CRD IV for Banks

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Course Overview

Knowledge of the Basel/CRD rules is essential for anyone working in the banking sector. This is however a significant challenge both due to their complexity and because they keep changing, thus making it imperative to for professionals to ensure they always have updated knowledge.

The course covers the main changes introduced since the crisis by both Basel III (CRD IV and CRR) and so-called Basel IV (CRD V and CRRII) and other still-to-be-implemented measures. It also includes connected regulatory measures such as EMIR, the BRRD and SRMR and the revisions in these areas to give a comprehensive overview.

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
• Understand how much they will need to change their current processes to comply and the level of resources the 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 and the Revised Standardised and other methods
• Credit Valuation Adjustment (CVA) 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
• Changes to the Internal Model Method (IMM)
• Operational risk
• The proposed Revised Standardised approach and end of the Advanced
• Capital ratios
• The various buffers, including MREL
• Capital
• What counts – Common Equity Tier 1, etc.
• What must be deducted
• The Leverage Ratio
• Exposures
• Liquidity
• The Liquidity Coverage Ratio
• Inflows, outflows and High-Quality Liquid Assets (HQLA)
• The Net Stable Funding Ratio (NSFR)
• Required v Available Stable Funding – the different weights

Pillars 2 and 3

• Interest Rate Risk in the Banking Book (IRRBB)
• Internal Capital Adequacy Assessment Process (ICAAP) and Supervisory review, stress tests, governance
• Disclosure
• Banking regulation and the market – the impact on Return on Equity

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 Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

Professionals requiring CPD units to meet the education requirements for CySEC licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Financial Regulation, are advised to consider training subjects in categories that indicate CPD training in Financial Regulation.

Who Should Attend

The programme has been designed for banking professionals and will be particularly beneficial for:

• Risk and compliance staff
• Front office staff in the Credit and Market risk areas
• Treasury staff
• Operational risk staff
• Supervisor staff
• Investors
• Corporate treasurers