The course is more detailed towards the regulatory treatment financial instruments and how financial conglomerates and their structures are treated, with extra focus on the calculation of capital adequacy, liquidity and large exposures ratios and associated limits of BASEL III are calculated.
At the end of the programme, participants are expected to learn about the BASELIII framework and its implications for banks, their shareholders and customers.
Who Is This Programme For?
The course is aimed at the operational level or middle management, such ascompliance officers, etc.
- Face-to-face learning mode
- Group Exercise
Basel III definition, description and objectives: what is Basel III? What does it do? And how does it do it?
Basel III; the basics: The definitions and key ratios (T1 and Total Capital, leverage and the2 liquidity ratios), an explanation of the capital buffers, the 3 pillars.
Basel III; the stakeholders: The shareholders, the Board, the Senior Management, the staff, the customers and other stakeholders, the external auditors, the regulators and the public purse.
Basel III; the costs and benefits: What are the systems, information and compliance costs? What are the benefits (external and internal) of Basel III? What are the costs of ignoring Basel III? Can we delay Basel III? Can we just ‘cherry-pick’ the ‘nice bits’ of BaselIII?
In addressing the above topics, the following components of Basel III will be covered to provide a comprehensive picture of the Basel Framework.
- The definition of the components of regulatory capital, including regulatory adjustments
- The risk-based capital requirements (minimum ratios and buffers, including SIBs),
- The calculation of RWAs for: credit risk, market risk and operational risk, including repercussions of differing risk weights for different types of assets
- The calculation of the Leverage Ratio
- The calculation of the Liquidity Coverage Ratio and the Net Stable Funding Ratio including the funding implications for banks in a post-Silicon Valley Bank world
- The Large Exposures requirements of Basel III (with reference to the Single Borrowing Limit under the Banking order)
- The Supervisory Review Process (Pillar 2) with reference to the Internal Capital Adequacy Assessment Process and the setting of internal capital targets, stress testing and Recovery Planning
- The Disclosure Requirements (Pillar 3) for financial statements and risk/governance disclosures
|25 October 2023||
8:30 AM – 12:00 PM
1:30PM – 5:00PM