Why Basel III knowledge is essential for professionals

The importance of Basel III lies in its central role in enhancing the resilience and stability of the global financial system. Basel III is a comprehensive set of reforms designed to strengthen bank capital requirements, improve risk management, and increase the overall transparency of the banking sector.

For professionals in risk management, compliance, audit, and management consulting, understanding Basel III is not just a regulatory necessity but also a strategic asset. Professionals who understand the objectives and mechanisms of Basel III are better positioned to adapt to evolving regulatory environments and contribute to long-term financial stability. Basel III knowledge provides a competitive edge, demonstrating expertise in critical areas of financial regulation and risk management.

In the European Union (EU), the Basel III framework is implemented through two key legislative instruments: The Capital Requirements Directives (CRDs) and the Capital Requirements Regulations (CRRs). Their design, scope, and implementation are deeply intertwined with the Basel III framework. Without a foundational understanding of Basel III, it becomes nearly impossible to grasp the objectives, structure, and operational impact of the CRDs and CRRs.

In the United States, the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) has strengthened oversight of financial institutions and provided a framework for integrating Basel III requirements, including stricter capital and liquidity rules. The principles of Basel III underpin key elements of the Dodd-Frank Act, particularly in areas concerning risk management, capital adequacy, liquidity standards, and systemic risk mitigation. Without an understanding of Basel III, interpreting the objectives and mechanisms of the Dodd-Frank Act is challenging.

The United Kingdom is fully compliant with Basel III. There is additional focus on climate-related stress testing and sustainable finance.

In Australia, the Australian Prudential Regulation Authority (APRA) ensures compliance with the Basel iii rules. APRA applies stricter requirements for domestic systemically important banks (D-SIBs).

In India, the Reserve Bank of India (RBI) ensures that the Basel III standards are implemented. India's position as a global outsourcing hub makes its service providers integral to the operations of international banks. For Indian service providers, a deep understanding of Basel III is crucial to effectively meet the complex regulatory and operational needs of international banks.

Canada is fully compliant with Basel III, with enhanced capital adequacy and liquidity rules for large banks.

In Japan, Basel III standards are fully implemented for internationally active banks. Domestic banks follow slightly relaxed rules.

In the Kingdom of Saudi Arabia, the Saudi Central Bank (SAMA) enforces the Basel III standards. Banks have high capital adequacy ratios compared to global peers. There is additional focus on Islamic banking regulations.

In Turkey, the Banking Regulation and Supervision Agency (BDDK) has adopted the Basel III standards. There is additional focus on strengthening the resilience of smaller banks.

While Basel III is primarily driven by the G20 economies, its principles are designed to have a global reach. Many non-G20 countries have adopted Basel III standards, often with adjustments to suit local financial systems and economic realities.

Understanding the local rules is impossible without a foundational knowledge of Basel III. The local regulations build on Basel III’s principles and terminology. Professionals working in compliance, risk management, or regulatory advisory must first master Basel III before interpreting or applying local rules effectively.


The Basel iii Compliance Professionals Association (BiiiCPA)

The Basel iii Compliance Professionals Association (BiiiCPA) is the largest association of Basel iii Professionals in the world. It is a business unit of the Basel ii Compliance Professionals Association (BCPA), the largest association of Basel ii Professionals in the world.

Both associations are wholly owned by Compliance LLC, a company incorporated in Wilmington, NC, and offices in Washington, DC, a provider of risk and compliance training in 58 countries. Several of its business units function as highly successful associations, offering a wide range of services to their members, including membership, regular updates, specialized training, and certification.

The president of the Basel iii Compliance Professionals Association (BiiiCPA) is George Lekatis, a well-known expert in risk management and compliance.


George Lekatis is also the president of the International Association of Risk and Compliance Professionals (IARCP, https://www.risk-compliance-association.com). He leads the team responsible for developing and maintaining the Certified Risk and Compliance Management Professional (CRCMP) program. The CRCMP certification is widely regarded as a preferred credential by companies and organizations. For more information on the demand for CRCMPs, you may visit: https://www.risk-compliance-association.com/CRCMP_Jobs_Careers.pdf


CRCMP careers

George Lekatis has also established Cyber Risk GmbH (https://www.cyber-risk-gmbh.com) in Horgen, Switzerland, a strategic partner and service provider of Compliance LLC. The company specializes in providing advanced cybersecurity and compliance training, helping organizations navigate and implement complex European, U.S., and international cybersecurity regulations. Additionally, Cyber Risk GmbH supports professionals in completing online training programs, passing exams, and obtaining Certificates of Completion, which serve as independent verification of their expertise for firms and organizations.

Cyber Risk GmbH carefully monitors the regulatory challenges and opportunities in the EU, and offers online training programs for the NIS 2 Directive (NIS 2), the Digital Operational Resilience Act (DORA), the Critical Entities Resilience Directive (CER), the Digital Services Act (DSA), the Digital Markets Act (DMA), the European Chips Act, the European Data Act, the European Data Governance Act, and the European Artificial Intelligence Act.


Membership and certification

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RR

In the Reading Room (RR) of the association you can find our monthly newsletter - "Top Basel iii related risk and compliance management news stories and world events, that (for better or for worse) shaped the month's agenda, and what is next". Our Reading Room

contact us

Lyn Spooner
Email: lyn@basel-iii-association.com

George Lekatis
President of the BiiiCPA
1200 G Street NW, Suite 800, Washington, DC 20005, USA – Tel: (202) 449-9750
Email: lekatis@basel-iii-association.com

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