Basel 3 & the road to Basel 4

Course outputs :-

Understand the most important changes in the Basel II capital adequacy standard
Understanding the two liquidity ratios according to Basel 3
Understand the features and requirements of the recent reviews of the RWA calculation method
Presenting potential future developments in the way credit and operational risks are calculated
Identifying new improvements to the standard approach to measuring credit risk

Basel 3 :-

The reasons for Basel 3
The most important amendments within Basel 3 Improving the quality of capital
Increasing the capital adequacy ratio
Use of the leverage ratio
Developing ratios to monitor liquidity Improving risk coverage Reducing the impact of the business cycle
A global benchmark for liquidity Improving institutional governance
Conservative margin
Capital Adverse
Leverage ratio
Locally important banks

Basel 4 :-

Drivers of change in the standardized method for measuring credit risk
An overview of the final Basel III reform basket
Adapting to the evolving standards of capital measurement tools
Planning and preparing for the application of the new review to measure credit risk, starting from 1/1/2021
Key considerations for risk weighted assets
New treatment of exposures to banks
New reviews of exposures to major companies
New requirements for the regular retail portfolio
Home loan portfolio
Commercial real estate loan portfolio
New requirements for a portfolio of bad or non-performing debt
An overview of the new standardized approach to measuring operational risk

Target participants :-