Basel Bank Capital Adequacy (Basel Ii, Iii, & Iv)

Understanding & Implementing the Basel II, III, and IV Accords for Credit, Market, Liquidity, and Operational Risk

What you'll learn

The concepts of capital adequacy under Basel I, II, III, and IV accords/frameworks and elaborate on the changes introduced by each framework.

The key financial regulations around Basel Capital Adequacy requirements by examining the roles of BCBS, EBA, PRA, OSFI etc., in implementing Basel requirements

The key attributes/parameters used in deriving Risk-Weighted Assets (RWA) for credit, operational, and market risk.

High-level analysis of the key changes introduced in Basel IV to Risk-Weighted Asset calculation for Credit Risk, Operational Risk & Market Risk.

Requirements

There are no prerequisites or requirements to take this course.

Description

This Comprehensive Basel Bank Capital Adequacy training program is designed to provide participants with a deep understanding of the Basel II, Basel III, and Basel IV capital adequacy frameworks. The program will cover the following topics:The history and development of the Basel AccordsThe different types of capital and how they are calculatedThe risk weighting system and how it is used to determine capital requirementsThe different Basel III standards, including the Common Equity Tier 1 (CET1) ratio, the Capital Adequacy Ratio (CAR), and the Leverage RatioThe new Basel IV standards and how they are different from Basel IIIThe program will also discuss the importance of Basel Bank Capital Adequacy for the global financial system and how it helps to protect banks and depositors from financial crises.Learning ObjectivesUpon completion of this course, you will be able to:Explain the Basel Bank Capital Adequacy framework and its objectivesIdentify the different types of capital and how they are calculatedCalculate capital requirements under Basel II, Basel III, and Basel IVUnderstand the significance of Basel Bank Capital Adequacy for the financial systemPrerequisites:No prior knowledge of the Basel Bank Capital Adequacy framework is required.AssessmentParticipants will be assessed on their understanding of the course material through a series of quizzes and a final exam.

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: Basel II Framework

Lecture 2 Introducing Basel II

Lecture 3 Highlights of the Basel II Framework

Lecture 4 Basel II: The Three Pillars

Lecture 5 Introducing Pillar I

Lecture 6 A High-Level Summary of the Basel II Framework

Section 3: Basel II Credit Risk

Lecture 7 What is Regulatory Capital?

Lecture 8 Risk Weighted Asset & Capital Ratio

Lecture 9 What is Credit Risk?

Lecture 10 Basel II: Standardized Approach

Lecture 11 Exposure to Sovereigns

Lecture 12 Exposure to Public Sector Entities

Lecture 13 Exposure to Multilateral Development Bank

Lecture 14 Exposure to Banks

Lecture 15 Exposure to Corporates

Lecture 16 Retail Exposures

Lecture 17 Residential & Commercial Mortgage Exposures

Lecture 18 Past Due Exposures

Lecture 19 High Risk Exposures & Equity Exposures

Lecture 20 Original Exposure Calculation

Lecture 21 Exposure Value Calculation

Lecture 22 Credit Risk Mitigation

Section 4: Basel II: Standardized Approach Examples

Lecture 23 Basel II: Standardized Approach Examples

Section 5: Basel II Internal Ratings Based Approach

Lecture 24 Internal Ratings Based Approach

Lecture 25 Asset Classes and Risk Components

Lecture 26 Basel II IRBF – Asset Class

Lecture 27 BASEL II IRBF: Probability of Default

Lecture 28 BASEL II IRBF: LGD & Maturity

Lecture 29 Basel II IRBF – EAD Calculation

Lecture 30 Key Input Fields for EAD Calculation

Lecture 31 Basel II – Calculation of Risk Weight & RWA under the Basel II IRBF

Lecture 32 Basel II IRBF – Mitigant

Section 6: Basel II IRBF Calculation Examples

Lecture 33 Basel II IRBF: Example Excercises

Section 7: Basel II Advanced Internal Ratings Based Approach

Lecture 34 Basel II IRBA – Asset Class

Lecture 35 Basel II IRBA – Probability of Default

Lecture 36 Basel II IRBA – Loss GIven Default (Distinct)

