ΠΕΡΙΓΡΑΦΗ

Knowledge of the Basel bank regulations and their EU implementation – the Capital Requirements Directives (CRDs) and Regulations (CRRs) – is essential for anyone working in the financial sector or with a connection to it.

This is however a significate challenge due to both their complexity and because they have changed. This course approaches this subject by first identifying the standard retail and commercial banking business model and the risks it results in, and then examines how the regulation aims to qualify and mitigate the carious risks.

It also includes connected EU bank-related regulatory measures such as EMIR (post REFIT) and MREL to give a comprehensive overview if the key regulations of the sector.

ΣΚΟΠΟΣ ΣΕΜΙΝΑΡΙΟΥ

By the end of the programme participates will be able to:

• Understand the overall structure of bank capital and liquidity regulation
• Understand how some of the calculations are done
• Understand the relative degree of impact each regulation has on a given bank
• Understand the overall impact of the regulations on a bank’s business model

ΣΕ ΠΟΙΟΥΣ ΑΠΕΥΘΥΝΕΤΑΙ

The course is designed to be suitable for those with limited knowledge of this are such as:

• Risk and Compliance Staff
• Front Office Staff
• Treasury Staff
• Supervisor Staff
• Corporate Treasurers

ΠΕΡΙΣΣΟΤΕΡΕΣ ΠΛΗΡΟΦΟΡΙΕΣ

Training Outline

• Retail and commercial banks’ business model
• The main types of risk it gives rise to: Credit Risk, Liquidity Risk, Market Risk, and Operational Risk 
• How the risks are mitigated: capital (‘owned funds’); how banks grow their capital; liquid assets and stable funding sources
• Why is there a regulation? Deposit protection and the Great Financial Crises
• The main source of banking regulation: Basel and its different versions (Basel I, II, III, etc.)
• The implementation process of Basel rules in the EU – the CRDs and CRRs
• Basel overview: risk mitigation via the ‘Three Pillars’
• Pillar One:
• – Risk Quantification via Standardised Risk Weights or International Model (or ‘Advanced’)
• – Capital Risk, Market Risk (Fundamentals Review of the Trading Book, FRTB, ‘Basel IV’) and Operational Risk calculations examples (Standardised Approach)
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• – Capital Risk and the impact of IFRS 9
• – Interest Rate Risk in the Banking Book (IRRBB – actually Pillar Two but covered here as it is a form of Marker Risk)
• – How Counterparty Credit Risk can arise on derivatives such as Interest Rate swaps, how EMIR )post REFIT) requires mitigation via Central clearing and margining but allows some exemptions
• – How Credit valuation Adjustment (CVA) risk arises on uncleared swaps
• – Summing up the capital requirements from the different risk areas
• – Capital or ‘Own Funds’ – the different levels, Common Equity Tier 1, etc., the deduction from what can be counted as capital and the difference between accounting and regulatory capital
• – The minimum Capital rations and the various buffets
• – The Leverage ration and how it differs from the Capital Ration
• – The impact of additional regulation: MREL and why it is a challenge for some banks
• – The source of Liquidity risk and how they are mitigated: banks ‘run’, liquid assets and stable funding sources
• – The impact of Capital and Liquidity regulation on banks
• Pillar Two: internal risk management quality and the Supervisory review
• Pillar Three: disclosure – an example from report

CPD Recognition

This programme may be approved for up to 5 CPD units in Banking and Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.