Course title

Challenges and opportunities after the Capital Requirements Directive IV / Capital Requirements Regulation. The National Discretions.

This course has been designed to provide with the knowledge and skills needed to understand:

1. The Capital Requirements Directive IV / Capital Requirements Regulation, Basel III and regulatory differences around the world.

2. The difficult national discretions and the impact on profitability. Regulatory arbitrage and differences in the cost of compliance.

This course is intended for microprudential supervisors.

About the Course

Introduction

Overview of the Capital Requirements Directive IV / Capital Requirements Regulation.

Introduction to the Capital Requirements Directive IV / Capital Requirements Regulation Amendments.

The important differences in the implementation of the Capital Requirements Directive IV / Capital Requirements Regulation.

The important changes after the CRD IV Package.

A. The new CRD IV Principles for risk management and corporate governance.

The major challenges for the Board of Directors.

The regulatory differences in the definition of the fit and proper requirements.

B. The new Quality of Capital.

The Common Equity Tier 1 major challenge. Regulatory differences and national discretions.

Investments held by banks in capital instruments of other banks and financial and insurance entities. Regulatory differences and national discretions.

The corresponding deduction approach and the changes in the business model.

Double Gearing and CRD IV.

C. The Risk Weighted Assets. Regulatory differences and national discretions.

D. The Capital Ratio. Regulatory differences and national discretions.

E. The new Global Liquidity Standards and the maturity transformation consequences. Regulatory differences and national discretions.

F. The Capital Conservation Buffer, the Leverage Ratio, the Countercyclical Capital Buffer, the challenges for Systemically Important Financial Institutions (SIFIs). Regulatory differences and national discretions.

G. Differences in Risk Modelling, Stress Testing and Scenario Analysis.

Why the new capital rules have a substantial impact on profitability. The Cost of Equity and the need for Common Equity Tier 1 capital and liquid assets.

Banks with insurance subsidiaries.

Asset management, investment banking, retail banking: The different impact on business from the interaction of Solvency II, CRD IV, Basel III, the Financial Conglomerates Directive (and its possible amendment), the decisions for Systemically Important Financial Institutions (SIFIs) and Global Systemically Important Financial Institutions (G-SIFIs).

Capital Requirements Directive IV / Capital Requirements Regulation and Basel iii and the Dodd Frank Act in the USA.

Closing remarks.

We can tailor the course to meet specific needs. You may contact us any time.


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