Capital Requirements Directive IV / Capital Requirements Regulation: 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, in the EU, the USA and the world, after the CRD IV Package.
- The impact of the CRD IV 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).
Synopsis (will be tailored to meet requirements)
- Overview of the Capital Requirements Directive IV / Capital Requirements Regulation.
- Introduction to the major changes after the Capital Requirements Directive IV / Capital Requirements Regulation.
- The three pillars.
The important changes after the Capital Requirements Directive IV / Capital Requirements Regulation
- A. The new CRD IV Principles for risk management and corporate governance.
- The major challenge 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.
- 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 new Financial Stress Testing.
Challenges and Opportunities
- The Capital Requirements Directive IV / Capital Requirements Regulation 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, CRD IV, 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 intensive products and the “originate and distribute” model after the CRD IV and the Solvency II directive.
- Products that will meet insurers' future investment needs.
- Investment strategies after the CRD IV package and the Solvency II directive.
- The Capital Requirements Directive IV / Capital Requirements Regulation and the Dodd Frank Act in the USA.
- Regulatory Arbitrage after the Capital Requirements Directive IV / Capital Requirements Regulation and Basel III.
- Closing remarks.
We can tailor the course to meet specific requirements.