Course description
Basel is the leading international regulatory standard on various bank capital stress testing, availability, and market liquidity risks. It was created to develop banking regulatory and supervisory guidelines for banks by the central bank governors of ten countries as a response to the disturbance in international currency and the market in general (the failure of Bankhaus Herstatt, Germany). It was established with the major aim of improving financial stability and increasing banking quality of supervision. It majorly handles banking supervisory matters.
Understanding this committee’s set guidelines and frameworks will put the professionals ahead in the banking market and enable them to make informed decisions that could be otherwise hard to make. It will also give them the knowledge of how bank capital requirements are strengthened by improving the banks’ liquidity and lowering the bank’s leverage.
The Basel Committee has created three major publications that seek to lay the required foundation and international cooperation on banking supervision. The publications cover supervisory powers, supervisory actions, compliance with supervisory standards, and the need for early intervention in supervision. The latest publication, Basel II, offers a management tool forprevailing risk factorswith the issuance. It was done in the same period as the failure of Lehman Brothers. And a few months later, there was a framework to strengthen the Basel II capital framework. The first publication that contains 29 principles is also known as Basel I or the Basel capital accord; it laid the necessary foundations for the supervision of internationally active banks. Basel II, or the new capital framework, was issued to propose new capital adequacy policies to replace the capital accord. It is comprised of three important pillars. When the 2007 – 2009 crisis hit, there was a response publication called Basel II. It is not so unique from Basel I and II, but it requires different levels of capital reserves to meet different forms of deposits and other borrowing activities
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The Certified Basel Professional Training Course by Rcademy is ideal for the following professionals:
- Rating Agency Analysts
- Board Members That Have Risk Responsibilities
- Portfolio Managers
- Legal, Compliance, and IT Support Officers
- Cros And theHeads of Risk Management
- Credit And Equity Analysts
Outcome / Qualification etc.
The Certified Basel Professional Training Course by Rcademy aims at enabling professionals:
- Fully understand theroles of the Basel Committeethoroughly
- Discover and define hands-on strategies used to manage risk in banks
- Apply the knowledge learned to improve the risk assessment process
- Understand how risk is controlled in banks
- Understand how to perform effective analysis on potential compliance issues
Training Course Content
Module 1: Introduction to Basel III
- The Basel III publication
- What was the role of Basel II in creating Basel II?
- Introduction to the amendments
- The FSB (financial stability board)
- Interactions between the Basel III framework and the G20
Module 2: Quality of Capital
- Tier 2 capital
- Limits and minima
- Double gearing
- Common equity tier 1
- Investments held as proxies
- Securitization and securitization
Module 3: Basel II and How it Influences Basel III
- Overview
- Application
- Standardized approach
- Market risks
- Market discipline
- Specific issues
- Data maintenance and testing
- Validation
- Quantification of IRB systems and maturity
- Control and oversight mechanism
- IRB system overview
- Market internal risks model approach
- Why it needed improvement
Module 4: Basel I and How it Influences Basel III
- Terrorist financing
- Open-source intelligence
- Visualizing cases and flows of money
- Suspicious transactions report
- Mutual legal assistance
- Why it needed improvements
Module 5: Global Liquidity Standards
- Introductions
- Total net cash outflows
- Available stable funding (ASF)
- The stock of high-quality liquid assets
- Market-related monitoring tools
- Required stable funding (RSF)
- Available unencumbered assets
- Liquidity Coverage Ratio (LCR)
- Transitional arrangements
- Contractual maturity mismatch
- LCR by significant currency
Module 6: Countercyclical Capital Buffer
- Home/host challenges
- Procyclical/countercyclical
- Objectives
- Risk of misleading signals
- Other macroprudential tools
- Common reference guide
- The Role of Judgment
- Treatment of surplus when buffer returns to zero
- National authorities’ guidance on operating countercyclical buffer
Module 7: SIFIs (Systemically Important Financial Institutions)
- Improvements to resolution regimes
- Stronger robustness standards
- Peer review
- Strengthening SIFI and supervision
- More intensive supervisory oversight
- SIFIs and G-SIFIs
- The European systemic risk board
- Developments at the national and regional levels
- Additional loss absorption capacity
- The financial stability oversight council
Module 8: Stress Testing
- Stress testing
- Fifteen stress testing principles used in banks
- Stress testing principles for supervisors
- Principles for stress testing practices
Module 9: The SIMIs (Systemically Important Markets and Infrastructures)
- Systemic risk capture in Banks risk models
- Risk modeling, stress testing, and analysis
- The central clearing and trade reporting on OTC derivatives
- Need for a strong stress testing program
- The capture of systemic risk/tail events in risk modeling
- The normality assumption
- Counterparty credit exposures
Module 10: Leverage Ratio and Capital Conservation
- Enforcing capital conservation discipline
- Calculation of the leverage ratio
- Distribution policies
- Simple, non-risk-based leverage ratio
- Sound capital conservation
- Off-balance sheet leverage
- Enhance risk coverage
- Calibrations
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Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...