Basel III: New Regulatory Requirements

Course Outline

A two-day course covering the challenges and opportunities arising from the new regulatory changes from Basel III, Vickers Report, Swiss Finish and Dodd-Frank, and their implications for different types of financial institutions. The programme covers best practices in key areas such as: Liquidity Risk, Concentration Risk, Risk Aggregation / Capital Allocation and Stress Testing.

Groups are kept small and the course is devoted to practical workshops and case studies.

Who The Course is For

Risk managers and risk controllers
Strategic planning professionals
Treasury professionals
Compliance
Derivatives professionals
Financial officers and auditors
Consultants and advisors

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Prior Knowledge

Basic understanding of the current regulatory environment, familiarity with treasury and capital markets operations.

This program is eligible for 16 Continuing Education credit hours from the CFA Institute. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary.

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Day One

Key Areas and Timing of

Basel III
Swiss Finish
Vickers Report
Dodd-Frank

Rules for Governments / Regulators

Financial Stability
Ending Too-Big-To-Fail
Central Banks / Bank Supervision

Rules for Banks

Enhanced Prudential Standards

Quality of Capital / Capital Ratios
Risk-based capital requirements
Enhancing Risk Coverage (increasing Risk-weighted Assets)
Cyclical Buffers
Stress Testing
Leverage Ratio
Liquidity Ratios
Resolution Plan and Credit Exposure Reporting
Risk Governance
Risk Committees
Minimum Requirements for Risk Management

The Volcker Rule

Proprietary Trading
Securitisation
Investments in and Sponsorship of Hedge Funds and Private Equity Funds
Mergers & Acquisitions
Concentration limits

OTC Derivatives

Capital Requirements
Credit Value Adjustments
Margining and Collateralisation
Clearing

Rules for Investors

Securitisation
Executive Compensation & Corporate Governance
SEC and Investor Protection
Credit Rating Agencies
Hedge Funds and private Equity Funds
Municipal Securities

Rules for Consumers

Consumer Protection
Deposit Insurance

The Legal View

Day Two

Implications for

Banks
Non-bank Financial Institutions
Deposit Insurance
Credit Markets
Ability to Hedge Risk

Current Key Focus of Banks – Best Practices

Liquidity Risk

Liquidity Risk Principles
Liquidity Risk Framework
Funds Transfer Pricing
Liquidity Sources
Measurement of Liquidity Risk
Managing Liquidity
Key Liquidity Ratios
Liquidity Contingency Plan

Concentration Risk

Single Borrowers
Industries
Regions
Countries
Products

Risk Aggregation / Capital Allocation

Calculation of Regulatory and Economic Capital
Integration of Risk Types
Risk-adjusted Performance Measurement
Risk Bearing Capability
Risk Appetite
Capital Adequacy and Risk Profile
Risk Buffers
Capital Ratios and Targets
Capital Allocation / Limits and Thresholds

Stress Testing

What does the regulator expect from Banks?
Stress Testing Scenarios
Credit Stress Testing
Reverse Stress Testing
Integration of Stress Testing into the Risk Management Framework