Basel III Training Course Description:

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Our training follows closely the principles of sound practices of management and operational risk, as set down by the committee. Training Attendees will learn practical skills and solutions that will help them support the Basel III requirements, whilst implementing the solutions and skills learned within their organisation. 97 % of pass rate. Get Basel III Certification!
Click here to get Basel II E-learning from BaselCert!

This Basel III E-Learning short interactive courses delivered over the web can be used to complement instructor-led classroom training.

Basel III Training Course Objectives:

The seminar will give you the ability to:

• Demonstrate a practical understanding of the core concepts involved in Advanced Measurement Methods for allocation of capital to operational risk, their respective advantages and limitations.
• Prepare for the BaselCert Examination, which we can host at the end of the course (optional).
• Define hands-on strategies and techniques for the definition, measurement, analysis, improvement, and control of operational risk within a banking organization.

Basel III Training Course Target Audience:

This course is recommended for all professionals who need to understand and speak the specialized language of compliance.

• IT Auditors
• Chief Risk and Compliance Officers
• IT, Security and Management Consultants

Basel III Training Course Synopsis:

• Introduction to Basel Norms
• Brief History
• Basel Committee – its main goals
• Overview of Basel I
• 1988 Basel Accord – 5 Capital Thresholds
• Strengths of Basel I
• Shortcomings of Basel I
• Basel Capital Accord
• Basel II in a Nutshell
• Objectives of Basel II
• Main elements of Basel II
• Basel II and the Financial Crisis
• Pillar 1 – Minimum Capital Requirements
• Key Changes in Pillar 1
• Pillar 2 – Supervisory review process
• Pillar 3 – Disclosures
• The 1988 Accord vs. the New Accord

Basel III

• Need For The New Basel Norms
• The Basel III Norms
• Objectives of The Basel III Norms
• Basel III – Timeline

1. What is Basel III?

1.1. The Basel III papers

1.2. Was Basel II responsible for the market crisis?

1.3. Introduction to the Basel III Amendments

1.4. The Financial Stability Board (FSB), the G20 and the Basel III framework

2. The New Basel III Principles for risk management and corporate governance

• The key areas where the Basel Committee believes the greatest focus is necessary

2.1 Board practices

2.2 Senior management

2.3 Risk management and internal controls

2.4 Compensation

2.5 Complex or opaque corporate structures

2.6 Disclosure and transparency

3. The Quality of Capital

3.1 The numerator: A strict definition of capital

3.2 Limits and Minima

3.3 Common Equity Tier 1

3.4 Common shares issued by the bank

3.5 Additional Tier 1 capital

3.6 Tier 2 capital

3.7 Investments held by banks in capital instruments of other banks and financial and insurance entities

3.8 The corresponding deduction approach and the changes in the business model

3.9 Double Gearing and Basel III

3.10 Securitisation and Resecuritisation

4. The Risk Weighted Assets

4.1 The denominator: Enhanced risk coverage

4.2 Understanding securitization

5. The Capital Ratio

5.1 In addition to the quality of capital and risk coverage

5.2 Calibration

5.3 Transition period

6. Global Liquidity Standards

6.1 Introduction of global minimum liquidity standards

6.2 The Liquidity Coverage Ratio (LCR) that makes banks more resilient to potential short-term disruptions

6.3 Stock of high-quality liquid assets

6.4 Total net cash outflows

6.5 The Net Stable Funding Ratio (NSFR) that addresses longer-term structural liquidity mismatches

6.6 Available stable funding (ASF)

6.7 Required stable funding (RSF)

6.8 Contractual maturity mismatch

6.9 Concentration of funding

6.10 Available unencumbered assets

6.11 LCR by significant currency

6.12 Market-related monitoring tools

6.13 Transitional arrangements

7. Capital Conservation

7.1 Distribution policies that are inconsistent with sound capital conservation principles

7.2 Supervisors enforce capital conservation discipline

8. Leverage Ratio

8.1 Strong Tier 1 risk based ratios with high levels of on and off balance sheet leverage

8.2 Simple, non-risk-based leverage ratio

8.3 Introducing additional safeguards against model risk and measurement error

8.4 Calculation of the leverage ratio

9. Countercyclical Capital Buffer

9.1 Procyclical or Countercyclical?

9.2 The new countercyclical capital buffer

9.3 Home / Host Challenges

9.4 Guidance for national authorities operating the countercyclical capital buffer

9.5 Principles underpinning the role of judgement

9.6 Principle 1: (Objectives)

9.7 Principle 2: (Common reference guide)

9.8 Principle 3: (Risk of misleading signals)

9.9 Principle 4: (Prompt release)

9.10 Principle 5: (Other macroprudential tools)

9.11 Jurisdictional reciprocity

9.12 Frequency of buffer decisions and communications

9.13 Treatment of surplus when buffer returns to zero

9.14 Interaction with Pillar 1 and 2

10. Systemically Important Financial Institutions (SIFIs)

10.1 SIFIs and G-SIFIs

10.2 Improvements to resolution regimes

10.3 Additional loss absorption capacity

10.4 More intensive supervisory oversight

10.5 Stronger robustness standards

10.6 Peer review

10.7 Developments at the national and regional level

10.8 The Financial Stability Oversight Council (FSOC)

10.9 The European Systemic Risk Board (ESRB)

10.10 Strengthening SIFI supervision

11. Systemically Important Markets and Infrastructures (SIMIs)

11.1 The Basel Committee and Financial Stability Board endorse central clearing and trade reporting on OTC derivatives

11.2 Derivative counterparty credit exposures to central counterparty clearing houses (CCPs)

12. Risk Modelling, Stress Testing and Scenario Analysis

12.1 Capture of systemic risk/tail events in stress testing and risk modelling

12.2 VaR shortcomings: the normality assumption

12.3 Need for a strong stress testing programme

12.4 Systemic risk capture in banks’ risk models

13. Pillar 2 Amendments: Stress testing

13.1 Pillar 2 Amendments: Stress testing

13.2 Principles for sound stress testing practices and supervision

13.3 15 stress testing principles for banks

13.4 Firm-wide stress testing

13.5 6 stress testing principles for supervisors

14. The Impact of Basel III

14.1 The Impact of Basel III

14.2 Investment Banking, Corporate Banking, Retail Banking

14.3 Investment banks are primarily affected, particularly in trading and securitization businesses

14.4 The new capital rules have a substantial impact on profitability

14.5 Basel III Impact on Regional Banks

14.6 Basel III Impact on Pillar 2

14.7 Basel III effect on financial sector

14.8 Basel III implications for bank risk management

14.9 Implications for European Systemic Risk Board

14.10 Impact of Basel III for commercial banks?

14.11 Basel III implications for indigenous banks

14.12 Can regional banks mitigate Basel III impacts?

14.13 Other Implications of Basel III

14.14 Areas of Focus

15. Conclusions

16. Examples (Case Studies)

• Basel III Capital Structure
• A worked example of a bank
• Basel III – explanation of changes
• Basel III Capital Structure