Basel III, the subject is all over the press but few banks and investment firms have so far tried to assess its impacts. The changes introduced by Basel III and CRD (Capital Requirement Directive) 4, its European Union implementation, will have fundamental implications for banks and investment firms. Strategic, structural and operational adjustments are likely to be required. Indeed, Basel III must not be considered as a new version of Basel II, as some of the changes are paramount, in particular with the introduction of strict liquidity requirements, tougher capital definitions and the introduction of a leverage ratio.
Regulatory change is a complex challenge that can only be addressed with a coherent and comprehensive approach. However despite complexity and uncertainty, there are practical and concrete actions that can be taken now to prepare for a Basel III world.
This training course is designed as the first but essential step to grasping Basel III’s full implications. It will be based around some level of theory but also around case studies. The training will also integrate a significant amount of market feedback and insight. It will be based around some level of theory but also around case studies. The training will also integrate a significant amount of market feedback and insight.
At the end of the training, participants will be able to:
- Describe the starting point and objectives of legislative package to strengthen the regulation of the banking sector;
- Explain the most important provisions resulting from the Basel III regulation;
- Identify the issues impacting their business and take appropriate actions.
1. From Basel II to Basel III
- Basic principles
- From Basel II to Basel III – Lessons learned from the recent financial crisis
2. Evolution of the minimum capital requirements and introduction of buffers
- Modification of the Capital definition & associated potential fiscal impacts
- Capital Conservation Buffer
- Countercyclical Buffer
- Risk Coverage (counterparty credit risk & reliance on external credit ratings)
3. Introduction of a Leverage Ratio
4. Basel III from a Liquidity Perspective
- Liquidity Coverage Ratio (LCR): objectives and definitions
- Net Stable Funding Ratio (NSFR): objectives, definitions and uncertainty
- Monitoring tools: contractual maturity mismatch, concentration of funding, available unencumbered assets, LCR by 3 significant currencies, market-related monitoring tools
- From Basel III to CRD4/CRR
- Impact assessment
5. Expected strategic and operational impacts for the market, as well as an overview of the initial feedback received from Luxembourg institutions
6 - A high-level look at the new reporting associated with the introduction of CRD 4
- Chief Financial Officers (CFOs)
- Risk Managers
- Personnel and executives working for the internal audit or compliance department
- Personnel and executives working for the accounting & reporting department
- Financial analysts
- Credit analysts
- Liquidity specialists
Comments from past participants
- "focuses on practical issues"
- "Very good synthetic view of this complex subject"
Our lead experts
This training is coordinated by Jean-Philippe Maes, Partner at PwC Luxembourg who is involved in Basel II & III issues.
Language : English
This training is also available in French and German.
Number of participants : limited to 20 participants to ensure good interactivity.
Duration : 1 day