Lecture 37 Basel II IRBA – Maturity

Lecture 38 Basel II IRBA – EAD Calculation

Lecture 39 Calculation of Risk Weight for Wholesale Exposures under IRBA

Lecture 40 Calculation of Risk Weight for Retail Exposure under the IRBA

Lecture 41 Key Input Fields for EAD Calculation under the IRBA

Lecture 42 Basel II IRBA – Expected Loss Calculation

Lecture 43 Basel II IRBA – Exposures in Default

Lecture 44 Basel II IRBA – Mitigation

Section 8: Basel II Operational Risk

Lecture 45 Basel II Operational Risk Introduction

Lecture 46 Basel II Operational Risk Methodologies

Section 9: Basel II Market Risk

Lecture 47 Basel II – Market Risk Introduction

Lecture 48 Overview of CIU Market Risk

Lecture 49 CIU Risk Calculations

Section 10: CIU Risk Calculation Examples

Lecture 50 CIU Risk Calculation Examples

Section 11: Basel II Equity Market Risk

Lecture 51 Equity Market Risk Overview

Lecture 52 Basel II – Equity Specific Risk Own Funds Capital and Equity General Own Funds

Lecture 53 Dividend Products Own Funds & Synthetic Dividend Products Own Funds Capital

Lecture 54 Own Funds Capital Requirement & Position Subject to Capital Charge

Section 12: Equity Risk Calculation: Examples

Lecture 55 Equity Risk Calculation: Examples

Section 13: Introduction to Basel III

Lecture 56 Introduction to Basel III

Lecture 57 Highlights of Basel III

Section 14: Basel III Capital Requirement

Lecture 58 Basel III Capital Composition

Lecture 59 Basel III – Mandatory Capital Conservation Buffer

Lecture 60 Discretionary Countercyclical Capital Buffer

Lecture 61 Capital for Global Systematically Important Banks (GSIBs)

Section 15: Basel III Liquidity Risk

Lecture 62 Liquidity Risk and Liquidity Risk Management

Lecture 63 Developments that Led to the 2008 Financial Crisis and the regulatory response

Lecture 64 Leverage and Liquidity Risk

Lecture 65 Objectives of the LCR and Calculation of the LCR

Lecture 66 High Quality Liquid Assets

Lecture 67 Cash Flow Measurement

Lecture 68 LCR Implementation Timeline

Lecture 69 Overview of the NSFR

Lecture 70 Available and Required Stable Funding

Section 16: Basel III Leverage Ratio

Lecture 71 Leverage Ratio

Section 17: Introduction to Basel IV

Lecture 72 Introduction to Basel IV

Section 18: Basel IV Credit Risk

Lecture 73 Basel IV – Credit Risk Standardised Approach

Lecture 74 Basel IV – Exposure to Sovereigns, PSEs and MDBs.

Lecture 75 Basel IV – Exposure to Banks

Lecture 76 Basel IV – Exposure to Covered Bonds

Lecture 77 Basel IV – Exposure to Corporates.

Lecture 78 Basel IV – Specialized Lending Exposures

Lecture 79 Basel IV STD: Subordinated Debt, Equity, and Other Capital Instruments

Lecture 80 Basel IV – Exposure to Retail

Lecture 81 Basel IV – Exposures secured by Residential Real Estate

Lecture 82 Basel IV – Exposures Secured by Commercial Real Estate

Lecture 83 Basel IV – Land Acquisition, Development and Construction Exposures

Lecture 84 Basel IV – Currency Mismatch Multiplier

Section 19: Basel IV Internal Ratings Based Approach

Lecture 85 Basel IV – Internal Ratings Based Approach

Lecture 86 Basel IV IRB – PD & LGD Parameter Floors

Lecture 87 Basel IV IRB – Other Changes

Section 20: Basel IV Operational Risk

Lecture 88 Basel IV – Operational Risk

Lecture 89 Basel IV: Operational Risk Standardised Approach

Lecture 90 Basel IV: Operational Risk Capital Requirement

Section 21: Basel IV – Capital Flooring

Lecture 91 Basel IV – Capital Flooring

Section 22: Basel IV – Leverage Ratio

Lecture 92 Basel IV – Leverage Ratio

Section 23: Conclusion

Lecture 93 Conclusion

Section 24: Final Assessment

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