Latest Developments in Risk Management, Basel III & Capital Adequacy for Banks

Latest Developments in Risk Management, Basel III & Capital Adequacy for Banks
“…in today’s world regulatory capital incentives within organisations do drive behaviour, do drive pricing, do drive portfolio composition.” Financial Times, 24^th May 2016

SIDC CPE-approved: 10 CPE Points

Date: 25^th July 2016
Venue: InterContinental Hotel, KUALA LUMPUR

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COURSE BACKGROUND

Developments in the Basel global bank capital and regulatory framework are significant and ongoing, and are focusing on the overhaul of the standardized approaches for a multitude of risk exposure capital requirements. Other initiatives include the ongoing evolution of the Basel III framework, with specific focus on the Basel Committee on Banking Supervision’s restructuring of the standardized approaches for calculation of regulatory capital requirements. The 2016 finalization of the Basel Fundamental Review of the Trading Book change processes will culminate in a new market risk capital framework (effective 2018) with the issuance of the new Basel Market. These and other developments are covered in detail in this timely, one day seminar delivered by leading risk management experts. Also covered in detail will be the impact, scope and requirements of the Basel Pillar 2 ICAAP (Internal Capital Adequacy Assessment Process) as well as BCBS 239 Basel lll reporting requirements under Basel lll – which some observers have described as a very significant regulatory burden for Asian banks.

KEY LEARNING OUTCOMES

Identifying key timelines, initiatives, objectives and outcomes of the Basel initiative and framework for financial institutions
Analysing Basel Committee of Banking Supervision 239 Basel lll reporting requirements under Basel
Understanding comparisons between the Basel II and Basel III bank balance sheet restrictions
Examining the practicalities of the Internal Capital Adequacy Assessment Process (ICAAP) for financial institutions
Identifying the very latest regulatory initiatives under Basel III: Interest Rate Risk Banking Book (IRBBB), revisions of Credit Risk Capital requirements, revision of Operational Risk Capital requirements
Shifting a financial institution’s focus from a principle to a rules-based risk management approach
How the changes introduced by Basel III will affect Islamic banks

For enquiries please contact:

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
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AGENDA

(9:00 - 9:15) Introduction & Welcome

Session One (9:15 – 10:30): Undertaking an Overview of the Basel lll Developments since 2009 and Understanding How Financial Institutions are Impacted

Examining the work of the Basel Committee of Banking Supervision (BCBS)
Identifying key timelines, objectives and outcomes of the Basel initiative and framework
Assessing Basel III and its impact on different types of banks: international, Asian-based, GCC-based institutions
Implications of Basel III capital, leverage and liquidity ratios on bank balance sheet structures
Undertaking a comparative analysis of the Basel II and Basel III bank balance sheet restrictions and economics

Douglas Bongartz Renaud — Former Global Head of Currency Derivatives and Global Head of Rate Derivatives and Structured Products, ABN AMRO

Coffee (10:30 – 11:00)

Session Two (11:00 – 11:45): Examining the Practical Impact of Basel lll on Asian Banks and Successfully Incorporating the Internal Capital Adequacy Assessment Process (ICAAP)

Overview of requirements on counterparty credit risk capital, central clearing (2014) and initial margining of non-cleared OTC transactions (2016)
Analysing recently revised Market Risk Capital requirements stemming from completion of the Fundamental Review of the Trading Book process (January 2016)
Examining the final decisions on Interest Rate Risk Banking Book (IRBBB) capital revisions (April 2016)
Assessing the current status of the two significant remaining changes under the consultation process:
- Analyzing the Internal Capital Adequacy Assessment Process (ICAAP) for financial institutions: Pillar 2 ICAAP under Basel lll
- BCBS 239 Basel lll reporting requirements under Basel lll - the real regulatory burden for Asian banks
- Addressing key challenges for financial institutions

Eckart Koerner — Executive Director, PwC

Session Three (11:45 – 12:30): Embracing New Regulatory Philosophies Embedded in Basel lll

Shifting a financial institution’s focus from a principle to a rules-based risk management approach
Strategies to focus on a stress testing-based macro-prudential regulatory approach
Analysing the implications of systemic risk, moral hazard ('too big to fail'), and the development of Living Wills for financial institutions
Moving Pillar 2 risks into the Pillar 1 framework, and assessing the implications

