The Basel III Accord: From the New Responsibilities of the Board of Directors to the Impact on Profitability
This course has been designed to provide with the knowledge and skills needed to understand:
- The new role and responsibilities of the board of directors.
- What is different in the banking sector after the Basel iii Accord.
- The impact of Basel III on profitability.
This course is intended for board members (executive and non-executive directors) of Banks, Financial Conglomerates (FC), Financial Holding Companies (FHC) and Mixed Financial Holding Companies (MFHC).
Overview of the Basel III Accord.
Introduction to the Basel III Amendments.
The three pillars.
The important changes after Basel iii
A. The new Basel III Principles for risk management and corporate governance.
The major challenges for the Board of Directors.
The difficulties after the new fit and proper requirements.
B. The new Quality of Capital.
The Common Equity Tier 1 major challenge.
Investments held by banks in capital instruments of other banks and financial and insurance entities.
The corresponding deduction approach and the changes in the business model.
Double Gearing and Basel III.
C. The Risk Weighted Assets.
D. The Capital Ratio.
E. The new Global Liquidity Standards and the maturity transformation consequences.
F. The Capital Conservation Buffer.
G. The Leverage Ratio.
H. The Countercyclical Capital Buffer.
I. Challenges for Systemically Important Financial Institutions (SIFIs).
J. Systemically Important Markets and Infrastructures (SIMIs).
K. Differences in Risk Modelling, Stress Testing and Scenario Analysis.
The VaR shortcomings: The normality assumption.
Systemic risk in banks’ risk models.
The new Financial Stress Testing.
Challenges and Opportunities
The Basel iii Accord for banks and the Solvency ii Directive for insurance firms. A comparative analysis.
Why the new capital rules have a substantial impact on profitability.
Banks with insurance subsidiaries.
Asset management, investment banking, retail banking: The different impact on business from the interaction of Solvency II, Basel III, the Financial Conglomerates Directive (and its amendments), the decisions for Systemically Important Financial Institutions (SIFIs) and Global Systemically Important Financial Institutions (G-SIFIs).
Capital intensive products and the “originate and distribute” model after Basel III and Solvency II.
Investment strategies after Basel III.
Basel iii and the Dodd Frank Act in the USA.
Challenges and opportunities for banks in the EEA.
Minority investments after Basel III.
Regulatory Arbitrage after Basel III.
We can tailor the course to meet specific needs. You may contact us any time.
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