CRD IV for Investment Firms and Banks
In December the Basel Committee released ‘Finalising Basel III’. So, are the waves of revised regulations unleashed since the crisis now coming to an end? This course reviews the proposed changes – including those included in the proposed CRDV/CRRII and in other bank and financial markets related regulations – to see how much impact they may have.
The Implementation of CRD IV in Cyprus and all other EU countries has brought substantial changes both to prudential and reporting requirements. All banks and investment firms are subject to the requirements of CRDIV. There are significant differences in application depending on the nature, size and complexity of financial institutions. Attendance will be limited to enable discussion on the more complex areas of the regulation.
CRD IV and its enhancements aim at improving stability in the financial sector by better quality of capital and buffers. CRD IV also strengthens the corporate governance requirements and processes and introduces new rules aiming at the increased effectiveness of risk oversight by the Boards. After attending this course, the participants will be able to:
- Understand the applicable CRD IV rules
- Understand the changes in computation and assessment of capital adequacy
- Understand and assess Pillar 1, Pillar 2 and Pillar 3 Reports
- Understand the new Liquidity regulations and their impact
This course has been designed to provide with the knowledge and skills needed to understand and assess:
- The new CRDIV principles for risk management and corporate governance
- Regulatory capital and requirements, large exposures limits
- The new quality of capital, risk weighted assets, the capital ratio, leverage ratio and the upcoming buffers
- The new Liquidity requirements – the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR – note that this still has to be finally calibrated) and their impact on Funds Transfer Pricing
- The interaction with other post-crisis banking and financial sector regulations, such as EMIR, the Bank Recovery and Resolution Directive (BRRD) and MREL
- Pillar 1 – Regulatory capital and Liquidity requirements
- Pillar 2 (ICAAP) overview – Basic Principles – Stress Testing – Scenario Analysis
- Pillar 3 (Market Discipline and Disclosures) – Basic Principles – Disclosures Requirements.
- The impact on Return on Equity v Cost of Capital
- CRD IV Impact on Liquidity
- Reporting Requirements
- Counterparty Credit Risk
- Corporate Governance Framework
Who should attend
This course is intended for Risk Managers, Compliance Officers, Internal Auditors, CFOs, Advisors, Managers, and other with risk related jobs in financial services.