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Basel Regulations

SIDC CPE-approved: 10 CPE Points

Date: 18th & 19th December 2024
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE INTRODUCTION

Since Basel regulations were first introduced in 1988, the global financial system has survived several existential threats, most notably the Global Financial Crisis, 2007-9. The fall-out from each of these crises led to important reforms to Basel standards to address revealed shortcomings. For example, Basel III recognized inadequate bank capitalization during the GFC by increasing minimum capital requirements. Basel III also formalized minimum liquidity requirements for the first time through appropriate limits and recognized the importance of contagion risk between banks by treating systemically important financial institutions (SIFIs) as a separate category. By reforming these standards, the BIS (Bank for International Settlements) hopes to mitigate fragility in the global financial system by reducing bank-level and systemic risks in countries adopting these standards. This objective ultimately serves the real economy through the uninterrupted provision of bank credit to households and firms and maintaining the payments system.

Due to repeated updates to Basel regulations since first introduced, many practitioners lack familiarity with the standards, which inhibits applying them in practice and confidently engaging with stakeholders concerning their implications. This course fills that knowledge gap. The course explains in detail how market, credit, and operational risks are treated in the most current version of the standards, Basel IV. This version includes important updates, such as the market risk amendment (2016), which changed the way both market risk and credit risk capital charges are calculated for traded securities, changes to the standardized approach for credit risk, which impacts capital charges for banking book positions, and an entire replacement of prior methods to calculate operational risk. The course also provides instruction on other important developments that practitioners need to know, such as IFRS9, which replaced IAS39 with important consequences for credit risk provisions, and climate-related financial risks, which banks have now started including in their stress-tests.

This highly interactive course provides a thorough understanding of Basel regulations in their entirety. The course includes several worked examples and delegate exercises to deepen understanding and awareness. No prior knowledge of Basel regulations is required.

  • Key Highlights:
    • Gain a thorough understanding of current Basel regulations across all risk types
    • Appreciate how Basel regulations have evolved over time
    • Understand the regulations for climate-related financial risks
    • Be able to calculate essential regulatory metrics

Fee

Fee per participant: RM5,900/US$1,950

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.

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

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Send me Details

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

seminar logo

Basel Regulations

SIDC CPE-approved: 10 CPE Points

Date: 18th & 19th December 2024
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

Send me Details

COURSE INTRODUCTION

Since Basel regulations were first introduced in 1988, the global financial system has survived several existential threats, most notably the Global Financial Crisis, 2007-9. The fall-out from each of these crises led to important reforms to Basel standards to address revealed shortcomings. For example, Basel III recognized inadequate bank capitalization during the GFC by increasing minimum capital requirements. Basel III also formalized minimum liquidity requirements for the first time through appropriate limits and recognized the importance of contagion risk between banks by treating systemically important financial institutions (SIFIs) as a separate category. By reforming these standards, the BIS (Bank for International Settlements) hopes to mitigate fragility in the global financial system by reducing bank-level and systemic risks in countries adopting these standards. This objective ultimately serves the real economy through the uninterrupted provision of bank credit to households and firms and maintaining the payments system.

Due to repeated updates to Basel regulations since first introduced, many practitioners lack familiarity with the standards, which inhibits applying them in practice and confidently engaging with stakeholders concerning their implications. This course fills that knowledge gap. The course explains in detail how market, credit, and operational risks are treated in the most current version of the standards, Basel IV. This version includes important updates, such as the market risk amendment (2016), which changed the way both market risk and credit risk capital charges are calculated for traded securities, changes to the standardized approach for credit risk, which impacts capital charges for banking book positions, and an entire replacement of prior methods to calculate operational risk. The course also provides instruction on other important developments that practitioners need to know, such as IFRS9, which replaced IAS39 with important consequences for credit risk provisions, and climate-related financial risks, which banks have now started including in their stress-tests.

This highly interactive course provides a thorough understanding of Basel regulations in their entirety. The course includes several worked examples and delegate exercises to deepen understanding and awareness. No prior knowledge of Basel regulations is required.

  • Key Highlights:
    • Gain a thorough understanding of current Basel regulations across all risk types
    • Appreciate how Basel regulations have evolved over time
    • Understand the regulations for climate-related financial risks
    • Be able to calculate essential regulatory metrics

Fee

Fee per participant: RM5,900/US$1,950

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.

