2 Day(s)


Getting to grips with proposed regulatory changes and their potential implications

During this two-day course you will gain

  • An up-to-the-minute guide to the key elements outlined in the new Basel III proposals
  • A detailed understanding of the proposed timetable for the implementation and the likelihood of firms being able to meet these deadlines
  • A comprehensive grasp of the intricacies outlined in the Basel III proposals - Pillars I, II and III and how they differ from what was initially outlined in Basel II
  • An insight into the impact Basel III will have on all aspects of a bank, the business model, the different departments, the banks' overall strategy and how banks are fundamentally structured and managed in the future
  • An appreciation of implementation issues and challenges that will need to be considered and overcome

Course Specifics

Course Outline

Introductory Background

  • Overview of banking - balance sheet, gearing, asset types, interest margin, funding sources
  • Background to banking regulation and local regulators
  • Definitions of capital and return on equity, capital ratios, RWA
  • Market risk types
  • Credit risk types
  • Operation risk types
  • Liquidity risk
  • Other risks
  • Measuring risk
  • Regulatory failures and other issues

Case Study: Lehman Brothers and the credit crunch

Evolution of International Banking Regulation

  • Original Basel Accord (1988) and purposes / weaknesses
  • Banking Book / Trading Book split
  • Basel II background and purposes
  • The Three Pillars approach - implications
  • Capital Rules under Basel II
  • Risk management and disclosure under Basel II

Exercises: Calculating Regulatory Capital

Overview of Basel III Proposals

  • What are the fundamental new proposals under Basel III?
  • Definitions of Regulatory Capital - Tier 1, 2 and 3
  • Amount of capital - increased base requirements, stricter definition
  • Hybrid capital issues - CoCos and others
  • Ratios between Regulatory Capital Tiers
  • Conservation and other capital buffers
  • Anti-cyclical buffers
  • Systemically Important Financial Institutions (SIFIs)
  • Liquidity standards and ratios - stable funding
  • Leverage ratios
  • Other issues

Time Table for Basel III

  • What is the likely implementation time scale?
  • How will implementation be phased in?
  • What about firms which are not yet Basel II compliant?

Basel III in More Details

  • Pillar i issues
  • Minimum capital standards
  • Liquidity
  • Stressed var
  • CVA
  • Internal ratings
  • Economic capital
  • Pillar II issues
  • Firm wide risk management
  • Capital modelling and planning
  • Pillar III issues
  • Greater risk disclosure
  • Transparency
  • To what extent do these go beyond Basel II?

Impact of Basel III

  • How will Basel III affect a bank's business model?
  • Funding issues - use of repo, interbank, deposits
  • Capital issues
  • RoE
  • Lending businesses
  • Trading businesses
  • Structured products
  • Securitisation
  • Other business types
  • Designation of SIFI
  • How will this effect bank strategy?
  • Will it change how banks are structured and managed?

Implementation Issues

  • What challenges does Basel III present for banks?
  • Systems and data
  • Personnel and training
  • Internal controls and monitoring
  • Reporting and documentation
  • Models and modelling
  • Capital raising
  • Strategic reviews

Case Study:

Capital Modelling

Class Discussion: Delegates are invited to introduce specific topics around Basel III for class discussion.

Thinking about Onsite?

If you need training for 3 or more people, you should ask us about onsite training. Putting aside the obvious location benefit, content can be customised to better meet your business objectives and more can be covered than in a public classroom. It's a cost effective option.

Submit an enquiry from any page on this site, and let us know you are interested in the requirements box, or simply mention it when we contact you.

Upcoming Dates

Course Location Days Cost Date
2 1999 £1999 2018-07-16
2 1000 £1000 2017-11-02
2 1000 £1000 2017-10-25
2 1000 £1000 2017-10-03
2 1000 £1000 2017-10-02
2 1000 £1000 2017-09-25
2 1000 £1000 2017-09-19
2 1000 £1000 2017-09-15
2 1000 £1000 2017-09-11
2 1000 £1000 2017-08-28