Banking Regulations (Basel III & IV) – (Intermediate)

The objective of the course is to examine the significant changes implemented in the Basel framework since the 2008 Financial Crisis, to understand how Basel changes have been incorporated in banking regulations, and to analyse the impacts and constraints arising from the changes on business models. The course is designed to provide senior, experienced banking professionals with general and some technical understanding of the Basel 3 & 4 requirements being implemented internationally.

A main course goals is to underline and demonstrate growing importance of strategic balance sheet planning to optimise bank results under Basle constraints and biases. The course will cover additions. The course will cover Basel 3 / 4 development.  In all major risk areas including credit risk, market risk (with focus on banking book), operational risk, liquidity and macro-prudential areas including capital, recover & resolution planning, SIB requirements, TLAC, Pillar 2 ICLAAP, Pillar 3 disclosure and will touch on the importance of funds and liquidity transfer pricing (FTP) in the performance measurement (ROE & RAROC) and capital allocation process. 

At the end of this course, all participants will be able to:

• Explain the changes in banking sector regulatory requirements globally, in general, and in Egypt specifically, from the Basel 3 / 4 reforms and their impact on bank business models – such as corporate & retail banking and on- and off-balance sheet activities
• Analyse through exercises and case studies he importance strategic balance sheet and planning and optimisation
• Provide senior bankers with insights on improving business performance under the revised ‘Basel Comprehensive Framework (Dec 2019’) applicable to Egyptian banks.

• Introduction & overview of the Basel framework development from 1985 to present
• Basel 3 – Phase 1: Revised Pillar 1 regulatory capital amounts and types, Pillar 1 liquidity ratios (LCR & NSFR), ‘risk invariant’ Leverage Ratio, macro-prudential requirements
• Basel 3 – Phase 2: Revisions in Basel 2 credit, counterparty credit and operational risk standardised and revised risk measurement, RWAs and Pillar 1 capital requirements, Pillar 2 ICLAAP & economic capital measurement
• Basel 4: Enhanced Pillar 2 interest rate risk banking (IRRBB) requirements, Fundamental Review of Trading Book (FRTB) & revised Basel 2 market risk capital measurement and capital requirements, model risk management & validation requirements, TLAC, Pillar 3 reporting and disclosure requirements.