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

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AGENDA

  • Day 1
  • Day 2

Day 1

Overview of Capital, Leverage and Liquidity
Overview of Basel
  • The 3-pillars approach of Basel regulations
  • Problems with Basel II highlighted by the global financial crisis 2007-8
  • Microprudential changes introduced by Basel III
  • Macroprudential requirements for systemically important banks
  • Stress-testing and ICAAP
Capital and Leverage
  • 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
    Exercise: CAR and leverage ratio calculations
Liquidity Requirements
  • Liquidity coverage ratio
  • Net stable funding ratio
  • Assessing liquidity under stress scenarios
    Exercise: LCR and NSFR calculations

Day 2

Credit, Market and Operational Risks
Credit Risk
  • The standardized approach for credit risk
  • The prevailing scope of Internal ratings-based (IRB) approaches
  • Credit valuation adjustment for derivatives
    Exercise: Using an IRB model
Operational Risk
  • Current method for calculation of operational risk charges
  • The relevance of past operational losses
  • Calculating operational risk charges
    • Basic indicator component (BIC)
    • Internal loss multiplier (ILM)
  • Exercise: Operational risk charge calculation
Market Risk Amendment
  • Motivation for a new market risk standard
  • Standardized approach for market risk
  • Internal models approach and Expected Shortfall versus Value-at-Risk
  • Credit risk migration and Jump-to-default
    Exercise: Market risk charge calculation
The Regulation of Climate-related Financial Risks
  • What is the response of the Basel Committee on Banking Supervision (BCBS) to climate-related financial risks?
  • What are the transmission channels for climate change to impact banks?
  • What is impact of climate risks on risk appetite statements, internal controls and risk mitigation, scenario analysis and stress-testing
  • Relevant disclosures
Other Key Considerations
  • Output floors for internal models
  • Leverage ratio surcharge for the largest banks
  • IFRS9, credit risk assessment, and relevance to stress testing

EXPERT COURSE DIRECTOR


Dr Ken Baldwin 
Former Head of Asset Liability Management, Abu Dhabi Islamic 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 microeconomics, and worked in the GCC for 15 years in retail and 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 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 derivatives products used by Gulf-regional corporations to hedge FX and interest rate 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 risk-based pricing of the bank’s Islamic financing products. Dr. Ken is currently an Assistant Professor of Finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of International Financial Markets Institutions and Money, and 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.

Who Should Attend?

  • This course has been specifically designed for the benefit of:
    • 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

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

About Us

REDmoney Events designs, organizes and hosts industry-leading conferences, forums, roadshows and seminars focusing on the Islamic financial markets across a global, regional and national level.

+603 2162 7800
[email protected]

Our Publications

  • Islamic Finance news
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  • IFN Fintech

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Kenya has circled back to Islamic finance, with Tr Kenya has circled back to Islamic finance, with Treasury Cabinet Secretary John Mbadi Ng’ongo revealing that the government is considering the introduction of Sukuk as part of efforts to diversify funding sources and tap into liquidity from global Shariah compliant capital markets.

In his presentation of the 2026/27 Budget to the National Assembly on the 11th June 2026, John said the government is evaluating the use of Sukuk instruments. “These Shariah compliant securities, which are structured on asset-backed or asset-based principles, will enable the government to access liquidity from Islamic finance markets.”

To read full article: https://www.islamicfinancenews.com/kenya-renews-interest-in-sukuk-and-islamic-finance-to-widen-funding-sources.html

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The State Bank of Pakistan (SBP) has eased require The State Bank of Pakistan (SBP) has eased requirements for Islamic banking windows (IBWs), allowing conventional banks and microfinance banks (MFBs) to establish Islamic windows within branches that are undergoing conversion to Shariah compliant banking without prior regulatory approval.

The move updates instructions previously issued under Circular No 02 of 2020 and comes as Pakistan continues to transition its banking system toward full Shariah compliance in line with the Federal Shariat Court’s 2027 deadline.

To read full article: https://www.islamicfinancenews.com/pakistan-eases-islamic-banking-window-rules-to-accelerate-branch-conversions.html

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