Eckart Koerner — Executive Director, PwC

Luncheon (12:30 – 13:45)

Session Four (13:45 – 14:45): Examining Major Recent Changes under Basel lll on Financial Institutions

Overview of requirements on counterparty credit risk capital and central clearing (2014)
Analysing recently revised Market Risk Capital requirements and finalizing the Fundamental Review of the Trading Book process (January 2016)
Examining the final decisions on Interest Rate Risk Banking Book (IRBBB) capital revisions (April 2016)
Assessing the current status of the two significant remaining changes under the consultation process:
- Revisions of Credit Risk Capital requirements - new standardized and revised Internal Ratings based approaches, the Basel advanced model-based method for calculating credit risk regulatory capital
- Complete revision of Operational Risk Capital requirements

Douglas Bongartz Renaud — Former Global Head of Currency Derivatives and Global Head of Rate Derivatives and Structured Products, ABN AMRO

Session Five (14:45 – 15:45): Analysing the Impact of Basel lll on Islamic Financial Institutions

Identifying how the changes introduced by Basel III will affect Islamic banks and their operations
Assessing Basel III and the specific challenges regarding capital quality and buffers, and liquidity ratios for Islamic banks
Other issues and how they are applicable to Islamic banks and financial institutions

Sophia Lee — Co-Head of Financial Institutions, Rating Agency Malaysia

Coffee and Networking (15:45)

EXPERT COURSE DIRECTORS

Douglas Bongartz- Renaud Former Global Head of Currency Derivatives & Global Head of Rate Derivatives & Structured Products, ABN AMRO

Douglas has forty years’ experience in financial markets, risk management and consulting for banks in Asia and the EMEA regions. He completed a long career at ABN AMRO Bank in 2011 and moved from Amsterdam to Southeast Asia, where he is continuing working with banks in the areas of risk management, ALM and treasury. He has recently worked on bank treasury and ALM projects both independently in Asia for the IFC (World Bank Group) and KPMG. He does training and project work in the MENA regions and SE Asia on an on-going basis for a number of banks. Bank funds transfer pricing (‘FTP’) is a one of the areas in which he has specific expertise. Douglas worked from 1984 – 2011 for ABN Amro Bank in a number of senior positions, including heading the Bank’s global FX, interest rate and structured products trading and risk management activities. He has BA and MBA (quantitative finance) degrees from the University of Chicago, and holds the FRM certification from GARP. He served on the Board of Directors of ISDA (International Swaps and Derivatives Association from 1994 – 2008, and as Secretary of the Board from 1998 – 2004.

Eckart Koerner Executive Director, Financial Risk Management Services, PricewaterhouseCoopers

Eckart is part of the Financial Risk Management team within PwC Malaysia. He was transferred in 2007 transferred from Germany, where he was with another Big4 audit company, having joined the financial services risk advisory team there in 1999.

He has extensive experience in risk management. In particular, he focuses on integrated risk management for banks, Basel II & III projects (risk measurement & management, internal capital adequacy assessment process, regulatory reporting), risk measurement tool development and validation. In addition, he has experience in projects for corporate treasury management and corporate financial risk management.

Eckart is also actively involved in thought leadership and has published amongst others articles on Basel III and its impact for the financial industry. Furthermore Eckart presented extensively on the subject of Basel II & III, risk management in various seminars and conducted training for clients covering amongst others topics economic capital, ICAAP, credit and market risk.

Prior to joining the advisory industry, Eckart worked several years with major financial institutions in Germany.

Sophia Lee Co-Head, Financial Institutions Ratings Rating Agency Malaysia

Sophia is the Co-Head of the Financial Institution Ratings department at RAM Ratings. She has been with the organisation since 2004, mainly involved in the credit assessment of financial institutions in Malaysia, Singapore, Thailand, Indonesia, South Korea, Japan and the Middle East. Sophia has helped develop various methodologies for the rating of financial institutions, insurance companies and Takaful operators. Prior to RAM Ratings, she had been an investment analyst. Sophia graduated with a Bachelor of Commerce (Economics & Finance) from Curtin University of Technology, Australia, and also holds an MSc Economics (Computational Finance) from Swedish School of Economics.

Who Will Benefit?

This intense one day seminar has been developed to benefit banking and financial institution professionals working in finance, risk management, treasury, compliance, audit and other areas involving the Basel capital and risk management framework. The event will also benefit financial institution senior management.