Training Objectives

By the end of the programme participants will be able to:

• Know which areas of regulation are changing and in which way 
• Understand the degree of impact each regulation has 
• Understand the overall impact of the regulations on their business model 
• Understand how some of the calculations are done 
• Gain an idea of how much they will need to change their current processes to comply and the level of resources that need to commit

Training Outline

Overview of the evolution of banking regulation and its key areas

• The three pillars
• The main risk types
• Approach levels

Pillar 1

• Credit risk

– From Standardised to Revised

– IRB and the Output floor

– Counterparty Credit Risk, how it arises on for example, interest rate swaps; EMIR (post REFIT, the Central clearing with margining requirement and the exemptions it allows, the Revised Standardised and other methods

• Credit Valuation Adjustment (CVA), what it is and how even Basel III is changing
• Market risk and ‘Basel IV’/Fundamental Review of the Trading Book (FRTB)

– The proposed Revised method, including the Sensitivities-based Method

• Interest Rate Risk in the Banking Book (IRRBB) – actually Pillar Two but included here as it is a form of Market risk

– Changes to the Internal Model Method (IMM)

• Operational risk

– The Revised Standardised approach and end of the Advanced

• Capital ratios

– The minimum ratios and the various buffers, including MREL

Capital

• What counts – Common Equity Tier 1, etc.
• What must be deducted

The Leverage Ratio, and how it differs from the Capital ratio

• Exposures

Liquidity

• The Liquidity Coverage Ratio

– Quantifying inflows, outflows and what counts as High Quality Liquid Assets (HQLA) – weights

• The Net Stable Funding Ratio (NSFR) – Asset-Liability management with a liquidity focus

– Required v Available Stable Funding – the different weights

Pillars 2 and 3

• Internal Capital Adequacy Assessment Process (ICAAP) and ILAAP (Liquidity) supervisory review, stress tests, governance
• Disclosure

Banking regulation and the market – the impact on banks’ Return on Equity

Who Should Attend

The programme has been designed for professionals within Investment Firms and will be particularly beneficial for:

• Risk and compliance staff
• Front office staff
• Treasury staff
• Supervisor staff
• Corporate treasurers

Training Style

Through a presentation of the programme content the course is designed to promote questions and discussion throughout. It includes numerous real-life local examples and case studies for a deeper understanding.

CPD Recognition

This programme may be approved for up to 5 CPD units in Banking and Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.