Basel III & IFSB Regulations

Course details

The module is designed to cover ongoing significant developments in the Basel global bank capital and regulatory framework since the inception of Basel III in 2011. The developments are significant, now focusing on the overhaul of the Standardized Approaches for market risk, interest rate risk banking book, credit risk, trading book, counterparty risk and operational risk exposure capital requirements. These and other developments are covered in the course. 

Course Highlights

• New Initiatives and Developments in the Evolution of the Basel lll Framework 
• Calculating Regulatory Capital Requirements for Credit, Market, Operational and 
• Counterparty Credit Risk 
• Assessing Fundamental Review of the Trading Book Change Process 
• Internal Capital Adequacy Assessment Process (ICAAR) under Basel II and III 

What Will You Learn

The trainer will cover new initiatives and developments in the ongoing evolution of the Basel lll framework, with specific focus on the Basel Committee for Banking Supervision's restructuring of the standardized approaches for calculation of regulatory capital requirements for credit, market, operational and counter party credit exposures which have been finalized or are in the consultation process. The latest developments in the Fundamental Review of the Trading Book change process will also be covered in the course.

The course will provide a description of the new mandated and proposed requirements with examples and analysis of the impacts of the recent replacement of Basel II framework capital calculation methods with new Basel III requirements. These recent Basel II revision actions and proposals will have major future impact on bank regulatory capital calculations and requirements and involve significant lead time planning and implementation investment to meet the new minimum standards - which under the Basel III reforms will also be 'fallback' standards required to be put in place.

The Basel lll original and ongoing changes will also impact the scope and requirements of the Basel Pillar 2 ICAAP (internal Capital Adequacy Assessment Process), as several important banking sector risk areas not covered in detail under Pillar 1 required detailed assessment under Pillar 2. Now that a number of the ICAAP focus areas - such as liquidity risk and interest rate risk banking book ('IRRBB') are being added in detail into Pillar 1, we will discuss the changing requirements under ICAAP.