Basel III for Financial Institutions: Latest Reforms & Updates

Basel III for Financial Institutions: Latest Reforms & Updates
A Two-Part, Online Course

Date: 24^th & 25^th February 2021

Course Introduction

Basel III was first introduced over a decade ago as an attempt to remedy serious shortcomings of Basel II highlighted by the Global Financial Crisis of 2007-8. In particular, Basel II led to insufficient capitalization of banks, insufficient bank liquidity, and furthermore, did not provide a meaningful macroprudential framework to deal with systemic risk, that being whole-system failure.

Since its first release in 2009, there have been several extremely important updates which practitioners need to be aware of. These include, for example, the market risk amendment released in 2016, which changed the way both market risk and credit risk capital charges are calculated for traded securities. Additionally, there are important changes to the standardized approach for credit risk, which impacts capital charges for banking book positions, an entire replacement of prior methods used for operational risk, and IFRS9 has replaced IAS39, with important consequences for credit risk provisions.

This highly interactive course offers a valuable and timely opportunity for banking practitioners to update their knowledge of Basel regulations. The course will provide an in-depth understanding of amendments to Basel III since its introduction, as well as giving a thorough overview of Basel III in its entirety to ensure delegates who are less familiar with banking regulations are able to significantly advance their awareness.

Key Highlights
- Gain a thorough overview of Basel III across all types of risks
- Learn about and understand important updates and reforms to Basel III since it was first introduced
- Appreciate other relevant changes which impact capital charges

Fee

1 participant: RM1,450/$375
2 participants: RM2,900/$750
3 participants: RM4,350/$1,125
4 participants: RM5,800/$1,500
5 participants: RM7,250/$1,875

Early Payment Discount: Payments made on or before 17^th February 2021 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.

In-house/group training

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.
Learn More

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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

Anna Rozana Ramli
Marketing Director
[email protected]
Direct Line: +603 2162 7800 ext 22

PROGRAM INTRODUCTION

Basel III was first introduced over a decade ago as an attempt to remedy serious shortcomings of Basel II highlighted by the Global Financial Crisis of 2007-8. In particular, Basel II led to insufficient capitalization of banks, insufficient bank liquidity, and furthermore did not provide a meaningful macroprudential framework to deal with systemic risk, that being whole-system failure.

Since its first release in 2009, there have been several extremely important updates which practitioners need to be aware of. These include, for example, the market risk amendment released in 2016, which changed the way both market risk and credit risk capital charges are calculated for traded securities. Additionally, there are important changes to the standardized approach for credit risk which impact capital charges for banking book positions.

This highly interactive course offers a valuable and timely opportunity for banking practitioners to update their knowledge of Basel regulation. The course will provide an in-depth understanding of amendments to Basel III since its introduction, as well as giving a thorough overview of Basel III to ensure delegates who are less familiar with these important banking regulations are able to significantly advance their awareness.

Key Highlights
- Gain a thorough overview of Basel III across all types of risks
- Learn about and understand important updates and reforms to Basel III since it was first introduced
- Understand how recent reforms and updates are relevant to, and affect, your operations

Who Will Benefit?

Chief executive officers
Chief risk officers
Chief financial officers
Financial risk managers and analysts
Treasury analysts and market risk managers
Credit risk managers and analysts
Credit managers
Credit administrators
Corporate bankers
Retail bankers
Internal auditors
Compliance officers
Supervisors, regulators and risk standard setters

Program Format

This two-part training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment

Fee

1 participant: RM1,450/$375
2 participants: RM2,900/$750
3 participants: RM4,350/$1,125
4 participants: RM5,800/$1,500
5 participants: RM7,250/$1,875

Early Payment Discount: Payments made on or before 17^th February 2021 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.

In-house/group training

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.
Learn More

AGENDA AND FORMAT

Each session will be interactive in a seminar format, with participants encouraged to engage with questions throughout.

PLATFORM

AGENDA

Day 1: Basel III regulation

Overview of Basel III

The 3-pillars approach of Basel II
Problems with Basel II highlighted by the financial crisis 2007-8
Microprudential changes introduced by Basel III
Macroprudential changes and systemically important banks
Stress-testing and ICAAP
Quiz

Capital and Leverage under Basel III

Minimum capital requirements and tier capital
Pillar 2 risks, and in particular:
- Interest rate risk in the banking book
- Concentration risk
Capital conservation buffer
Countercyclical capital buffer
Leverage ratio
Quiz

Liquidity Requirements under Basel III

Liquidity coverage ratio
Net stable funding ratio
Assessing liquidity under stress scenarios
Quiz

Day 2: Latest Updates to Basel III

Overview of Updates

Why have there been further updates to Basel III since 2009?
What are the main changes and when do they take effect?
Quiz

Credit Risk

The standardized approach
Changes to the scope of IRB approaches
Credit valuation adjustment for derivatives
Quiz

Operational Risk

A revised approach to operational risk measurement
Abolition of complex models (AMA)
The relevance of past operational losses
Calculating operational risk charges under the new method
- Basic indicator component (BIC)
- Internal loss multiplier (ILM)
Quiz

Market Risk Amendment

Motivation for a new market risk standard
Standardised approach
Internal models approach and expected shortfall versus Value-at-Risk
Credit risk migration and Jump to default

Other Changes that have Impacted Banks

Output floors for internal models
Leverage ratio surcharge for the largest banks
IFRS9, credit risk assessment, and relevance to stress testing
Covid-19 and implementation deadline for Basel III reforms (‘Basel IV’)
Quiz

EXPERT COURSE DIRECTOR

Dr Ken Baldwin
Former Director, Financial Policies & Planning, Islamic Development Bank

Dr. Ken Baldwin has worked as a practitioner in banking and finance for over 25 years in senior positions spanning the front and middle offices. Having graduated from Oxford University with a first-class honors degree in Physics in 1989, he qualified as a Chartered Accountant with PWC, before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London.

He gained a PhD in the microeconomic theory of risk sharing in Islamic contracts, and worked in the GCC for 15 years in Islamic retail and Islamic investment banks. Whilst at Abu Dhabi Islamic Bank, Dr. Ken built an ALM analytic technology platform capable of capturing liquidity and interest rate risks inherent in the many varied Islamic financing products used at retail and corporate levels. He then moved to take up the position of MENA Regional Head of Quantitative Analysis for Citigroup. At Citicorp, Dr. Ken worked on structuring complex products used by Gulf-regional corporations to hedge FX and interest risks. Still residing in Bahrain, Dr. Ken then joined Investcorp, where he worked on the risk due diligence of corporate private equity and real estate private equity transactions and portfolio management. After leaving Investcorp, he set up the risk management department for venture capital bank, providing Basel III compliance and deal analysis for the bank. He then operationalized a new Islamic investment bank as its Chief Operating Officer for 3 years, before his most recent industry role at the Islamic Development Bank, where he set up and ran a new department tasked with developing Financial Policies and Planning underpinned by robust financial analytic tools and methodologies designed specifically for the IDB. Dr. Ken is currently a senior university lecturer in finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of Risk, and during his earlier career, taught CFA and FRM professional certifications as a pastime for the Bahrain Institute of Banking and Finance.

Ken is a British Muslim.