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REDmoney Training

Capital Adequacy for Credit Risk for Financial Institutions

SIDC CPE-approved: 10 CPE Points

Date: 8th December 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE INTRODUCTION

Credit risk is the most important risk facing commercial banks. Several high-profile bank failures have served to highlight the importance of the need to be able to identify credit risk wherever it arises, and to calculate the amount of capital required to absorb unexpected credit-related losses, including Signature Bank and First republic Bank, two US banks that failed in 2023.

Given the release of BNM standards for capital adequacy in 2024, and recent changes to Basel regulations (Basel IV), staying up to date on regulatory requirements for credit risk is challenging. This highly interactive course offers a valuable and timely opportunity for banking practitioners to learn credit risk essentials. The course delivers an immersive learning experience, providing a detailed review of the types of credit risk exposure practitioners need to be aware of, and how credit risk-weights are calculated for different exposure types, including exposures to banks, residential and commercial real estate, and exposures arising from off-balance sheet commitments. The course also covers internal ratings-based (IRB) approaches, CVA for derivatives, and credit risk within climate risk stress-testing frameworks, and features several exercises to aid learning and consolidate understanding.

  • Key Highlights and Takeaways:
    • Gain a thorough understanding of capital adequacy for credit risk
    • Understand capital requirements using available measurement approaches
    • Appreciate how credit risk features in climate risk stress testing

Fee

Fee per participant: RM3,000/US$800

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

REDmoney Training

Capital Adequacy for Credit Risk for Financial Institutions

SIDC CPE-approved: 10 CPE Points

Date: 8th December 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

Send me Details

COURSE INTRODUCTION

Credit risk is the most important risk facing commercial banks. Several high-profile bank failures have served to highlight the importance of the need to be able to identify credit risk wherever it arises, and to calculate the amount of capital required to absorb unexpected credit-related losses, including Signature Bank and First republic Bank, two US banks that failed in 2023.

Given the release of BNM standards for capital adequacy in 2024, and recent changes to Basel regulations (Basel IV), staying up to date on regulatory requirements for credit risk is challenging. This highly interactive course offers a valuable and timely opportunity for banking practitioners to learn credit risk essentials. The course delivers an immersive learning experience, providing a detailed review of the types of credit risk exposure practitioners need to be aware of, and how credit risk-weights are calculated for different exposure types, including exposures to banks, residential and commercial real estate, and exposures arising from off-balance sheet commitments. The course also covers internal ratings-based (IRB) approaches, CVA for derivatives, and credit risk within climate risk stress-testing frameworks, and features several exercises to aid learning and consolidate understanding.

  • Key Highlights and Takeaways:
    • Gain a thorough understanding of capital adequacy for credit risk
    • Understand capital requirements using available measurement approaches
    • Appreciate how credit risk features in climate risk stress testing

Fee

Fee per participant: RM3,000/US$800

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

Overview of Important Regulation
  • The 3-pillars approach
  • Minimum capital requirements and tier capital
  • Capital conservation buffer
  • Countercyclical capital buffer
  • Calculating the capital adequacy ratio
  • Types of credit risk
    • Obligor risk in lending
    • Counterparty credit risk in derivatives
    • Contingent credit exposures, e.g., guarantees
  • Changes to the reliance on external credit ratings
  • Implementation deadlines

Exercise: CAR calculation

Measuring Credit Risk-weights
  • The standardized approach by exposure type
    • Banks
    • Covered bonds
    • General corporates
    • Specialized lending
    • Retail (excl. real estate)
    • Residential real estate
    • Commercial real estate
    • Subordinated debt and equity
    • Off-balance sheet exposures
  • Internal ratings-based (IRB) approaches
    • Foundation IRB
    • Advanced IRB
  • Credit valuation adjustment (CVA) for derivatives
  • IFRS9 and its relevance to stress testing
  • Loan loss distribution in normal versus stressed conditions
  • Climate risk stress testing and credit risk

Exercise: Risk weight calculation for residential real estate exposure

EXPERT COURSE DIRECTOR


Dr Ken Baldwin 
Former MENA Regional Head of Quantitative Analysis, Citigroup

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
  • IFN Investor
  • IFN Sustainable
  • IFN Fintech

Recent Tweets

Islamic Finance News @ifn_news ·
22 Jun

Labeled Sukuk issuances gain traction as market participants eye expansion, IFN learns

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Read full dail cover story here: https://www.islamicfinancenews.com/labeled-sukuk-issuances-gain-traction-as-market-participants-eye-expansion-ifn-learns.html

Islamic Finance News @ifn_news ·
19 Jun

Uganda structures debut Sukuk to keep debt figures clean

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Read full daily cover story here: https://www.islamicfinancenews.com/uganda-structures-debut-sukuk-to-keep-debt-figures-clean.html

You can also listen via #IFNOnAir: https://open.spotify.com/episode/3W7kA7Z40ACtTxXeYF6hXG?si=NRlJOGQ9RDKhyPrt-IAvxw

Islamic Finance News @ifn_news ·
16 Jun

New syndicated financing standards aim to streamline Islamic transactions

Read full daily cover story here: https://www.islamicfinancenews.com/new-syndicated-financing-standards-aim-to-streamline-islamic-transactions.html

Islamic Finance News @ifn_news ·
16 Jun

Congratulations to the winners of IFN Qatar Deal of the Year 2025!

Check out the full cover story at: https://lnkd.in/gCiHqe7H

#IFNDealsoftheYear2025 #IFNDOTY2025 #IFNAwards

LATEST POSTS

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

#Sukuk #IslamicFinance #ShariahFinance #SovereignSukuk #CapitalMarkets #KenyaBudget2026 #JohnMbadi #TreasuryKenya #IslamicBanking #EthicalInvesting #InfrastructureFinance #AffordableHousing #NairobiSecuritiesExchange #PublicFinance #InvestmentOpportunities #FinancialInclusion #AssetBackedFinance #EconomicGrowth #AfricaFinance #EmergingMarkets #Budget2026 #ShariahCompliant #FundingDiversification #IslamicCapitalMarkets #Kenya
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

#SBP #StateBankOfPakistan #IslamicBanking #IslamicFinance #ShariahCompliance #BankingReforms #PakistanBanking #IslamicBankingWindows #Microfinance #ConventionalBanks #FinancialInclusion #BankingSector #ShariahBanking #FinanceNews #PakistanEconomy #BankingTransformation #IslamicFinanceIndustry #FinancialServices #RegulatoryUpdates #EconomicDevelopment #PakistanFinance #BranchConversion #BankingPolicy #IslamicEconomy #FinancialGrowth #Pakistan
Join our expert panel, including Tariq Al Rifai, A Join our expert panel, including Tariq Al Rifai, Ahmad Quqa, Aijaz Hussain, Elias Scheker Da Silva, Dr Mohamad Sawwaf and Saad Malik as they explore Building Islamic Wealth in North America: Products, Access & the Next Opportunity

FREE registrations now open:
https://redmoneyevents.com/event/ifninvestoramericas2026/

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FREE registrations now open:
https://redmoneyevents.com/event/ifninvestoramericas2026/

#IFNInvestorAmericaForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #NewYork
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FREE registrations now open:
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#IFNInvestorAmericaForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #NewYork
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FREE registrations now open:
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#IFNInvestorAmericaForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #NewYork
  • Home
  • Past Events
  • Past Trainings
  • How We Do It
  • Accommodation
  • Contact us
  • About Us