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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 ·
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Faysal Bank Limited successfully raised PKR7 billion (US$24.5 million) through a Tier II capital Sukuk issuance, strengthening its regulatory capital base and supporting future growth.

To read full article:
https://www.islamicfinancenews.com/faysal-bank-raises-pkr7-billion-us24-5-million-through-inaugural-sukuk-offering.html

Islamic Finance News @ifn_news ·
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We are pleased to welcome Lawrence Oliver, Executive Director, Deputy CEO, DDCAP Group/ETHOS AFP to the speaker line-up for IFN Investor Americas Forum 2026, taking place in S&P Global Offices, New York on 16th June 2026.

FREE registrations now open.

Islamic Finance News @ifn_news ·
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We are pleased to welcome Kamal Solaiman, CEO and Managing Partner, Sinbad Capital to the speaker line-up for IFN Investor Americas Forum 2026, taking place in S&P Global Offices, New York on 16th June 2026.

FREE registrations now open.

Islamic Finance News @ifn_news ·
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We are pleased to welcome Elias Scheker Da Silva, Portfolio Manager - Global Fixed Income, Wafra to the speaker line-up for IFN Investor Americas Forum 2026, taking place in S&P Global Offices, New York on 16th June 2026.

FREE registrations now open.

LATEST POSTS

We are proud to welcome @smartpension as Partner f We are proud to welcome @smartpension as Partner for IFN UK Forum 2026.

This event will take place on 7th September 2026 at Mansion House, London.

FREE registrations now open.

�#IFNUKForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #UK
We are proud to welcome Zunikh as Partner for IFN We are proud to welcome Zunikh as Partner for IFN Asia Issuers and Investors Forum 2026.

This event will take place on 29th September 2026 at EQ Kuala Lumpur.

FREE registrations now open.

#IFNAsiaIssuersandInvestorsForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #KualaLumpur
We are proud to welcome Zunikh as Partner for IFN We are proud to welcome Zunikh as Partner for IFN UK Forum 2026.

This event will take place on 7th September 2026 at Mansion House, London.

FREE registrations now open.

#IFNUKForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #UK
We are proud to welcome Zunikh as Partner for IFN We are proud to welcome Zunikh as Partner for IFN Investor America Forum 2026.

This event will take place on 16th June 2026 at New York.

FREE registrations now open.

#IFNInvestorAmericaForum2026 #REDmoneyEvents #REDMoney #IFN #Finance #NewYork
🌙✨ Eid Mubarak from Islamic Finance News! Wishing 🌙✨ Eid Mubarak from Islamic Finance News!

Wishing our global Islamic finance community joy, unity and continued success this Eid. 🤍🌙

#IslamicFinance #Eid2026
IsDB announces the winner of the Most Innovative T IsDB announces the winner of the Most Innovative Trade Development Initiative of the Year: EUR160 million (US$186.31 million) commodity Murabahah facility for Agrobank

The EUR160 million commodity Murabahah facility for Agrobank, backed by The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Standard Chartered, is a transformative milestone for Uzbekistan’s financial landscape. As the country’s first-ever commodity Murabahah transaction, it successfully navigated a complex regulatory vacuum, establishing a Shariah compliant blueprint for future trade liquidity.

The deal represents a “triple-first”: The inaugural use of this instrument in Uzbekistan, ICIEC’s first direct commercial banking partnership in the nation and a massive capital injection specifically for the underserved SMEs and retail sectors.

Read full article here @ifnforums 🎉
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