INTRODUCTION TO BASEL III - Extempore Training Introduction to... · INTRODUCTION TO BASEL III Getting to grips with proposed ... specific topics around Basel III for class discussion

INTRODUCTION TO

BASEL IIIGetting to grips with proposed regulatory changes and their

potential implications

London Dates: 7-8 November 2016

COURSE LEADER: Dr Andrew Street, Ex-regulator and Basel III expert

Key benefits: � An up-to-the-minute guide to the key elements outlined in the new Basel III

proposals

� A detailed understanding of the proposed timetable for the implementation and thelikelihood of firms being able to meet these deadlines

� A comprehensive grasp of the intricacies outlined in the Basel III proposals –Pillars I, II and III and how they differ from what was initially outlined in Basel II

� An insight into the impact Basel III will have on all aspects of a bank, the businessmodel, the different departments, the banks’ overall strategy and how banks arefundamentally structured and managed in the future

� An appreciation of implementation issues and challenges that will need to beconsidered and overcome

Good speaker… Excellent background!Paulus Callebaut, NBB“ ”

www.iff-training.comTel: +44 (0)20 7017 7190 / Email: [email protected]

We can deliver this course in-house:Your company, your content, your

location, your needs

Contact Jeff Hearn: +44 (0)207 017 [email protected]

1268 Intro to Basel III_CREDIT RISK 20/05/2014 12:34 Page 1

INTRODUCTION TO BASEL III Is Basel III the answer? Will increased regulation prevent another credit crisis? These questions are yet to be answered but Basel III is gradually rolling out as planned...

It is no secret that regulation has been scrutinised heavily in light of the credit crisis. The collapse of Lehmans, the credit crunch andongoing financial crises such as euro zone sovereign debt, have prompted a radical overhaul of global banking regulation by the BaselCommittee on Banking Supervision (BCBS). These reforms recently announced are known generally as Basel III and are extensions ofthe previous Basel Accord (1988) and the more recent Basel II (2007). Collectively, they will have a major effect on the way banksstructure themselves and their businesses, as well as the way they measure and manage risk.

It is crucial to stay abreast of these proposed changes in order to be prepared for what the future holds. In this course we will look atthe development of the Basel Accords and specifically the proposed changes under Basel III. We will look at how these changes willaffect current practices and the organisation of business and its controls. This course will emphasise the practical impacts of the BaselIII proposals and consider how these can be best implemented.

There is no doubt these changes will have a dramatic impact on you and your business and the only way to make sure thatyou continue to succeed despite of them, is to stay informed and be prepared. Book on this course now and make sure youare fully equipped when the time comes!

Course Leader: Dr Andrew StreetDr. Andrew Street was formerly Executive Director – Head of Arbitrage and prior to that Director – Head of Equityand Commodity Derivatives at Mitsubishi Finance Intl (now Bank of Tokyo-Mitsubishi). Before moving to Mitsubishihe was Head of Equity Derivative Trading at Nomura International and Senior Equity Derivatives Trader at ParibasCapital Markets.

Andrew began his career in the City in the mid-1980s as a fixed income quantitative analyst and structured productsspecialist at Barings. In addition to his extensive market practitioner experience, Andrew has been a senior financialregulator including being Head of Traded Risk at the Financial Services Authority (FSA) and Assistant Director -Head of Market Risk at the Securities and Futures Authority (SFA). This has provided him with a unique insight in tothe control, regulation and modelling of financial risk across the whole spectrum of financial institutions globally.


WHY CHOOSE IFF AS YOUR TRAINING PROVIDER?

• Track Record – we have over 20 years’ experience of providing training to the banking, finance and energy sectors.• Relevance – training courses are designed for small delegate groups which ensures you maximise the time and contact with your course

director• Innovation – our courses are continually reviewed so you can be sure they are focusing on the most current issues.• Knowledge – all of our trainers are highly experienced and are world leading subject matter experts in the field they teach so you can be

confident you are learning from the very best.• Small class sizes – to aid knowledge acquisition and increase your personal interaction with the trainer• Value – our philosophy has always been to provide a practical training experience with skills that can be used to gain a tangible return on

your investment.• Accreditation – we are accredited by the British Accreditation Council (BAC)

Many organisations have realised that IFF in-companycourses offer so much more than conventional courses.Here’s why:• We focus on providing our clients with training solutions that arespecifically designed for them in order to help them addresstheir key business challenges

• IFF programmes are designed by practitioners for practitioners.We equip our clients with the practical skills and knowledgethey need to succeed

• Our international faculty of trainers are some of the world’sleading experts in their chosen field. We only use the bestminds in the business

• We’ve been supporting our clients for over 20 years; you can besure that, as such, our track record makes us the lowest risktraining partner you could find

• By focusing on the business issues behind the training need,we can ensure that the content and focus are targeted 100% onthe needs of the business

• Quality is critical to our success. Our reputation has been builtover 20 years by delivering programmes of the higheststandard. We will never compromise on our desire to ensurethat our courses surpass the expectations of our clients, notmeet them.

