ΠΕΡΙΓΡΑΦΗ

Knowledge of the Basel rules for banks and of how they are implemented in the EU (the Capital Requirement Directives, CRDs and Regulations, CRRs) is essential for anyone connected to the financial sector. This is however a significant challenge, both because of their complexity and because, since the Great Financial Crisis and the later related Eurozone crisis exposed the inadequacy of the previous rules (Basel II), they have been significantly revised. This was a lengthy process but the main areas are now essentially complete. The course covers the main changes introduced by Basel III (CRDs IV and V and CRRs I and II) and so-called Basel IV (CRD VI and CRRIII). It also includes connected regulatory measures such as EMIR (post REFIT) and MREL to give a comprehensive overview. Examples from a bank’s recent Pillar Three report are included throughout.

ΣΚΟΠΟΣ ΣΕΜΙΝΑΡΙΟΥ

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

• Know which areas of regulation are changing and in which way 
• Understand the degree of impact each regulation has 
• Understand the overall impact of the regulations on their business model 
• Understand how some of the calculations are done 
• Gain an idea of how much they will need to change their current processes to comply and the level of resources that need to commit

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

Overview of the evolution of banking regulation and its key areas

• The three pillars
• The main risk types
• Approach levels

Pillar 1

• Credit risk
• From Standardised to Revised
• IRB and the Output floor
• Counterparty Credit Risk, how it arises on for example, interest rate swaps; EMIR (post REFIT, the Central clearing with margining requirement and the exemptions it allows, the Revised Standardised and other methods
• Credit Valuation Adjustment (CVA), what it is and how even Basel III is changing
• Market risk and ‘Basel IV’/Fundamental Review of the Trading Book (FRTB)
• The proposed Revised method, including the Sensitivities-based Method

• Interest Rate Risk in the Banking Book (IRRBB) – actually Pillar Two but included here as it is a form of Market risk
• Changes to the Internal Model Method (IMM)

• Operational risk
• The Revised Standardised approach and end of the Advanced
• Capital ratios
• The minimum ratios and the various buffers, including MREL

Capital

• What counts – Common Equity Tier 1, etc.
• What must be deducted

The Leverage Ratio, and how it differs from the Capital ratio

• Exposures

Liquidity

• The Liquidity Coverage Ratio
• Quantifying inflows, outflows and what counts as High Quality Liquid Assets (HQLA) – weights
• The Net Stable Funding Ratio (NSFR) – Asset-Liability management with a liquidity focus
• Required v Available Stable Funding – the different weights

Pillars 2 and 3

• Internal Capital Adequacy Assessment Process (ICAAP) and ILAAP (Liquidity) supervisory review, stress tests, governance
• Disclosure

Banking regulation and the market – the impact on banks’ Return on Equity

Training Style

Through a presentation of the programme content the course is designed to promote questions and discussion throughout. It includes numerous real-life local examples and case studies for a deeper understanding.

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.