation.

Frequently Asked Questions

What is the NIBAF CTM Certification?

The Certification in Treasury Management (CTM) is a professional qualification launched by the National Institute of Banking and Finance (NIBAF) Pakistan, in partnership with the CFA Society Pakistan. It aims to standardize and elevate the skills of individuals working on or aspiring to work on treasury desks in commercial banks, corporate treasuries, and development financial institutions.

Who is eligible to take the CTM exam?

Candidates generally require a minimum of 16 years of formal education (e.g., a Bachelor or Master degree in Finance, Economics, or Business Administration). Relevant professional experience in banking or financial operations is helpful but not strictly required, making it suitable for both early-career professionals and university graduates.

What is the passing score and format of the CTM exam?

The passing score is 60%. The exam consists of 100 multiple-choice questions (including numeric calculations and case-based scenarios) to be completed within a 2-hour duration. The test is computer-based and administered online or at designated test centers.

Does the CTM curriculum cover Islamic banking and treasury?

Yes, Islamic Treasury is a core module representing 20% of the syllabus weight. It covers Shariah-compliant money market instruments, Islamic foreign exchange mechanisms (such as Waad, Salam, and Tahawut), and the regulatory/Shariah framework governing Islamic banking in Pakistan.

What are the primary study topics for CTM?

The program covers five key modules: 1) Treasury Foundations and SBP regulations, 2) Financial Arithmetic and Fixed Income valuation, 3) Balance Sheet Management/ALM, 4) Foreign Exchange and Capital Markets, and 5) Islamic Treasury Operations and Ethical Code of Conduct.