IFF is the chosen in-company training provider for some ofthe world’s leading financial institutions, so rest assuredyou’ll be in good company. We’ll also meet with youanywhere around the globe. Only by understanding our clients’ business issues can we hopeto add substantial value. That’s why we work with our clients faceto face all over the world. If you would like one of our consultantsto meet with you to talk about your needs in more detail or if youwould simply like more information as to how you’ll benefit fromour in-company programmes, please contact Jeff Hearn(Managing Director) on +44 (0) 20 7017 7190 or email:[email protected]

IN-COMPANY TRAINING SOLUTIONSSAVE MONEY – IMPROVE PEFORMANCE – REDUCE RISK

If you have four or more people to train, our in-company courses can be delivered for you anywhere in the world and are the perfect solution for you.


Your comprehensive course agenda

Introductory Background• Overview of banking – balance sheet, gearing,asset types, interest margin, funding sources

• Background to banking regulation and localregulators

• Definitions of capital and return on equity, capitalratios, RWA

• Market risk types• Credit risk types• Operation risk types• Liquidity risk• Other risks• Measuring risk• Regulatory failures and other issues

Lehman Brothers and the credit crunch

Evolution of International BankingRegulation• Original Basel Accord (1988) and purposes /weaknesses

• Banking Book / Trading Book split• Basel II background and purposes• The Three Pillars approach – implications• Capital Rules under Basel II• Risk management and disclosure under Basel II

Calculating Regulatory Capital

Overview of Basel III Proposals• What are the fundamental new proposals underBasel III?

• Definitions of Regulatory Capital – Tier 1, 2 and 3• Amount of capital – increased base requirements,stricter definition

• Hybrid capital issues – CoCos and others• Ratios between Regulatory Capital Tiers• Conservation and other capital buffers• Anti-cyclical buffers• Systemically Important Financial Institutions(SIFIs)

• Liquidity standards and ratios – stable funding• Leverage ratios• Other issues

Time Table for Basel III• What is the likely implementation time scale?• How will implementation be phased in?• What about firms which are not yet Basel IIcompliant?

Basel III in More Details• Pillar I issues• Minimum capital standards• Liquidity• Stressed VaR• Cva• Internal ratings• Economic capital• Pillar II issues• Firm wide risk management• Capital modelling and planning• Pillar III issues• Greater risk disclosure• Transparency• To what extent do these go beyond Basel II?

Impact of Basel III• How will Basel III affect a bank’s business model?• Funding issues – use of repo, interbank, deposits• Capital issues• RoE• Lending businesses• Trading businesses• Structured products• Securitisation• Other business types• Designation of SIFI• How will this effect bank strategy?• Will it change how banks are structured andmanaged?

Implementation Issues• What challenges does Basel III present for banks?• Systems and data• Personnel and training• Internal controls and monitoring• Reporting and documentation• Models and modelling• Capital raising• Strategic reviews

Capital Modelling

Delegates are invited to introduce specific topics around Basel III for class discussion

Introduction to Basel III


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INTRODUCTIONTO BASEL III

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What happens if I have to cancel?The following charges will apply for written notice received: 30 +days before the course: 10%, 15–30 days before the course: 50%,1–15 days before the course: 100%In the unfortunate event that a course is cancelled, IFF Ltd are notliable for any costs incurred by participants in connection with thecourse.

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International Faculty of Finance, KNect House30-32 Mortimer StreetLondon W1W 7RE


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International Faculty of Finance KNect House30-32 Mortimer StreetLondon W1W 7RE

IFF Training is accredited by the BritishAccreditation Council (BAC). The BritishAccreditation Council is recognisedinternationally and provides the clearest mark ofeducational quality and excellence. Accreditationby BAC is recognised by the UK Border Agencyso the fact that IFF is BAC-accredited shouldhelp with your visa application.

If you would like us to contact you with a registration form via email,please tick which date you wish to register for, providing your contactdetails below in BLOCK CAPITALS. You can send this to us, using thecontact details above.

Course: 2 day IFF Introduction to Basel III Training CourseVenue: Central London

□ 7-8 November 2016 (FLF3774)

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Administration Details:Cost: Including documentation, lunch & refreshments yourinvestment in this course is £1,999 + VAT= £2,398.80The VAT is subject to change and may differ from the advertised rate.The amount you are charged will be determined when your invoice israised. (Our VAT number is: 365 4626 36)

PLACES CANNOT BE GUARANTEED UNTIL FULL PAYMENT HASBEEN RECEIVED.Methods of Payment (Our VAT no is 365462636):By Bank Transfer, Cheque or Credit Card*if you would like to pay by credit card, please register via our secure paymentswebsite at www.iff-training.com, otherwise details of alternative ways to pay will beon the invoice you receive after registration. To ensure we provide the highest levelof security for your credit card details we are unable to accept such payments viaemail or fax which ensures that these details are never stored on our network.

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INTRODUCTION TO BASEL III - Extempore Training Introduction to... · INTRODUCTION TO BASEL III Getting to grips with proposed ... specific topics around Basel III for class discussion