Capital Adequacy for Credit Risk

Date: 2^nd September 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

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

Capital Adequacy for Credit Risk

Date: 2^nd September 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE INTRODUCTION

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

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

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*Please note there is a fee for attending this program. Please contact us for more details.

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Before completing this registration form please read and understand our booking and cancellation policy. Thank you.

Presentation materials: – important, please read carefully

as part of our sustainability drive, we offer standard access to an electronic version of the course materials. A hard copy of the materials can be provided for a fee: RM100 per copy for Malaysia-based participants; US$150 per copy for all other locations.

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By completing, signing and revised, sent separately us this registration form you are conﬁrming participants on the program. You are also conﬁrming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation Policy: If participants cannot attend the program, replacement participants are always welcome. Otherwise, participants must notify us any of cancellations or requests to transfer to a diﬀerent program at least 14 days before the program date to be eligible for a refund, less a 5% administration on fee. Participants who cancel within 14 days of the program start date are liable to pay the full program fee and no refunds will be given. Instead fees will be converted to a REDmoney Seminars voucher equivalent to the original fee, less a 10% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a program is postponed for whatever reason registrations and fees will be automatically transferred to the new program date. Participants who wish to transfer to a diﬀerent program will be subject to the same terms as above and charged any diﬀerence in fees. No refunds or program vouchers will be issued for a no-show.
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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