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Basel III: New Regulatory Requirements - 2 Day Course - Manhattan, New York
Basel III: New Regulatory Requirements is a two-day course reviewing the challenges and opportunities arising from the new regulatory changes that have resulted from Basel III as well as other major European and U.S. regulatory developments, and their implications for banks and other financial institutions.
The program covers best practices for regulatory capital management in key areas such as: Credit and Market Risk Weighted Capital, Operational Risk Capital, Liquidity Risk, Counterparty Risks, Concentration Risks, Risk Aggregation/Capital Allocation, and Stress Testing.
Placing a practical emphasis on the subject matter, groups are kept small and the course makes use of case studies as a means of training.
Who should attend?
This 2-day course has been developed for professionals in the following roles:
- Risk managers and risk controllers
- Strategic planning professionals
- Treasury professionals
- Derivatives professionals
- Financial officers and auditors
- Consultants and advisors
Course participants will gain the most benefit from this course when they join with a basic understanding of the current regulatory environment, and a familiarity with treasury and capital markets operations.
This two day program is structured as follows:
Key Areas, Overview and Timing
- Banking evolution and need for Basel III
- Comparison of basic four Basel III documents
- CRD IV, EBA, U.K., and other enabling sources
- Dodd-Frank and Volcker rules from U.S.
- Central Banks / Pillar II Supervision / ICAAPs / Stress Testing
- Basel III problems leading to uncertainties and potential new changes
Investment Banking versus Narrow Banking
- Proprietary Trading and Market Making
- Investments in and Sponsorship of Hedge Funds and Private Equity Funds
- Mergers & Acquisitions
- Business Diversification / Concentration Limits
Enhanced Micro-Prudential Standards
- Quality of Capital / Capital Ratios
- Components / exclusions from capital
- Credit, Market, and Operational Risk-based Capital Requirements
- Capital as loss absorption
- Enhancing Risk Coverage (Appropriate Sizing Risk-weighted Assets)
- Standardized versus Internal Model Refinements
- Capital Conservation and Cyclical Buffers
- Systemically Important Financial Institutions
- Leverage Ratios: controversies of inclusion / exclusion of specific items
- New emphasis on Liquidity Ratios
- Resolution Plan and Risk Exposure Reporting
- Risk Governance and ALM
- Impacts on ROE and ROA
- Business unit management responses
Current Key Focus of Banks – Best Practices
- Strategic ALM as Basel III Imperative
- Strategic ALM as capital management
- Economic and regulatory capital
- Basel identification of ALM failures
- Initial changes from market activities and trading
- Planning and pricing for liquidity
- Compliant transfer pricing of liquidity
- Market risk factor delineation
- Correlation and comprehensive risk measures
- Evolved VaR and tail risk metrics
- Stressed VaR approaches
- Likelihood of required Expected Shortfall metrics
- Credit risk and risk weightings changes
- Internal models approaches
- Portfolio Credit Risk Management
- Tools for managing regulatory credit risk capital
- Securitization challenges and regulatory changes
- Capital Requirements
- Counterparty Risks and rules
- Credit and Debit Valuation Adjustments
- Margining and collateralization
- Collateral hypothecation
- Bilateral and Central Clearing
- New capital on Central Clearing Parties
- New rules for initial and variation margining bilateral OTC
- Liquidity Risk Principles
- Liquidity Risk Framework
- Liquidity Sources and Costs
- Measurement of Liquidity Risk
- Optimal Management of Liquidity
- Key Liquidity Ratios and Reports
- Detailed analysis of LCR ratio template
- Detailed analysis of NSFR ratio template
- Liquidity Contingency Plan
Risk Aggregation / Capital Allocation
- Calculation of Regulatory and Economic Capital
- Integration of Risk Types
- Risk-adjusted Performance Measurement
- Risk Bearing Capability
- New capital issues relative to risk appetite
- Equity-linked capital issues
- Structured capital instruments
- Mandatories and Contingent Convertibles
- Planning, Budgeting, and Performance Evaluation
- Capital Adequacy and Risk Profile
Latest Issues and Controversies
- Incentive compensation rules
- Transactions taxes
- Disturbing divergences in market and credit risk models
- Different implementations in different countries
- What does the regulator expect from Banks?
- What can banks expect from regulators?
- Setting the stage for Basel IV?
William Blair Santos Allen
William Blair Santos Allen has over 35 years working in financial markets. Mr Allen is leading senior training consultant in the global financial arena. He has trained and consulted for most large financial institutions and many large corporates and investors in major markets around the world. He has published on various finance, investment, capital markets, derivatives, and risk management topics.
Before consulting, Mr Allen worked with J.P. Morgan in various capital markets, risk management, securities and derivatives trading, arbitrage, hedging, marketing and investment activities in London and New York. He helped form a group that advised clients on investment and risk management strategies and techniques. Mr Allen was a principal in a boutique M&A firm and has also worked as a portfolio manager and then chief investment officer of a university endowment. He continues today as a private advisor to several hedge funds.
Mr Allen took his MBA and Doctoral studies (DBA) in capital markets at the Harvard Business School and was involved in various research and teaching roles in academia as well as post-doctoral work in monetary economics. Early in his career, he received the Elijah Watts Sells Award and the John S. Glenn Gold Medal for outstanding performance on the Certified Public Accountants (CPA) examination while with Ernst and Ernst (now Ernst & Young). Mr Allen was awarded the Robert Beyer Bronze Medal for outstanding performance on the Certified Management Accounting (CMA) examination. And he earned the professional designation of Chartered Financial Analyst (CFA). He also participates in the CFA’s Certificate in Investment Performance Management (CIPM). Mr Allen is a speaker and panelist for various regulatory and supranational conferences, as well as many industry professional associations. He is a certified practitioner by the Global Association of Risk Professionals (GARP), and the Professional Risk Management International Association (PRMIA).
The cost of the Basel III: New Regulatory Requirements training course is available upon request.
Global markets move quickly, evolving continuously and deepening in complexity. Over the past decades London Financial Studies has provided specialist executive education programs and short courses focused exclusively on global capital markets. Preparing only the highest quality and most relevant...